Totally warns shareholders of 'challenging' NHS environment

1st Sep 2023 10:13

(Sharecast News) - Healthcare contractor Totally said in an update on Friday that it was currently operating in a "challenging environment" due to the ongoing crisis in the NHS.

The AIM-traded firm, which was holding its annual general meeting, said the cost of employing agency staff to maintain safe and effective healthcare services had surpassed its initial forecasts.

Additionally, many decisions regarding the awarding of new contracts were currently on hold, thus posing further challenges to the company's growth prospects.

Despite those hurdles, it said it remained focussed on delivering a return on investment while navigating the operational difficulties.

Moving forward, Totally announced the implementation of new strategies aimed at streamlining operations and aligning them with a smaller overhead base that was more reflective of current contract requirements.

Those measures, the board said, were expected to make the company more agile and responsive to the needs of its diverse clientele.

"The board remains confident in the medium to long term prospects of the business and will ensure that future contract opportunities continue to be pursued and all contracts are managed effectively to support the achievement of Totally's goals," said chairman Bob Holt.

"The board's outlook for the current financial year remains consistent with that communicated alongside the full year results of the company in July."

At 1233 BST, shares in Totally were down 15.29% at 9p.

Reporting by Josh White for Sharecast.com.