Shares in Totally PLC (AIM:TLY) dropped 21% in the first hour of trading after the company announced it had lost its £13 million NHS 111 National Resilience support contract.
NHS England decided not to renew the deal, which ends on 15 February, as part of a strategy shift away from providing resilience services at a national level.
Totally reassured investors that it was not reliant on the contract to meet its financial targets for 2025, forecasting £85 million in revenue and £3.5 million in earnings before interest, taxes, depreciation and amortisation (EBITDA).
However, expectations for 2026 had assumed a renewal, albeit at a reduced level.
The company is now focused on redeploying staff and securing new contracts, though it expects exceptional costs.
In early trading, the stock was off 1.42p at 5.23p.