RNS Number : 8350T
Totally PLC
23 July 2015
23 July 2015
Totally plc
("Totally", the "Company" or the "Group")
Half-yearly results for the six months ended 30 June 2015
Totally plc (AIM: TLY), the provider of innovative solutions to the healthcare sector, announces its unaudited results for the six months ended 30 June 2015.
Performance overview
· Group turnover £418,000 (2014 H1: £196,000).
· Gross profit £327,000 (2014 H1: £116,000).
· EBITDA loss of £69,000 (2014 H1: EBITDA loss £267,000).
· Operating loss of £71,000 (2014 H1: operating loss £272,000).
Financial review
Totally continues to balance financial prudence with commercial growth and this is reflected in these results. The gap to profitability across the Group is closing and is expected to improve in the second half of the year with a monthly profit expected to be maintained by Q4 2015 or earlier.
During the first quarter of 2015 the Group achieved its target of making a positive EBITDA. However as contracts entered into the evaluation phase EBITDA reduced in the second quarter of 2015 with the six months ending with an EBITDA loss of £69,000. Within this loss were one off costs of £24,000 related to developing the business to consumer (B2C) proposal and a £13,000 accounting provision for options and warrants charges.
The Board is confident in its strategy to close the monthly funding gap and reach continued profitability. The key strategic points are as follows:
· Totally has £189k of contracted revenue booked from July 2015 to December 2015.
· The evaluations of pilot studies on various contracts are expected to be completed during 2015. If each of these are renewed the board anticipate that monthly EBITDA will become positive across the Group.
· Discussions are ongoing with strategic partners for the B2C offering.
· Strategic partnerships are being developed with complementary providers to enhance Totally's offering to the NHS.
· Totally is looking at partnerships to provide an integrated pathway to deliver Long Term Condition (LTC) management.
· Discussions are ongoing to partner with other organisations to deliver health coaching via different B2B routes including pharma, personal medical insurers and large employers.
· The Group is in detailed discussions with approximately 30 Clinical Commissioning Groups (CCGs) to offer health coaching based services for LTC management.
The above strategy is discussed in further detail in the Chairman and CEO report accompanying these results.
The Company's wholly owned operating subsidiary, Totally Health, continues to perform well with gross profit of £327k and EBITDA of £87k generated in the first half of 2015. This sound footing combined with the strategies above gives the Board confidence for the remainder of the year.
Donald Baladasan
Chief Financial Officer
22 July 2015
Joint Statement from Chairman and Chief Executive
We are pleased to present the results for the six months ended 30 June 2015. During the period the Group made an operating loss of £71,000 (2014 H1: operating loss £272,000) on turnover of £418,000 (2014 H1: £196,000).
The first six months of 2015 has seen Totally Health secure its first working partnership with a national charity, namely The British Lung Foundation, with which we will be partnering to work with Somerset CCG delivering our Clinical Health Coaching services to support patients discharged from hospital following as admission relating to their long term condition of Chronic Obstructive Pulmonary Disease (COPD). Our services will be accompanied by on the ground services provided by The British Lung Foundation. This is an exciting opportunity for both Totally Health and The British Lung Foundation to further add to their portfolio of services which support people diagnosed with respiratory diseases.
During the same period Which? launched its on-line tools to support patient / customer decision making for birth options, elderly care (depression) and end of life / place of care. These are available across the UK and, following discussions with Totally Health, have included a link to the Patient Decision Aids developed and supported by Totally Health to add to the advice available for individuals. We are hoping to further support Which? as it develops.
Whilst the General Election has impacted on the number of new NHS contracts that we have secured during the first half of 2015, our pipeline continues to grow and we remain very optimistic of securing new clients during the second half of 2015.
We are also in advanced discussions with other sectors that we believe would benefit from the services of Totally Health and are confident that these will come to fruition during 2015. These include other healthcare sector providers such as pharma, personal medical insurers and large employers.
One particular area of work that is advancing well at this time is the Company's strategic decision to partner with other healthcare providers to deliver an integrated pathway management service, providing direct services to patients across the whole pathway of care. In order for us to deliver this end-to-end service we are currently engaged with many potential partners including those who can provide innovative healthcare mobile apps, risk stratification models and of course clinical content to underpin clinical decision and support.
We continue to focus on our innovative healthcare solutions, by refining the services that we already provide and developing new business models which we are confident will ensure that Totally Health can grow and further support all sectors of the healthcare market. We have added to our sales team during the first half of 2015, bringing in new expertise and knowledge to help us to continue to grow our business both with the NHS and other healthcare related sectors.
Our plans for the introduction of our B2C services continue to be refined whilst we work with various strategic partners to ensure we are fully prepared to launch this exciting new service later in the year.
All of the above is carefully aligned to allow Totally to deliver on its short to medium term strategy for Totally Health and how it supports care provision across all sectors of healthcare provision.
Dr. Michael Sinclair |
Wendy Lawrence |
Non-Executive Chairman |
Chief Executive Officer |
22 July 2015
Operational Review
We are working with a number of our current NHS clients at this time to evaluate the results from our pilot work with them and whilst this is not yet complete we are very pleased with the initial results. These show that not only have we continued to reduce demand for NHS services and, therefore, save the NHS money, with a reduction in unscheduled admissions to secondary care, but we have also successfully reduced activity across all sectors of the NHS by over 50% when compared to the same period prior to working with Totally Health, including; Primary Care (reduction in the demand for urgent GP appointments, calls to Out of Hours and 111 services) but also a reduction in A&E attendances for those patients enrolled onto our programmes and working with their clinical health coach. These results are reflected across COPD and other LTCs commissioned by the NHS.
Our longest running programme with Leicester City CCG was renewed for a further period until 31.3.16 where we continue to support patients with COPD. Leicester City decommissioned some elements of their service in order to focus on working with Totally Health which is good news as we enter our fourth year of working with this CCG.
Our overall pipeline continues to grow and our sales teams are confident that new clients will be secured during the second half of 2015. The General Election did impact on decision making processes across the NHS but discussions are now progressing well again.
Wendy Lawrence
Chief Executive Officer
22 July 2015
For further information:
Totally plc |
020 3077 2202 |
Wendy Lawrence (Chief Executive Officer) / Donald Baladasan (Finance Director) |
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Allenby Capital Limited (Nominated Adviser and Joint Broker) |
020 3328 5656 |
Nick Naylor / Nick Athanas / Alex Brearley |
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Optiva Securities Limited (Joint Broker) |
020 3137 1902 |
Christian Dennis / Jeremy King |
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Blytheweigh (Financial PR) |
020 7138 3204 |
Tim Blythe / Wendy Haowei / Andrea Benton |
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Interim Consolidated Income Statement
For the six months ended 30 June 2015
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Six months ended 30 June 2015 |
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Six months ended 30 June 2014 |
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Year ended 31 December 2014 |
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(Unaudited) |
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(Unaudited) |
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(Audited) |
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£000 |
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£000 |
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£000 |
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Revenue |
418 |
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196 |
|
609 |
Cost of sales |
(91) |
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(80) |
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(180) |
Gross profit |
327 |
|
116 |
|
429 |
Administrative expenses |
(396) |
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(383) |
|
(855) |
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|
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Loss before interest, tax and depreciation |
(69) |
|
(267) |
|
(426) |
Depreciation |
(2) |
|
(5) |
|
(11) |
Operating loss |
(71) |
|
(272) |
|
(437) |
Finance costs |
(1) |
|
- |
|
(1) |
Loss before taxation |
(72) |
|
(272) |
|
(438) |
Income tax |
- |
|
- |
|
- |
Loss from continuing operations |
(72) |
|
(272) |
|
(438) |
Profit on disposal |
- |
|
86 |
|
96 |
Loss attributable to the equity shareholders of the parent company |
(72) |
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(186) |
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(342) |
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Earnings per share (Note 2) |
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Basic and diluted: (pence) |
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Continuing operations |
(0.02)p |
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(0.09)p |
|
(0.13)p |
Discontinued operations |
- |
|
0.03p |
|
0.03p |
Total |
(0.02)p |
|
(0.06)p |
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(0.10)p |
The accompanying notes form part of the unaudited interim consolidated income statement.
Interim Consolidated Statement of Changes in Equity
For the six months ended 30 June 2015
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Share capital
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Share premium account
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Profit and loss account
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Equity shareholders' deficit
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£000
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£000
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£000
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£000
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At 1 January 2014 (Audited)
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2,373
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3,847
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(6,439)
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(219)
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Comprehensive loss for the period (Unaudited) |
- |
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- |
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(186) |
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(186) |
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At 30 June 2014 (Unaudited) |
2,373 |
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3,847 |
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(6,625) |
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(405) |
At 1 January 2014 (Audited) |
2,373 |
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3,847 |
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(6,439) |
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(219) |
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Comprehensive loss for the year (Audited) |
- |
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- |
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(342) |
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(342) |
Issue of share capital (Audited) Credit on issue of warrants (Audited) |
80 - |
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300 - |
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- 42 |
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380 42 |
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At 31 December 2014 (Audited) |
2,453 |
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4,147 |
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(6,739) |
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(139) |
At 1 January 2015 (Audited) |
2,453 |
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4,147 |
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(6,739) |
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(139) |
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Comprehensive loss for the period (Unaudited) Issue of share capital (Unaudited) Credit on issue of warrants (Unaudited) |
- 1 - |
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- 1 - |
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(72) - 13 |
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(72) 2 13 |
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|
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At 30 June 2015 (Unaudited) |
2,454 |
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4,148 |
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(6,798) |
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(196) |
The accompanying notes form part of the unaudited interim consolidated statement of changes in equity.
Interim Consolidated Statement of Financial Position
As at 30 June 2015
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30 June 2015 |
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30 June 2014 |
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31 December 2014 |
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(Unaudited) |
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(Unaudited) |
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(Audited) |
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£000 |
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£000 |
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£000 |
Non-Current Assets |
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Property, plant and equipment |
5 |
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12 |
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6 |
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5 |
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12 |
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6 |
Current Assets |
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Trade and other receivables |
194 |
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133 |
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152 |
Cash and cash equivalent |
73 |
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55 |
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190 |
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267 |
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188 |
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342 |
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Total Assets |
272 |
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200 |
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348 |
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Current Liabilities |
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Trade and other payables |
(468) |
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(605) |
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(487) |
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Net Current Liabilities |
(201) |
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(417) |
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(145) |
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Net Liabilities |
(196) |
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(405) |
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(139) |
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Shareholders' Equity |
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Share capital |
2,454 |
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2,373 |
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2,453 |
Share premium account |
4,148 |
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3,847 |
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4,147 |
Retained earnings |
(6,798) |
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(6,625) |
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(6,739) |
Equity shareholders' deficit |
(196) |
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(405) |
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(139) |
The accompanying notes form part of the unaudited interim consolidated statement of financial position.
Interim Consolidated Cash Flow Statement
For the six months ended 30 June 2015
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Six months ended 30 June 2015 |
|
Six months ended 30 June 2014 |
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Year ended 31 December 2014 |
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(Unaudited) |
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(Unaudited) |
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(Audited) |
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£000 |
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£000 |
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£000 |
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Cash flow from operating activities: |
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Loss for the period |
(72) |
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(186) |
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(342) |
Adjustments for: |
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Amortization and depreciation Options and warrants charge |
2 13 |
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5 - |
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11 42 |
Movements in working capital: |
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Movement in trade and other receivables |
(42) |
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(69) |
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(88) |
Movement in trade and other payables |
(19) |
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133 |
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15 |
Net cash flows from operating activities |
(118) |
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(117) |
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(362) |
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Cash flow from investing activities: |
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Purchases of property, plant and equipment |
(1) |
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(1) |
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(1) |
Net cash flows from investing activities |
(1) |
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(1) |
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(1) |
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Cash outflow before financing |
(119) |
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(118) |
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(363) |
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Cash flow from financing activities: |
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Issue of share capital, net |
2 |
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- |
|
380 |
Net cash flow from financing activities |
2 |
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- |
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380 |
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Net increase/(decrease) in cash and cash equivalents |
(117) |
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(118) |
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17 |
Cash and cash equivalents at beginning of the period |
190 |
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173 |
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173 |
Cash and cash equivalents at end of the period |
73 |
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55 |
|
190 |
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The accompanying notes form part of the unaudited interim consolidated cash flow statement.
Notes to the Interim Results
1. Basis of preparation
Totally plc is a public limited company (the "Company") incorporated in the United Kingdom under the Companies Act 2006 (registration number: 3870101). The Company's Ordinary Shares are traded on the AlM Market of the London Stock Exchange ("AIM").
The Group's principal activities in the period under review have been the provision of innovative solutions to the healthcare sector, provided by the Group's wholly owned subsidiary, Totally Health Limited.
The interim report and accounts for the six months ended 30 June 2015 have been prepared using the recognition and measurement principles of International Financial Reporting Standards and Interpretations as endorsed by the European Union (collectively "Adopted IFRS").
These condensed consolidated interim financial statements for the half-year ended 30 June 2015 have been prepared in accordance with the AIM Rules for Companies and should be read in conjunction with the annual financial statements for the year ended 31 December 2014, which have been prepared in accordance with IFRS as adopted by the European Union. The interim consolidated financial statements do not include all the information and disclosures required in the annual financial statements.
The interim report and accounts have been prepared on the basis of the accounting policies set out in the Group's 2014 Annual Report and Accounts. The interim report and accounts do not comprise statutory accounts within the meaning of section 434 of the Companies Act 2006. These condensed consolidated interim financial statements were approved by the Board of Directors on 22 July 2015. The results for the six months to 30 June 2015 and the comparative results for six months to 30 June 2014 are unaudited. The comparative figures for the year ended 31 December 2014 do not constitute the statutory financial statements for that year.
As at 30 June 2015 cash balances amounted to £73,000, with current liabilities (as at 30 June 2015) of £468,000.
The Group is in regular contact with its principal creditors, who remain supportive, and the Directors believe that a combination of its current cash and projected revenues from existing and future contracts will enable it to meet its obligations and to implement its business plan in full. However due to the need to successfully convert the strong pipeline into contracts, there is an uncertainty which may cast doubt about the ability of the Group and the Company to continue as a going concern. Inherently, there can be no certainty in these matters, but the Directors believe that the trading forecasts are realistic and that the going concern basis of preparation continues to be appropriate.
2. Earnings per share
Basic loss per share is calculated by dividing the loss attributable to equity holders of the Company by the weighted average number of Ordinary Shares in issue during the period.
None of the share options or warrants in issue had a dilutive effect on earnings per share.
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Six months ended 30 June 2015 |
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Six months ended 30 June 2014 |
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Year ended 31 December 2014 |
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(Unaudited) |
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(Unaudited) |
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(Audited) |
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Loss (continuing operations) (£000) |
(72) |
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(272) |
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(438) |
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Earnings (discontinued operations) (£000) |
- |
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86 |
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96 |
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Weighted average number of shares used |
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in basic and diluted earnings ('000) |
398,069 |
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317,617 |
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348,728 |
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Basic and diluted earnings per share (continuing operations) (Pence) |
(0.02) |
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(0.09) |
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(0.13) |
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Basic and diluted earnings per share (discontinued operations) (Pence) |
- |
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0.03 |
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0.03 |
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3. Dividends
No dividend is proposed for the six months ended 30 June 2015.
4. Events after the reporting period
There have been no significant post reporting period events.
5. Distribution of Interim Report
A copy of the interim report will be available shortly on the Company's website (www.totallyplc.com) in accordance with rule 26 of the AIM Rules for Companies and copies will be available from the Company's registered office located at Lighterman House, 26-36 Wharfdale Road, London N1 9RY.
This information is provided by RNS
The company news service from the London Stock Exchange
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