Dissemination of a Regulatory Announcement that contains inside information according to REGULATION (EU) No 596/2014 (MAR).

29 September 2017

Totally PLC

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

Half-year results for the six months ended 30 June 2017

Totally (AIM: TLY), the provider of a range of services to the healthcare sector, announces its interim results for the six months ended 30 June 2017 ("H1 2017").

Highlights

·      Significant progress made towards delivering a progressive 'buy and build' strategy, aimed at establishing Totally as a leading provider of 'out of hospital' care in the UK.

·      Three acquisitions completed in 2016 and fully integrated in H1 2017: Premier Physical Healthcare Ltd ("Premier"), About Health Ltd ("About Health") and Optimum Sports Performance Centre ("Optimum") - all provide a range of preventative and responsive healthcare services in community settings, GP surgeries and patients' homes, from pre-diagnosis through to discharge.

·      The subsidiaries are continuing to secure new businesses and renew existing contracts including:

o  About Health awarded a new £130,000 12 month contract with Harrogate and Rural District CCG - January 2017

o  Premier awarded a new contract worth £140,000p.a. over three years with NHS Care & Custody - March 2017

o  Premier awarded two five year contracts for approximately £340,000 with Care UK - April 2017

o  Premier secured six year £400,000 contract with Care UK and South Yorkshire Prisons - September 2017

o  About Health awarded £331,750 p.a. four year contract to provide dermatology services to Castle Point, Rochford and Southend CCGs, UK - September 2017

·      At an advanced stage of due diligence and finalising terms to complete an acquisition as announced 21 July 2017, which will constitute a reverse takeover under the AIM Rules - Totally to update market first half October 2017

·     Continuing to evaluate further value accretive acquisition opportunities focused on the UK NHS outsourced healthcare services market, estimated to be worth in the region of £20 billion per year 

Financial Overview

·      Group turnover: £3,676,000 (H1 2016: £936,000)

·      Gross profit: £1,169,000 (H1 2016: £286,000)

·      EBITDA loss excluding exceptional costs: £657,924 (H1 2016: EBITDA loss £403,000)

·      EBITDA loss including exceptional costs: £740,385 (H1 2016: EBITDA loss £841,000)

Chairman Statement

I am pleased to report on the half year period, a time which has not only seen us successfully integrate our three acquisitions completed in 2016, which are all generating revenues and performing well, but also aggressively progress our buy and build strategy as we continue to act as a consolidator in the fragmented UK healthcare market and build ourselves as the leading out of hospital healthcare services provider.  

Our oversubscribed £17.6m placing and open offer completed in March this year was intended to fund potential acquisitions in line with our buy and build strategy. To this end, Totally announced on 21 July 2017 that they had signed heads of terms on a potential acquisition that would constitute a reverse takeover under the AIM Rules. The shares were suspended at this time and remain suspended at the current time. Whilst the acquisition and due diligence process has taken longer than envisaged to complete we are now at a very advanced stage and are confident that the acquisition, which constitutes a reverse takeover, will be completed imminently and we look forward to updating the market in this regard in the first half of October 2017.

We are confident that, when completed, the acquisition will add significant scale to the Group and diversify the services provided by the Group, as well as see us continue to deliver on our stated vision of building Totally as the pre-eminent provider of out of hospital services to help address some of the challenges the UK faces in terms of healthcare and in turn deliver shareholder value through the growth of the Group.

Our existing businesses (Totally Health and My Clinical Coach), which were part of the Company prior to the formation of the new Board in November 2015 and subsequent buy and build growth strategy, performed below management expectations in the first half, but through the services they offer have been supportive of the growth in the acquired businesses ensuring streamlined costs and economies of scales to benefit the plc bottom line.

To this end, in addition to finalising our near-term acquisition, we continue to seek out and have a number of further opportunities in the pipeline as we continue to build a profitable platform for growth for the Group.

The six months' results showed turnover of £3,675,521 (2016: £936,000) and a loss of £961,000 (2016: £844,000).

Whilst the first half of 2017 has seen slower than anticipated growth, we remain cautiously optimistic on the outcome for the financial year ending 31 December 2017 based on recent trading performance and the short term pipeline of new opportunities.

On behalf of the Board, it would be remiss of me not to thank all stakeholders for their patience and we look forward to updating the market in the near-term on the outlined developments in due course.

Operational Review

I can only echo the comments made above by our Chairman, Bob Holt. The first half of 2016 was a transformational period for Totally, and this progress continues across the Group into 2017. The first two acquisitions are already proving to be very successful and are adding to the Group's range of out of hospital services, along with the expertise of the people within those companies. The integration of the new businesses into the Group has already opened up new business opportunities, and as we continue to grow I am confident that we will deliver our stated aim to become one of the UK's leading providers of 'out of hospital' services.

Both Premier Physical Healthcare and About Health have seen successes since joining the Group, with new contract wins and the securing of contract renewals supported by Optimum. The existing businesses, Totally Health incorporating My Clinical Coach, have struggled to build new business streams in the period but continue to support all Group business.

As well as thanking all of our shareholders for their continued support, I would also like to thank everyone who is part of 'Team Totally' as it is their commitment and approach that enables us to deliver the high quality services to patients and customers across the Group.

Wendy Lawrence

Chief Executive Officer

29 September 2017

Financial Review

During the first half of 2017, the Group continued to invest in IT and staff to build a suitable infrastructure to best position the Group to execute its buy and build strategy. This investment will help to identify and streamline business processes, in terms of the bid process, clinical governance, administration and collaboration across the Group's companies. It is envisaged that this will result in cost savings through economies of scale and a move to a shared service model where appropriate.

In addition to cost savings, the Group companies will also be able to collaborate on larger and more integrated bids. The collaboration and infrastructure investment should allow for increasingly competitive bid offerings. These bids will be underpinned by efficient delivery of services, while maintaining quality and profit margin.

The Loss Before Tax to 30 June 2017 includes an amortisation charge of £220,000 relating to intangible assets (2016: £nil).

Donald Baladasan

Chief Financial Officer

29 September 2017

For further information please contact:

Interim Consolidated Income Statement

For the six months ended 30 June 2017

* The Group's 2016 half yearly financial results include the financial performance of Totally plc and Totally Health for the full half year, the three months from April to June 2016 for Premier Physical Healthcare Limited and half of June 2016 for About Health Limited. 

The accompanying notes form part of the unaudited interim report.

Interim Consolidated Statement of Changes in Equity

For the six months ended 30 June 2017

The accompanying notes form part of the unaudited interim report