TOTALLY PLC-Trading Update for 12 months ending 31 March 2023

TOTALLY PLC-Trading Update for 12 months ending 31 March 2023

Trading Update for 12 months ending 31 March 2023

The Board of Totally plc (AIM: TLY), a leading provider of frontline healthcare services, corporate fitness and wellbeing services across the UK and Ireland, today announces an update on trading for the 12-month period ended 31 March 2023 ("FY23").

Financial performance in line with revised consensus

Based on unaudited draft numbers, the Group anticipates reporting EBITDA* for FY23 in line with consensus market expectations. At year end, the Company had gross cash of £6.4 million (31 March 2022: £15.3 million); net cash at the same date was £3.9 million.

The Group's Care Quality Commission (CQC) registered services continue to be rated as "Good".

During the last quarter of the period, Totally undertook multiple actions to manage and control costs driven by the high-inflation economy and national workforce challenges, whilst continuing to deliver essential services on behalf of the NHS. These actions will lead to exceptional costs being incurred for FY23 and, to a lesser extent, in the current financial year. Actions included the restructuring of the business to bring together all healthcare services under one healthcare delivery business focused on Urgent Care and Elective Care, the realisation of economies of scale and the removal of duplicated costs. In aggregate, these actions are expected to enhance the operational and financial performance of the Group's businesses.

A healthcare market full of opportunity

The Totally management team is working closely with healthcare commissioners to respond to opportunities to support the reduction of record waiting lists for elective care and help meet or beat waiting time targets in urgent care.

Totally's insourcing and outsourcing revenue, delivered through Pioneer Healthcare, doubled in FY23 compared to the previous year, and the Company recently announced two new contracts for urology services in Ireland and a key position on a new framework agreement in Wales. 

Within Urgent Care, the Company successfully retendered and mobilised a five-year contract for the delivery of two Urgent Treatment Centres in Bromley, and was the first provider to fully mobilise on NHS England's Single Virtual Contact Centre model, enabling rapid mobilisation of additional NHS 111 services where required. Totally continues to deliver other urgent care services across London, Staffordshire and the North East of England.  Following the demobilisation of four Urgent Treatment Centre contracts in North West London, as announced in January 2023, the Company is not expecting any further revenue, costs or liabilities from these contracts for the year to 31 March 2024. 

Corporate Wellbeing demand returning 

Corporate Fitness revenues, delivered through Energy Fitness Professionals ("EFP"), have returned to almost pre-pandemic levels with the addition of new contracts, including Adidas, and equipment installations for existing customers such as EA (Electronics Arts) and Network Rail. EFP also agreed on a new contract to support the Royal Mail for a further five years, extending this relationship to more than 20 years.

New business opportunities continue to be driven by employers wanting to entice employees back into the workplace and have refocused on core bricks and mortar fitness centres, supported by a flexible digital offering, which has been enhanced by a new licensing agreement with Les Mills, market leaders in class instruction, to provide digital classes to all EFP members.

Looking ahead the Company has invested in additional business development capacity to help respond to the increasing opportunities available.

Financial Results for FY23

Final results for FY23 are expected to be released in July 2023 when the Annual Report and Accounts are also expected to be available, along with confirmation of the date for the Company's Annual General Meeting.

* EBITDA is defined as earnings before interest, tax, depreciation and amortisation and excludes one-off exceptional items.

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