Interim results

RNS Number : 2217G

Totally PLC

14 November 2022

 

14 November 2022

Totally plc

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

Interim results for the six months ended 30 September 2022

Continued progress, well-positioned for current and future opportunities

Totally plc (AIM: TLY), a leading provider of a range of healthcare services across the UK and Ireland, is pleased to announce its unaudited interim results for the six months ended 30 September 2022.

Financial highlights

· Group turnover up 14.1% to 70.3 million (H1 2022: 61.6 million)

· Gross profit up 2.6% to 11.9 million (H1 2022: 11.6 million)

· Increase in EBITDA profit to 3.4 million (H1 2022: 3.3 million)

· Profit before tax of 1.0 million (H1 2022: 0.9 million)

· Cash position of 7.4 million at 30 September 2022 (31 March 2022: 15.3 million) reflecting the impact of changes in our working capital model and accelerated growth

· Proposed interim dividend of 0.5p per share (H1 2022: 0.5p) to be paid in February 2023

Operational highlights

· Delivered services to approximately 1.25 million patients during the reporting period

· Awarded extensions to 15 existing urgent care contracts amounting to c.£37 million in value, underpinning recurring income and reflecting the quality of service and strength of relationships with NHS partners

· Step in contract awarded for the provision of NHS 111 services in Devon valued at up to £850,000, which has been extended until January 2023 for an additional contract value of up to £700,000

· Five-year contract extension awarded to Energy Fitness Professionals for the management of gyms across 34 sites for the Royal Mail, worth c.£2.5 million and extending the existing 18-year relationship to provide additional services

·   One new contract and four contract extensions, collectively valued at approximately c.£9.5 million, awarded to Pioneer Healthcare to support the reduction of NHS waiting lists across multiple specialities

· All Care Quality Commission (CQC) registerable services continue to be rated as GOOD (including those recently inspected) reflecting Totally's commitment to excellent patient care during continued pressure across the healthcare industry

Chairman's statement

We are pleased to report the Group's interim results for the six months ended 30 September 2022.

The operating environment has continued to be challenging for everyone in healthcare, and as the winter months approach, cases of COVID-19 and seasonal flu are, as expected, on the increase. This brings both opportunities and challenges for the Group.  Totally has a strong track record of managing services in difficult conditions and was established to support the NHS in the management of demand fluctuations just like this.

Our most recent acquisition, Pioneer Healthcare, is responding to significant levels of demand for outsourcing and Any Qualified Provider (AQP) services.  Responding to this growth opportunity is a priority for the Group.

We remain committed to the delivery of high-quality, responsive services that support our partners, the NHS and commissioners. The scale of the opportunity remains significant, with demand outstripping supply and waiting lists continuing to sit at all-time highs.  We will continue to invest in our businesses and in new opportunities that enhance earnings opportunities and increase shareholder value.

I want to pass my ongoing thanks to our exceptional teams.  Our people are our greatest asset, helping us respond quickly, professionally and with flexibility to the needs of our NHS commissioners.

Bob Holt OBE

Chairman

14 November 2022

Operational review

The UK has experienced a comparatively easier period in terms of COVID-19 during the last six months. Nevertheless, demand has remained high and as the usual winter pressures begin to surface, cases of COVID-19 are now starting to rise again, alongside seasonal flu. We are already taking precautions to ensure the safety of our staff and our patients so that we can continue supporting our NHS colleagues when they need it most. 

Group performance was in line with management expectations in terms of revenue and earnings. Cash reserves are reduced as we invested in the delivery of services, supported recent acquisitions and positioned ourselves to provide further support to the NHS as it faces greater challenges than ever before. During the period we invested in new technology to support growth and security and managed a changing working capital profile following the acquisition of Pioneer Healthcare as outsourcing and AQP services increased. In accordance with the standard NHS contract, inflationary uplifts were applied to existing contracts and, due to current inflationary pressures, there is ongoing dialogue with commissioners regarding further adjustments.

As we enter what is traditionally the busiest period of the year for healthcare, plans for managing winter pressures are being finalised with NHS partners, including the potential for new and improved resilience services which will ensure that patients can continue to be treated quickly and to support the NHS's commitment to keep services operating throughout the winter period. We look forward to updating investors as these discussions conclude.

Urgent Care

Totally's Urgent Care division continues to deliver core services on behalf of the NHS across the UK, including 23 urgent treatment centres, GP out-of-hours, clinical assessment services, and online and telephonic 111 services.  We have seen a return to increasing demand within urgent care, with numbers of patients seen within urgent treatment centres significantly higher than the previous year.  The division was awarded 15 contract extensions during the period, collectively worth c.£37million. These extensions underpin recurring revenue by securing the continuation of existing contracts and demonstrate the excellent long-term relationships held between Totally and commissioners across the country. Our services will provide millions of people with access to the healthcare they need during what could be another difficult winter.

In addition, Totally has further demonstrated its ability to support the NHS by stepping in to deliver NHS 111 services within Devon.  The short-term, initial contract, worth up to £850,000 was rapidly mobilised to provide support during a period of difficulty and was awarded due to Totally's considerable experience in providing quality, resilient and responsive services.  We are now continuing to support the delivery of NHS 111 services in Devon until January 2023 in a further contract valued at up to £700,000.

During the period, Totally also retained GOOD overall ratings from the CQC for three urgent treatment centres in London: Northwick Park Hospital, Central Middlesex Hospital, and Ealing Hospital. This is a significant outcome during continued pressure across the healthcare industry and reflects Totally's commitment to excellent patient care.  As a result, all of Totally's CQC registerable services continue to be rated as GOOD.

Pioneer Healthcare

This is the first reporting period to include an update on Pioneer Healthcare, which now incorporates Totally Healthcare (our already established insourcing business). Demand for insourcing and outsourcing services continues to rise as focus increases on identifying ways to reduce waiting lists, which have continued to increase as patients come forward for treatment delayed due to the COVID-19 pandemic. Pioneer's national AQP (Any Qualified Provider) status places it in an excellent position to play a role in the reduction of waiting lists and respond to the latest commitment from the Government to ensure that patients can choose their preferred provider from all healthcare providers, including those in the independent sector.

As Pioneer's working capital model is different to the rest of the Group and income is not received as quickly as in other parts of the business, our cash position during the initial period of reporting has been disproportionately impacted, and in particular, over recent months as growth increased beyond management expectations.  The position will normalise over coming quarters.

Both insourcing and outsourcing represent significant growth opportunities for the Group.  During the period, the number of patients supported via insourcing and outsourcing increased substantially to c.22,000, reflecting the acquisition of Pioneer and growth.  In order to support the significant growth potential, Totally has and will continue to invest in Pioneer to ensure we remain able to support the NHS throughout this difficult period and respond to all growth opportunities.

During the first six months of the financial year, Pioneer has won a new one-year outsourcing contract valued at approximately £5 million, delivered new services across England awarded from framework agreements and been awarded four contract extensions for insourcing and outsourcing valued collectively at approximately £4.5 million.

We are now seeing an increase in opportunities as the NHS refines its plans to meet commitments for no further increases in waiting list numbers across England, and the continuation of services throughout winter. We expect this part of the business to continue to grow as a result.

Planned Care

Planned Care, which includes the delivery of physiotherapy services in clinics, health centres and prisons across England, is now operating at pre-pandemic levels. Community dermatology services are also back to full capacity and delivering face-to-face and remote services to NHS patients. We continue to work with commissioners to identify ways in which we can contribute to the reduction of the current backlog of patients whose referrals and treatments were delayed during the pandemic.

We are seeing new opportunities being presented by commissioners for physiotherapy services and dermatology services and will update shareholders as these opportunities materialise.

Energy Fitness Professionals

Revenue within Energy Fitness Professionals was strong due to three new contract wins, equipment installations for clients seeking to refresh their wellbeing proposition for staff and a five-year contract extension for the delivery of the Royal Mail's on-site gyms across 34 sites in the UK.  New c ontracts included gym refurbishment and the relaunch of an existing wellbeing service for global video game giant Electronic Arts ("EA") in the UK.  Alongside the refurbishment of the existing facilities at EA's UK office, Energy Fitness Professionals launched a new digital service enabling employees to view live gym information, communicate through the exclusive digital chat forum, make bookings, follow online workouts and programmes, and participate in live-streamed exercise classes such as yoga and pilates.

Outlook

The healthcare sector has responded to immense challenges over the last two and a half years and it continues to be a difficult time for all healthcare provider organisations. Healthcare operators must respond to increasing demands on recruitment alongside rising energy costs and inflation, whilst identifying ways to improve the healthcare outcomes of all patients and staying ready to respond to the challenges that COVID-19 continues to bring, as part of our new normal.  This requires all providers, the NHS and those within the private sector, to seek new ways of working and models of care.

We have proven that we can deliver quality patient care whilst services are under pressure and maintain GOOD ratings on all CQC registered services.

Recruitment remains a priority across the Group and we have invested significantly to ensure our growth trajectory is underpinned with robust systems and processes to ensure we can provide capacity to address service pressures. This is not a new challenge for Totally but one that we faced and responded to for many years.  Pioneer also has a well-established model for the recruitment of clinical staff, underpinned by long-term relationships, which somewhat protects this area of the business from the wider challenges of recruitment faced elsewhere.

In response to mounting financial pressures, experienced by all businesses within the UK, we continue to seek out and identify new opportunities to drive efficiencies as part of our business-as-usual cost management processes. This includes the close ongoing monitoring of all contracts held to ensure these remain viable both financially, and in terms of service delivery requirements.

Despite the recognised uncertainties that once again come with the winter period, we remain confident that the business is well-positioned, to continue to support the NHS through this ongoing challenge and the Board remains confident that results for the full financial year will be in-line with consensus market expectations.

I would like to thank our team for their continued hard work and commitment to delivering exceptional care. Similarly, we thank our shareholders for their continued support, and look forward to updating the market on further progress in due course.

Wendy Lawrence

Chief Executive Officer

14 November 2022

Investor presentation

Wendy Lawrence, Chief Executive Officer, and Lisa Barter, Chief Financial Officer, will provide a live presentation relating to the Company's interim results via the Investor Meet Company at 10:00 a.m. (UK) on Wednesday, 16 November 2022.  The online presentation is open to all existing and potential shareholders and will consist of a presentation followed by a Q&A session. Questions can be submitted pre-event via the Investor Meet Company dashboard or at any time during the live presentation.

Investors can sign up to Investor Meet Company for free and add to meet Totally plc via:

https://www.investormeetcompany.com/totally-plc/register-investor  

Investors who already follow Totally plc on the Investor Meet Company platform will automatically be invited.

For further information please contact:

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

Notes to editors

Totally is a leading provider of healthcare and wellbeing services across the UK and Ireland, working in partnership with the NHS, other healthcare providers and corporate customers to help address the challenges of increased demand for healthcare services.  

The Company 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.

Totally helps healthcare commissioners and hospitals ensure patients can access the most appropriate care quickly and efficiently by delivering quality urgent care services, such as NHS 111 and urgent treatment centres and elective care services, such as community dermatology clinics and first contact practitioner. Totally also delivers additional clinical capacity through insourcing and outsourcing arrangements to trusts and hospitals tackling growing waiting lists. Our corporate customer services also play a role in reducing reliance on healthcare by promoting healthy lifestyles and physical and mental health.

Totally Urgent Care

Totally Urgent Care is made up of Vocare and Greenbrook Healthcare. Both businesses have a strong heritage. Vocare was established in 1996 as Northern Doctors Urgent Care to provide urgent care services in the North of England and continues to deliver urgent treatment centres and GP Out of Hours services across the North of England as well as national support for NHS 111. Greenbrook was established in 2006 and cares for NHS patients across London and the home-counties through the delivery of urgent treatment centres.

Pioneer Healthcare

Pioneer Health Care was established in 2007 and has grown under the direction of three senior NHS consultants. Pioneer delivers a wide range of acute services to NHS patients, in partnership with independent healthcare sector private hospitals across England, to help the NHS reduce waiting lists whilst maintaining patient care and quality. Pioneer can offer services through insourcing and outsourcing agreements and through its Any Qualified Provider status. Totally Healthcare, Totally's insourcing business, which was launched in 2019 and previously made up Totally's insourcing division, was incorporated into Pioneer in 2022 following its acquisition.

Totally Planned Care

Totally Planned Care is made up of About Health and Premier Physical Healthcare. The businesses are focused on giving patients access to the right care quickly, reducing pressure on other NHS services and, ultimately, reducing waiting lists. About Health has been delivering community-based specialist care with a focus on delivering prompt assessment and treatment across the country since 2008. Premier Physical Healthcare, established in 2007, provides high quality physiotherapy and podiatry to NHS patients, often within a community GP practice, and to the prison service.

Energy Fitness Professionals ("EFP")

EFP is a corporate fitness provider established in 1990 to address a gap in the market for workplace fitness, which has grown to offer a range of services covering workplace wellbeing. EFP manages 58 gyms on behalf of its corporate customers, with more than 11,500 members.

More information can be found at:

www.totallyplc.com

Interim Consolidated Income Statement

For the six months ended 30 September 2022

	Six Months ended 30 September 2022 (unaudited) £000	Six Months ended 30 September 2021 (unaudited) £000	Year ended 31 March 2022 (audited)  £000
Revenue	70,300	61,566	127,373
Cost of sales	(58,376)	(49,952)	(104,504)
Gross profit	11,924	11,614	22,869
Administrative expenses	(8,516)	(8,309)	(16,730)
Other income	-	-	26
Exceptional items	-	-	(179)
EBITDA	3,408	3,305	5,986
Depreciation and amortisation	(2,249)	(2,309)	(4,516)
Operating profit	1,159	996	1,470
Finance costs	(119)	(75)	(210)
Profit before tax	1,040	921	1,260
Income tax	(150)	215	(179)
Profit after tax	890	1,136	1,081

Earnings per share
Basic: Pence	0.48	0.62	0.59
Diluted: Pence	0.47	0.62	0.58

Adjusted Earnings per share
Basic: Pence	1.06	1.13	2.04
Diluted: Pence	1.05	1.12	2.00

All activities relate to continuing operations.

Interim Consolidated Statement of Changes in Equity

For the six months ended 30 September 2022

	Share capital £000	Share premium £000	Retained earnings £000	Equity Shareholders' funds £000
At 1 April 2022 (Audited)	18,723	1,053	15,634	35,410
Comprehensive profit for the period (Unaudited)	-	-	890	890
Credit on issue of warrants and options (Unaudited)	-	-	61	61
At 30 September 2022 (Unaudited)	18,723	1,053	16,585	36,361
At 1 April 2021  (Audited)	18,219	2	15,753	33,974
Comprehensive profit for the period (Audited)	-	-	1,081	1,081
Issue of share capital (Audited)	504	1,051	-	1,555
Dividend payment (Audited)	-	-	(1,367)	(1,367)
Credit on issue of warrants and options (Audited)	-	-	167	167
At 31 March 2022  (Audited)	18,723	1,053	15,634	35,410
At 1 April 2021  (Audited)	18,219	2	15,753	33,974
Comprehensive profit for the period (Unaudited)	-	-	1,136	1,136
Issue of share capital (Unaudited)	7	10	-	17
Dividend authorised (Unaudited)	-	-	(456)	(456)
Credit on issue of warrants and options (Unaudited)	-	-	61	61
At 30 September 2021  (Unaudited)	18,226	12	16,494	34,732

Interim Consolidated Statement of Financial Position

As at 30 September 2022

	Six Months ended 30 September 2022 (unaudited) £000	Six Months ended 30 September 2021 (unaudited) £000	Year ended 31 March 2022 (audited) £000
Non-current assets
Intangible fixed assets	48,492	36,580	48,935
Property, plant and equipment	1,295	1,024	1,139
Right-of-use assets	1,526	2,533	2,336
Deferred tax	363	330	242
	51,676	40,467	52,652
Current assets
Inventories	72	74	74
Trade and other receivables	17,547	8,549	14,099
Cash and cash equivalents	7,441	18,282	15,311
	25,060	26,905	29,484
Total assets	76,736	67,372	82,136
Current liabilities
Trade and other payables	(30,594)	(27,968)	(36,629)
Corporation tax	(499)	(15)	-
Lease liabilities	(275)	(487)	(446)
Deferred acquisition consideration	(6,636)	(246)	(6,636)
	(38,004)	(28,716)	(43,711)
Non-current liabilities
Lease liabilities	(1,778)	(2,119)	(1,981)
Other payables	(47)	(1,080)	(22)
Deferred tax	(546)	(725)	(1,012)
	(2,371)	(3,924)	(3,015)
Total liabilities	(40,375)	(32,640)	(46,726)
Net current liabilities	(12,944)	(1,811)	(14,227)
Net assets	36,361	34,732	35,410
Shareholders' Equity
Share capital	18,723	18,226	18,723
Share premium account	1,053	12	1,053
Retained earnings	16,585	16,494	15,634
Equity shareholders' funds	36,361	34,732	35,410

Interim Consolidated Cash Flow Statement

For the six months ended 30 September 2022

	Six Months ended 30 September 2022 (unaudited) £000	Six Months ended 30 September 2021 (unaudited) £000	Year ended 31 March 2022 (audited)  000
Cash flow from operating activities:
Profit for the period	892	1,136	1,081
Adjustments for:
Options and warrants charge	61	61	167
Amortisation and depreciation	2,249	2,309	4,516
Tax expense recognised in profit or loss	150	(216)	179
Finance costs	119	74	210
Movements in working capital:
Movement in inventory	2	26	26
Movement in trade and other receivables	(4,512)	126	(2,382)
Movement in trade payables	(2,422)	(392)	4,079
Movement in other payables	(2,764)	1,777	3,287
Cash (used in)/generated from operations	(6,225)	4,901	11,163
Income tax received/(paid)	-	-	-
Net cash flows from operating activities	(6,225)	4,901	11,163
Cash flow from investing activities:
Purchase of property, plant and equipment	(402)	(551)	(418)
Additions of intangible assets	(305)	(256)	(1,085)
Contingent consideration	-	-	(22)
Acquisition of subsidiary, net of cash acquired	-	-	(6,071)
Net cash flows from investing activities	(707)	(807)	(7,596)
Cash (outflow)/inflow before financing	(6,932)	4,094	3,567
Cash flow from financing activities:
Issue of share capital	-	18	22
Expenses attached to equity issue	-	-	(70)
Dividends paid	-	-	(1,367)
Interest paid	(119)	(74)	(126)
Finance lease payments	(819)	(553)	(1,512)
Net cash flow from financing activities	(938)	(609)	(3,053)
Net (decrease)/increase in cash and cash equivalents	(7,870)	3,485	514
Cash and cash equivalents at beginning of the period	15,311	14,797	14,797
Cash and cash equivalents at end of the period	7,441	18,282	15,311

Notes to the Interim Results

1. Basis of preparation

Totally plc is a public limited company incorporated in the United Kingdom under the Companies Act 2006 (registration number: 3870101). The Company's ordinary shares are admitted to trading on the AIM market of the London Stock Exchange ("AIM").

The Group's principal activities in the period under review have been the provision of innovative and consolidatory solutions to the healthcare sector, which are provided by the Group's wholly owned subsidiaries, Totally Health Limited, Premier Physical Healthcare Limited, About Health Limited, Optimum Sports Performance Centre Limited, Vocare Limited, Greenbrook Healthcare (Hounslow) Limited, Greenbrook Healthcare (Earl's Court) Limited, Totally Healthcare Limited, Pioneer Health Care Limited and Energy Fitness Professionals Limited.

The Group's interim report and accounts for the six months ended 30 September 2022 have been prepared using the recognition and measurement principles of International Accounting Standards in conformity with the requirements of the Companies Act 2006 as per the annual report.

These interim financial statements for the six months ended 30 September 2022 have been prepared in accordance with the AIM Rules for Companies and should be read in conjunction with the financial statements for the year ended 31 March 2022, which have been prepared in accordance with International Accounting Standards in conformity with the requirements of the Companies Act 2006 as per the annual report. The interim report and accounts do not include all the information and disclosures required in the annual financial statements.

The interim report and accounts have been prepared on the basis of the accounting policies, presentation and methods of computation as set out in the Group's March 2022 Annual Report and Accounts and on the basis of the principal accounting policies that the Group expects to apply in its financial statements for the year ending 31 March 2023.

The interim report and accounts do not comprise statutory accounts within the meaning of section 434 of the Companies Act 2006. These interim financial statements were approved by the Board of Directors on [14] November 2021. The results for the six months to 30 September 2022 and the comparative results for the six months to 30 September 2021 are unaudited.  The figures for the period ended 31 March 2022 are extracted from the audited statutory accounts of the Group for that period.

The Directors believe that a combination of the Group's current cash and credit facilities, projected revenues from existing and future contracts will enable the Group to meet its obligations and to implement its business plan in full. Inherently, there can be no certainty in these matters, but the Directors believe that the Group's internal trading forecasts are realistic and that the going concern basis of preparation continues to be appropriate.

2.  Earnings per share

Basic earnings per share is calculated by dividing the profit attributable to equity holders of the Company by the weighted average number of ordinary shares in issue during the period. Diluted earnings per share takes into account the effects of share options in issue.

Adjusted earnings per share is calculated by dividing the pre-exceptional profit before amortisation of intangible customer contracts & relationships and tax by the weighted average number of ordinary shares in issue during the period. 

Statutory Earnings per share	6 months ended 30 September 2022 £000 (Unaudited)	6 months ended 30 September 2021  000 (Unaudited)	Year ended 31 March 2022 £000 (Audited)
Profit (£000)	890	1,136	1,081
Weighted average number of shares used in basic earnings per share calculations ('000)	187,268	182,236	182,553
Potentially dilutive share options and contingent share consideration ('000)	2,070	2,031	3,753
Weighted average number of shares used in diluted earnings per share calculations ('000)	189,338	184,267	186,306
Basic earnings per share (Pence)	0.48	0.62	0.59
Diluted earnings per share (Pence)	0.47	0.62	0.58

Adjusted Earnings per share	6 months ended 30 September 2022 £000 (Unaudited)	6 months ended 30 September 2021  000 (Unaudited)	Year ended 31 March 2022 £000 (Audited)
Pre-exceptional profit before tax (£000)	1,040	921	1,439
Amortisation of intangible customer contracts & relationships	950	1,134	2,278
Adjusted profit (£000)	1,990	2,055	3,717
Weighted average number of shares used in diluted earnings per share calculations ('000)	189,268	182,236	182,553
Potentially dilutive share options and contingent share consideration ('000)	2,070	2,031	3,753
Weighted average number of shares used in diluted earnings per share calculations ('000)	189,338	184,267	186,306
Adjusted basic earnings per share (Pence)	1.06	1.13	2.04
Adjusted diluted earnings per share (Pence)	1.05	1.12	2.00

3. Dividends

The below dividends are recorded in the financial information

	6 months ended 30 September 2022	6 months ended 30 September 2021	Year ended 31 March 2022
	£000 (Unaudited)	£000 (Unaudited)	£000 (Audited)
Interim dividend (FY22) - 0.50p per share	-	-	911
Final dividend (FY21) - 0.25p per share	-	456	456
	-	456	1,367

In addition to the above, a final dividend (FY22) of 0.5p per share or  £937,000  was paid in  October 2022. The Board are proposing an interim dividend (FY23) of 0.5p per share or  £998,000  to be paid in  February 2023 .  

4. Distribution of Interim Report

A copy of the interim report will be available shortly on the Company's website ( www.totallyplc.com ) in accordance with Rule 26 of the AIM Rules for Companies.

 

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