Totally flags solid full-year performance in challenging market

7th May 2024 13:08

(Sharecast News) - Healthcare services provider Totally said in an update on Tuesday that despite a challenging market environment, it had seen a solid performance in the financial year just ended thanks to the results of its strategic review.

The AIM-traded firm said the review was focussed on optimising structures, systems, and processes to ensure sustained growth and support for commissioners.

It said it expected to report revenue of £106m for the 12 months ended 31 March, down from £135.7m in the 2023 financial year.

Totally projected EBITDA of £2.3m for the full year, accelerating from £1.1m in the first half, as it ended the year with £2.3m in gross cash and maintained positive cash flow during the second half, while net debt remained unchanged.

Throughout the year, Totally undertook internal restructuring initiatives to align its organisation with prevailing market conditions.

The board said those actions led to a reduction in overhead costs to £2.2m for the year, with anticipated annualised savings of around £3.5m.

Exceptional costs related to those measures were forecast at £0.8m for the 2024 period.

The management team said it was collaborating closely with commissioners to address sector-wide challenges in the health system, noting that all of its Care Quality Commission (CQC) registered services maintained a 'Good' rating.

During the year, Totally facilitated access to care and treatment for around two million people across England and Ireland.

"We remain steadfast in our commitment to stand alongside our healthcare colleagues to ensure the population can access the care they need when they need it," said chief executive officer Wendy Lawrence.

"Our teams have worked tirelessly during times of unforeseen pressure with clarity and I am proud of the way Totally has approached these times and managed its own pressures without compromising quality.

"There is no doubt that the market continues to be difficult, and as commissioners have considered the actions required to move forward, we have also ensured that our house is in order."

Lawrence said the company had "robustly addressed" its cost base, protecting the services it delivers to patients, as well as its workforce and long-term shareholder value.

"These cost savings supported our performance for the 2024 financial year, and will continue to do so in future years.

"I am delighted to see new business opportunities emerging as we turn our focus to a return to profitability and growth."

At 1216 BST, shares in Totally were up 19.05% at 6.25p.

Reporting by Josh White for Sharecast.com.