REG - RUA Life Sciences - Interim Results
18/12/2023 07:00
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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 £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-Eon(TM), 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-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
(http://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-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 £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 Six months to 30 Sep 2022 Twelve months to 31 Mar 2023
GB£000 GB£000 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 (4.55) (5.15) (9.03)
Basic & Diluted (GB Pence per share)
CONDENSED CONSOLIDATED INTERIM STATEMENT OF FINANCIAL POSITION
Unaudited Unaudited Audited
Note 30 Sep 2023 30 Sep 2022 31 Mar 2023
GB£000 GB£000 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
- - - 46 - 46
Share based payments
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
- - - 56 - 56
Share based payments
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
3 - - - (3) -
Issue of share capital
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
(http://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 2023 Six months to 30 Sep 2022 Twelve months to 31 Mar 2023 GB£000
GB£000 GB£000
Manufacture of 595 - -
Medical Devices
Royalty Income 199 187 554
Total 794 1,104 2,179
Unaudited Unaudited Audited
Analysis of revenue by geographical location
Six months to 30 Sep 2023 Six months to 30 Sep 2022 Twelve months to 31 Mar 2023
GB£000 GB£000 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 - 579 16 - - 595
Medical Devices
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 - 917 - - - 917
Medical Devices
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
58 45 48
Raw Materials
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 98 146 175
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 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 REGISTERED OFFICE
2 Drummond Crescent c/o Davidson Chalmers Stewart LLP
Irvine 163 Bath Street
Ayrshire Glasgow
KA11 5AN 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.
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