Acquisitions drive trading at Totally

Healthcare services provider Totally updated the market on its trading on Thursday, reporting that following the recent acquisition of Vocare, trading across the group remained in line with expectations.

The AIM-traded firm said that additionally, following “significant focus” by management on cash collection, the directors expected the cash balance of the group to be “significantly ahead” of market expectations as at 31 December.

Market forecasts had anticipated cash balances to be £4.1m on that date, although the board said the number was now revised upwards to no less than £8m.

The board also said Totally's Premier, About Health and Optimum Physiotherapy subsidiaries, which were integrated into the company during the first half of 2017, were all trading profitably after tax on an annual basis despite “significant overheads” being put in place to manage an expanding group.

Those existing businesses had been awarded a number of new contracts in recent weeks, with aggregate contract values in excess of £0.5m, which the directors said further demonstrated Totally's market position within the out-of-hospital care market.

The Vocare business, which operates in the integrated urgent care sector working directly with the NHS and which was formally acquired by the company on 24 October, was trading in line with directors' expectations.

Vocare's core trading period was over the winter months, and the Totally board said it believed the business was well positioned to successfully deliver operationally and financially during that period.

“The group is well positioned to take a significant market share of the outsourced integrated urgent care sector,” the board said in its statement.

“The NHS announced in August that contracts will only be awarded to those providers who are able to supply the total integrated service of the NHS 111 non-emergency service, GP out of hours and Urgent Care Centres.”