Totally (TLY) has secured another contract extension awarded to its Urgent Care division, as well as a new physiotherapy services contract secured by the Group’s Planned Care division.
Urgent Care
This latest contract extension, awarded to Totally's wholly-owned Urgent Care division, Vocare, has been awarded a six-month extension worth c. £7.2 million.
Under the contract, which has been extended to 30 September 2021, Vocare, a national specialist provider of urgent care services, will continue to provide Integrated Urgent Care ("IUC") for the South West London Commissioning Group ("South West London CCG").
Planned Care
Additionally, Totally's Planned Care division, ‘which continues to provide a comprehensive range of treatments including Out-Patient Services, Referral Management Services, Physiotherapy and Podiatry Services,’ has been awarded a new contract to provide occupational physiotherapy services to four police forces in the South West of England.
The contract is set to start on 01 March 2021 and will run for a period of three years, with an option to extend the contract term for a further two years thereafter, the Group noted.
"The award of the contract extension for IUC services for the South West London CCG is once again demonstrative of the diligence and unwavering ability of our Urgent Care division to deliver the highest quality of service to patients, even during these challenging times.
Our Urgent Care division has seen a marked increase in demand, and while pressures on the NHS remain high as a result of the COVID-19 pandemic, we are proud to be standing shoulder-to-shoulder with the NHS in our collaborative efforts to relieve these pressures.
Separately, we are delighted to report that our Planned Care division has been awarded a new contract for the provision of occupational physiotherapy services to four police forces in the South West of England,” commented Wendy Lawrence, Chief Executive of Totally.
She added, "Our staff across all our divisions are working relentlessly throughout this challenging period to continue to provide the highest quality services to all patients. We remain extremely grateful to all for their efforts and recognise the crucial role they are playing in helping to alleviate the pressures on our healthcare services during this time."
The contract extensions keep coming for TLY, further demonstrating the stickiness of its services and repeatability of its revenue streams. This particular extension follows two additional 12-month contract extensions for Vocare worth a total of c. £16.8m as well as several other contract extensions and continued pilot funding (worth c. £7.2m) that the healthcare service provider in the UK and Ireland revealed last month. Shares in Totally have more than doubled since the beginning of November 2020 from 17p to open 4.17% higher this morning at 33.75p following the announcement of the contracts.
Reasons to TLY
Totally is 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 results 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.
Recent Newsflow
Last month, the company said it had received a number of contract extensions for Clinical Assessment and GP Out of Hours Services and the provision of Urgent Treatment Centres across the North East of England, the Midlands and Greater London (the "Contracts").
In aggregate, the healthcare service provider in the UK and Ireland said the contracts awarded to Totally's wholly-owned subsidiaries Vocare Limited and Greenbrook Healthcare Limited, which together form Totally's Urgent Care Division, are worth a total of c.£9.8m.