In its preliminary results for the year ended 31 March 2021, Totally (TLY ) hailed an ‘exceptional year’ with demand for its services ‘increasing beyond all estimates’. In response, it has recommended to its shareholders a final dividend of 0.25p per share.
The Group, which provides healthcare services across the UK and Ireland, saw demand rise ‘on an almost daily basis’ as it worked as part of the frontline resource providing care in partnership with the NHS during a year of unprecedented pressure due to the pandemic.
The Group highlighted to investors that it has made excellent progress with its operational performance throughout the year and exceeded its internal management expectations.
Over the period, revenue rose by 7.4% to £113.7m (FY20: £105.9m) while Totally saw a substantial increase in pre-tax profit to £0.1m, moving it from a previous loss of £3.4m.
The Company highlighted that growth in revenues was primarily driven by the growth across its Urgent Care division which increased by 9.2%, bringing revenues to £105.4 million.
The Company also posted a 24.5% increase in underlying EBITDA to £5.0m with no exceptional items having been incurred (FY20: £4m EBITDA excluding exceptional items) while cash as at 31 March 2021 was recorded at £14.8m (31 March 2020: £8.9m).
Totally remained debt free with healthy cash balances over the year which it said is a reflection of its excellent approach to cash management. In response to its cash generative position, Totally announced the distribution of its interim dividend in February 2021. It said its intention is to consider future dividend payments based upon its trading performance.
Over the year, Totally’s Urgent Care division saw demand for NHS 111 services increase ‘beyond anything it had planned for’, prompting it to respond quickly to ensure continued delivery of the 24/7 service across the UK, with some this demand still continuing now.
Meanwhile, the Planned Care Division saw almost the opposite of Totally’s Urgent Care Division as services were halted as GP surgeries closed and all elective care was paused.
Despite the mobilisation of new contracts being paused over the year, Totally said these have now been mobilised with new business opportunities currently being pursued.
In addition, Totally said its Insourcing continued to grow over the year despite travel restrictions preventing procedures from being performed in April and May, the continued demand for services in this area was the driver of the revenue growth from £1m to £3.1m.
As a result of its ‘record results’ for FY21, the Board confirmed that it is recommending to shareholders a final dividend of 0.25p per share. This, together with the interim dividend of 0.25p paid in February 2021, makes a total dividend for the year of 0.50p per share, it said.
Post-period, Totally has continued to see operational progress across its Urgent Care division which has been awarded a number of contract extensions worth a total of c. £17.8m.
In particular, Totally Healthcare Limited was awarded its largest contract to date, to provide endoscopy procedures to The Saolta Group of Hospitals in Galway, Republic of Ireland while Totally’s Planned Care mobilised its largest community dermatology contract in April 2021.
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In recent months, Totally has hailed its strong progress after delivering healthcare services across the UK and Ireland in partnership with the NHS and other healthcare providers.
In April 2021, the Group, which provides a range of healthcare services across the UK, said it anticipates reporting EBITDA for the year ended 31 March 2021 ‘substantially ahead’ of expectations and its previous record of £4m in underlying EBITDA for the same 2019 period.
Despite all operations having been impacted due to the pandemic, the Group said that with the increased demand for urgent healthcare support, it was well placed to respond quickly.
In the year to 31 March 2021, Totally secured a string of contracts amounting to c.£92.5m.
Shares in Totally have more than doubled in value since the beginning of 2021. The stock was trading 1.18% higher this morning at 43p following the release of its FY21 preliminary results.
Reasons to TLY
Totally is a 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.
Market Position
Totally has established itself as a component of the provision of healthcare in Ireland the UK. Its Urgent Care, Planned Care and Insourcing services have all secured significant contracts across its target markets and now class themselves as ‘key partners’ to the NHS.
Operating Model
Urgent Care, Planned Care and Insourcing services all operate in complementary market segments at different parts of the healthcare cycle. In its 1H20 results for the six months ended 30 September 2020, the group demonstrated increasing revenue, service-led margins and a strong operating cash flow to support a progressive dividend policy for shareholders.
Fragmented Industry plays to M&A Strategy
Totally said it is committed to pursuing a progressive ‘buy-and-build’ consolidation strategy within the fragmented healthcare services industry. It has completed several acquisitions and continues to evaluate attractive opportunities that its disruptive service model offers.
Totally 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.
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