TIDMRUA
RNS Number : 0655X
RUA Life Sciences PLC
18 December 2023
18 December 2023
RUA Life Sciences plc
("RUA", the "Company" or the "Group")
Interim Results
RUA Life Sciences, the holding company of a group of medical
device businesses focused on the exploitation of the world's
leading long-term implantable biostable polymer (Elast-Eon (TM) ) ,
today announces its unaudited interim results for the six months
ended 30 September 2023.
Highlights:
-- Gross profit GBP616,000 - margin 77% (H1 FY2023: GBP875,000 - 79%)
-- 12% reduction in loss to GBP1,010,000 (H1 FY2023: GBP1,143,00)
-- Short-term revenue timing differences led to a 28% decrease
in revenues to GBP794,000 (H1 FY2023: GBP1,104,000)
-- Cash on hand GBP493,000 (30 September 2022: GBP2,509,000, 31 March 2023: GBP1,484,000)
-- Post-period end normalisation of revenues plus R&D tax credit strengthens cash
-- Operational Investment in development projects decreased 11%
to GBP471,000 (H1 FY2023: GBP532,000)
-- Technical breakthroughs in heart valve leaflet material opens commercial opportunities
-- Increased commercial opportunities within Contract Manufacturing business segment
Bill Brown, Chairman of RUA Life Sciences, commented:
"The objectives for the Company are to maximise return on
investment from each of the four business units. A successful fund
raise announced after the period end has provided RUA with the
resources and balance sheet to allow the business units to pursue
the agreed strategies to meet group objectives. We remain excited
by the shorter-term commercialisation opportunities present in RUA
Structural Heart and RUA Contract Manufacture, and the agreed
regulatory pathway enables engagement with potential partners to
facilitate the commercialisation of RUA Vascular."
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the UK version of the EU Market Abuse Regulation (2014/596), which
is part of UK law by virtue of the European Union (Withdrawal) Act
2018, as amended and supplemented from time to time.
For further information contact:
RUA Life Sciences
Bill Brown, Chairman Tel: +44 (0)1294 317073
Caroline Stretton, Group Managing Director Tel: +44 (0)1294
317073
Cavendish Capital Markets Limited (Nominated Adviser and Broker) Tel: +44 (0)20 7220 0500
Giles Balleny / Dan Hodkinson (Corporate Finance)
Michael Johnson (Sales)
About RUA Life Sciences
The RUA Life Sciences group was created in April 2020 when RUA
Life Sciences Plc (formerly known as AorTech International Plc)
acquired RUA Medical Devices Limited to create a fully formed
medical device business. RUA Life Sciences is the holding company
of the Group's four trading businesses, each exploiting the Group's
patented polymer technology.
Our vision is to improve the lives of millions of patients by
enabling medical devices with Elast-EonTM, the world's leading
long-term implantable polyurethane.
Whether it is licensing Elast-Eon (TM) , manufacturing a device
or component, or developing next generation medical devices, a RUA
Life Sciences business is pursuing our vision.
Elast-Eon(TM)'s biostability is comparable to silicone while
exhibiting excellent mechanical, blood contacting and flex-fatigue
properties. These polymers can be processed using conventional
thermoplastic extrusion and moulding techniques. With over 8
million implants and 16 years of successful clinical use, RUA's
polymers are proven in long-term life enabling applications.
The Group's four business segments are:
Contract Manufacturing: End-to-end contract developer and manufacturer
of medical devices and implantable fabric specialist
.
Biomaterials : Licensor of Elast-Eon (TM) polymers to the
medical device industry.
Vascular: Development and commercialisation of the Group's
Elast-Eon (TM) sealed Vascular Graft products
.
Structural Heart Development of the Group's Elast-Eon (TM) composite
: heart valve material.
A copy of this announcement will be available shortly at
www.rualifesciences.com/investor-relations/regulatory-news-alerts
.
CHAIRMAN'S STATEMENT
I am pleased to set out below an overview of the unaudited
interim results of RUA Life Sciences Plc for the six months to 30
September 2023. The focus of the period was ensuring the Group was
best positioned to undertake a capital raise to fund the
commercialisation of the development divisions of the business.
Much of the funding options available to the Group relied upon
ensuring VCT and EIS qualification for potential investors. As a
result of changes in VCT/EIS rules, the Group underwent a
reorganisation to transfer the heart valve and vascular assets into
the respective subsidiary companies. This reorganisation allowed
advance assurance to be received and ultimately in the Company
announcing the placing and retail offer which conditionally raised
GBP4.4 million.
Unaudited interim results for the six months to 30 September
2023
The results below are the consolidated figures for the entire
group and are further analysed in the relevant segmental
update.
Revenue for the Group decreased from GBP1,104,000 last year to
GBP794,000, a reduction of 28%. This reduction was due to delays in
shipping product to a customer. The operational team at RUA Life
Sciences worked exceptionally well both internally and externally
with our customer during October and November, ultimately bringing
orders back in line with targets by the end of November. The
revenue reduction impacted gross profits adversely, and despite
strong cost control, operating losses increased 20% from
GBP1,136,000 to GBP1,360,000.
Post-tax losses, however, improved from GBP1,143,000 to
GBP1,010,000 as a result of the timing of the receipt of R&D
tax credits. Working capital continued to be tightly managed with
cash reducing at less than the rate of operating losses, with the
balance at the period end being GBP493,000, a fall of GBP991,000
from the start of the period. The cash position has subsequently
recovered strongly due to the strong trading in October and
November, which when coupled with the receipt of R&D Tax
Credits allowed the cash balance to increase to GBP900,000 at the
beginning of December. The net proceeds from the equity fundraise
will materially strengthen the cash position further.
Biomaterials
The Biomaterials business segment is the part of the business
that holds the Intellectual Property relating to Elast-Eon(TM) and
related polymers, and licences that IP to other medical device
companies.
The Biomaterials business witnessed further growth in royalty
and license fee income and increased an additional 6% compared to
the first half of last year, rising from GBP187,000 to GBP199,000.
The Biomaterials business is, however, very much second half
weighted as a result of the timings of when royalty fees are
recognised
Net margins in Biomaterials remain high, with the contribution
to the Group increasing from GBP154,000 (82%) last year to
GBP166,000 (84%) in the current period.
Contract Manufacturing
Based on headline performance, the Contract Manufacturing
business performed poorly with revenues down from GBP917,000 in the
first half of last year to GBP579,000, a decrease of 37%. The
shortfall was a result of much-reduced revenue being recognised
during August and September due to delays in the completion,
shipment and sterilisation testing of orders from the major
customer. The issues have been resolved by RUA with record
shipments during October and November, resulting in revenues from
the customer now being ahead of budget.
Business development activities are now achieving results in
line with the Group's growth strategy. A formal Request For
Proposal (RFP) has been received from a global business seeking
manufacturing services to derisk supply chain issues across a range
of implantable devices. RUA proposed a phased work plan involving
project scoping and reverse engineering, proof of concept
manufacture and process validation followed by a long term supply
contract. Phase one has now been agreed with the client and work
will commence on contract signature. A successful completion of
this project should result in annual revenue potential in excess of
GBP1 million. Meeting production volumes should be achievable
within current clean room facilities.
Vascular
The Group's vascular graft is now fully prepared to undergo the
regulatory testing regime agreed with the FDA, following a
successful pre-submission process which allows the graft to go
through the less onerous 510k market clearance route. Subject to
starting recruitment for the remaining clinical studies, regulatory
approval is anticipated in 30 to 36 months with a required budget
of approximately GBP6 million. However, as announced on 20 November
2023, given the current cost of capital and funding of the
business, the Board elected to pursue a strategy of seeking
external funding for the completion of these trials. A business
plan for the regulatory pathway and business model is being
prepared as the basis of attracting third-party investment for the
project.
The Board believes that the Vascular project has very attractive
risk-adjusted returns on the additional investment required to
achieve regulatory approval. The investment in RUA Vascular will be
exploited by seeking third party funding for the project whilst
retaining an interest which could involve an equity interest, a
Contract Manufacture development and manufacture agreement or a
form of licensing of technology developed.
The Group's vascular products have already developed OEM
customer interest with the first commercial sale recently achieved.
Furthermore, a global distribution partnership has also been put in
place with Corcym, the global medical device company, to allow a
much-simplified route to market.
Structural Heart
A year ago, we discussed the development of a prototype
composite combining the exceptional blood contacting and
biostability properties of Elast-Eon with RUA's expertise in
implantable textiles. The objectives for the Structural Heart
business were to manufacture prototype valves and undertake
durability testing to further evaluate this material.
An ideal heart valve leaflet material would have several
qualities. The biological properties of low calcium susceptibility,
low thrombogenicity and hemocompatibility are the key properties of
Elast-Eon and have been demonstrated in numerous trials and
devices. It is in demonstrating the mechanical properties of the
RUA composite that we have seen the technological breakthrough
during the period. A heart valve leaflet needs to be durable. The
RUA composite has undergone both flex fatigue and accelerated wear
testing as a valve. In both cases, our expectations were exceeded.
In hydrodynamic testing, the RUA composite leaflet valve was as
efficient as current mechanical valves and required around 50% less
energy than a biological valve. The novel material itself also has
interesting properties. At only 150 microns thick, it is much
thinner than animal tissue material, therefore potentially
delivering benefits to transcatheter valve delivery and
performance. Additionally, the composite has isotropic properties
in having similar strength in every direction and the strength is
higher than the initial fabric substrate.
Previous attempts at polymeric heart valves have required a
combination of polymer material and a valve design to work within
the limitations of the original polymer. The RUA composite has been
created to eliminate valve design constraints and as such, can be
commercialised as a component rather than a finished product. The
target for the heart valve business is now to pursue material
supply and license agreements with other heart valve businesses,
thus bringing time to commercialisation closer and future
development budget requirements reduced dramatically.
Conclusion and Outlook
Recent priorities have been to secure a solid financial base for
the Company to allow the value in each of the businesses to be
demonstrated through achieving their growth potential and
commercialising the investment made to date. The strategy is for
the business to turn profitable in the shorter term as a result of
growing contract manufacturing and commercialising the R&D
undertaken within Vascular and Structural Heart. Your Board is
grateful for the support demonstrated by current and new
shareholders allowing the successful placing and retail offer.
Bill Brown, Chairman
15 December 2023
CONDENSED CONSOLIDATED INTERIM INCOME STATEMENT
Unaudited Unaudited Audited
Six months Six months Twelve months
to 30 Sep to 30 Sep to 31 Mar
2023 2022 2023
Note GBGBP000 GBGBP000 GBGBP000
----------- ----------- --------------
Revenue 2 794 1,104 2,179
Cost of sales (178) (229) (388)
----------- ----------- --------------
Gross profit 616 875 1,791
Other income 44 98 72
Administrative
expenses (2,020) (2,109) (4,169)
----------- ----------- --------------
Operating loss (1,360) (1,136) (2,306)
Net finance expense (36) (11) (16)
----------- ----------- --------------
Loss before
taxation (1,396) (1,147) (2,322)
Taxation 386 4 319
----------- ----------- --------------
Loss attributable
to equity holders
of the parent
company (1,010) (1,143) (2,003)
----------- ----------- --------------
Loss per share
Basic & Diluted
(GB Pence per
share) (4.55) (5.15) (9.03)
CONDENSED CONSOLIDATED INTERIM STATEMENT OF FINANCIAL
POSITION
Unaudited Unaudited Audited
30 Sep 30 Sep
2023 2022 31 Mar 2023
Note GBGBP000 GBGBP000 GBGBP000
Assets
Non-current assets
Goodwill 3 301 301 301
Other intangible assets 4 445 495 470
Property, plant and
equipment 5 2,621 2,543 2,739
---------- ---------- ------------
Total non-currents
assets 3,367 3,339 3,510
---------- ---------- ------------
Current assets
Inventories 6 139 68 81
Trade and other receivables 7 755 681 588
Cash and cash equivalents 8 493 2,509 1,484
---------- ---------- ------------
Total current assets 1,387 3,258 2,153
---------- ---------- ------------
Total assets 4,754 6,597 5,663
---------- ---------- ------------
Equity
Issued capital 1,112 1,109 1,109
Share premium 11,729 11,729 11,729
Capital redemption
reserve 11,840 11,840 11,840
Other reserve (1,389) (1,507) (1,450)
Profit and loss account (19,558) (17,685) (18,545)
---------- ---------- ------------
Total equity attributable
to equity holders of
the parent company 3,734 5,486 4,683
---------- ---------- ------------
Liabilities
Non-current liabilities
Borrowings 9 150 364 165
Lease liabilities 9 169 - 200
Deferred tax 80 71 85
Other Liabilities 101 140 116
---------- ---------- ------------
Total non-current
liabilities 500 575 566
---------- ---------- ------------
Current liabilities
Borrowings 9 29 86 29
Lease liabilities 9 97 4 81
Trade and other payables 10 354 397 255
Other liabilities 40 49 49
---------- ---------- ------------
Total current liabilities 520 536 414
---------- ---------- ------------
Total liabilities 1,020 1,111 980
---------- ---------- ------------
Total equity and liabilities 4,754 6,597 5,663
---------- ---------- ------------
CONDENSED CONSOLIDATED INTERIM CASH FLOW STATEMENT
Unaudited Unaudited Audited
Six months Six months Twelve
to to months to
30 Sep 30 Sep 31 March
2023 2022 2023
GBGBP000 GBGBP000 GBGBP000
Cash flows from operating
activities:
Group loss after tax (1,010) (1,143) (2,003)
Adjustments for:
Amortisation of intangible
assets 25 26 51
Depreciation of property,
plant and equipment 160 148 307
Share-based payments 61 46 102
Net finance costs 36 9 16
Tax credit in year (381) - (319)
Decrease / (increase) in trade
and other receivables 214 439 327
Decrease / (increase) in inventories (58) 56 43
Taxation (5) (4) 533
Decrease in trade and other
payables 75 (38) (203)
----------- ----------- -----------
Net cash flow from operating
activities (883) (461) (1,146)
----------- ----------- -----------
Cash flows from investing
activities:
Purchase of property plant
and equipment (42) (94) (449)
Interest paid (21) (9) (28)
----------- ----------- -----------
Net cash flow from investing
activities (63) (103) (477)
----------- ----------- -----------
Cash flows from financing
activities:
Proceeds from borrowing 33 150 229
Repayment of borrowings and
leasing liabilities (63) (40) (97)
----------- ----------- -----------
Net cash flow from financing
activities (30) 110 132
----------- ----------- -----------
Net decrease in cash and
cash equivalents (976) (454) (1,491)
Cash and cash equivalents
at beginning of year 1,484 2,963 2,963
Effect of foreign exchange
rate changes (15) - 12
----------- ----------- -----------
Cash and cash equivalents
at end of the period 493 2,509 1,484
----------- ----------- -----------
CONDENSED CONSOLIDATED INTERIM STATEMENT OF CHANGES IN EQUITY
Issued Capital Profit
Share Share Redemption Other and loss Total
capital premium Reserve reserve account equity
GBGBP000 GBGBP000 GBGBP000 GBGBP000 GBGBP000 GBGBP000
Balance at
31 March 2022 1,109 11,729 11,840 (1,552) (16,542) 6,584
Share based
payments - - - 46 - 46
Total comprehensive
income for the
period - - - - (1,143) (1,143)
--------- --------- ------------ --------- ---------- ---------
Balance at
30 September
2022 1,109 11,729 11,840 (1,506) (17,685) 5,487
--------- --------- ------------ --------- ---------- ---------
Share based
payments - - - 56 - 56
Total comprehensive
income for the
period - - - - (860) (860)
--------- --------- ------------ --------- ---------- ---------
Balance at
31 March 2023 1,109 11,729 11,840 (1,450) (18,545) 4,683
--------- --------- ------------ --------- ---------- ---------
Issue of share
capital 3 - - - (3) -
Share based
payments - - - 61 - 61
Total comprehensive
income for the
period - - - - (1,010) (1,010)
--------- --------- ------------ --------- ---------- ---------
Balance at
30 September
2023 1,112 11,729 11,840 (1,389) (19,558) 3,734
--------- --------- ------------ --------- ---------- ---------
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL
STATEMENTS
1. BASIS OF PREPARATION
General information
RUA Life Sciences plc is the ultimate parent company of the
Group, whose principal activities are contract design and
manufacture of medical devices and exploiting the value of its IP
and know-how.
RUA Life Sciences plc is incorporated and domiciled in the UK
and its registered office is c/o Davidson Chalmers Stewart LLP, 163
Bath Street, Glasgow, G2 4SQ.
Basis of preparation
These condensed consolidated interim financial statements are
for the six months ended 30 September 2023 and have been prepared
with regard to the requirements of IAS 34 on "Interim Financial
Reporting". They do not include all of the information required for
full financial statements and should be read in conjunction with
the audited consolidated financial statements of the Group for the
year ended 31 March 2023.
The financial information for the six months ended 30 September
2023 and the comparative figures for the six months ended 30
September 2022 are unaudited. They have been prepared on the basis
of the accounting policies set out in the consolidated financial
statements of the Group for the year ended 31 March 2023 and, on
the recognition, and measurement principles of IFRS in issue as
effective at 30 September 2023. The accounting policies have been
applied consistently throughout the Group for the purposes of
preparation of these condensed consolidated interim financial
statements.
The figures for the year ended 31 March 2023 have been extracted
from the audited statutory accounts which were approved by the
Board of Directors on 25 July 2023, prepared under IFRS. The
Independent Auditor's Report on the Report and Financial Statements
for the year ended 31 March 2023 was unqualified but did draw
attention to Note 1 of those financial statements which explains
that the Group and Parent Company's ability to continue as a going
concern is dependent on the execution of its business plan together
with its ability to raise sufficient capital to meet capital and
liquidity requirements. The auditors report did not contain any
statements under sections 498(2) or 498(3) of the Companies Act
2006.
These condensed consolidated interim financial statements were
approved for issue by the Board of Directors on 15 December
2023.
Going concern
Pending approval by shareholders at the upcoming general meeting
on 18 December 2023, the business will raise approximately GBP4m
(after expenses) through a Placing, Subscription and Retail Offer
of new ordinary shares. The Directors are confident in the passing
of the necessary resolutions. The Directors believe the balance
sheet, strengthened by the finance proceeds, provides a pathway to
cashflow breakeven and profitability.
The Directors have considered the applicability of the going
concern basis in the preparation of the financial statements. This
included the review of financial results, internal budgets and cash
flow forecasts, including the anticipated proceeds of the financing
for the period of at least 12-months following the date of approval
of these interim financial statements (the "Going Concern
Period").
The Directors have modelled severe but plausible downside
scenarios, including the downside of a vote against the financing
at the general meeting, on the going concern period.
These scenarios include sensitivity analysis, which delays
future growth. In such a case, the Group would take mitigating
actions, and the Directors concluded that the Group would be able
to reduce expenditure on its research and development programmes
and other areas in order to meet its liabilities as they fall due
for the Going Concern Period. The forecasts show that under both
the base case and severe but plausible scenarios, the Group's cash
resources will extend beyond the Going Concern Period, satisfying
the Directors that the Group and Company will have sufficient funds
to meet their liabilities as they fall due for at least the Going
Concern Period and therefore have prepared the financial statements
on a going concern basis.
Principal Risks and Uncertainties
The principal risks and uncertainties affecting the business
activities of the Group remain those detailed on pages 24-26 of the
Annual Report 2023, a copy of which is available on the Company's
website www.rualifesciences.com
Loss per share
Loss per share has been calculated on the basis of the result
for the period after tax, divided by the weighted average number of
ordinary shares in issue in the period of 22,184,798. (30 September
2023: 22,184,798 and 31 March 2023: 22,184,798).
2. SEGMENTAL REPORTING
The principal activity of the RUA Life Sciences Group comprises
exploiting the value of its IP & know-how, medical device
contract manufacturing and development of cardiovascular
devices.
The following analysis by segment is presented in accordance
with IFRS 8 on the basis of those segments whose operating results
are regularly reviewed by the Chief Operating Decision Maker
(considered to be the executive chairman of the board) to assess
performance and make strategic decisions about the allocation of
resources. Segmental results are calculated on an IFRS basis.
A brief description of the segments of the business is as
follows:
-- Biomaterials - Licensor of Elast-Eon(TM) polymers to the medical device industry.
-- Contract Manufacturing - End-to-end contract developer and
manufacturer of medical devices and implantable fabric
specialist.
-- Vascular - Development and commercialisation of the Group's
Elast-Eon sealed Vascular Graft products.
-- Structural Heart - Development of the Group's Elast-Eon composite heart valve material.
Operating results which cannot be allocated to an individual
segment are recorded as central and unallocated.
Analysis of revenue
by income stream Unaudited Unaudited Audited
Six months
to 30 Sep Six months to Twelve months
2023 30 Sep 2022 to 31 Mar
GBGBP000 GBGBP000 2023 GBGBP000
Manufacture of 595 - -
Medical Devices
Royalty Income 199 187 554
Total 794 1,104 2,179
----------- -------------- ---------------
Analysis of revenue
by geographical
location Unaudited Unaudited Audited
Twelve months
Six months Six months to 31 Mar
to 30 Sep 2023 to 30 Sep 2022 2023
GBGBP000 GBGBP000 GBGBP000
Israel 26 26 48
Italy 19 - 15
Switzerland - 7 168
UK - (1) (1)
USA 749 1,072 1,949
---------------- ---------------- --------------
Total 794 1,104 2,179
---------------- ---------------- --------------
The Group's revenue for six months to 30 September 2023 is
segmented as follows:
Analysis of revenue by income
stream
Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited
Contract Structural Central
Biomaterials Manufacture Vascular Heart and unallocated Total
GBGBP000 GBGBP000 GBGBP000 GBGBP000 GBGBP000 GBGBP000
Manufacture of
Medical Devices - 579 16 - - 595
Royalty revenue 199 - - - - 199
-------------- ------------- ---------- ----------- ----------------- ----------
Total 199 579 16 - - 794
-------------- ------------- ---------- ----------- ----------------- ----------
Analysis of revenue by geographical
location
Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited
Contract Structural Central
Biomaterials Manufacture Vascular Heart and unallocated Total
GBGBP000 GBGBP000 GBGBP000 GBGBP000 GBGBP000 GBGBP000
Israel 26 - - - - 26
Italy - 19 - - - 19
Switzerland - - - - - -
UK - - - - - -
USA 173 560 16 - - 749
------------------- ------------- ---------- ----------- ----------------- ----------
Total 199 579 16 - - 794
------------------- ------------- ---------- ----------- ----------------- ----------
The Group's revenue for six months to 30 September 2022 is
segmented as follows:
Analysis of revenue by income
stream
Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited
Contract Structural Central
Biomaterials Manufacture Vascular Heart and unallocated Total
GBGBP000 GBGBP000 GBGBP000 GBGBP000 GBGBP000 GBGBP000
Manufacture of
Medical Devices - 917 - - - 917
Royalty revenue 187 - - - - 187
-------------- ------------- ---------- ----------- ----------------- ----------
Total 187 917 - - - 1,104
-------------- ------------- ---------- ----------- ----------------- ----------
Analysis of revenue by geographical
location
Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited
Contract Structural Central
Biomaterials Manufacture Vascular Heart and unallocated Total
GBGBP000 GBGBP000 GBGBP000 GBGBP000 GBGBP000 GBGBP000
Europe 7 (1) - - - 6
USA 154 918 - - - 1,072
RoW 26 - - - - 26
------------------------ ------------- ---------- ----------- ----------------- ----------
Total 187 917 - - - 1,104
------------------------ ------------- ---------- ----------- ----------------- ----------
The Group's Segmental analysis for six months to 30 September
2023 is segmented as follows:
Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited
Contract Structural Central
Biomaterials Manufacture Vascular Heart and unallocated Total
GBGBP000 GBGBP000 GBGBP000 GBGBP000 GBGBP000 GBGBP000
Consolidated group
revenues from external
customers 199 579 16 - - 794
Contributions to
group operating loss 166 305 (602) (215) (1,014) (1,360)
Depreciation - 27 99 9 25 160
Amortisation of intangible
assets - 22 - - 3 25
Segment assets 103 1,329 1,225 165 1,930 4,752
Segment liabilities - 220 407 19 374 1,020
Intangible assets
- goodwill - 301 - - - 301
Other intangible
assets - 237 139 - 69 445
Additions to non-current
assets 1 - 3 - 38 42
The Group's Segmental analysis for six months to 30 September
2022 is segmented as follows:
Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited
Contract Structural Central
Biomaterials Manufacture Vascular Heart and unallocated Total
GBGBP000 GBGBP000 GBGBP000 GBGBP000 GBGBP000 GBGBP000
Consolidated group
revenues from external
customers 187 917 - - - 1,104
Contributions to
group operating loss 154 384 (619) (289) (766) (1,136)
Depreciation - 139 - 8 1 148
Amortisation of intangible
assets - 22 - - 4 26
Segment assets 90 4,012 - 152 2,343 6,597
Segment liabilities 2 897 34 4 174 1,111
Intangible assets
- goodwill - 301 - - - 301
Other intangible
assets - 419 - - 76 495
Additions to non-current
assets - 94 - - - 94
3. GOODWILL
The final valuation following the acquisition of RUA Medical
Devices Limited gave rise to adjustments being required to the
value of intangibles recognised in the Interim Report for the six
months ended 30 September 2020, and lead to the following goodwill
being recognised:
No impairment review has been carried out in the six-month
period.
GBGBP000
Gross carrying amount
Balance at 30 September
2022 301
Balance at 31 March 2023 301
Balance at 30 September
2023 301
4. OTHER INTANGIBLE ASSETS
Development Intellectual Customer Technology Total
costs property Related Based (CM)
(CM)
GBGBP000 GBGBP000 GBGBP000 GBGBP000 GBGBP000
Gross carrying
amount
At 31 March
2022 337 3,325 247 141 4,050
Additions - - - - -
------------ ------------- --------- ------------ ----------
At 30 September
2022 337 3,325 247 141 4,050
Additions - - - - -
------------ ------------- --------- ------------ ----------
At 31 March
2023 337 3,325 247 141 4,050
Additions - - - - -
------------ ------------- --------- ------------ ----------
At 30 September
2023 337 3,325 247 141 4,050
------------ ------------- --------- ------------ ----------
Amortisation
and impairment
At 31 March
2022 337 3,106 58 28 3,529
Charge - 4 15 7 26
------------ ------------- --------- ------------ ----------
At 30 September
2022 337 3,110 73 35 3,555
Charge - 4 14 7 25
------------ ------------- --------- ------------ ----------
At 31 March
2023 337 3,114 87 42 3,580
Charge - 3 15 7 25
------------ ------------- --------- ------------ ----------
At 30 September
2023 337 3,117 102 49 3,605
------------ ------------- --------- ------------ ----------
Net book value
At 30 September
2022 - 215 174 106 495
------------ ------------- --------- ------------ ----------
At 31 March 2023 - 211 160 99 470
------------ ------------- --------- ------------ ----------
At 30 September
2023 - 208 145 92 445
------------ ------------- --------- ------------ ----------
5. PROPERTY, PLANT AND EQUIPMENT
Land Assets Plant Office Motor Total
& Buildings Under Construction & Machinery Equipment Vehicles
GBGBP000 GBGBP000 GBGBP000 GBGBP000 GBGBP000 GBGBP000
Cost
At 31 March
2022 1,335 - 1,614 79 25 3,053
Additions - - 80 14 - 94
------------- -------------------- ------------- ----------- ---------- ---------
At 30 September
2022 1,335 - 1,694 93 25 3,147
Additions - 142 211 2 - 355
------------- -------------------- ------------- ----------- ---------- ---------
At 31 March
2023 1,335 142 1,905 95 25 3,502
Transfer of Assets - - - - - -
Additions - - 7 2 33 42
------------- -------------------- ------------- ----------- ---------- ---------
At 30 September
2023 1,335 142 1,912 97 58 3,544
------------- -------------------- ------------- ----------- ---------- ---------
Depreciation
At 31 March
2022 120 - 287 33 16 456
Charge 30 - 106 8 4 148
------------- -------------------- ------------- ----------- ---------- ---------
At 30 September
2022 150 - 393 41 20 604
Charge 30 - 116 9 4 159
------------- -------------------- ------------- ----------- ---------- ---------
At 31 March
2023 180 - 509 50 24 763
Charge 20 - 127 7 6 160
------------- -------------------- ------------- ----------- ---------- ---------
At 30 September
2023 200 - 636 57 30 923
------------- -------------------- ------------- ----------- ---------- ---------
Net book value
At 30 September
2022 1,185 - 1,301 52 5 2,543
------------- -------------------- ------------- ----------- ---------- ---------
At 31 March 2023 1,155 142 1,396 45 1 2,739
------------- -------------------- ------------- ----------- ---------- ---------
At 30 September
2023 1,135 142 1,275 40 28 2,621
------------- -------------------- ------------- ----------- ---------- ---------
Included in the net carrying amount of property plant and
equipment are right-of-use assets as follows:
Plant Motor Total
& Machinery Vehicles
(Leased)
GBGBP000 GBGBP000 GBGBP000
Cost
At 31 March
2022 162 25 187
Additions 150 - 150
------------- ---------- ---------
At 30 September
2022 312 25 337
Additions 79 - 79
------------- ---------- ---------
At 31 March
2023 391 25 416
Additions - 33 33
------------- ---------- ---------
At 31 September
2023 391 58 449
------------- ---------- ---------
Depreciation
At 31 March
2022 23 16 39
Charge 13 4 17
------------- ---------- ---------
At 30 September
2022 36 20 56
Charge 12 4 16
------------- ---------- ---------
At 31 March
2023 48 24 72
Charge 21 5 26
------------- ---------- ---------
At 31 September
2023 69 29 98
------------- ---------- ---------
Net book value
At 30 September
2022 276 5 281
------------- ---------- ---------
At 31 March
2023 343 1 344
------------- ---------- ---------
At 30 September
2023 322 29 351
------------- ---------- ---------
6. INVENTORIES
Inventories consist of the following:
Unaudited Unaudited Audited
Six months Six months
to 30 Sep to 30 Sep Twelve months
2023 2022 to 31 Mar 2023
GBGBP000 GBGBP000 GBGBP000
Raw Materials 58 45 48
Work in Progress 65 23 33
Finished Goods 16 - -
----------- ----------- ----------------
139 68 81
----------- ----------- ----------------
The cost of inventories recognised as an expense and included in
cost of goods sold amounted GBP26K (2022: GBP37K).
7. TRADE AND OTHER RECEIVABLES
Unaudited Unaudited Audited
Six months Six months
to 30 Sep to 30 Sep Twelve months
2023 2022 to 31 Mar 2023
GBGBP000 GBGBP000 GBGBP000
Current:
Trade receivables -
gross 98 146 175
Allowance for credit
losses - (5) -
----------- ----------- ----------------
Trade receivables net 98 141 175
Other receivables 50 82 34
Tax credit due 381 28 -
Prepayments and accrued
income 226 430 379
----------- ----------- ----------------
755 681 588
----------- ----------- ----------------
8. CASH AT BANK
Unaudited Unaudited Audited
Six months Six months
to 30 Sep to 30 Sep Twelve months
2023 2022 to 31 Mar 2023
GBGBP000 GBGBP000 GBGBP000
Cash at bank and in
hand 493 2,509 1,484
----------- ----------- ----------------
493 2,509 1,484
----------- ----------- ----------------
9. BORROWINGS & LEASE LIABILITIES
Unaudited Unaudited Audited
Six months Twelve months
Six months to 30 Sep to 31 Mar
to 30 Sep 2023 2022 2023
GBGBP000 GBGBP000 GBGBP000
Current:
Bank loans 29 86 29
Lease Liabilities 97 4 81
---------------- ----------- --------------
126 90 110
---------------- ----------- --------------
Non-current:
Bank loans 150 364 165
Lease Liabilities 169 - 200
---------------- ----------- --------------
319 364 365
---------------- ----------- --------------
Bank loans Lease liabilities Total
GBGBP000 GBPGBP000 GBGBP000
Repayable in less than
6 months 14 45 59
Repayable in 7 to 12
months 15 46 61
Repayable in 1 to 5
years 98 175 273
Repayable after 5 years 52 - 52
----------- ------------------ ---------
179 266 445
----------- ------------------ ---------
GBP148,449 of bank loans is secured on the property at 2
Drummond Crescent, Irvine, Ayrshire and subject to a bond and
floating charge over the Group's assets. Secured bank loans carry a
variable rate of interest, which were between 6% and 7.8%.
GBP30,309 of bank loans is an unsecured government support loan.
Unsecured bank loans carry an effective rate of interest at 9%.
The lease liabilities are secured by the related underlying
assets. Lease borrowings carry fixed rates of interest, ranging
between 4.0% and 9.6%.
Reconciliation of change in lease liabilities:
GBGBP000
As at 1 April 2022 121
Payment of lease liability - principal (25)
Payment of lease liability - interest (5)
Interest expense 5
Additions 150
Disposals -
As at Sep 2022 246
Payment of lease liability - principal (44)
Payment of lease liability - interest (11)
Interest expense 11
Additions 79
Disposals -
As at 31 March 2023 281
Payment of lease liability - principal (48)
Payment of lease liability - interest (12)
Interest expense 12
Additions 33
Disposals -
---------
As at 30 September 2023 266
---------
10. TRADE AND OTHER PAYABLES
Unaudited Unaudited Audited
Six months Twelve months
Six months to 30 Sep to 31 Mar
to 30 Sep 2023 2022 2023
GBGBP000 GBGBP000 GBGBP000
Current liabilities:
Trade payables 184 142 43
Other payables 24 91 8
Accruals and deferred
income 146 164 204
---------------- ----------- --------------
354 397 255
---------------- ----------- --------------
Deferred grant income is included within other liabilities in
the Consolidated statement of financial position. GBP39,000 (2022:
GBP49,000) is included in current liabilities and GBP101,000 (2022:
GBP140,000) included in Non-current Liabilities.
11. SUBSEQUENT EVENTS
The Company announced on 30 November 2023 a placing to raise a
minimum of GBP4.0m and a retail offer to raise up to GBP0.75m.
Certain Directors noted their intention to invest a further
GBP80,000 through the subscription for an additional 727,272 shares
subject to being out of a close period.
The Company subsequently announced on 1st December that it had
conditionally raised gross proceeds of approximately GBP4.0m
(before expenses) under the placing. In total, 36,363,636 Placing
Shares have been conditionally placed at the price of 11 pence per
share.
On the 8 December following the closing of the Retail Offer on 7
December 2023, the Company announced that the Retail Offer had
raised an additional GBP0.31 million through the issue of 2,784,566
Ordinary Shares at the Issue Price of 11 pence.
12. ISSUED SHARE CAPITAL
The Company's issued share capital as at 30 September 2023
comprises 22,184,798 Ordinary Shares of which none are held in
treasury.
13. INTERIM ANNOUNCEMENT
The interim results announcement was released on 18 December
2023. A copy of this Interim Report is also available on the
Company's website www.rualifesciences.com.
BOARD OF DIRECTORS AND ADVISORS
DIRECTORS
W Brown - Executive Chairman
C Stretton - Group Managing Director
L Smith - Group CFO
I Anthony - Clinical and Regulatory Affairs (Resigned 01/09/2023)
J McKenna - Director of Marketing
I Ardill - Non-Executive Director
G Berg - No n-Executive Director
J Ely - Non-Executive Director
COMPANY SECRETARY
K M Full FCC A (Resigned 03/09/23)
L Smith (Appointed 03/09/23)
HEAD OFFICE REGISTERED OFFICE
2 Drummond Crescent c/o Davidson Chalmers Stewart
Irvine LLP
Ayrshire 163 Bath Street
KA11 5AN Glasgow
G2 4SQ
web: www.rualifesciences.com
email: info@rualifesciences.com
NOMINATED ADVISER AND BROKER REGISTRARS
Cavendish Capital Markets Equiniti Limited
Limited
One Bartholomew Close Aspect House
London Spencer Road
EC1A 7BL West Sussex
BN99 6DA
LAWYERS
Davidson Chalmers Stewart
163 Bath Street
Glasgow
G2 4SQ
Burness Paull LLP
50 Lothian Road
Festival Square
Edinburgh
EH3 9WJ
INDEPENT AUDITOR
Grant Thornton UK LLP
Statutory Auditor
Chartered Accountants
110 Queen Street
Glasgow
G1 3BX
Registered in Scotland, Company No.SC170071
Financial statements will be available to Shareholders from
the Company Website, along with copies of the announcement.
Dealings permitted on Alternative Investment Market (AIM)
of the London Stock Exchange .
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END
IR NKOBQABDDQBD
(END) Dow Jones Newswires
December 18, 2023 02:00 ET (07:00 GMT)
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