A formal review will be conducted at Totally, the provider of healthcare and wellbeing services, of the strategic options available to the group to strengthen its balance sheet as financial performance expectations are reduced at the Derby firm.
The Totally board will consider strategic options including selling one or more of the company’s subsidiaries, receiving strategic investment, or undertaking some other form of comparable corporate action.
The company has appointed Ernst & Young (EY) as its adviser to assist with the strategic review.
The news follows a statement this morning (1 May) on trading, the stepping down of Laurence Goldberg, Chief Financial Officer, from the board of directors, and an historic negligence claim from January 2018 that is expected to be more expensive than anticipated.
The business revealed that is has reduced its financial performance expectations, after announcing on 14 February that it expected to report £85m revenue and £3.5m EBITDA for FY25.
This follows the impact 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 that it may have been possible to redeploy people/costs associated with this contract within the business, however, this has not been possible.
As the board continues to review the group’s financial performance for FY25, 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 primarily relate to the closing of the 111 contract with the NHS.
