Totally (TLY ) said its Urgent Care division has been awarded a new contract for the provision of an Urgent Treatment Centre on behalf of King's College Hospital NHS Foundation Trust.
The London-listed company, which provides a range of healthcare services across the UK and Ireland, said the contract will run for a period of three years with the option to extend for a further two years, and is expected to be worth circa £4 million per annum. The Group told investors this morning that plans to mobilise the new service are already underway.
The contract, which is for the provision of an Urgent Treatment Centre on behalf of King's College Hospital NHS Foundation Trust, follows a full procurement process led by Greenbrook Healthcare Limited ("Greenbrook"), part of Totally's Urgent Care Division.
“Leveraging our knowledge of the local population, particularly following our acquisition of Greenbrook, the Contract further expands our portfolio of Urgent Treatment Centres in London and allows us to ensure that the highest quality and most appropriate care is provided to as many patients as quickly as possible,” said Wendy Lawrence, CEO of Totally.
Totally’s Urgent Care division has been awarded a number of contract extensions across England for the provision of Clinical Assessment Services ("CAS") associated with Think 111 First and other services for the on-going management of COVID-19, totalling c. £2.5 million.
Totally said its insourcing division continues to see increased demand for its services to reduce waiting lists across England, Northern Ireland, Republic of Ireland and Scotland.
NHS England recently confirmed a record number of people on waiting lists, now standing in excess of c. 5.3 million. As a result, the division continues to work with hospitals across the UK and Ireland, predominantly at weekends, to deliver services across a range of specialities.
Addressing shareholders this morning, Wendy Lawrence, Chief Executive of Totally said:
"The pandemic continues to put significant pressure on the UK and Ireland's healthcare system and all of our divisions are experiencing heightened demand for their services.
Lawrence highlighted that the Group’s insourcing division is “working tirelessly with hospitals” as elective care services are restarted following delays by hospitals during the pandemic.
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In recent months, Totally has hailed its strong progress after delivering healthcare services across the UK and Ireland in partnership with the NHS and other healthcare providers.
In April 2021, the Group, which provides a range of healthcare services across the UK, said it anticipates reporting EBITDA for the year ended 31 March 2021 ‘substantially ahead’ of expectations and its previous record of £4m in underlying EBITDA for the same 2019 period.
Last month, following the publication of Totally’s results for the year ended 31 March 2021 in which it stated that demand for its services had ‘increased beyond all estimates’ over the year, the Company said it had recommended to its shareholders a final dividend of 0.25p per share.
The Board confirmed a final dividend of 0.25p per share which, together with the interim dividend of 0.25p paid in February, makes a total dividend for the year of 0.50p per share.
Over the period, revenue rose by 7.4% to £113.7m (FY20: £105.9m) while Totally saw a substantial increase in pre-tax profit to £0.1m, moving it from a previous loss of £3.4m.
In particular, Totally highlighted that growth in revenues was primarily driven by the growth across its Urgent Care division which increased by 9.2%, bringing revenues to £105.4 million.
Despite all operations having been impacted due to the pandemic, the Group said that with the increased demand for urgent healthcare support, it was well placed to respond quickly.
In the year to 31 March 2021, Totally secured a string of contracts amounting to c.£92.5m.
Shares in Totally have nearly doubled in value since the beginning of the year. The stock was trading 0.66% higher this morning at 38p immediately following the announcement.
Reasons to TLY
Totally is a 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.
Market Position
Totally has established itself as a component of the provision of healthcare in Ireland the UK. Its Urgent Care, Planned Care and Insourcing services have all secured significant contracts across its target markets and now class themselves as ‘key partners’ to the NHS.
Operating Model
Urgent Care, Planned Care and Insourcing services all operate in complementary market segments at different parts of the healthcare cycle. In its 1H20 rsults for the six months ended 30 September 2020, the group demonstrated increasing revenue, service-led margins and a strong operating cash flow to support a progressive dividend policy for shareholders.
Fragmented Industry plays to M&A Strategy
Totally said it is committed to pursuing a progressive ‘buy-and-build’ consolidation strategy within the fragmented healthcare services industry. It has completed several acquisitions and continues to evaluate attractive opportunities that its disruptive service model offers.
Totally 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.
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