In a trading update for the 12-month period ended 31 March 2020, Totally plc (TLY) has announced it anticipates EBITDA* for the period to be ahead of market expectations.
Although revenue is expected to be lower, due to Brexit causing delays in the NHS awarding new tenders, the Company’s acquisition of Greenbrook Healthcare in June 2019 led to margin improvement and operating efficiencies delivering a positive impact on EBITDA.
During the period, the Company made significant progress securing over £30m of value in new contracts and over £20m in contract extensions. The Company ended the period with no debt and cash of £8.9m**.
Shares in Totally were down 2% in early morning trading.
Final results are expected to be announced in July 2020.
*EBITDA is defined as earnings before interest, tax, depreciation and amortisation and excludes one-off exceptional items
**Following the adoption of IFRS 16, the Company has reported operating lease commitments as a debt on its balance sheet however these do not affect the day to day working capital available to the Group