Totally PLC on Wednesday reported a swing to interim profit as it maintained its full-year guidance.
The Derby, England-based provider of healthcare and wellbeing services across the UK and Ireland reported a 25% decline in revenue in the half-year to September 30 to £41.7 million from the £55.8 million a year prior. It was an outcome in line with board expectations.
However, the AIM-listed firm swung to a modest pretax profit of £5,000, from a loss of £1.9 million the previous year, despite continued wage pressures serving as a drag.
Totally confirmed six new contracts valued at £7.5 million during the period, all of which will be realised within the current financial year. A further 14 were renewed at a total value of £19 million.
Cost of sales for the firm fell 25% to £34.5 million from £46.1 million a year prior, helping its bottom line.
Totally reported a reduction in gross cash for the interim period, down 18% to £1.4 million from £1.7 million.
In line with last year, Totally did not propose an interim dividend.
Its half-year results follow on from the renewal of its rolling credit facility last week for a further two years at £3.5 million.
The firm acknowledged the continuation of ‘significant challenges’ in the healthcare market going forward, but expressed confidence in meeting its full-year revenue guidance of £85 million through a combination of a strong cost management culture and robust organisation
Totally Chief Executive Wendy Lawrence said: ‘The board has increased confidence in the near to long term prospects of the business, and we remain confident that the business is well-positioned for growth.’
Shares in Totally are down 3.3% at 9.42 pence on Wednesday afternoon in London.
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