Source - LSE Regulatory
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-EonTM), today announces its unaudited interim results for the six months ended 30 September 2023.

Highlights:

·    Gross profit £616,000 - margin 77% (H1 FY2023: £875,000 - 79%) 

·    12% reduction in loss to £1,010,000 (H1 FY2023: £1,143,00) 

·    Short-term revenue timing differences led to a 28% decrease in revenues to £794,000 (H1 FY2023: £1,104,000) 

·    Cash on hand £493,000 (30 September 2022: £2,509,000, 31 March 2023: £1,484,000) 

·    Post-period end normalisation of revenues plus R&D tax credit strengthens cash 

·      Operational Investment in development projects decreased 11% to £471,000 (H1 FY2023: £532,000) 

·      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-EonTM, manufacturing a device or component, or developing next generation medical devices, a RUA Life Sciences business is pursuing our vision.

 

Elast-Eon™'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-EonTM polymers to the medical device industry.

 

Vascular:

Development and commercialisation of the Group's Elast-EonTM sealed Vascular Graft products.

 

Structural Heart:

Development of the Group's Elast-EonTM 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 £4.4 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 £1,104,000 last year to £794,000, 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 £1,136,000 to £1,360,000.

 

Post-tax losses, however, improved from £1,143,000 to £1,010,000 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 £493,000, a fall of £991,000 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 £900,000 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-EonTM 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 £187,000 to £199,000. 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 £154,000 (82%) last year to £166,000 (84%) in the current period.

 

Contract Manufacturing

Based on headline performance, the Contract Manufacturing business performed poorly with revenues down from £917,000 in the first half of last year to £579,000, 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 £1 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 £6 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


Note

Six months to 30 Sep 2023

GB£000

 

Six months to 30 Sep 2022

GB£000

 

Twelve months to 31 Mar 2023

GB£000

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

 

Note

30 Sep 2023

GB£000

 

30 Sep 2022

GB£000

 

31 Mar 2023

GB£000

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 to

 

Six months to

 

Twelve months to

 

30 Sep 2023

 

30 Sep 2022

 

31 March 2023

 

GB£000

 

GB£000

 

GB£000

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 Share capital

 

Share premium

 

Capital Redemption Reserve

 

Other reserve

 

Profit and loss account

 

Total equity

 

GB£000

 

GB£000

 

GB£000

 

GB£000

 

GB£000

 

GB£000

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

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 £4m (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-EonTM 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 2023

GB£000

 

Six months to 30 Sep 2022

GB£000

 

Twelve months to 31 Mar 2023 GB£000

Manufacture of

Medical Devices

595


-


-

Royalty Income

199


187


554

Total

794

 

1,104


2,179

 

 

 


Analysis of revenue by geographical location

Unaudited


Unaudited


Audited


Six months to 30 Sep 2023

GB£000

 

Six months to 30 Sep 2022

GB£000

 

Twelve months to 31 Mar 2023

GB£000

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



Biomaterials

Contract Manufacture


Vascular

Structural Heart

Central and unallocated

Total


GB£000

GB£000

GB£000

GB£000

GB£000

GB£000

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



Biomaterials

Contract Manufacture


Vascular

Structural Heart

Central and unallocated

Total


GB£000

GB£000

GB£000

GB£000

GB£000

GB£000

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



Biomaterials

Contract Manufacture


Vascular

Structural Heart

Central and unallocated

Total


GB£000

GB£000

GB£000

GB£000

GB£000

GB£000

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



Biomaterials

Contract Manufacture


Vascular

Structural Heart

Central and unallocated

Total


GB£000

GB£000

GB£000

GB£000

GB£000

GB£000

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



Biomaterials

Contract Manufacture


Vascular

Structural Heart

Central and unallocated

Total


GB£000

GB£000

GB£000

GB£000

GB£000

GB£000

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



Biomaterials

Contract Manufacture


Vascular

Structural Heart

Central and unallocated

Total


GB£000

GB£000

GB£000

GB£000

GB£000

GB£000

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.

 

 



 

GB£000

 

 

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 costs

Intellectual property

Customer Related (CM)

Technology Based (CM)

     Total

 

GB£000

GB£000

GB£000

GB£000

GB£000

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 & Buildings

Assets Under Construction

Plant & Machinery

Office Equipment

Motor Vehicles

Total

 

GB£000

GB£000

GB£000

GB£000

GB£000

GB£000

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 & Machinery (Leased)

 

Motor Vehicles

 

Total

 

GB£000

 

GB£000

 

GB£000

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 to 30 Sep 2023


Six months to 30 Sep 2022


Twelve months to 31 Mar 2023

 

GB£000


GB£000


GB£000

 

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 £26K (2022: £37K).

 

 

7. TRADE AND OTHER RECEIVABLES

 

Unaudited


Unaudited


Audited

 

Six months to 30 Sep 2023


Six months to 30 Sep 2022


Twelve months to 31 Mar 2023

 

GB£000


GB£000


GB£000

Current:






Trade receivables - gross

98

 

146


Allowance for credit losses

-

 

(5)


-

Trade receivables net

98

 

141


175

Other receivables

50

 

82


Tax credit due

381

 

28


Prepayments and accrued income

226

 

430


379


755

 

681


588

 

 

8.  CASH AT BANK

 

Unaudited


Unaudited


Audited

 

Six months to 30 Sep 2023


Six months to 30 Sep 2022


Twelve months to 31 Mar 2023

 

GB£000


GB£000


GB£000

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 to 30 Sep 2023

 

Six months to 30 Sep 2022


Twelve months to 31 Mar 2023


GB£000

 

GB£000


GB£000







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

 

GB£000

 

GBP£000

 

GB£000

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

 

 

£148,449 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%.


£30,309 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:

 

 

 

 

GB£000

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 to 30 Sep 2023

 

Six months to 30 Sep 2022


Twelve months to 31 Mar 2023

 

GB£000

 

GB£000


GB£000

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.  £39,000 (2022: £49,000) is included in current liabilities and £101,000 (2022: £140,000) included in Non-current Liabilities.

 

11. SUBSEQUENT EVENTS

The Company announced on 30 November 2023 a placing to raise a minimum of £4.0m and a retail offer to raise up to £0.75m. Certain Directors noted their intention to invest a further £80,000 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 £4.0m (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 £0.31 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 - Non-Executive Director

J Ely - Non-Executive Director

 

COMPANY SECRETARY

K M Full FCCA (Resigned 03/09/23)

L Smith (Appointed 03/09/23)

 

 

HEAD OFFICE

2 Drummond Crescent

Irvine

Ayrshire

KA11 5AN

REGISTERED OFFICE

c/o Davidson Chalmers Stewart LLP

163 Bath Street

Glasgow

G2 4SQ

 

web: www.rualifesciences.com

email: info@rualifesciences.com

 

 

 

NOMINATED ADVISER AND BROKER

REGISTRARS

Cavendish Capital Markets Limited

Equiniti 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


 

INDEPENDENT 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.

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
 
END
 
 
IR NKOBQABDDQBD
Find out how to deal online from £1.50 in a SIPP, ISA or Dealing account. AJ Bell logo

Related Charts

Rua Life Sciences PLC (RUA)

0p (0.00%)
delayed 16:10PM