Totally (TLY) told investors that it is trading strongly, in line with market expectations, and has a current cash position of around £14.7 million as at 31 August 2021, with no debt financing.
Ahead of its Annual General Meeting which is due to take place later this morning, the UK and Ireland-focused healthcare service provider released a trading update in which it stated that the Company’s Planned Care and Insourcing divisions have now resumed all services.
It said recent NHS England data on waiting lists and new service opportunities supporting the management of 'long COVID' present further opportunities for organic growth in the business.
In particular, Totally’s Planned Care and Insourcing divisions are focused on supporting the NHS as it seeks to clear waiting lists that have built up during the pandemic. Recent figures published by the NHS state that this number has risen to more than five million in England alone, with similar increases expected across the rest of the UK and the Republic of Ireland.
Totally said preparations are underway for a second winter with the pressures of COVID-19 on top of an expected resurgence of seasonal flu and other normal winter demands and that it continues to operate within NHS COVID guidelines, with appropriate PPE and social distancing, as well as support for its staff across all divisions to ensure they stay safe.
Urgent Care is preparing to mobilise the new Urgent Treatment Centre at Denmark Hill after a successful tender process for King's College Hospital NHS Foundation Trust in August 2021.
Meanwhile, the Group’s Planned Care division is seeing several new service opportunities to support the number of people impacted by 'long COVID' including a rise in the number of people being referred into the traditional physiotherapy service for long COVID diagnoses.
In addition, the Group's Insourcing division has recently been added to a national framework for Wales and is now fully registered on national frameworks for England, Scotland, Wales and the Republic of Ireland, as well as the local contract framework in Northern Ireland.
Looking ahead, Totally outlined that its Directors are pleased with the current trading performance and remain confident in the outlook going forward. As a result, it anticipates further growth as the Group supports the NHS and other healthcare providers through a second winter with COVID-19 and the increased pressure of significant waiting lists.
Totally highlighted to investors that its current strong cash balance of c.£14.7 million in cash leaves it well-positioned for acquisition opportunities that fall in line with its stated strategy.
"We are extremely pleased with the Group's performance over the past year and how we continue to adapt to the unprecedented challenges created by the COVID-19 pandemic.
In our full-year results, published on 6 July 2021, we reported a circa 25% uplift in EBITDA, alongside increased revenue and a substantial increase in profit before tax. This strong result was delivered as we worked through multiple lockdowns, maintained CQC "Good" accreditation across all services and as elective care and non-urgent procedures were suspended across the nation, meaning that our Planned Care and Insourcing divisions were unable to operate for significant parts of the last financial year,” said Chairman, Bob Holt.
"Looking ahead, significant new opportunities are being presented to the Group and our strong position, highly cash generative with a strong balance sheet and no debt, places us well to progress our ambitions for further organic and acquisitive growth,” Holt added.
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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.
In July 2021, following the publication of Totally’s results for the year ended 31 March 2021 in which it stated that demand for its services had ‘increased beyond all estimates’ over the year, the Company said it had recommended to its shareholders a final dividend of 0.25p per share.
The Board confirmed a final dividend of 0.25p per share which, together with the interim dividend of 0.25p paid in February, makes a total dividend for the year of 0.50p per share.
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.
In particular, Totally 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.
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 nearly doubled in value since the beginning of the year. Ahead of its AGM this morning and following its trading update, the stock was trading 0.38% higher.
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