Interim Results

Totally PLC

28 November 2023

 

28 November 2023

Totally plc

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

Interim results for the six months ended 30 September 2023

Responding to an evolving market - supporting the NHS during their challenging times

Totally plc (AIM: TLY), a leading provider of frontline healthcare services, corporate fitness and wellbeing services across the UK and Ireland, is pleased to announce its unaudited interim results for the six months ended 30 September 2023.

Financial highlights

·      Group turnover down 20.6% to £55.8 million (H1 2023: £70.3 million).

·      Gross profit down 18.5% to £9.7 million (H1 2023: £11.9 million).

·      EBITDA excluding exceptional items £1.1 million (H1 2023: £3.4 million).

·      Exceptional items of £0.5 million relating to restructuring costs (H1 2023: nil).

·      Loss before tax of £1.9 million (H1 2023: £1.0 million profit before tax).

·      Adjusted loss before tax of £1.0 million (H1 2023: £2.0 million profit before tax).

·      Cash position of £1.7 million at 30 September 2023 (31 March 2023: £6.5 million).

·      No interim dividend proposed at this time (H1 2023: 0.125p).

·      New contracts secured in the period contributing £14.8 million of annualised revenue.

Operational highlights

·      Totally continues to support the NHS and healthcare providers across the UK and in the Republic of Ireland with the delivery of urgent and elective care services across multiple locations, ensuring that patients can access the appropriate care, when they need it.

·      Totally has responded robustly to challenging market conditions by taking responsible action to reduce overhead and rationalise operational infrastructure.

·      Group is well positioned to return to profitability following rationalisation of contracts, careful management of increasing costs and reduced support costs.

·      New contracts worth c.£2.3 million in the current financial year awarded to support the reduction of elective care waiting lists in the Republic of Ireland.  

·      Fully mobilised £10 million contract announced in January 2023 for NHS England 111 Resilience support.  Post period additional capacity mobilised to ensure resilience during winter months.

·      Successful pilots with multiple ambulance trusts to broaden access to care for all types of patient.

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

Chairman's statement

I am pleased to announce trading results for the six months ended 30 September 2023. My AGM announcement in early September highlighted the challenging operating environment that the Group was facing, with increasing costs and difficulties in hiring suitably qualified teams of people.

The NHS continues to be in crisis, and this impacts all organisations that are there to support them. The loss of  North West London contracts resulted in a downturn in our revenues in the period being reported. As the contracts came to the end of their contracted period, and despite previous assertions that we would retain the contracts, the ICB allowed the contracts to end. We were unable to terminate all costs immediately at that point but have since undertaken a significant cost review to remove costs related to those contracts as well as other costs which are not critical to the day to day running of the business.

Totally prides itself on being able to support the NHS by looking after those patients who do not have life critical conditions, meaning that the NHS can focus on those patients that only it can treat. We remain ready to provide support where it is needed and we are confident that we will return to growth. This approach reflects the professionalism and commitment to patient care with which the Company delivers all its services.

During the first half of the year, we have participated in a number of pilots with ambulance trusts to identify ways to increase access to care for all types of patients. We are very positive about the outcomes of these pilots and the potential to support trusts on a longer-term basis. We also continue to tender for opportunities to run urgent care services on behalf of the NHS and to reduce elective care waiting lists through both insourcing and outsourcing. We are continuing to see delays in the conclusion of procurement processes, but we are confident in the quality of our tenders, our services and the future prospects for the Group.

The scale of the opportunity for the Company remains significant and we remain confident that the NHS will rebound, survive and thrive once more, with the support of organisations such as Totally.

In line with corporate governance requirements, having spent nine years as a Director of Totally, I will step down from the Board at the end of 2023. I am pleased to confirm that Simon Stilwell will be joining our Board as a non-executive director effective today and taking over as Chairman of Totally plc from 1 January 2024. The Company intends to make further Board changes over the coming months in line with best corporate governance standards.

Once again, I want to pass my ongoing thanks to our exceptional teams who continue to deliver essential services alongside NHS colleagues under incredible pressure. Totally is able to provide excellent and compassionate services to thousands of individuals across the UK and Ireland every day due to the commitment, expertise and passion of our teams. 

Bob Holt OBE

Chairman

28 November 2023

Operational review

It has been a challenging first six months of the year as we continue to respond to multiple external factors such as high inflation, an NHS in crisis and workforce shortages. We have continued to work with NHS colleagues to maintain effective services and seek new innovative ways to support demand. Demand for healthcare remains high and will increase as winter months bite.

External pressures have impacted the Group in the first half of the period, to which we have responded accordingly, quickly reorganising our operating and corporate structure to reflect the changing shape of the business, whilst ensuring we retain capacity to grow. We delivered £0.5 million of cost savings in the first half of the year with increased savings to be delivered in the second half, as further efficiencies from structural changes are realised. In total, c.£3.0 million of annual costs have been removed from our overheads and we continue to ensure our infrastructure is fit for purpose.

As with most businesses we manage our cash facilities on a daily basis. The cash balance at the end of September was adversely affected by a £2.9m NHS debtor which was paid shortly after period end. The Board expects the Company to be cash positive in H2.

As we enter what is traditionally the busiest period of the year for healthcare, there are opportunities to further expand support for resilience services and we are working to ensure that we retain the capacity within the organisation to meet demand. We have recently mobilised additional capacity for NHS England 111 Resilience work, in addition to our continuing 111 contract as NHS England's Resilience partner (mobilised in April and valued at £10 million). During October 2023 we delivered considerable additional capacity demonstrating our ability to respond rapidly to increased demand. The additional capacity agreed for the period 1 October and 2023 to 31 March 2023 has the potential to double the revenue originally confirmed for the original NHS 111 resilience contract.

All of the services we deliver on behalf of NHS England and NHS trusts continue to perform well.

Urgent Care

Totally's Urgent Care continues to deliver core services on behalf of the NHS across the UK, including Urgent treatment centres, GP out-of-hours, clinical assessment services, and online and telephonic 111 services.  We expect to support thousands of people with access to the healthcare they need during over the forthcoming winter.

Our focus on delivering excellent, quality care continues and as a result, all of Totally's CQC registerable services continue to be rated as GOOD.

During the period our work on adapting services, innovating current and new services as well as taking forward our thoughts on increasing the use of digital services continued at pace. We have also worked closely with a number of ambulance trusts to identify and test new ways to broaden access and support for all types of patients. Ongoing pilots have been extremely successful and we are positive about the potential to work more extensively with these trusts as we move forward.

Elective Care

Demand for elective care remains high, with the number of patients waiting for care at all-time highs, as reported widely in the media. Totally continues to be registered as an approved provider on frameworks targeting waiting reduction across the UK and Ireland.

Energy Fitness Professionals

During the period, Energy Fitness Professional has been responding to increased tender opportunities, including opportunities to deliver services in partnerships with Totally healthcare operations.

During November 2023 the deferred consideration of £0.3 million, in relation to the acquisition Energy Fitness Professionals on 16 December 2021, was paid.

Outlook

It is a difficult time for all healthcare provider organisations however, managing demand and controlling costs is not a new challenge for Totally and is one that we have faced and responded to for many years. We have taken significant action to reduce costs as we respond to the current market conditions and will continue to seek out and identify new opportunities to drive efficiencies as part of our business-as-usual cost management processes.

We are confident that our strong cost management culture will enable us to return to previous levels of profit in future years, whilst recognising the potential for lower revenues. Due to the ongoing challenges however, the Board of Totally believe it is prudent at the present time to withdraw market forecasts until such time as normal market conditions return. As previously stated, the Board is confident in the medium to long term prospects of the business but views the current financial year as a period of re-structuring and working alongside the NHS to manage current issues. The Board will seek to provide forward looking growth targets at the appropriate time.

Despite the recognised uncertainties that once again come with the winter period, we remain confident that the business is well-positioned. The NHS is in crisis and issues with their workforce still need addressing. This inevitably results in uncertainty for commissioners and delays important decisions required for them to meet ongoing demand. Nevertheless, we are confident that the financial challenges being currently experienced by the NHS and those associated with it will be resolved. By working together, continuing to seek new ways of working, such as the recent pilots undertaken with ambulance trusts and the development of new models of care, which reflect the needs of today's population, we can help ensure the delivery of excellent patient care and return to growth.

I would like to thank our team for their continued hard work and commitment. All colleagues across Totally are committed to ensure that patients receive the very best care they can and are delivering this under exceptional circumstances. Similarly, we thank our shareholders for their continued support, and look forward to updating the market on new opportunities in due course.

Wendy Lawrence

Chief Executive Officer

28 November 2023

Investor presentation

Wendy Lawrence, Chief Executive Officer, Lisa Barter, Chief Financial Officer, and John McMullan, Medical Director will provide a live presentation relating to the Company's interim results via the Investor Meet Company at 11:00 a.m. (UK) on Thursday, 30 November 2023.  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 Holly Smart, Director of Communications & Marketing	020 3866 3330
Canaccord Genuity Limited (Nominated Adviser & Corporate Broker) Bobbie Hilliam Harry Rees	020 7523 8000

Notes to editors

About Totally

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, elective care services including insourcing, outsourcing and elective care delivered via 'Any Qualified provider', as well as community dermatology clinics; and therapy servicing including first contact practitioner and a full physiotherapy and podiatry offering.  Our corporate customer services also play a role in reducing reliance on healthcare by promoting healthy lifestyles and physical and mental health.

Healthcare services

Urgent Care: Totally's urgent care services are delivered under the Totally Urgent Care brand, by Vocare and Greenbrook Healthcare. Both businesses have a strong heritage and have been delivering quality urgent care services including NHS 111, GP Out of Hours and Urgent Treatment centres on behalf of the NHS for more than 25 years and 15 years respectively.

Elective care: Totally's elective care services are delivered by Pioneer Healthcare, About Health and Premier Physical Healthcare.

·      Pioneer Healthcare was established in 2007 and 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 offer services through insourcing and outsourcing agreements and through its Any Qualified Provider status. 

·      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 was established in 2007 and provides physiotherapy and podiatry services to NHS patients, often within a community GP practice, and to the prison service.

Corporate Wellbeing Services

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.

For more information visit www.totallyplc.com

Interim Consolidated Income Statement

For the six months ended 30 September 2023

	Six Months ended 30 September 2023 (unaudited) £000	Six Months ended 30 September 2022 (unaudited) £000	Year ended 31 March 2023 (audited)  £000
Revenue	55,802	70,300	135,696
Cost of sales	(46,114)	(58,376)	(110,695)
Gross profit	9,688	11,924	25,001
Administrative expenses	(8,569)	(8,516)	(18,113)
Other income	-	-	2
Exceptional items	(475)	-	(562)
EBITDA	644	3,408	6,328
Depreciation and amortisation	(2,254)	(2,249)	(4,249)
Operating profit	(1,610)	1,159	2,079
Finance costs	(257)	(119)	(295)
Profit before tax	(1,867)	1,040	1,784
Income tax	-	(150)	-
Profit after tax	(1,867)	890	1,784

Earnings per share
Basic: Pence	(0.95)	0.48	0.94
Diluted: Pence	(0.95)	0.47	0.93

Adjusted Earnings per share
Basic: Pence	(0.50)	1.06	1.99
Diluted: Pence	(0.50)	1.05	1.96

All activities relate to continuing operations.

Interim Consolidated Statement of Changes in Equity

For the six months ended 30 September 2023

	Share capital £000	Share premium £000	Retained earnings £000	Equity Shareholders' funds £000
At 1 April 2023(Audited)	19,610	1,945	15,510	37,065
Comprehensive loss for the period (Unaudited)	-	-	(1,867)	(1,867)
Issue of share capital (Unaudited)	45	-	-	45
At 30 September 2023 (Unaudited)	19,655	1,945	13,643	35,243
At 1 April 2022 (Audited)	18,723	1,053	15,634	35,410
Comprehensive profit for the period (Audited)	-	-	1,784	1,784
Issue of share capital (Audited)	887	892	-	1,779
Dividend payment (Audited)	-	-	(1,908)	(1,908)
At 31 March 2023 (Audited)	19,610	1,945	15,510	37,065
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

Interim Consolidated Statement of Financial Position

As at 30 September 2023

	Six Months ended 30 September 2023 (unaudited) £000	Six Months ended 30 September 2022 (unaudited) £000	Year ended 31 March 2023 (audited) £000
Non-current assets
Intangible fixed assets	46,641	48,492	48,210
Property, plant and equipment	1,107	1,295	1,218
Right-of-use assets	2,689	1,526	1,362
Deferred tax	242	363	242
Total non-current assets	50,679	51,676	51,032
Current assets
Inventories	72	72	75
Trade and other receivables	16,609	17,547	13,680
Cash and cash equivalents	1,704	7,441	6,451
Total current assets	18,385	25,060	20,206
Total assets	69,064	76,736	71,238
Current liabilities
Trade and other payables	(26,753)	(31,093)	(28,057)
Borrowings	(2,500)	-	(2,500)
Lease liabilities	(508)	(275)	(275)
Deferred acquisition consideration	(528)	(6,636)	(528)
Total current liabilities	(30,289)	(38,004)	(31,360)
Non-current liabilities
Lease liabilities	(2,311)	(1,778)	(1,661)
Other payables	(209)	(47)	(140)
Deferred tax	(1,012)	(546)	(1,012)
Total non-current liabilities	(3,532)	(2,371)	(2,813)
Total liabilities	(33,821)	(40,375)	(34,173)
Net current liabilities	(15,436)	(15,315)	(11,154)
Net assets	35,243	36,361	37,065
Shareholders' Equity
Share capital	19,655	18,723	19,610
Share premium account	1,945	1,053	1,945
Retained earnings	13,643	16,585	15,510
Equity shareholders' funds	35,243	36,361	37,065

Interim Consolidated Cash Flow Statement

For the six months ended 30 September 2023

	Six Months ended 30 September 2023 (unaudited) £000	Six Months ended 30 September 2022 (unaudited) £000	Year ended 31 March 2023 (audited)              £000
Cash flow from operating activities:
(Loss)/profit before tax	(1,867)	1,040	1,784
Adjustments for:
Options and warrants charge	-	61	-
Amortisation and depreciation	2,254	2,249	4,249
Loss on disposal of non-current assets	-	-	33
Finance Income	-	-	(26)
Finance costs	257	119	321
Movements in working capital:
Movement in inventory	3	2	(1)
Movement in trade and other receivables	(2,929)	(4,512)	419
Movement in trade and other payables	(1,554)	(5,186)	(8,106)
Cash (used in)/generated from operations	(3,836)	(6,227)	(1,327)
Income tax received/(paid)	-	-	(280)
Net cash flows from operating activities	(3,836)	(6,227)	(1,607)
Cash flow from investing activities:
Purchase of property, plant and equipment	(224)	(400)	(730)
Additions of intangible assets	(114)	(305)	(665)
Contingent consideration	-	-	(4,896)
Acquisition of subsidiary, net of cash acquired	-	-	(735)
Net cash flows from investing activities	(338)	(705)	(7,026)
Cash (outflow)/inflow before financing	(4,174)	(6,932)	(8,633)
Cash flow from financing activities:
Issue of share capital	45	-	567
Dividends paid	-	-	(1,908)
Borrowings	-	-	2,500
Interest paid	(188)	(119)	(295)
Finance lease payments	(430)	(819)	(1,091)
Net cash flow from financing activities	(573)	(938)	(227)
Net decrease in cash and cash equivalents	(4,747)	(7,870)	(8,860)
Cash and cash equivalents at beginning of the period	6,451	15,311	15,311
Cash and cash equivalents at end of the period	1,704	7,441	6,451

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 2023 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 2023 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 2023, 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 the condensed financial statements do not include all the information and disclosures required in the annual financial statements.

The interim report and condensed financial statements have been prepared on the basis of the accounting policies, presentation and methods of computation as set out in the Group's March 2023 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 2024.

The interim report and condensed financial statements 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 2023. The results for the six months to 30 September 2023 and the comparative results for the six months to 30 September 2022 are unaudited. The amounts for the period ended 31 March 2023 are extracted from the audited statutory financial statements 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 (loss)/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 (loss)/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 2023 £000 (Unaudited)	6 months ended 30 September 2022                           £000 (Unaudited)		Year ended 31 March 2023 £000 (Audited)
Profit (£000)		(1,867)	890		1,784
Weighted average number of shares used in basic earnings per share calculations ('000)		196,547	187,268		190,836
Potentially dilutive share options and contingent share consideration ('000)		144	2,070		3,238
Weighted average number of shares used in diluted earnings per share calculations ('000)		196,691	189,338		194,074
Basic earnings per share (Pence)		(0.95)	0.48		0.94
Diluted earnings per share (Pence)		(0.95)	0.47		0.93
Adjusted Earnings per share	6 months ended 30 September 2023 £000 (Unaudited)			6 months ended 30 September 2022                           £000 (Unaudited)			Year ended 31 March 2023 £000 (Audited)
Pre-exceptional profit before tax (£000)	(1,867)			1,040			2,346
Amortisation of intangible customer contracts & relationships	880			950			1,459
Adjusted profit (£000)	(987)			1,990			3,805
Weighted average number of shares used in diluted earnings per share calculations ('000)	196,547			189,268			190,836
Potentially dilutive share options and contingent share consideration ('000)	144			2,070			3,238
Weighted average number of shares used in diluted earnings per share calculations ('000)	196,691			189,338			194,074
Adjusted basic earnings per share (Pence)	(0.50)			1.06			1.99
Adjusted diluted earnings per share (Pence)	(0.50)			1.05			1.96

3. Dividends

The below dividends are recorded in the financial information

	6 months ended 30 September 2023	6 months ended 30 September 2022	Year ended 31 March 2023
	£000 (Unaudited)	£000 (Unaudited)	£000 (Audited)
Interim dividend (FY23) - 0.50p per share	-	-	937
Final dividend (FY22) - 0.50p per share	-	-	971
	-	-	1,908

In addition to the above, a final dividend (FY23) of 0.125p per share or £246,000 was paid in October 2023. The Board are not proposing to pay an interim dividend in respect of FY24. 

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.

 This announcement contains inside information for the purposes of article 7 of the Market Abuse Regulation (EU) 596/2014 as amended by regulation 11 of the Market Abuse (Amendment) (EU Exit) Regulations 2019/310. With the publication of this announcement, this information is now considered to be in the public domain.

 

END