Strategic Overhaul at Totally as Company Faces Mounting Pressures
Totally plc, a prominent UK and Ireland healthcare services provider, has initiated a strategic review with the assistance of EY, aiming to navigate through its current financial and operational challenges. The Derby-based firm, which specializes in frontline healthcare, corporate fitness, and wellbeing services, is considering a range of strategic options, including the potential sale of one or more of its subsidiaries. This move comes in the wake of a reduced financial performance outlook and the departure of key executives, including Chief Financial Officer Laurence Goldberg and CEO Wendy Lawrence earlier this year.
The company's financial health has been under scrutiny after it revised its revenue and EBITDA expectations for FY25 to £85m and £3.5m, respectively, down from previous forecasts. Totally attributed this adjustment to several factors, notably the slower-than-anticipated ramp-up of a recent contract win and the unwinding of higher margin contracts, primarily the NHS111 service. These developments have prompted the board to seek external expertise to explore avenues for strengthening the company's balance sheet and ensuring its long-term sustainability.
Adding to Totally's woes is a significant medical negligence claim related to an incident in January 2018. Initially, the board believed the claim would be fully covered by the group's insurances. However, recent correspondence has led to concerns that the liability may exceed the insurance claim limit, potentially impacting the company's financial position. This uncertainty has further underscored the necessity of the strategic review, as Totally seeks to mitigate risks and secure its future operations.
As Totally embarks on this critical juncture, the involvement of EY signals a serious commitment to addressing the company's challenges head-on. The strategic review is expected to consider all viable options, from subsidiary sales to seeking strategic investments, to navigate the company through its current predicament. Stakeholders are keenly awaiting the outcomes of this review, hoping for measures that will stabilize Totally's financial standing and restore confidence in its business model.
