Totally PLC Trading update (1311J)

TIDMTLY

RNS Number : 1311J

Totally PLC

25 April 2022

Certain information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 as amended by Market Abuse (Amendment) (EU Exit) Regulations 2019/310. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

25 April 2022

Totally plc

("Totally", the "Company" or the "Group")

Trading update

The Board of Totally plc (AIM: TLY), a leading provider of frontline healthcare services, corporate fitness and wellbeing services across the UK and Ireland, today announces an update on trading for the 12-month period ended 31 March 2022.

Outstanding trading performance

Based on unaudited draft numbers, the Group anticipates reporting EBITDA*, for the year ended 31 March 2022, substantially ahead of consensus market expectations of GBP5.4 million EBITDA and prior year of GBP5.0 million. This strong trading performance across the Group was driven by enhanced demand attributed to the impact of the global pandemic, which has increased demand for services and led to significant growth in waiting lists which has been regularly reported in the press. The Directors would like to put on record their thanks for the services provided by everyone who works for and with the Group.

As at 31 March 2022, the Company was in a healthy financial position with GBP15.3 million of net cash (31 March 2021: GBP14.8 million) which is particularly pleasing given that GBP7.4 million in cash has been utilised to complete two significant acquisitions during the period, in line with the Group's stated 'buy & build' strategy. The Company has no debt financing**. During the period the Company secured a GBP5.0 million rolling credit facility, should it be required at any time in the future. To date, this has not been utilised.

Partnering with healthcare commissioners and hospitals to respond to the ongoing, increased demand for services

The removal of COVID-19 restrictions for the general population during the year and the emergence of the several COVID-19 variants increased pressure across all services, with demand at record levels. This trend impacted everyone working in the healthcare sector across the UK and Ireland. COVID-19 infection rates remain higher than ever, driving demand for NHS 111. A population no longer constricted by social distancing rules, and embracing their 'freedom' has increased demand for urgent treatment to unprecedented highs.

Our experienced management team has worked closely with healthcare commissioners throughout the year to enable us to respond to these challenges and support patients seeking care. Totally continues to work with our partners to ensure that we can support healthcare delivery wherever demand for services is increasing.

Totally continues to operate all services in line with guidance for healthcare providers to protect our staff and service delivery. This means that all staff must still use PPE (Personal Protective Equipment) and continue to test regularly using LFTs (Lateral Flow Testing). Recruitment and retention of staff has been a key challenge throughout the year and continues to be challenging. Nevertheless, Totally has maintained service delivery across all its contracts and provided additional capacity to its commissioners and other healthcare providers in response to growing demands upon healthcare services.

Strong market position

Totally continues to make strong progress with its stated strategy of delivering a range of quality healthcare services across the UK and Ireland in partnership with the NHS and other healthcare providers. Over the course of the 12-month period the Group was awarded new contracts totalling c. GBP59 million and contract extensions worth c. GBP72 million. The new contracts include:

-- New three-year contract with Kings College NHS Foundation Trust for a new Urgent Treatment Centre at Denmark Hill worth c. GBP12 million;

-- New five-year contract for the provision of GP out of hours (OOH) services in Staffordshire and Stoke valued at GBP45 million; and

-- Two new contracts for the delivery of NHS 111 online clinical services in North East England and South-East London Clinical Assessment Services (CAS) running for 3 months from January 2022 worth a total of GBP0.6 million.

Care Quality Commission (CQC) registered services continue to be rated as "Good" for all services, including those within Pioneer Health Care Limited ("Pioneer"), which joined the Group in March 2022. Pioneer has recently seen its services at Sloan Medical Centre in Sheffield rated as "Good" by the CQC across all domains.

Update on the acquisition of Pioneer Health Care Limited

The acquisition of Pioneer in March 2022 provides a significant opportunity for the Group as waiting lists for elective care continue to rise. Work to bring Pioneer and Totally Healthcare together to create a single, established provider of insourcing and outsourcing services (including Any Qualified Provider opportunities) under the Pioneer brand has commenced. The combined business will leverage the strengths within each organisation and provide resilient capacity to deliver much-demanded insourcing and outsourcing services across a wide range of surgical and medical specialities to NHS patients.

Since the acquisition was announced on 7 March 2022, we have made good progress. A strong and hugely experienced leadership team is in place to take forward the enlarged business. The opportunity available to the combined business is evident. Pioneer has seen a stepped increase in the number of enquiries from hospitals to assist with waiting list reduction. They have also secured multiple contract extensions which include the expansion of the medical specialties undertaken as well as an increase in the number of hospitals from where services are delivered. Contract extensions cover the whole of England but with a particular focus on the Midlands, Yorkshire and North of England including a contract extension for spinal services to run until 31 March 2024.

Since the acquisition Pioneer has also secured a new contract with the Countess of Chester Hospital in Chester which includes Gynaecology, Oral Maxillofacial Facial Surgery, Urology, Plastic Surgery and Ophthalmology specialties.

Update on the acquisition of Energy Fitness Professionals Limited ("EFP")

The acquisition of EFP in December 2021 brings the opportunity to offer diversification across existing contracts and enhance services targeting workplace fitness and wellness, including physical and mental wellbeing services. The acquisition also presents the opportunity for the Group to deliver enhanced digital services, which complement the existing service offerings of Totally and EFP, by harnessing the technical capabilities in both businesses and further developing digital offerings.

EFP has a large portfolio of 'blue-chip,' clients, which include the Royal Mail and QinetiQ, as well as Kingston University, and public sector services including Ministry of Justice, HM Treasury and Network Rail. EFP is benefiting from increased demand for corporate fitness and wellbeing services, which is further increased by leveraging existing relationships and opportunities, as well as the breadth of services available for customers across the Group.

Since the acquisition, EFP has mobilised two new contracts and work on the development of digital services, which is key to future strategy, has been initiated. It has also seen a strong increase in new opportunities and enquiries from businesses as employers encourage their workforces to return to work.

Financial Results for the 12-month period ended 31 March 2022

The Directors expect the Company to release its final results for the 12-month period ended 31 March 2022 in July 2022 when our Annual Report and Accounts is expected to also be available along with confirmation of the date for our Annual General Meeting.

* EBITDA is defined as earnings before interest, tax, depreciation and amortisation and excludes one-off exceptional items.

** Following the adoption of IFRS 16, the Company has reported operating lease commitments as a debt on its balance sheet however these do not affect the day to day working capital available to the Group.

For further information please contact:

 
 Totally plc                                        020 3866 3330 
 Wendy Lawrence, Chief Executive 
  Bob Holt, Chairman 
 
   Allenby Capital Limited (Nominated Adviser 
   & Joint Corporate Broker)                        020 3328 5656 
 Nick Athanas / Liz Kirchner (Corporate Finance) 
  Amrit Nahal (Sales & Corporate Broking) 
 
   Canaccord Genuity Limited (Joint Corporate 
   Broker)                                          020 7523 8000 
 Bobbie Hilliam/Alex Aylen 
 
   Yellow Jersey PR                                 020 3004 9512 
 Sarah Hollins / Henry Wilkinson / Annabelle 
  Wills 
 

Notes to editors

Totally plc is a leading healthcare service provider in the UK and Ireland, working in partnership with the NHS and other providers to deliver healthcare services through its divisions of Urgent Care, Planned Care and Insourcing.

On 16 December 2021, Totally acquired Energy Fitness Professionals Limited, an established corporate fitness provider with operations across the UK and a focus on workplace wellbeing.

Totally is committed to pursuing a progressive buy-and-build consolidation strategy within the fragmented healthcare market and looks to capitalise on the attractive opportunities that its disruptive service model offers, to generate value to shareholders.

Urgent Care

Totally offers a full range of urgent care services via its subsidiaries, Vocare and Greenbrook Healthcare, two of the largest urgent care providers in the UK, including:

-- NHS 111 services

-- Clinical Assessment services

-- GP Out-of-Hours services

-- Urgent Treatment Centres

www.vocare.org.uk

ww.greenbrook.nhs.uk

Planned Care

Totally delivers planned care services, which include community based Out-Patient Services, Referral Management Services, Physiotherapy and Podiatry Services. It provides these through its planned care subsidiaries, About Health, Premier Physical Healthcare and Optimum Physiotherapy.

www.abouthealthgroup.com

www.premierphysicalhealthcare.co.uk

www.optimum-hcs.com

Insourcing and Outsourcing

Launched in October 2019, Totally Healthcare provides bespoke insourcing solutions across multiple specialities to trusts and hospitals in the UK and Ireland, reducing waiting lists by utilising their spare capacity outside of normal working hours and at weekends. On 7 March 2022, Totally announced the acquisition of Pioneer Health Care Limited, an independent provider of specialist NHS secondary care services. Pioneer Healthcare and Totally Healthcare are being brought together to create a single, established, provider of insourcing and outsourcing services under the Pioneer brand.

www.totallyhealthcarelimited.com

www.pioneerhealthcare.co.uk

Energy Fitness Professionals Limited

An established corporate fitness provider with operations across the UK and a focus on workplace wellbeing.

www.energy-fitpro.co.uk

More information on Totally plc can be found at the following link: www.totallyplc.com.

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April 25, 2022 02:01 ET (06:01 GMT)