Totally plc (LON:TLY), the provider of a range of healthcare services across the UK and Ireland, has announced its results for the 12-month period ended 31 March 2020.
· Successfully completed acquisition of Greenbrook Healthcare in June 2019 via reverse takeover
· Greenbrook Healthcare secured new Urgent Treatment Centre contract in Watford for the Company’s Urgent Care division
· Secured largest dermatology contract to date for About Health in Manchester
· Launched new Insourcing start-up business, Totally Healthcare, in October 2019 delivering Insourcing services across the UK and Ireland
· Continued to provide frontline healthcare services supporting the NHS to manage the COVID-19 pandemic
· 97% of registered services rated as ‘Good’ by the Care Quality Commission (CQC)
· Revenue up 35.8% to £105.9m (2019: £78.0m)
· Gross margin improved to 18.1% (2019: 15.5%)
· Underlying EBITDA* up 265% to £4.0m** (2019: £1.1m)
· Loss before tax of £3.4m (2019: £1.8m)
· Cash up 19% to £8.9m as at 31 March 2020 (31 March 2019: £7.5m)
· Paid a maiden interim dividend to shareholders in February 2020 of 0.25p per share
*Earnings before interest, tax, depreciation and amortisation, before exceptional items outlined in the notes to the financial statements
**Includes £1.6m impact relating to implementation of IFRS 16
Post period end highlights
· Significant contract extensions awarded to Vocare worth a total of £19.5m
· Mobilisation and restart of Planned Care and Insourcing care divisions
· Continued support to NHS across all operating divisions in response to COVID-19
· Maiden final dividend of 0.25 pence per share proposed bringing total dividend for the year to 0.50 pence per share
The year ended 31 March 2020 was a good year for Totally delivering profit before depreciation and amortisation during times of unrivalled political instability which included BREXIT and a General Election followed by the worldwide pandemic of COVID-19 which has impacted on every person and every business.
Totally’s strategy has always been to support the NHS to manage the pressures and demands placed upon healthcare services. The COVID-19 pandemic is no exception, and everyone at Totally has stood shoulder to shoulder with the NHS and delivered patient-facing services throughout this period and continues to do so. At the time of writing, we are still very much in a period of uncertainty as everyone works together to ensure services are robust and ready for any second wave of demand. What is very clear to the Board of Totally is that our strategy has been, and continues to be, correctly focused during these unprecedented times.
Whilst we expect the business to grow in 2021 and beyond, due to current run rates and new contract wins, the timing of new tenders, which is a key part of our growth plans, remains uncertain due to the COVID-19 pandemic and its impact on the NHS. We are therefore unable to give firm guidance at this stage on our growth expectations for the current financial year and the Board has considered it appropriate for market forecasts to be withdrawn at this time. The medium to long term outlook and trajectory of the business however remains unchanged. Shareholders should also be pleased that we expect continued growth in operating cash flow and the Board therefore remain committed not only to the payment of dividends but also in continuing with our progressive dividend policy. Accordingly, the Board is pleased to propose a maiden final dividend of 0.25 pence per share taking the total dividends for the year to 0.50 pence per share. Subject to shareholder approval at the upcoming AGM the final dividend will be paid in October 2020.
With the expertise of our leadership teams, we will continue to ensure our services respond to any changes in demand we receive and that we support our staff to deliver exceptional services in partnership with the NHS and other public sector bodies across the UK and Ireland. Whilst the way we secure new business has changed, the demand for our services is not expected to diminish.
During the year, we completed the acquisition of Greenbrook Healthcare, which increased our presence across London in Urgent Care. You will read throughout this report the progress that’s been made with integrating Greenbrook Healthcare into our Urgent Care Division and harnessing technology will continue to build to our market-leading position.
The Group also launched its Insourcing business, Totally Healthcare, which during its first few months of operations secured contracts across the UK and Ireland delivering services to provide bespoke services to reduce hospital waiting lists. Already its reputation is for delivering services quickly, efficiently and of high quality to every patient treated. Of course, these services were put on hold during the pandemic as all elective healthcare services were suspended to focus on managing COVID-19. Totally Healthcare is now back working and supporting hospitals plan for how they reduce the waiting times and waiting lists which have increased during the first half of 2020.
We all know that cash is a seen as a barometer of the success of any business and we reported £8.9m cash at the bank at year end, an accurate reflection of the efforts of all our support teams to ensure we operationally deliver across the business.
All of this has been achieved during the most testing times which reflects the outstanding commitment and expertise of everyone across the Group for which I commend them. We must also thank our investors for their continued support which enables us to continue to deliver our strategic intentions of becoming a partner of choice for the delivery of healthcare services across the UK.
Bob Holt OBE
7 July 2020
CHIEF EXECUTIVE OFFICER’S REVIEW
Building strong partnerships with a reputation for delivering high‑quality care even during the most difficult times
I am pleased to report excellent progress across the Group with a strong set of results during a year when we saw many external challenges including the Covid-19 pandemic which impacted all of our businesses towards the end of the reporting period.
Our management team has seized every opportunity presented to them to strengthen our market position and support the delivery of healthcare services across our three divisions.
Demand for our services continues to be strong, on the back of our reputation for delivery of high-quality services. 26 out of 27 of our registered services with the Care Quality Commission are rated as good, an excellent position to grow from and it has been pleasing to see continuing improvement in our CQC ratings reflecting the high-quality care we provide.
Our three distinct business divisions – Urgent Care, Planned Care and Insourcing – provide a portfolio of healthcare services across the UK and Ireland built on the expertise and commitment of our people, ensuring the patients we treat receive the highest quality of care quickly and efficiently. We partner with healthcare organisations across the UK supporting them to manage demand for services.
We continue to support the NHS by working on the frontline delivering services to manage the demand from the Covid-19 pandemic but also respond to the need to reduce waiting times and waiting lists due to the suspension of elective healthcare services.
Whilst we expect the business to grow during 2020/21 and the medium to long term outlook for the business remains unchanged, we are unable to give clear guidance at this stage of the impact of COVID-19 on the current financial year and as such the Board has resolved to withdraw market forecasts at this time. Each of our divisions has been affected in different ways by the COVID-19 pandemic and demand for many of our services remains strong. COVID-19 has though inevitably resulted in delays being encountered with the NHS awarding tenders and there has been an impact on the near-term visibility for growth, particularly in Planned Care.
Of course, our results demonstrate the significant progress we have made, regardless of external forces. New contracts were secured across the three divisions, including the largest to date within our Planned care division to deliver Dermatology outpatient services across Manchester. In addition, we have continued to secure a number of vital contract extensions in both Urgent Care and Planned Care which underpin our foundations for continued growth -in excess of £20m of contract extensions were secured in the period under review.
Building on our Strategy
During the year, we have focused on delivering services across the Group that are sustainable and reactive to changes in demand.
· High-quality: has to be at the centre of everything we do. Our reputation is built upon this core requirement.
· Geography: during the year, we have successfully expanded our footprint across the UK and Ireland and are now delivering services across England, Scotland, Wales, Northern Ireland and the Republic of Ireland.
· Diversification: across our divisions ensuring we deliver models of care across all areas of high demand in the healthcare sector and that our divisions support each other by “cross-selling” services to both existing and potential new customers.
· Learning: from everything we do, both positive and negative, and ensuring we stay ahead of our competition with our approach to disrupting care models and delivering real tangible benefits.
· Supporting: our people and investing in them as they are at the core of what we do.
I would like to re-emphasise my confidence in the team of people we have and their ability to grow the business organically and via acquisitions, as well as continually review and develop the range of services we offer.
We are well positioned to further build on our market-leading positions in all of our divisions. Building on our strong relationships with our commissioners and supporting government bodies to proactively manage the demands placed on healthcare services during unprecedented events such as the recent Covid-19 pandemic when we experienced major increases in demand for our services, specifically in NHS 111. We were able, with the dedication of our people, to stand shoulder to shoulder with other healthcare professionals, and deliver services 24/7 across England supporting everyone by providing the high-quality services we are known to deliver.
I look forward to updating you further as we continue to expand our services across the UK
Chief Executive Officer
7 July 2020