Totally Reports Earnings Ahead of Market Expectations with Strong Outlook for FY23

Totally plc (TLY Follow | TLY) released its unaudited FY22 Trading Update to 31st March detailing significant new contracts and contract extensions and beating EBITDA expectations for the 12-month period ended 31 March 2022.

Totally continues to work with the NHS and other healthcare providers to meet the challenges of the COVID-19 pandemic. These partnerships resulted in £59m of new contracts and £72m of contract extensions over the 12-month period ended 31 March 2022, particularly in Urgent Care and Insourcing including a new three-year contract with Kings College NHS Foundation Trust for a new Urgent Treatment Centre at Denmark Hill worth c. £12 million; a new five-year contract for the provision of GP out of hours (OOH) services in Staffordshire and Stoke valued at £45 million and two new contracts for the delivery of NHS 111 online clinical services in North East England and South-East London Clinical Assessment Services (CAS) running for 3 months from January 2022 worth a total of £0.6 million.

Totally is therefore expecting to beat the £5.4m EBITDA market consensus, fuelled by this strong demand.

As at the period end, Totally reported £15.3m in net cash compared to £14.8m at this time last year, again beating expectations of £11m set by Allenby Capital. The cash figure includes £7.4m spent on two major acquisitions, further boosting expectations of sustained growth. The company has not taken on any debt yet.

The aforementioned two acquisitions are part of Totally's stated "Buy & Build" strategy. They are Pioneer Health Care Ltd and Energy Fitness Professionals Ltd. These acquisitions have resulted in substantial expansion of Totally's customer base and range of services, especially into the corporate fitness/wellbeing space.

Audited Final Results for the 12-month period ended 31 March 2022, are expected in July.

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Totally has clearly been perfectly positioned as a critical NHS supplier during the COVID-19 crisis with all the Groups services receiving high-demand throughout FY22. 

Today's TU complements the brief update on 14 April and now reinforces that EBITDA is @substaltially@ ahead of market expectations of £5.4m indicating costs have been well-controlled during the period.

With net cash also significantly ahead of market expectations suggesting cashflow was also strong for the period with the Group remaining debt free with as yet unitised revolving credit facility of £5m.

Shares in Totally have climbed strongly over the past three months with the shares now testing 12 month highs of 44p.

There is also more to come from Totally as the two recent acquisitions bed in and gain further market traction.

In particular, the acquisition of EFP in December 2021 brings diversification across the Group by focussing services on workplace fitness and wellness, including physical and mental wellbeing services. This obviously has complete different sales cycles to that of primary and urgent care and should provide regular positive newsflow for the Company.

The acquisition also presents the opportunity for the Group to deliver enhanced 'digital services', which complement the existing service offerings of Totally and EFP, by harnessing the technical capabilities in both businesses and further developing digital offerings.

Since the acquisition, EFP has also seen a strong increase in new opportunities and enquiries from businesses as employers encourage their workforces to return to work.