Totally doubles dividend as sales and profits soar

Totally Plc (TLY Follow | TLY)  revealed growth across the board  in its preliminary results for the 12 months ended 31 March 2022, with a 12% increase in revenue to £127.4m driving a 24% increase in EBITDA to £6.2m.

Pre-tax profit also increased substantially, hitting £1.3m from just £0.1m in 2021, helping the group to lift net cash increased to £15.3m, up from £14.8m last year. The provider of frontline healthcare and corporate fitness and wellbeing services also doubled its dividend to 1p per share on the back of a 247% increase in basic earnings per share to 0.59 pence (2021: 0.17 pence).

All three divisions of the company saw revenue growth. Urgent Care revenue increased 3.6% to £105.4m, Planned Care revenue grew 43.7% to £7.5m, and Insourcing revenue went up substantially by 232% to £10.3m.

In the period, Totally was awarded new contracts totalling £59m, including a 3-year contract with King’s College NHS Foundation Trust for a new urgent treatment centre, and a five-year contract for the provision of GP-out-of-hours (GPOOH) services in Staffordshire and Stoke.

Growth has continued  since the 31 March period end, with several contract extensions awarded, most notably for the management of five urgent treatment centers in Northwest London worth £19m.

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Totally‘s performance in the fiscal year exceeded both internal management and consensus market expectations. Growth was supported by increased demand for Totally‘s services during the pandemic, resulting in significant growth in waiting lists.

Beyond the pandemic, Totally continues to execute on its buy and build strategy, ensuring it remains well-positioned to support the NHS and other healthcare providers in the next decade. In addition to signing and extending many new contracts, Totally completed two acquisitions during the period, Pioneer Health Care and Energy Fitness Professionals:

The Pioneer Health Care acquisition has helped to expand and streamline Totally‘s health care services, resulting in the massive Insourcing revenue growth detailed above. The result has been waiting list reductions, and more contract extensions.

Energy Fitness Professionals specialises in corporate wellbeing and has been a key component in the company’s diversification and expansion strategy, ensuring future resilience and more opportunities for growth. As a result of the acquisition, Totally secured a 5-year extension to its contract with Royal Mail that will see delivery of £2.5m worth of gym equipment to Royal Mail locations.

Additionally, Totally has entered the enhanced digital services market with its virtual consultations products, enabling patients who have been directed to a UTC by NHS 111 to see a clinician virtually.

Totally‘s impressive growth speaks for itself, and its expansion and diversification strategy has been effective so far. Investors have rewarded the company accordingly with shares up 31% so far this year, defying challenging market conditions. Today’s announcement had been been mostly priced in, following a strong trading update in April.

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