Acquisitions and new contract wins boosted revenue for out-of-hours healthcare provider Totally plc in the first half as it continued to pursue its aggressive buy and build strategy.
The AIM-listed company reported a ten-fold leap in revenue to £40.2m for the six months ended 30 September 2018. Its October 2017 acquisition of out-of-hospital services provider Vocare for £11m was behind the leap but the company said over £10m of new business and renewed contracts had also driven growth during the period.
Cost of sales came in at £34.5m against just £2.5m in the first half of 2017. Administrative expenses increased from £1.9m to £5.6m, which after exceptional items pushed pre-tax profit up to £1m from a loss of £784,000 the previous year. EBITDA before exceptional items was £95,000 against an £804,000 loss in 2017.
CEO Wendy Lawrence said she was ‘thrilled’ with the Group’s progress, in particular its success in turning around Vocare’s CQC ratings. Over 70% of its sites are now rated ‘Good’ and it is waiting on the results of a reassessment of its one remaining ‘Inadequate’ service.
‘Anyone who works within the healthcare sector will recognise that improvements of this magnitude made within the short timeframe since acquisition are very impressive. We couldn’t have done this without the people who lead change and delivery services across Totally and Vocare,’ said Lawrence.
Looking ahead, the company said the additional £20.5bn a year allocated to the NHS in this month’s budget would provide new opportunities in the £20bn-a-year outsourced healthcare services market.
‘We still have challenges ahead and more work to complete on integration and innovation, but these are matched by major opportunities across the out-of-hospital healthcare sector for all of the businesses within Totally plc,’ said Lawrence.