Healthcare business Totally contemplates sale amidst substantial medical negligence lawsuit worth millions
Rewritten Article:
Totally is considering selling one or more of its subsidiaries to tighten its financial belt, following a massive medical negligence claim. This announcement came after a painful 60% drop in the company's share price during early trading on Thursday.
The Derby-based health firm is embarking on a "strategic review," exploring options such as selling off subsidiaries, securing strategic investments, or undertaking other suitable corporate actions.
The company's tumultuous journey took another hit with the revelation of a fresh medical negligence claim related to an incident that occurred in January 2018. Initial assessments suggested the claim could be covered by an insurance policy, but the insured amount, capped at £10m, now seems insufficient. The firm now anticipates the liability to exceed this limit.
In an additional blow, Chief Financial Officer Laurence Goldberg announced his resignation, effective immediately. The company has brought in an undisclosed external adviser to manage the finance team in the interim.
Totally has been grappling with the loss of its NHS 111 support contract worth £13m and slower-than-expected acquisition of new contracts. However, the company remains optimistic about the health of its operational businesses, with customer satisfaction rates remaining high.
Despite these challenges, the company has decided to withhold its shareholder guidance until the outcome of the strategic review. Shares of Totally have declined by nearly half since the start of the year.
The firm emphasized, "Operationally, the business is performing strongly, with customer satisfaction remaining high." However, acknowledging the need for a financially robust future, the directors have initiated a strategic review aimed at raising additional funds, resizing the business, and safeguarding the interests of all stakeholders.
It's essential to note that the enrichment data reveals no direct information about a company named "Totally" or its subsidiaries. The search results do mention other corporate transactions, but they don't provide any insights into Totally's situation. If "Totally" refers to a specific, unmentioned company, more information would be necessary for an accurate analysis.
- In an attempt to strengthen its financial stance, Totally is contemplating the sale of one or more of its subsidiaries.
- The Derby-based health firm is undertaking a 'strategic review', which involves exploring various options such as selling subsidiaries, securing strategic investments, or executing other strategic corporate actions.
- Following a medical negligence claim, Totally's share price dropped significantly, and the insurance policy, capped at £10m, may not be sufficient to cover the anticipated liabilities.
- Amidst these financial challenges, the company's operational businesses continue to perform well, with high customer satisfaction rates.
- In the wake of these events, Totally has chosen to withhold shareholder guidance until the conclusion of the strategic review, during which it aims to raise additional funds, resize the business, and protect the interests of all stakeholders.
- The finance team will be managed in the interim by an external adviser, following the resignation of the Chief Financial Officer, Laurence Goldberg.
