Healthcare services provider Totally PLC (LON:TLY), which earlier this month raised £17.6mln via a cash call, is focused on making more acquisitions in 2017 having completed three last year which helped drive growth in its profits and revenues.
The AIM-listed firm saw its gross profit increase to £1.4mln for the full-year to December 31 2016, up from £0.4mln a year earlier, as turnover jumped to £4.0mln, from £0.6m in 2015, which it said exceeded market expectations.
The group, which pointed out that its cash position is over £17mln following completion of the placing and open offer in March, said “significant progress" was made "delivering a progressive 'buy and build' strategy, aimed at establishing Totally as a leading provider of 'out of hospital' care in the UK”.
WATCH: Totally chairman on the "significant scale of opportunity" ...
It added that it is: “Continuing to evaluate value accretive acquisition opportunities focused on the UK NHS outsourced healthcare services market, estimated to be worth in the region of £20bn per year.”
Significant opportunities …
Speaking to Proactive Investors, Totally’s chairman Bob Holt said the firm intended to “spend investors’ money wisely”.
Holt added that the “scale of opportunity” for the group is “significant”.
He said the firm currently has one particular acquisition in mind which would transform the group in terms of size.
Totally’s full-year results showed it secured revenues through new and renewed contracts with a value in excess of £1.7mln per annum in 2016 via acquired businesses.
The group said it had made a positive start to 2017 with five subsidiary businesses continuing to secure new business and renew existing contracts with both the NHS England and private sector organisations.
Defining moment ….
In today's results statement, Totally’s CEO Wendy Lawrence, said: "It was a hugely significant fundraise for the Company and represented a defining moment in our expansion as we continue to build ourselves as a leading out of hospital healthcare services provider in the UK.”
“The positive response we received from investors was incredibly encouraging as we act as a consolidator in the fragmented UK healthcare market and seek attractive opportunities.”
She added: "Our first three acquisitions have already been successfully integrated and are generating significant value upside for shareholders.
“We remain focused on progressively adding to the Group through strategic and value accretive acquisitions in 2017, and look forward to updating the market further to this effect in due course."
In afternoon trading, Totally shares were up 0.9%, or 0.5p at 59.5p, having gained over 7% in the year-to-date, giving a total market cap of around £30mln.
Holt – who invested £1mln in the group at 17p a share when he joined the firm just over two years ago - said he is targeting a market cap of around £100mln for Totally in the short term, by the end of this year.