Totally (AIM: TLY), the provider of a range of services to the healthcare sector, is pleased to announce its unaudited interim results for the six months ended 30 September 2019.
Urgent care division:
· Completed £9.7 million fundraise and highly complementary, transformative acquisition of Greenbrook Healthcare (“Greenbrook”) in June 2019 giving us a market leading position as the largest private provider of Urgent Treatment Centres in England
· Progressed integration of Greenbrook into the enlarged Group
· Vocare Limited (“Vocare”) secured significant contract extensions across England
Planned care division:
· About Health Limited (“About Health”) secured two new contracts and four contract extensions
· Premier Physical Healthcare (“Premier”) secured four new contracts and extended fifteen contracts whilst also implementing new pilot schemes across prisons and emergency services
· Totally Health commenced a new contract providing the health coaching element of their back to work schemes for the Department of Work and Pensions
· Start-up insourcing business launched during September 2019 – recruited market leading professionals to lead the business
· Estimated insourcing market size in UK and Ireland of £125 million to £150 million with 4.5 million NHS patients on waiting lists in England alone, an increase of 0.3 million in 12 months with approximately 0.6 million patients waiting longer than NHS England’s 18-week target
· Services delivered to date in the Republic of Ireland and Northern Ireland with a pipeline of significant opportunities
Post period end:
· Vocare secured contract extensions worth c. £16.6 million in South West London and Scarborough
· Key new contract worth c. £8.3 million secured by Greenbrook for the provision of an Urgent Treatment Centre in Watford, currently being mobilised
· Group turnover of £49.2 million (H1 2018: £40.2 million)
· Gross profit of £9.8 million (H1 2018: £5.7 million)
· Cash at Bank of £8.4 million (31 March 2019: £7.5 million)
· EBITDA profit before exceptional items £2.1 million (H1 2018: EBITDA £0.1 million)
· EBITDA profit including exceptional items £1.3 million (H1 2018: EBITDA £1.0 million)
· Board intends to pay a maiden interim dividend of 0.25 pence per share in February 2020
*Period under review includes impact of three months trading performance from Greenbrook since its acquisition in late June 2019
I am pleased to report on a solid first half which saw us complete the transformational and highly complementary acquisition of Greenbrook Healthcare, offering the Group a greater foothold across the UK in the urgent care sector. Urgent care is one of the cornerstones of the NHS Long Term Plan and, with both Vocare and Greenbrook as part of the Group, Totally has a nationwide footprint in this area with the ability to provide the key services that the Long Term Plan requires. Great progress has been made by the management team integrating Greenbrook and many synergies have already been realised. The Group has also seen good results across the rest of the core business and continues to find many business opportunities across our subsidiaries as we scale the Group.
During September 2019 we launched Totally Healthcare, a business focused on insourcing; an emerging area of healthcare provision which can help to clear long waiting lists. This is an exciting step for us; the market for insourcing is currently estimated by management to be valued at £125m-£150m per annum and is growing rapidly. Our aim is for Totally Healthcare to become the UK and Ireland’s market leader in insourcing. With a national platform in place, as well as strong relationships across a number of healthcare commissioners and providers, we are confident that Totally Healthcare will achieve this goal.
As ever, I would like to take this opportunity to thank all stakeholders for their continued support over a period which has positioned the Group for future growth. We look forward to updating the market in due course as we continue to integrate Greenbrook with the wider Group and develop Totally Healthcare into an insourcing market leader.