TIDMRUA
RNS Number : 7290S
RUA Life Sciences PLC
13 July 2020
13 July 2020
RUA Life Sciences plc
("RUA Life Sciences", the "Company" or the "Group")
Final results for the year ended 31 March 2020
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) ),
announces its audited final results for the year ended 31 March
2020 .
Highlights :
-- Transformation continues: driven by recent strategic
acquisition of RUA Medical Devices Limited
-- Polymer IP business unit performed strongly: licence fee and
royalty income grew to GBP489k (2019: GBP463k)
-- Year end cash balance: despite continued R&D spend, cash
remained strong at GBP1,976k (2019: GBP2,412k). As at 7 July 2020,
cash balance of GBP1,507k after incurring costs and initial cash
consideration for the acquisition of RUA Medical Devices
Limited
-- Medical device development business progressing well: key
milestones met in both Vascular and Structural Heart business units
including pilot animal study on vascular grafts
-- Overheads remain tightly controlled : all R&D costs charged to the Group's income statement
-- Key milestones : expect to reach design freeze on Vascular
products within the next two months and Structural Heart projects
during the financial year allowing full regulatory testing to
commence on both product areas
-- Post-year end, completed strategic acquisition of RUA Medical
Devices Limited and name changed to RUA Life Sciences plc creating
a fully formed medical devices business with IP, people, production
and products
Bill Brown, Chairman of RUA Life Sciences, commented: "A huge
amount has been accomplished by the Company and its partners over
the last two years in building the foundations for a range of
transformational cardiovascular devices. With the recent
acquisition of RUA Medical, the Group now has all of the elements
in house to continue the progress made and anticipate meeting a
number of key milestones over the next year."
For further information contact:
RUA Life Sciences
Bill Brown, Chairman Tel: +44 (0) 77 3071 8296
David Richmond, CEO Tel: +44 (0) 78 9999 6400
Shore Capital
Tom Griffiths/David Coaten Tel: +44 (0)20 7408 4080
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
improving and enabling medical devices with Elast-Eon(TM) , 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 7
million implants and over 14 years of successful clinical use,
RUA's polymers are proven in long-term life enabling
applications.
The Group's four business units are:
RUA Medical : End-to-end contract developer and manufacturer
of medical devices and implantable fabric specialist.
RUA Biomaterials Licensor of Elast-Eon(TM) polymers to the medical
: device industry.
RUA Vascular: Development of large bore polymer sealed grafts
and soft tissue patches.
RUA Structural Development of tri leaflet polymeric heart valves.
Heart :
A copy of this announcement will be available shortly at
www.rualifesciences.com/investor-relations/regulatory-news-alerts.
CHAIRMAN'S STATEMENT
On behalf of the Board, I am pleased to present the Company's
audited final results for the year ended 31 March 2020.
I introduced my statement last year by saying that the year had
been transformational for the Group. I am delighted that this
transformation has continued and the Group which was renamed from
AorTech International plc to RUA Life Sciences plc on 16 June 2020
is almost unrecognisable from where it was only two years ago. The
change of name followed the strategically important post-year end
acquisition of RUA Medical Devices Limited ("RUA Medical") and has
now created a fully formed medical device business with the
facilities, people and regulatory approvals to develop and
manufacture medical devices enabled by the world leading properties
of the Elast-Eon(TM) family of polymers. The exceptional team at
RUA Medical is already making great progress on the Group's
projects and I welcome them all to the wider RUA Life Sciences
business.
Trading for Year
The period under review represents the trading of the Group just
prior to the completion of the acquisition of RUA Medical. During
that period revenues grew by 5.6% over the year from GBP463,000 to
GBP489,000. As the business focussed on developing its range of
medical devices, there was an anticipated increase in costs, and as
a result, the loss for the year was GBP816,000 compared to
GBP609,000 for the previous year. All Research and Development
("R&D") costs were expensed to the profit and loss account and
the Company benefited from R&D Tax Credit receipts of GBP81,000
on the Research and Development activities undertaken during the
year ended 31 March 2019 and the claim for the current year is
expected to be higher.
Despite the increase in R&D expenditure, cash was well
managed during the year and the cash burn was limited to GBP436,000
to include certain costs relating to the RUA Medical acquisition.
Net assets as at 31 March 2020 were reduced from GBP3m to GBP2.28m
due to the loss for the year and movement in other reserves in
respect of the share-based payments for share options.
Group Structure
Following completion of the acquisition of RUA Medical in April
2020, RUA Life Sciences plc is the holding company of four distinct
business units all of which are focussed on growth through the
exploitation of our world class biopolymer, Elast-Eon(TM). The
operations of each are described in more detail in the Group Chief
Executive Officer's Report but in summary operate as follows:
RUA Biomaterials is the licensor of RUA's polymer technology,
providing exclusive rights to other group companies as well as
third party medical device manufacturers.
RUA Medical (acquired post year-end) is a fully certified and
regulated full service end to end medical device designer,
developer and manufacturer of products for third party
customers.
RUA Vascular and RUA Structural Heart are two business units
within the Group which are also customers of RUA Medical. RUA
Vascular is developing medical devices based on the Group's
expertise in implantable textiles combined with the properties of
Elast-Eon(TM). The initial products being developed are large bore
vascular grafts and soft tissue patches. RUA Structural Heart is
developing a novel polymeric heart valve designed to revolutionise
the global heart valve market by increasing durability without the
need for drug treatment, whilst being machine made will have a
significant cost advantage.
Covid-19 and Related Uncertainties
In certain respects, there is little uncertainty about Covid-19.
Until such time as either a vaccine is developed or herd immunity
provides protection, most of us will eventually catch Covid-19 and
sadly some of us will die from it. The task for governments and
policy makers is to balance the conflicts of limiting the spread of
the virus through lockdown measures whilst allowing the economy and
society to at least partially function. It is how global policy
makers handle these conflicts that creates the current uncertainty.
RUA Life Sciences operates in the global medical device sector and
its products are all used to treat patients undergoing operations
in hospitals.
In order to avoid the hospital systems being overwhelmed with
Covid-19 patients, in late March 2020, elective surgery (i.e.
surgery planned by the surgeon in consultation with the patient,
rather than emergency surgery) was substantially cancelled and
sales representatives from medical device companies were unable to
visit hospitals. As no surgeries were being undertaken, hospitals
were not purchasing many medical devices. The main market for RUA
Medical's and RUA Biomaterials' customers is the US and as such the
major area of risk. The US healthcare system is on the whole "for
profit" and if operations are not being carried out neither the
hospital nor the surgeon is earning.
As a result, we witnessed an earlier return to elective surgery
in the US than we did in the UK with the state funded NHS. At the
time of writing, the main customer of RUA Medical has returned to
placing orders but since the middle of March 2020 the accumulated
shortfall in orders amounted to approximately GBP300,000. There
will be a backlog of patients awaiting surgery, but we remain
uncertain how long it will take to catch up, if at all.
Your Board started its contingency planning for Covid-19 around
the time of the lock down and suspension of elective surgery. One
of the most important steps was the renegotiation of the cash
element of the consideration for the acquisition of RUA Medical.
The implications being that any shortfall in the trading
expectations of RUA Medical results in a further year's deferral of
all or part of the remaining cash consideration. The RUA Medical
business has taken steps to limit the impact of Covid-19 on its
trading activities by furloughing certain members of staff and
successfully applied for GBP150,000 in grant finance from the
Scottish Pivotal Enterprise Resilience Fund, which was received on
19 May 2020.
Detailed financial modelling has been undertaken and various
scenarios analysed. The desire of RUA Life Sciences is to continue
the progress made to date on the R&D activities relating to RUA
Vascular and RUA Structural Heart. Even if revenues at RUA Medical
were to be around 50% of historic levels and RUA Biomaterials
suffers a reduction in licence and royalty income of 20%, the
planned R&D activities can still be undertaken in the current
year within the Group's cash resources without having to consider
seeking additional finance. The Group has plans to invest in
capital equipment for both manufacturing and testing of its device
portfolio. RUA Medical has the benefit of a Regional Selective
Assistance grant having been approved providing the opportunity of
debt financing the balance of the cost.
Board
Following the acquisition of RUA Medical, David Richmond who had
been a Non-Executive Director of the Group has now become Group
Chief Executive Officer, with the governance benefits of splitting
the role of Chairman and CEO.
As part of our review of the functioning and skills of the
Board, we have identified the need for an additional Non-Executive
Director with the necessary background and experience to become
Chairman of the Audit Committee, a role that I have temporarily
assumed from David Richmond when he was appointed Group CEO. A
search process is commencing to identify suitable candidates and we
intend to make the appointment by the end of the calendar year.
Gordon Wright, one of the original founders of AorTech and the
visionary behind the original plans to develop a durable polymeric
heart valve, has been on the Board of the Company for a number of
years and a Non-Executive Director since 2006. Gordon has remained
on the Board for longer than the corporate governance
recommendations but it was desirable to see the Company through the
current period of transformation. With the acquisition of RUA
Medical, the ongoing progress in our R&D activities and the
return to having a manufacturing base in Scotland, Gordon has
informed the Board of his intention to retire and has agreed to
remain as a Non-Executive Director until the end of the calendar
year to coincide with the appointment of a new Non-Executive
Director.
I would like to thank Gordon on behalf of the Group and its
shareholders for his contribution over the years and in order to
maintain a formal relationship with Gordon in the future, the Board
is delighted that Gordon has accepted the position of Honorary Life
President.
Corporate Governance
In line with most AIM quoted companies, RUA Life Sciences has
adopted the QCA Code. In this annual report and accounts, I have
set out my statement on Corporate Governance which I hope provides
shareholders with a better understanding of how RUA is run and how
important decisions are made. As part of the journey of Corporate
Governance, the major change since my last report has been the
acquisition of RUA Medical, which, as a related party transaction,
was approved by shareholders on 1 April 2020. This has allowed the
combined role of Chairman and Group Chief Executive to be split
between myself and David Richmond, thus normalising the
position.
Outlook
Setting aside the uncertainties related to Covid-19 and the
implications for business of policy decisions to contain its
spread, your Board remains positive about the prospects for RUA
Life Sciences. We are fortunate to be focussed on the medical
device industry and are developing devices to improve patients'
lives. Covid-19 appears to have originated as a disease that has
crossed from one species to another. All of the products we are
developing are designed to eliminate the use of animal sourced
by-products. Your Board believes that there will be a growing
demand for non-animal sourced products and the benefits of
Elast-Eon(TM) places RUA Life Sciences in a strong position to
exploit those opportunities.
The Group's product development activities have continued to
make good progress since the year end. The graft project has
reached a major milestone of achieving its first animal implant and
the initial results will be available in the near future. The
feed-back from the implant was positive with the exception of an
alteration required to the selvedge line which has now been
addressed by the R&D team. Overall, we are delighted that the
graft appears to have an enhanced surgical experience on
implant.
The team are hopeful that the further pilot study data will
allow design freeze on the graft product allowing us to progress to
the necessary ISO testing prior to regulatory applications.
Similarly, we are pleased how the heart valve project is
progressing and expect to be undertaking the pilot hydro-dynamic
testing to verify the computational modelling which will also allow
us to progress to regulatory testing.
Much has been achieved since the restructuring of the old
AorTech business two years ago and we look forward to reporting on
further developments in the new product portfolio over the coming
year.
William Brown
Chairman
10 July 2020
Group Chief Executive Officer's Report
I am pleased to present my first Report to shareholders of RUA
Life Sciences plc. The audited results cover the year to 31 March
2020. I became Group Chief Executive on 1 April 2020 and on that
day, RUA Life Sciences acquired RUA Medical Devices Limited from
me. I was a Non-Executive Director of RUA Life Sciences prior to
the acquisition so the wider business is not new to me and I will
explain the Group strategy and how the new group structure fits
together.
Firstly, by way of introduction, I thought shareholders might be
interested to learn why I was so enthusiastic about the prospects
for the business combination that has created the RUA Life Sciences
group. It was all driven by strategy and the perfect fit between
the two businesses. The AorTech business had been successfully
turned around from its historic difficulties into the owner of all
of the intellectual property surrounding the Elast-Eon(TM) family
of world class biostable polymers. A strategy had been developed to
seek to capture much more of the value chain in medical devices by
developing its own products in the cardio-vascular field. A very
talented board of directors had been assembled and, in order to
speed up the development of new products, strategic partnerships
were entered into to enable this process.
My own business, RUA Medical Devices Limited was one such
partner and we started working with the AorTech team almost two
years ago on developing the products that will now become RUA
Vascular. RUA Medical is an experienced full service, end to end
medical device contract developer, contract manufacturer and
implantable fabric specialist. It provides sub-contract design,
development, manufacture, assembly, packing, inventory management,
logistics and consultancy services to the medical device and
biotech industries. The business is unique as we provide an end to
end service from taking a client's device idea through design and
development to be able to provide a fully retail packaged product
to the customer. In order to create a business that is credible to
the major medical device industry players, we made substantial
investment in premises, clean room capacity, people, regulatory
accreditations and the systems and processes required to be a
trusted manufacturer of medical devices. The investment into this
infrastructure was probably more than the headline price paid for
RUA Medical. The limitation for RUA Medical in terms of growth in
value was that as a sub-contract supplier, the exit multiples were
substantially lower than those of an IP rich medical device
"owner". It was by the combination of the RUA Medical
infrastructure with the AorTech IP and device portfolio that I saw
as an opportunity to be part of the development of a much larger
and more valuable business.
New Group Structure
Since the creation of RUA Life Sciences in April 2020, the Group
is best described as RUA Life Sciences being the holding company of
four distinct divisions or subsidiaries. Each division is described
below, but the structure is deliberate for a number of reasons,
including transparency in monitoring the performance of each
business unit, regulatory and quality system requirements, together
with creating corporate structures that could be advantageous from
a tax planning and future corporate activity perspective. We treat
all parts of the business as an investment portfolio, allocating
capital to where it can achieve the greatest risk adjusted return
for shareholders. Each of the divisions is described below and
their trading relationships explained.
For the reporting period, the first three of the following
listed divisions has operated through RUA Life Sciences plc.
However, for the current financial year, some are likely to
transfer into previously dormant companies held by the Group, which
have recently been renamed in preparation.
RUA Biomaterials
RUA Biomaterials is an IP licensing business that owns the
family of medical grade polymers known as Elast-Eon(TM).
Elast-Eon(TM) has been in long term human implants for well over 15
years and is the enabling technology behind over 7 million life
sustaining devices. Elast-Eon(TM) has an FDA Masterfile and testing
data has demonstrated the material to have all of the
characteristics necessary for a long term implantable
biomaterial.
RUA Biomaterials has licensed manufacturing rights to Biomerics
and the rights to use the material to a number of other medical
device companies. During the year to 31 March 2020, royalty income
and licence fees from this business activity grew 5.6% from
GBP463,000 to GBP489,000.
Elast-Eon(TM) is also being exploited by other group companies
as the enabling technology behind the grafts and patches being
developed by RUA Vascular and the heart valve being developed by
RUA Structural Heart. Each of these group businesses will be
granted exclusive licences to utilise Elast-Eon(TM) in their
particular field of use. As each of these products is developed and
commercialised, RUA Biomaterials will enjoy a share of that success
through the licence model.
RUA Vascular
RUA Vascular is developing a range of medical devices based on
engineered textile substrates coated or sealed with Elast-Eon(TM).
The initial products in this portfolio are large bore vascular
grafts together with soft tissue patches. RUA Vascular has been
working closely with RUA Medical Devices in the development of
these products. The Research and Development team has now
successfully produced a graft sealed with the polymer yet retaining
the handling characteristics and feel preferred by surgeons. The
graft has recently entered preliminary animal trials and once the
desired outcome has been proven and achieved, design freeze will
take place allowing both the longer term animal trials and the
mechanical testing required to allow regulatory submissions to be
made in order to begin marketing the products.
RUA Structural Heart
Over the past year, the Research and Development activities have
progressed exceptionally well. The biggest step forward has been
the development of a new manufacturing method that eliminates all
of the manufacturing problems and constraints of the old method of
dip casting valves in polymer solution. Early prototype valves have
proven the concept of the manufacturing method which is currently
being kept as a trade secret until the patent application process
proceeds. In addition to being able to manufacture valves of a
consistent quality, the method of manufacture removes all design
constraints allowing us to manufacture what has been designed,
rather than having to design what can be manufactured. This has
allowed a valve to be designed and made that has substantially
lower stress levels with the positive implications for
durability.
The new valves will now undergo testing to confirm what has been
modelled, allowing design freeze and ISO standard testing to be
undertaken.
RUA Medical Devices
RUA Medical Devices is the recent acquisition by the Group. It
is a specialist end to end sub-contract designer, developer and
manufacturer of bespoke engineered medical devices with two
facilities and four cleanrooms. The business is unique in the field
of implantable textile devices in being equipped to take a
customer's product idea and progress it from design straight
through to delivering retail packaged devices for clinical use. RUA
Medical Devices will continue to provide and grow these services to
third party customers, but through the availability of
Elast-Eon(TM) polymers and know how, will expand the offering to
include textile medical devices enabled by Elast-Eon(TM).
Additionally, the RUA Medical Devices team, facilities and systems
are now fully available to continue the product development for RUA
Vascular and RUA Structural Heart.
Covid-19 Implications
Covid-19 has had fewer implications for our medical device
business than for most other sectors of UK industry, but the Board
has taken a number of important steps to ensure the long-term
viability of the business.
At a group level, it was decided to continue apace during
lockdown with our R&D activities and the core R&D team was
retained in the business. I am delighted with the progress that the
team has achieved in bringing the Elast-Eon(TM) sealed vascular
graft to implantation in a pilot animal trial and the large steps
made in manufacturing a structural heart valve of a fully optimised
design rather a design controlled by the manufacturing process. In
these difficult circumstances, the team has probably achieved more
than would have been done under normal working conditions.
The most important action RUA Medical Devices had to take was
ensuring the safety and security of staff during the pandemic.
Members of staff who can work at home have been instructed to do
so, but the nature of the business is such that much of the work
has to be done at our two facilities in Prestwick and Irvine. A
detailed risk assessment exercise has been undertaken and
procedures put in place to ensure social distancing and enhanced
cleaning protocols. This has all been undertaken within the risk
procedures as part of our Quality Management System and the
business is fully Covid-19 compliant.
On a commercial basis, RUA Medical's main customer that sells
long term implantable textile devices suffered from the global shut
down of elective surgery. As a result, we had a two to three month
period of little or no new order intake. In order to preserve cash
resources, unfortunately some members of staff were placed on
furlough and in the manufacturing side of the business a skeleton
team was retained to progress the back order book to ensure
products could be shipped to customers once they were ready to
receive orders.
Early last month, RUA Medical received a further notification
from its largest customer requesting it to prepare for the
production of products and that orders would resume in the near
future, but reserved the right to implement further suspension of
orders in the event of the impact of a second wave of Covid-19.
Since receipt of this notification, RUA Medical has now received
new orders from its largest customer for delivery in August
2020.
The Biomaterials business is currently performing at normal run
rate for material supply, however it will take at least two
quarters to fully appreciate any potential impact on royalty
rates.
Both of the Group's product development businesses, RUA Vascular
and RUA Structural Heart, are still in R&D and as such are not
being impacted at the revenue level. The principal challenges are
sourcing equipment and test facilities. We have experienced some
frustration in being unable to participate in trials, but have not
met with any significant barriers.
Despite the Covid-19 lockdown challenges encountered in my first
3 months as the Group CEO, I am pleased to confirm that RUA Life
Sciences is well positioned to move forward in our plans to create
significant shareholder value by providing innovative medical
devices solutions that will improve the lives of patients
worldwide.
David Richmond
Group Chief Executive Officer
10 July 2020
STRATEGY
The strategy of the Group is simple. To exploit the benefits of
the Company's IP and the family of biostable polymers with
exceptional long-term performance. This is being undertaken
through:
-- licensing Elast-Eon(TM) to third parties through RUA Biomaterials;
-- developing textile based and Elast-Eon(TM) coated implantable devices through RUA Vascular;
-- developing a revolutionary and market disrupting
Elast-Eon(TM) leaflet polymeric heart valve through RUA Structural
Heart; and
-- becoming a centre of excellence for designing, developing and
manufacturing Elast-Eon(TM) based medical devices through RUA
Medical Devices whilst continuing to serve and expand its current
customer base.
RUA Life Sciences is the holding company of each of these
divisions or subsidiaries and will seek to maximise shareholder
value by growing each business to achieve attractive levels of
profitability or disposing of business areas if the valuations are
attractive.
Consolidated income statement
Year ended 31 March 2020 Year ended 31 March 2019
Pre-exceptional Pre-exceptional
items Exceptional items Exceptional
items Total items Total
Notes GBGBP000 GBGBP000 GBGBP000 GBGBP000 GBGBP000 GBGBP000
Revenue 489 - 489 463 - 463
Other income 14 - 14 - - -
Administrative
expenses (1,123) - (1,123) (816) (6) (822)
Other expenses:
share-based
payments (91) - (91) (42) - (42)
Other expenses:
Bad debt expense (37) - (37) (19) - (19)
Other expenses:
amortisation of
intangible assets (193) - (193) (218) - (218)
---------------- -------------- ---------- ---------------- -------------- ---------
Total administrative
expenses (1,444) - (1,444) (1,095) (6) (1,101)
---------------- -------------- ---------- ---------------- -------------- ---------
Operating loss (941) - (941) (632) (6) (638)
Finance (expense)
/ income 44 - 44 29 - 29
---------------- -------------- ---------- ---------------- -------------- ---------
Loss before taxation (897) - (897) (603) (6) (609)
Corporation tax 81 - 81 - - -
Loss from continuing
operations
attributable
to owners of the
parent company (816) - (816) (603) (6) (609)
Loss attributable
to owners of the
parent company (816) - (816) (603) (6) (609)
Loss per share
Basic & Diluted
(GB Pence per
share) 4 (5.55) (4.72)
Consolidated balance sheet
31 March 31 March
2020 2019
GBGBP000 GBGBP000
Assets
Non current assets
Intangible assets 255 448
Property, plant and equipment 5 1
Total non current assets 260 449
---------- -------------------
Current assets
Trade and other receivables 258 238
Cash and cash equivalents 1,976 2,412
Total current assets 2,234 2,650
---------- -------------------
Total assets 2,494 3,099
---------- -------------------
Liabilities
Current liabilities
Trade and other payables (219) (99)
Total current liabilities (219) (99)
---------- -------------------
Total liabilities (219) (99)
Net assets 2,275 3,000
========== ===================
Equity
Issued capital 12,574 12,574
Share premium 4,550 4,550
Other reserve (1,825) (1,916)
Profit and loss account (13,024) (12,208)
Total equity attributable to equity
holders of the parent 2,275 3,000
========== ===================
Consolidated cash flow statement
Year ended
Year ended 31 March
31 March 2020 2019
GBGBP000 GBGBP000
Cash flows from operating activities
Group loss after tax (816) (609)
Adjustments for:
Amortisation of intangible assets 193 218
Depreciation of property, plant and equipment 1 -
Share-based payments 91 42
Interest income (7) (7)
Tax income (81) -
Effect of exchange rate during the year - -
(Increase) / decrease in trade and other
receivables (20) (104)
Increase / (decrease) in trade and other
payables 120 31
---------------- --------------------------
Cash generated from operations (519) (429)
Tax received 81 -
---------------- --------------------------
Net cash flow from operating activities (438) (429)
---------------- --------------------------
Cash flows from investing activities
Purchase of equipment (5) (1)
Purchase of intangible assets - -
Acquisition of subsidiary - (139)
Interest received 7 7
Net cash flow from investing activities 2 (133)
---------------- --------------------------
Cash flows from financing activities
Proceeds of issue of share capital, net
of issue costs - 2,552
Net cash flow from financing activities - 2,552
---------------- --------------------------
Net (decrease)/increase in cash and cash
equivalents (436) 1,990
Cash and cash equivalents at beginning
of year 2,412 422
Cash and cash equivalents at end of year 1,976 2,412
================ ==========================
Consolidated statement of changes in equity
Issued Profit
share Other and loss Total
capital Share premium reserve account equity
GBGBP000 GBGBP000 GBGBP000 GBGBP000 GBGBP000
--------- ------------- --------- --------- ---------
Balance at 31 March 2018 12,118 2,500 (2,003) (11,599) 1,016
Share-based payments - - 42 - 42
Share warrants - (45) 45 - -
Issue of equity share capital
(net of issue costs) 456 2,095 - - 2,551
--------- ------------- --------- --------- ---------
Transactions with owners 456 2,050 87 - 2,593
--------- ------------- --------- --------- ---------
Total comprehensive income
for the year - - - (609) (609)
Balance at 31 March 2019 12,574 4,550 (1,916) (12,208) 3,000
--------- ------------- --------- --------- ---------
Share-based payments - - 91 - 91
Share warrants - - - - -
Issue of equity share capital - - - - -
--------- ------------- --------- --------- ---------
Transactions with owners - - 91 - 91
--------- ------------- --------- --------- ---------
Total comprehensive income
for the year - - (816) (816)
--------- ------------- --------- --------- ---------
Balance at 31 March 2020 12,574 4,550 (1,825) (13,024) 2,275
--------- ------------- --------- --------- ---------
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1. Basis of preparation
The extracts from the Consolidated financial statements are for
the year ended 31 March 2020. They have been prepared in compliance
with International Financial Reporting Standards (IFRS) and IFRS
Interpretations Committee (IFRIC) interpretations as adopted by the
European Union as at 31 March 2020.
The Consolidated financial statements have been prepared under
the historical cost convention.
The accounting policies remain unchanged from the previous
year.
2. Going concern
After considering the year end cash position, making appropriate
enquiries and reviewing budgets and profit and cash flow forecasts
to 30 September 2021 which incorporate planned investment in new
product development and assumptions related to the return towards
normal business particularly relating to the RUA Medical Devices
subsidiary, the Directors have formed a judgement at the time of
approving the financial statements that there is a reasonable
expectation that the Group has sufficient resources to continue in
operational existence for the foreseeable future. For this reason,
the Directors consider that the adoption of the going concern basis
in preparing the consolidated financial statements is
appropriate.
The Board however recognises that the period of this forecast
could be further impacted by policy decisions related to the
Covid-19 pandemic which at present are not possible to forecast,
particularly surrounding the possibility of a second peak in global
infection rates. These events and conditions indicate a material
uncertainty exists that may cast significant doubt on the Group's
and parent company's ability to continue as a going concern. To
mitigate the risk the Group would reassess its plans for product
development and investment in capital equipment, would undertake a
process of cost cutting and seek additional finance through
Government backed Covid-19 support schemes, other debt funding
options or an equity fund raise.
3. Preliminary announcement
The summary accounts set out above do not constitute statutory
accounts as defined by section 434 of the UK Companies Act 2006.
The summarised consolidated balance sheet at 31 March 2020, the
summarised consolidated income statement, the summarised
consolidated statement of changes in equity and the summarised
consolidated cash flow statement for the year then ended have been
extracted from the Group's statutory financial statements for the
year ended 31 March 2020 upon which the auditor's opinion includes
reference to a material uncertainty relating to going concern but
is unqualified and did not contain a statement under either
sections 498(2) or 498(3) of the Companies Act 2006. The audit
report for the year ended 31 March 2020 did not contain statements
under sections 498(2) or 498(3) of the Companies Act 2006. The
statutory financial statements for the year ended 31 March 2019
have been delivered to the Registrar of Companies. The 31 March
2020 accounts were approved by the
Directors on 10 July 2020, but have not yet been delivered to the Registrar of Companies.
4. Earnings per share
The basic and diluted loss per ordinary share of 5.55 pence
(2019: loss of 4.72 pence) is calculated on the loss of the Group
of GBP816k (2019: loss of GBP609k) and on 14,686,608 (2019:
12,910,847) ordinary shares, being the weighted average number of
shares in issue during the year.
Posting and availability of accounts
The annual report and accounts for the year ended 31 March 2020
will be sent by post or electronically to all registered
shareholders on 16 July 2020. Additional copies will be available
for a month thereafter from the Company's office at Unit 26
Prospect House, Gemini Crescent, Dundee, DD2 1TY. Alternatively,
the document may be viewed on, or downloaded from, the Company's
website: www.rualifesciences.com.
Notice of Annual General Meeting
Notice of the twenty-third Annual General Meeting of RUA Life
Sciences plc will be posted with the Annual
Report and Accounts and will be held at RUA Medical's premises
at 2 Drummond Crescent, Riverside Business Park, Irvine, Ayrshire
KA11 5AN on Tuesday, 11 August 2020 at 11:00am.
The Company has been monitoring developments in relation to the
Covid-19 pandemic, including the public heath guidance. The health
of our shareholders and our employees is of paramount importance to
us. The Board has decided on special arrangements to apply for the
holding of this year's AGM. Accordingly, based on current guidance,
this AGM will be run as a "closed meeting". Further details will be
included in the Annual Report and will published on the Company's
website at www.rualifesciences.com.
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.
END
FR RMMRTMTMBBJM
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July 13, 2020 02:00 ET (06:00 GMT)
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