Shares in NHS outsourcer Totally Plc plunged by 11% this morning as it revealed it was cutting costs amid higher-than-expected expenses and slowdowns in the awarding of Government contracts.
The business, which operates the 111 service, said “the cost of agency staff required to deliver safe services for patients exceeds our anticipated forecasts and many decisions related to the awarding of new contracts are currently on hold”.
As a result, the business is “actively implementing strategies” to cut costs.
However, the business said it still expects to meet the financial targets it set out last month.
Shares are down 17.2% to 8.8p. They are down more than 80% since July of 2022.
Totally is the latest NHS services provider to face financial difficulties. Earlier this week, Babylon Health, the digital healthcare company behind the NHS’s GP at Hand app, placed two of its divisions into administration.
Totally chairman Bob Holt said: “Our ongoing commitment remains centred on delivering excellent care for patients and commissioners and delivering returns for our shareholders, while simultaneously maintaining services which continue to be rated ‘Good’ by the CQC. In addition to this, we are actively implementing strategies to streamline our operations and to align them with a smaller overhead base which more readily reflects the current contract requirement.
“The board remains confident in the medium to long term prospects of the business and will ensure that future contract opportunities continue to be pursued and all contracts are managed effectively to support the achievement of Totally's goals.
“I would like to thank all our shareholders for their continued support.”
