Totally Plc (TLY ), a provider of frontline healthcare and corporate wellness services, announced unaudited interim results for the 6 months ended 30 September 2022 (1H23).
Financial performance
Totally reported a 14.1% increase in turnover to £70.3m, compared to £61.6m in 1H22. Gross profit was up 2.6% to £11.9m from £11.6m in 1H22.
EBITDA profit increased to £3.4m from £3.3m and pre-tax profit rose to £1.0m from £0.9m in 1H22. Totally's cash position stood at £7.4m on 30 September 2022, down from £15.3m a year ago, reflecting accelerated growth and changes to the company's working capital model.
Totally proposed an interim dividend of 0.5p/share, unchanged from last year, to be paid in February 2023.
Operational highlights
Totally delivered services to 1.25 million patients during the reference period and was awarded extensions to 15 existing urgent care contracts, amounting to £37m of revenue.
Totally's contract for the provision of NHS 111 services in Devon, valued at up to £850k, was extended until January 2023 for an additional contract value of £700k.
A major five-year contract extension was awarded to Totally's Energy Fitness Professionals, for the management of gyms across 34 Royal Mail sites, worth c. £2.5m. One new contract and 4 contract extensions collectively worth £9.5m were awarded to Totally's Pioneer Healthcare to support the reduction of NHS waiting lists.
Bob Holt OBE, Chairman of Totally Plc, commented: "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."
View from Vox
Totally delivered results in line with management expectations in 1H23 and is on track to deliver full-year results in line with consensus market expectations.
We are not perturbed by the suspect the reduced cash position to £7.4m, from £15.3m last year, as investments in growth, acquisitions and increased delivery of services during a challenging time for the NHS.
Furthermore, the newly acquired Pioneer Healthcare'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,
Therefore, Totally's period end cash position has been disproportionately impacted in the months following the acquisition, particularly as growth has increased beyond expectations.
On a more positive note, Totally reported the Pioneer Healthcare business is responding well to significant levels of demand for outsourcing and AQP services. During the period, the number of patients supported via Totally's insourcing and outsourcing increased substantially to c. 22,000, reflecting the acquisition of Pioneer.
Totally' Urgent Care division was also awarded 15 contract extensions during the period, amounting to c. £37m, underpinning recurring income and reflecting the strength of the company's relationships with NHS partners. In addition, Totally's contract for delivery of NHS 111 services in Devon, worth £850K, has been extended to January 2023 for an additional value of £700K.
Totally said inflationary uplifts have been applied to existing NHS contracts, and there is ongoing dialogue with commissioners regarding further adjustments.
During the period, Totally also retained GOOD ratings from the CQC for 3 urgent treatment centres in London: Northwick Park Hospital, Central Middlesex Hospital, and Ealing Hospital. All of Totally's CQC registerable services are currently rated as GOOD.
Revenue within Totally's other recent acquisition, Energy Fitness Professionals, was also strong due to 3 new contract wins, equipment installations for clients, and a five-year contract extension for the delivery of Royal Mail's on-site gyms across 34 sites in the UK.
Overall, despite a reduced cash position at the end of the 1H, Totally remains well-funded and well-positioned to continue supporting the NHS through the winter period. Its newly acquired businesses are driving solid growth, and the company remains on track to deliver full-year results in line with market expectations.
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