Trading Update

This announcement contains inside information for the purposes of article 7 of the Market Abuse Regulation (EU) 596/2014 (which forms part of domestic UK law pursuant to the European Union (Withdrawal) Act 2018 ("UK MAR"). With the publication of this announcement, this information is now considered to be in the public domain.

Totally plc

("Totally", the "Company" or the "Group")

Trading Update

Directorate Change

Historic Negligence Claim

Totally plc (AIM: TLY), a leading provider of frontline healthcare services, corporate fitness and wellbeing services across the UK and Ireland, today provides a trading update on its financial performance for the year ended 31 March 2025 ("FY25") and its outlook for the period ahead. Totally also announces today that Laurence Goldberg, Chief Financial Officer, has stepped down from the board of Directors and provides disclosure on a historic negligence claim.

Financial year ended 31 March 2025 and outlook

The Company announced on 14 February 2025 that it expected to report £85.0 million revenue and £3.5 million EBITDA for FY25. The board of directors of Totally (the "Board" or the "Directors") can confirm its expectation of financial performance has now reduced. This follows the negative impact of a combination of factors including a slower than expected ramp up of a recent contract win and reduced operating margins as higher margin contracts have unwound, principally NHS111. The Company had indicated in its previous outlook update that it may have been possible to redeploy people/costs associated with this contract within the business, however, this has not been possible.

While the Board, with assistance from its advisers, continues to review the Group's financial performance for FY25, its current estimates indicate an EBITDA range of between £0m and £2.0m. In addition, exceptional costs during the period are estimated to amount to £3.8m and there have been other cash costs capitalised on the balance sheet of a further £0.8m. The exceptional costs predominantly relate to the closing of the 111 contract with the NHS.

Following the above, the Board is in the process of undertaking a comprehensive review of its current financial position and forecast outlook, assisted by advisors where required. Following its initial analysis, the Board believes there is likely to be an impairment of goodwill as part of this exercise. This review remains ongoing.

The Directors of Totally believe the outlook for the underlying operations are positive. The Company expects to announce further new contract wins over the coming months. The Group is profitable on a monthly basis. Operationally, the business also continues to perform strongly with customer satisfaction remaining high. Nevertheless, the Directors recognise that the Group needs to strengthen its balance sheet over the coming months so the Company has commenced a strategic review intended to raise further funding to support and rightsize its business and to protect the interests of all stakeholders (see RNS titled "Launch of Strategic Review" announced separately today).

The Directors are also continuing to compile their latest forecasts for the business alongside the new finance lead (see next section), and believe it is prudent to withdraw market guidance for the financial year ending 31 March 2026 ("FY26") pending the outcome of this ongoing work. The Group's debt facility remains at £2.5m.

Directorate Change

The Company can confirm that Mr Laurence Goldberg has resigned as a director of the Company with immediate effect.

The Company has recruited an experienced board adviser with previous listed public company experience who is now leading the Totally finance team and, in conjunction with professional advisers as appropriate, is supporting the Board with its strategic review in addition to other key workstreams.

Medical negligence claim

Legal proceedings may arise from time to time in the ordinary course of Totally's business, including the accusation of potential clinical negligence which may lead to claims. To mitigate this risk, and in line with industry practice, the Board of Totally has sought to maintain sufficient product and public liability insurance to comply with the requirements of the NHS in England and Wales. 

The Board has recently received new correspondence in relation to a medical negligence claim relating to an incident that occurred in January 2018. Historical advice to the Board was that this claim was one which the Board believed (on advice) could be funded entirely by a claim on the Group's insurances. As a result of the recent correspondence, the Board now considers that there is a stronger probability that the size of the liability may be more than the claim limit on the insurance policy then held by the Group (being £10.0m and twice the amount then required by the NHS in England and Wales). The Board notes that the process of medical negligence claims is often both complex and likely to take significant time. The Company is seeking to engage with all parties involved in the case and will work with its professional advisors and its insurers to achieve a fair outcome.

For further information please contact:

Notes to editors

About Totally

Totally is a leading provider of healthcare and wellbeing services across the UK and Ireland, working in partnership with the NHS, other healthcare providers and corporate customers to help address the challenges of increased demand for healthcare services.

Totally helps healthcare commissioners and hospitals ensure patients can access the most appropriate care quickly and efficiently by delivering quality urgent care services, elective care services including insourcing, outsourcing and elective care delivered via 'Any Qualified provider', as well as community dermatology clinics; and therapy servicing including first contact practitioner and a full physiotherapy and podiatry offering. Our corporate customer services also play a role in reducing reliance on healthcare by promoting healthy lifestyles and physical and mental health.

Healthcare services

Urgent Care: Totally's urgent care services are delivered under the Totally Urgent Care brand, by Vocare and Greenbrook Healthcare. Both businesses have a strong heritage.

Elective care: Totally's elective care services are delivered by Pioneer Healthcare, About Health and Premier Physical Healthcare.

· Pioneer Healthcare was established in 2007 and delivers a wide range of acute services to NHS patients, in partnership with independent healthcare sector private hospitals across England, to help the NHS reduce waiting lists whilst maintaining patient care and quality. Pioneer offer services through insourcing and outsourcing agreements and through its Any Qualified Provider status. 

· About Health has been delivering community-based specialist care with a focus on delivering prompt assessment and treatment across the country since 2008.

· Premier Physical Healthcare was established in 2007 and provides physiotherapy and podiatry services to NHS patients, often within a community GP practice, and to the prison service.

Corporate Wellbeing Services

Energy Fitness Professionals ("EFP"): EFP is a corporate fitness provider established in 1990 to address a gap in the market for workplace fitness, which has grown to offer a range of services covering workplace wellbeing. EFP manages 62 gyms on behalf of its corporate customers, with more than 13,000 members.

For more information visit www.totallyplc.com