Troubled Totally calls in EY as second high-profile figure departs – strategic review launched
Totally, the troubled Derby-based company which provides services to the NHS, has launched a strategic review after being hit with a negligence claim and the loss of the NHS 111 contract.
The company has also seen its second high-profile departure of the year after chief financial officer, Laurence Goldberg stepped down from the company with immediate effect. The move follows the resignation of CEO Wendy Lawrence in February.
Totally has appointed EY to help carry out the review, which could include selling subsidiaries, looking for outside investment or “undertaking some other form of comparable corporate action”.
The company announced on 14 February that it expected to report £85m revenues and £3.5m EBITDA for its 2025 full-year. However, in a statement this morning, Totally said: “The board of directors can confirm its expectation of financial performance has now reduced. This follows the negative impact of a combination of factors including a slower than expected ramp up of a recent contract win and reduced operating margins as higher margin contracts have unwound, principally NHS111. The company had indicated in its previous outlook update that it may have been possible to redeploy people/costs associated with this contract within the business, however, this has not been possible.”
Meanwhile, Totally has revealed that it has been hit with what could be an expensive medical negligence claim, dating back over seven years.
The company said: “The board has recently received new correspondence in relation to a medical negligence claim relating to an incident that occurred in January 2018. Historical advice to the board was that this claim was one which the board believed (on advice) could be funded entirely by a claim on the group’s insurances.
“As a result of the recent correspondence, the board now considers that there is a stronger probability that the size of the liability may be more than the claim limit on the insurance policy then held by the group (being £10m and twice the amount then required by the NHS in England and Wales). The board notes that the process of medical negligence claims is often both complex and likely to take significant time. The company is seeking to engage with all parties involved in the case and will work with its professional advisors and its insurers to achieve a fair outcome.
Despite these setbacks, bosses at Totally said they believe the future for the firm can be bright.
The company added: “The directors of Totally believe the outlook for the underlying operations are positive. The company expects to announce further new contract wins over the coming months. The group is profitable on a monthly basis. Operationally, the business also continues to perform strongly with customer satisfaction remaining high.”
