Totally plc (TLY ), a healthcare services and corporate wellness provider in the UK and Ireland, announced preliminary results for the 12 months ended 31 March 2023 (FY23).

Totally recorded a revenue increase of 6.5% to £135.7m, with a gross margin increase of 0.4pp to 18.4% from 18.0% last year. Underlying EBITDA rose 11% to £6.9m, excluding £0.6m in exceptional items.

Elective Care revenues nearly doubled to £35.2m with gross margin increasing to 19.8% from 18.4%. Urgent Care revenue decreased 10% to £98.8m as 4 contracts in Northwest London came to an end, with gross margin remaining unchanged at 17.6%. Corporate Wellbeing revenue expanded significantly to £1.7 million from £0.3m last year, with gross margin increasing to 41.5% from 31.9%.

Totally also saw a substantial increase in pretax profit to £1.8m from £1.3m in FY22. Gross cash on 31 March 2023 was £6.5m, from £15.3m last year. Cash consumption for the year of £8.9m included £8.2m on investing activities of which £6.4m was related to acquisitions. Total dividend for the year was reduced to 0.625p/share from 1p/share in FY22.

Operationally, the healthcare provider achieved a number of milestones during the period. It became the first and so far only NHS 111 provider to fully mobilise NHS England's SVCC model, following a £10m contract win for NHS 111. Totally also renewed a 5-year contract for the delivery of 2 urgent treatment centers in Bromley. Overall, it facilitated two million patients' access to urgent care services, and treatment for 120,000 patients on elective care waiting lists.

Numerous new contracts were also awarded to Energy Fitness Professionals, Totally's Corporate Wellness arm, including Adidas and the expansion of an existing long-term contract with Royal Mail, driving the abovementioned increase in Corporate Wellbeing revenues.

Overall, Totally reported another year of growth as it rebalanced toward higher margin business, e.g. corporate wellness while continuing to support the NHS with its advanced 111 service. The company's Corporate Wellbeing arm saw significant expansion following a post-Covid sector rebound, and is expected to become a major source of future revenue growth.

Looking ahead, Totally expects a dip in revenues in FY24, with EBITDA marginally below the period to 31 March 2023, reflecting improved margin driven by higher volumes in elective care, and the company's continued efforts to control costs. The reduction in revenue is anticipated amid the NHS's ongoing struggle to manage demand across all services.

However, despite a potentially challenging FY24 ahead, there is plenty of potential within the market, with ever-increasing opportunities which cannot be satisfied without the support of 3rd party capacity. For this reason, Totally's pipeline of opportunities remains considerable, and the company remains on solid ground with substantial long-term growth potential, especially amid its ongoing diversification toward higher margin corporate wellness services. So far Totally's "buy and build" M&A strategy has been effective, and we expect that to continue going forward.

 

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