Totally shares tumble after NHS contract loss

Published 14/02/2025, 10:28
© Reuters.

Investing.com -- Shares of Totally PLC (LSE:TLY) fell sharply by 17% following the news that the company's contract with England's National Health Service (NHS) was not renewed. Despite the setback, Totally's board expressed confidence that the company's performance for the fiscal year would meet expectations.

The healthcare services provider, operating in the U.K. and Ireland, announced on Friday that the non-renewal of the NHS 111 contract would not affect its fiscal 2025 forecasts. The company continues to anticipate revenue of 85 million pounds ($106.8 million) and earnings before interest, taxes, depreciation, and amortization (EBITDA) of 3.5 million pounds. The contract in question is set to conclude on Saturday.

Totally disclosed that the national resilience support contract, which was not extended, had a value of approximately 13 million pounds, contributing around 12 million pounds to the current fiscal year's revenue. Although the company had included an assumption of the contract's renewal at a reduced rate for the fiscal year ending March 31, 2026, it is now preparing to reallocate its workforce and secure new contracts to mitigate the impact.

The company also noted that it expects to incur exceptional costs due to the contract loss and redeployment efforts. Despite these challenges, Totally's board anticipates that the company's performance in fiscal 2026 will align with the levels projected for fiscal 2025.

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