Totally rockets as operating loss narrows, says profitability will improve in second half

23rd Jul 2015 13:16

(ShareCast News) - Shares in Totally rocketed after the company reported a narrowing of its operating loss in the first half as revenue rose and said profitability is expected to improve in the second half of the year.The company, which provides solutions to the healthcare sector, posted an operating loss of £71,000, down from £272,000 in the first half of 2014, as group turnover rose to £418,000 from £196,000.Totally said the gap to profitability across the group is closing and is expected to improve in the second half of the year with a monthly profit expected to be maintained by the fourth quarter of 2015 or earlier. Totally said that during the first quarter of 2015, the group achieved its target of positive earnings before interest, tax, depreciation and amortisaiton. However, as contracts entered into the evaluation phase, EBITDA reduced in the second quarter of 2015 with the six months ending with a loss £69,000. Within this loss were one off costs of £24,000 related to developing the business to consumer proposal and a £13,000 accounting provision for options and warrants charges.The company said: "Whilst the general election has impacted on the number of new NHS contracts that we have secured during the first half of 2015, our pipeline continues to grow and we remain very optimistic of securing new clients during the second half of 2015. "We are also in advanced discussions with other sectors that we believe would benefit from the services of Totally Health and are confident that these will come to fruition during 2015. These include other healthcare sector providers such as pharma, personal medical insurers and large employers." At 12:31, Totally shares were up 73% at 0.3465p.