Totally(TLY) , a leading provider of frontline healthcare services, today provided a trading statement for the twelve months ending 31 March 2023.
Notwithstanding the challenges they face in the current healthcare landscape, Totally displayed a robust offering of financial highlights in their update. The group’s healthcare services have continued to experience strong demand, with revenues expected to align with projections of £140.8m, an increase of 11%.
Pioneer, owned by Totally, has demonstrated an especially remarkable performance, with revenues from elective care services doubling year to-date, and the recently secured national NHS 111 support contract going live and beginning to contribute to organic growth. Overall, the board of Totally remains very confident in the medium and longer-term opportunities for the company and believes the business is well-positioned to support the NHS.
Despite this, Totally continues to face some near-term difficulties, including cost inflation, national strikes, and workforce shortages. Furthermore, delays in tender processes and ongoing legal discussions regarding NW London contracts are placing near-term pressure on margins. As a result, the company has issued EBITDA guidance of approximately £6.3m for FY23E, and these challenges are likely to persist into Q1 2024E. Net cash (pre-leases) at March 31st is expected to be £5.5m.
Wendy Lawrence, CEO of Totally, commented: "We have seen revenue growth broadly in line with expectations as we continue to operate in what are exceptionally challenging conditions which require difficult decisions to be made in relation to the management of costs and maintenance of essential NHS services.”
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Like many other healthcare services providers, Totally faces a tempestuous industry landscape in the UK, including a regular cadence of national strikes, with the largest strike in the history of the NHS being staged just last month. As a result of the strikes, pressure on the healthcare services is mounting as it deals with increasing numbers of calls to 111.
But Totally is navigating these challenges impressively, and remains well-positioned to alleviate pressure on NHS services - it signed a new contract with NHS England to provide 111 contingency services just earlier this year, accommodating a greater number of calls. Totally said that this service is already contributing to organic growth. Wendy Lawrence, CEO of Totally, noted that the company has come up against challenges that were out of its control in the past, and remains confident it can do so again.
In addition, the issues faced by Totally are very much issues of the present - looking at a longer-term view, Totally is well-placed to provide the NHS with high-quality healthcare services for both urgent and elective care, continuing to improve healthcare outcomes for patients across the UK.