Interim results for the six months ended 30 September 2021

Totally plc

 

(“Totally”, “the Company” or “the Group”)

Interim results for the six months ended 30 September 2021

 Strong Performance and Continued Success

Totally plc (AIM: TLY), a leading provider of a range of healthcare services across the UK and Ireland, is pleased to announce its unaudited interim results for the six months ended 30 September 2021.

Financial highlights

·    Group turnover up 14% to £61.6 million (H1 2020: £54.1 million)

·    Gross profit up 14% to £11.6 million (H1 2020: £10.2 million)

·    Significant increase in EBITDA profit at £3.3 million (H1 2020: £2.3 million)

·    Profit before tax of £0.9 million (H1 2020: £0.1 million)

·    Strong cash position resulting in cash at bank of £18.3 million at 30 September 2021 (31 March 2021: £14.8 million)

·    Increase in proposed interim dividend to 0.5p per share (H1 2020: 0.25p) to be paid in February 2022

Operational highlights

·    Assessed and treated more than one million patients during the reporting period

·    Urgent Care Division awarded extensions to 20 existing contracts across England, reflecting the quality of service and strength of relationships with NHS partners

·    Award and swift mobilisation of a new Urgent Treatment Centre contract at King’s College London to provide continuity of service for a population of 700,000 people

·    Totally Healthcare awarded contract to support the reduction of waiting lists across six hospitals for the Saolta Group of Hospitals in the Republic of Ireland plus several other hospitals across the UK

Chairman’s statement

These results demonstrate continued success in the first half of the year.  With the winter months approaching, which bring high levels of uncertainty across all healthcare sectors, the Board is confident that the outcome for the remainder of the Group’s trading year to 31 March 2022 will be in line with current consensus. This confidence is reflected in the Board’s decision to increase the Group’s dividend by 100% for the period.

Like all employers, we face challenges in filling vacancies at all levels. We remain committed to provide responsive service levels as part of our partnership with the NHS and as demand continues to increase for such services.

The Group enjoys a significant cash balance which has been broadly maintained since September 2021. The Group strategy is clear; we will accelerate the buy and build strategy that was implemented when the current management team was assembled some years ago. The Group is in advanced discussions with a number of bolt-on businesses that would strengthen our proposition and bring further earnings enhancing opportunities.

I would like to place on record my own personal thanks to the Totally workforce, who have faced enormous challenges during the extended pandemic. The ongoing achievement of strong results reflects significant effort and commitment from staff at all levels.

Bob Holt OBE

Chairman

15 November 2021

Operational review

As the UK eased out of lockdown, Totally continued to support NHS colleagues and other healthcare providers with the delivery of exceptional healthcare for patients. During the last six months, demand for access to all healthcare services has remained high and Totally has assessed and treated more than one million patients during the period. We continue to operate under strict COVID-19 guidelines to ensure the safety of patients and our employees, and the challenges presented by the pandemic have certainly not gone away.

Yet against a backdrop of continued uncertainty, the Group’s performance has been strong, with growth in revenue, earnings and cash. During the period we performed ahead of management expectations, positioning us well for a strong full year despite a more uncertain second half. We are now undertaking advanced planning to prepare for the increased demands of winter alongside rising levels of COVID-19 and the onset of seasonal flu.

During the first six months, we continued to work with NHS colleagues and other healthcare providers to ensure that the UK population could access quality health services when they needed them.

Urgent Care

A highlight of the period was the swift mobilisation of an Urgent Treatment Centre at King’s College Hospital to ensure continuity of service for the 700,000 strong population of the London boroughs of Southwark and Lambeth. Totally was awarded this new contract in August 2021 following a full procurement process and subsequently mobilised the service in just eight weeks. It is already delivering enhanced performance for UTC patients whilst additionally diverting patients away from the busy Emergency Department into more appropriate services, enabling NHS colleagues to focus on those patients that only they can treat.

 

Reflecting the importance of continuity and recognising overall levels of performance achieved within contract delivery, during the period, the Urgent Care Division was awarded multiple contract extensions for the delivery of integrated urgent care, urgent treatment centres and other services across England, collectively worth £45 million. These contract extensions allow us to further strengthen our relationships with healthcare commissioners over extended periods, identify new opportunities to enhance patient care, and continue to provide millions of people with access to the healthcare they need during what could be an extremely difficult winter.

Insourcing

Totally Healthcare, the Group’s Insourcing division, doubled revenue compared to the previous six months, reflecting the opportunity in the market and the strength of proposition. Insourcing represents a significant opportunity for growth for the Group and the division continues to win new contracts as hospitals seek to reduce patient waiting lists. The most significant contract won was for the delivery of endoscopy procedures for the Saolta Group of Hospitals in the Republic of Ireland, which will give access to essential procedures to facilitate diagnosis through additional surgeries outside normal working hours and at the weekend. 

 

Further contracts across multiple specialities have been awarded in Blackburn, Rotherham and Sheffield, across multiple clinical specialities, as demand for this type of service increases.

As we look forward to the second half of the year, Totally Healthcare is positioned well and is included on major national insourcing frameworks for England, Scotland, Wales and the Republic of Ireland, as well as the local contract framework in Northern Ireland. As part of our commitment to providing the UK population with access to quality health services when they need it, we continue to assess how Totally can best support the NHS with the reduction of waiting lists. Waiting lists stand at an all-time high, exacerbated by the COVID-19 pandemic, yet demand for healthcare has outstripped supply for more than a decade and a multi-faceted approach will be required if they are to be reduced sustainably.

Planned Care

Planned Care, which includes the delivery of physiotherapy services in clinics, health centres and prisons across England, is now back to pre-pandemic levels. Face to face clinics have been reintroduced, including the full mobilisation of the new contract for Community Dermatology services for Manchester and Trafford CCGs. All services continue to operate under strict guidelines relating to COVID-19.

The experience of the last eighteen months has both challenged and provided opportunities for the improvement of healthcare. We have had to be innovative in the identification of new ways to deliver more flexible services under higher levels of constraints, and have maintained GOOD ratings on all CQC registered services. Despite the recognised uncertainties of winter, we remain confident that the business is well-positioned to meet future fluctuations in demand and the Group remains acquisitive, seeking bolt-on opportunities to strengthen and diversify our offering and deliver increased shareholder value. 

 

I would like to thank our team for their continued hard work and commitment to delivering exceptional care. Similarly, we thank our shareholders for their continued support, and look forward to updating the market on further progress in due course.

Wendy Lawrence

Chief Executive Officer

15 November 2021

 

Investor presentation

Wendy Lawrence, Chief Executive Officer and Lisa Barter, Chief Financial Officer, will provide a live presentation relating to the interim results via the Investor Meet Company platform on Tuesday, 16 November 2021 at 10:00am. The presentation is open to all existing and potential shareholders. Questions can be submitted pre-event via the Investor Meet Company dashboard or at any time during the live presentation.

 

Investors can sign up to Investor Meet Company for free and add to meet Totally plc via:

https://www.investormeetcompany.com/totally-plc/register-investor   

 

Investors who already follow Totally plc on the Investor Meet Company platform will automatically be invited.

 

For further information please contact:

 

Totally plc 

Wendy Lawrence, Chief Executive Officer

Bob Holt, Chairman

 

Allenby Capital Limited (Nominated Adviser & Joint Corporate Broker)

020 3328 5656

Nick Athanas Liz Kirchner (Corporate Finance)

Amrit Nahal (Sales & Corporate Broking)

 

Canaccord Genuity Limited (Joint Corporate Broker)

020 7523 8000

Bobbie Hilliam / Alex Aylen

 

Yellow Jersey PR

020 3004 9512

Sarah Hollins / Henry Wilkinson / Annabelle Wills

Notes to editors

Totally plc 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.

 

Totally is committed to pursuing a progressive buy-and-build consolidation strategy within the fragmented healthcare market and looks to capitalise on the attractive opportunities that its disruptive service model offers, to generate value to shareholders.

 

Urgent Care

Totally offers a full range of urgent care services via its subsidiaries, Vocare and Greenbrook Healthcare, two of the largest urgent care providers in the UK, including:

 

·    NHS 111 services

·    Clinical Assessment services

·    GP Out-of-Hours services

·    Urgent Treatment Centres

 

www.vocare.org.uk  

www.greenbrook.nhs.uk  

 

Planned Care

Totally delivers planned care services, which include community based Out-Patient Services, Referral Management Services, Physiotherapy and Podiatry Services. It provides these through its planned care subsidiaries, About Health, Premier Physical Healthcare and Optimum Physiotherapy.

 

www.abouthealthgroup.com  

www.premierphysicalhealthcare.co.uk  

www.optimum-hcs.com  

 

 Insourcing

Launched in October 2019, Totally Healthcare provides bespoke insourcing solutions across multiple specialities to trusts and hospitals in the UK and Ireland, reducing waiting lists by utilising their spare capacity outside of normal working hours and at weekends.

 

www.totallyhealthcarelimited.com

 

More information on Totally plc can be found the following link: www.totallyplc.com.

 

Interim Consolidated Income Statement

For the six months ended 30 September 2021

 

Six Months ended 30 September 2021

(unaudited)

£000

Six Months ended 30 September 2020

(unaudited)

£000

Year ended 31 March 2021

(audited) 

£000

Revenue

61,566

54,106

113,709

Cost of sales

(49,952)

(43,942)

(92,886)

Gross profit

11,614

10,164

20,823

Administrative expenses

(8,309)

(7,838)

(16,455)

Other income

0

0

656

EBITDA

3,305

2,326

5,024

Depreciation and amortisation

(2,309)

(2,163)

(4,780)

Operating profit

996

163

244

Finance costs

(75)

(102)

(188)

Profit before tax

921

61

56

Income tax

215

238

262

Profit after tax

1,136

299

318

Earnings / (loss) per share

Basic: Pence

0.62

0.16

0.17

Diluted: Pence

0.62

0.16

0.17

 

All activities relate to continuing operations.

 

Interim Consolidated Statement of Changes in Equity

For the six months ended 30 September 2021

 

Share capital

 

 

£000

Share premium

 

 

£000

Retained earnings

 

 

£000

Equity Shareholders’ funds

 

£000

At 1 April 2020 (Audited)

18,219

0

16,226

34,445

Comprehensive loss for the period (Unaudited)

299

299

Dividend payment (Unaudited)

(455)

(455)

Credit on issue of warrants and options (Unaudited)

45

45

At 30 September 2020 (Unaudited)

18,219

0

16,115

34,334

At 1 April 2020 (Audited)

18,219

0

16,226

34,445

Comprehensive profit for the period (Audited)

318

318

Issue of share capital (Audited)

2

2

Dividend payment (Audited)

(911)

(911)

Credit on issue of warrants and options (Audited)

120

120

At 31 March 2021 (Audited)

18,219

2

15,753

33,974

At 1 April 2021 (Audited)

18,219

2

15,753

33,974

Comprehensive profit for the period (Unaudited)

1,136

1,136

Issue of share capital (Unaudited)

7

10

17

Dividend authorised (Unaudited)

(456)

(456)

Credit on issue of warrants and options (Unaudited)

61

61

At 30 September 2021 (Unaudited)

18,226

12

16,494

34,732

  

 

Interim Consolidated Statement of Financial Position

As at 30 September 2021

 

Six Months ended 30 September 2021

(unaudited)

£000

Six Months ended 30 September 2020

(unaudited)

£000

Year ended 31 March 2021

 

(audited)

£000

Non-current assets

Intangible fixed assets

36,580

38,683

37,468

Property, plant and equipment

1,024

1,099

1,083

Right-of-use assets

2,533

3,501

2,927

Deferred tax

330

457

113

40,467

43,740

41,591

Current assets

Inventories

74

85

100

Trade and other receivables

8,549

10,814

8,675

Cash and cash equivalent

18,282

12,285

14,797

26,905

23,184

23,572

Total assets

67,372

66,924

65,163

Current liabilities

Trade and other payables

(27,968)

(26,879)

(26,130)

Lease liabilities

(487)

(1,066)

(564)

Deferred acquisition consideration

(246)

(261)

(258)

(28,716)

(28,206)

(26,952)

Non-current liabilities

Lease liabilities

(2,119)

(2,508)

(2,432)

Other payables

(1,080)

(784)

(1,080)

Deferred tax

(725)

(1,092)

(725)

(3,924)

(4,384)

(4,237)

Total liabilities

(32,640)

(32,590)

(31,189)

Net current liabilities

(1,811)

(5,022)

(3,380)

Net assets

34,732

34,334

33,974

Shareholders’ Equity

Share capital

18,226

18,219

18,219

Share premium account

12

2

Retained earnings

16,494

16,115

15,753

Equity shareholders’ funds

34,732

34,334

33,974

  

 

Interim Consolidated Cash Flow Statement

For the six months ended 30 September 2021

 

Six Months ended 30 September 2021

(unaudited)

£000

Six Months

ended 30 September 2020

(unaudited)

£000

Year ended 31 March 2021

(audited)

             £000

Cash flow from operating activities:

Profit for the period

1,136

299

318

Adjustments for:

   Options and warrants charge

61

45

120

   Amortisation and depreciation

2,309

2,163

4,780

   Tax expense recognised in profit or loss

(216)

(238)

(262)

   Finance costs

74

103

188

   Receipt from escrow relating to acquisitions

(656)

Movements in working capital:

   Movement in inventory

26

(5)

(24)

   Movement in trade and other receivables

126

549

2,710

   Movement in trade and other payables

1,385

2,036

2,044

Cash generated from operations

4,901

4,952

9,218

 Income tax received/(paid)

0

21

(4)

Net cash flows from operating activities

4,901

4,973

9,214

Cash flow from investing activities:

Purchase of property, plant and equipment

(551)

(806)

(778)

Disposal of property, plant and equipment

0

12

Additions of intangible assets

(256)

(97)

(605)

Contingent consideration

(13)

Receipt from escrow relating to acquisitions

656

Net cash flows from investing activities

(807)

(903)

(728)

Cash inflow before financing

4,094

4,070

8,486

Cash flow from financing activities:

Issue of share capital

             18

2

Dividends paid

–                

(911)

Interest paid

 (74)

(103)

(55)

Finance lease payments

(553)

(605)

(1,648)

Net cash flow from financing activities

(609)

(708)

(2,612)

Net increase in cash and cash equivalents

3,485

3,362

5,874

Cash and cash equivalents at beginning of the period

14,797

8,923

8,923

Cash and cash equivalents at end of the period

18,282

12,285

14,797

 

Notes to the Interim Results

1. Basis of preparation

Totally plc is a public limited company incorporated in the United Kingdom under the Companies Act 2006 (registration number: 3870101). The Company’s ordinary shares are admitted to trading on the AIM market of the London Stock Exchange (“AIM”).

The Group’s principal activities in the period under review have been the provision of innovative and consolidatory solutions to the healthcare sector, which are provided by the Group’s wholly owned subsidiaries, Totally Health Limited, Premier Physical Healthcare Limited, About Health Limited, Optimum Sports Performance Centre Limited, Vocare Limited, Greenbrook Healthcare (Hounslow) Limited, Greenbrook Healthcare (Earl’s Court) Limited and Totally Healthcare Limited.

The Group’s interim report and accounts for the six months ended 30 September 2021 have been prepared using the recognition and measurement principles of International Accounting Standards in conformity with the requirements of the Companies Act 2006 as per the annual report.

These interim financial statements for the six months ended 30 September 2021 have been prepared in accordance with the AIM Rules for Companies and should be read in conjunction with the financial statements for the year ended 31 March 2021, which have been prepared in accordance with International Accounting Standards in conformity with the requirements of the Companies Act 2006 as per the annual report. The interim report and accounts do not include all the information and disclosures required in the annual financial statements.

The interim report and accounts have been prepared on the basis of the accounting policies, presentation and methods of computation as set out in the Group’s March 2021 Annual Report and Accounts and on the basis of the principal accounting policies that the Group expects to apply in its financial statements for the year ending 31 March 2022.

The interim report and accounts do not comprise statutory accounts within the meaning of section 434 of the Companies Act 2006. These interim financial statements were approved by the Board of Directors on 15 November 2021. The results for the six months to 30 September 2021 and the comparative results for the six months to 30 September 2020 are unaudited.  The figures for the period ended 31 March 2021 are extracted from the audited statutory accounts of the Group for that period.

The Directors believe that a combination of the Group’s current cash, projected revenues from existing and future contracts will enable the Group to meet its obligations and to implement its business plan in full. Inherently, there can be no certainty in these matters, but the Directors believe that the Group’s internal trading forecasts are realistic and that the going concern basis of preparation continues to be appropriate.

 

2. Earnings per share

Basic earnings per share is calculated by dividing the profit attributable to equity holders of the Company by the weighted average number of ordinary shares in issue during the period. Diluted earnings per share takes into account the effects of share options in issue.

 

 

6 months ended

30 September 2021
£000

(Unaudited)

6 months ended

30 September 2020

                          £000

(Unaudited)

Year ended 31 March 2021

£000

(Audited)

Profit (£000)

1,136

299

318

Weighted average number of shares used in basic earnings per share calculations (‘000)

182,236

182,186

182,187

Potentially dilutive share options and contingent share consideration (‘000)

2,031

1,453

2,553

Weighted average number of shares used in diluted earnings per share calculations (‘000)

184,267

183,639

184,739

Basic earnings per share (Pence)

0.62

0.16

0.17

Diluted earnings per share (Pence)

0.62

0.16

0.17

 

3. Dividends

 

The below dividends are recorded in the financial information

6 months ended 30 September 2021

6 months ended 30 September 2020

Year ended 31 March 2021

£000 (Unaudited)

£000 (Unaudited)

£000

(Audited)

Final dividend (FY21) – 0.25p per share

456

 –

Final dividend (FY20) – 0.25p per share

455

455

Interim dividend (FY20) – 0.25p per share

456

456

455

911

In addition to the above, the Board are proposing an interim dividend of 0.5p per share or £911,000 to be paid in February 2022.

 

4. Distribution of Interim Report

A copy of the interim report will be available shortly on the Company’s website (www.totallyplc.com) in accordance with Rule 26 of the AIM Rules for Companies.

November 15, 2021 In: News Comments (None)