TIDMRUA
RNS Number : 1707H
RUA Life Sciences PLC
26 July 2023
RUA Life Sciences plc
("RUA Life Sciences", the "Company" or the "Group")
Final results for the year ended 31 March 2023
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
2023.
Highlights :
-- Revenue growth of 34% to GBP2,179,000 (2022: GBP1,625,000)
-- Recruitment of high-calibre people with 26% headcount increase
-- Despite continued investment, loss after tax reduced 3% to GBP2,003,000 (2022:GBP2,067,000)
-- RUA Biomaterials enjoyed 14% revenue growth to GBP554,000 (2022: GBP487,000)
-- RUA Contract Manufacture strong year with 43% revenue growth
and 78% growth in operating profit to GBP794,000 (2022:
GBP447,000)
-- Regulatory pathway for RUA Vascular agreed with FDA and
global distribution agreement concluded
-- Structural Heart achieved outstanding results on testing of
novel heart valve leaflet material.
-- Year-end cash GBP1,484,000 (2022: GBP2,963,000)
Bill Brown, Chairman of RUA Life Sciences, commented: " RUA has
a portfolio of four businesses, all of which have made good
progress during the period. The mature businesses of Biomaterials
and Contract Manufacture are growing revenue and generating
attractive net margins and the development business segments of
Vascular and Structural Heart have made good regulatory and
technological progress respectively on relatively low levels of
investment" .
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
Cenkos Securities plc (Nominated Advisor and Stockbroker) Tel: +44 (0)20 7397 8900
Max Gould (Corporate Finance)
Giles Balleny (Corporate Finance)
Michael Johnson (Sales)
About RUA Life Sciences
RUA Life Sciences plc is the ultimate parent company of the
Group, whose principal activities comprise exploiting the value of
its IP & know-how, medical device contract manufacturing and
development of cardiovascular devices.
Our vision is to improve the lives of millions of patients by
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 unit is pursuing our vision.
Elast-Eon(TM)'s biostability is comparable to silicone while
exhibiting excellent mechanical, blood contacting and flex-fatigue
properties. These polymers can be processed using conventional
thermoplastic extrusion and moulding techniques. With over 8
million implants and 15 years of successful clinical use, RUA's
polymers are proven in long-term life enabling applications.
The Group's four business units are:
RUA Contract End-to-end contract developer and manufacturer
Manufacture : of medical devices and implantable fabric specialist.
RUA Biomaterials Licensor of Elast-Eon (TM) polymers to the medical
: device industry.
RUA Vascular: Development of Elast-Eon (TM) sealed vascular
grafts
RUA Structural Development of Elast-Eon (TM) polymeric heart
Heart : valves and leaflet technology.
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
results for the year ended 31 March 2023.
Trading for Year
Trading during the period was positive with strong revenue
growth of 34% year on year resulting in revenue for the year of
GBP2,179k (2022: GBP1,625k).
We have continued to invest in the growth and development of the
business as demonstrated by the 26% increase in the average
employee numbers from 38 last year to 48 in the current year.
Despite this investment in people during the development stages of
the Group, it is pleasing that Group loss before tax reduced
marginally from GBP2,360k to GBP2,322k. At the post tax level, the
reduction in loss was greater as R&D tax credits increased.
Cash was tightly controlled with total cash burn of GBP1,479k
resulting in a halving of cash balances from GBP2,963k to
GBP1,484k.
Our Portfolio
The RUA Group has a portfolio of four medical device businesses
and during the year, we changed the basis of reporting on these
businesses as part of a review of segmental reporting and analysis.
The four businesses are Biomaterials, Contract Manufacture,
Vascular and Structural Heart. The Group Managing Director's Report
provides detailed analysis on each of the businesses, but I am
pleased to set out below the key valuation metrics and
opportunities for the constituent parts.
RUA Biomaterials is the owner of our biostable polymer
technology being exploited through a licensing model. Revenues for
the year amounted to GBP554k (2022: GBP487k) and due to the limited
costs associated with the business it enjoys an operating profit
margin of 89% (2022: 86%) and contributed GBP493k (2022: GBP418k)
to the group operating loss. RUA considers the cash flows from the
business segment as a "growing perpetuity" which at a discount rate
of 12% and growth of rate 5% would value this business segment at
around GBP7 million.
RUA Contract Manufacture was acquired as part of the GBP2.45
million acquisition of RUA Medical in April 2020. During the year
the business grew revenues strongly to GBP1,625k (2022: GBP1,138k)
and has an operating profit margin of 49% (2022: 39%) contributing
GBP794k (2022: GBP447k) to the Group operating loss. New and
existing customers are actively reviewing projects with RUA that
could double the current scale of the business over a two-year
period. The purchase of RUA Contract Manufacture represents a
multiple of contribution of around 3 times which is proving to be
attractive when compared to revenue multiples of 7 times paid in
the sector. Given the growth opportunities available to the
business and the potential for multiple expansion, the contract
manufacturing business has the potential to add significant
value.
Subsequent to the financial year end, we announced that the
Group had undertaken a reorganisation of its R&D development
activities with the hive down of the vascular graft business to RUA
Vascular Limited (a 100% subsidiary of the Company) and the hive
down of the heart valve business to RUA Structural Heart Limited
(also a 100% subsidiary).
RUA Vascular is the business unit developing the large bore
vascular graft range. This part of the business disappointed by
failing to meet the KPI's set for it at the start of the period.
The pre-sub process with the FDA has highlighted supplemental
pre-clinical testing that is required in addition to the clinical
trial itself. As a result, there have been further delays to the
commencement of the clinical trial and subsequent applications for
regulatory approvals. Despite this set back, a review of the
project demonstrates how much has been achieved to date with the
development of the polymerically sealed graft range, a regulatory
pathway agreed with regulators, significant biocompatibility
testing, improvements in manufacturability of the graft and
establishment of commercial manufacturing capabilities required to
meet initial launch demand, and agreement reached to ensure global
distribution. These not inconsiderable achievements have been done
on a relatively small budget with investment of around
GBP4.4million. Further investment will be required for RUA Vascular
to reach its potential, including the clinical trials agreed with
the FDA as part of the pre-sub 510k process, and plans to
facilitate this funding are being explored.
As part of the review of the holding values for RUA Vascular,
financial forecasts have been prepared. This demonstrates that the
pilot plant has the capacity to generate revenues of over GBP6
million and a net contribution of over 70%. Valuation metrics in
the vascular graft sector would appear to be based on revenue
multiples. Comparative transactions have been at revenue multiples
of 4 and above. Applying these multiples to RUA Vascular based on
pilot plant capacity values the business at GBP25 million
representing an EBITDA multiple of 5.4 times. After factoring in
the anticipated costs of completing the project, the Internal Rate
of Return is a very attractive 43%.
RUA Structural Heart, the business unit developing next
generation heart valves and materials is estimated to have had
around GBP3.1million of investment since the business was restarted
in financial year 2019. The key objective for the period was to
evaluate heart valve leaflet material and compare the performance
of 100% polymeric valves with a novel composite developed by the
Group. The computational modelling of the composite material at the
design stage suggested that its mechanical properties would be
ideal for heart valve leaflets and that there should not be a risk
of delamination. The team within the Structural Heart business
segment has very recently achieved the initial milestones set for
the composite material. We are delighted to report that after 200
million cycles the material shows no signs of delamination and cut
edges remain unchanged as a result of flex fatigue testing
undertaken in house. From a performance perspective, the composite
material is very thin and flexible and little energy is required to
open a valve, and once opened does not restrict blood flow with a
good EOA (Effective Orifice Area). Comparing the EOA with published
data on current biological valves suggests that the EOA of the RUA
design is up to two times greater for equivalent valve size.
Testing has also
demonstrated that the properties of the composite restrict crack
propagation.
100% polymeric valves rely in part on the leaflet design to
reduce stress and operate within the performance window of the
polymer, meaning that the polymer would not work in all designs.
The composite material retains the blood contacting properties of
Elast-Eon(TM) but is significantly stronger. Suture retention
testing shows the composite is highly resistant to pull through.
Given these properties the RUA composite may be appropriate for
valve designs that 100% polymer would not be appropriate for,
allowing a like for like swap of RUA composite for the biological
tissue used in currently marketed designs. This creates the
opportunity for RUA Structural Heart to become a supplier of heart
valve leaflets to other companies to incorporate in current
designs.
The opportunity to broaden the business model for the Structural
Heart business not only increases the potential value of the
business unit but reduces the timeframe to be able to realise this
value. The Structural Heart business has always had the potential
to generate substantial value for the Group but with recent
developments has increased the chances of achieving its potential.
The major medical device companies have always been prepared to buy
in novel technology and we believe we are getting much closer to
having a commercialisable offering.
Conclusion
RUA has a portfolio of four businesses, all of which have made
substantial progress during the period. The mature businesses are
growing revenue and generating attractive operating margins and the
development business segments of Vascular and Structural Heart have
made good regulatory and technological progress respectively on
relatively low levels of investment. The stability of Biomaterials
coupled with the long term contractual but growth opportunities of
Contract Manufacture more than support the valuation of the Group
and still provide attractive upside. The developing businesses of
Vascular and Structural Heart both require further investment to
achieve their considerable potential and funding options are
currently being explored to provide this investment. The progress
of Structural Heart over the past year has more than compensated
for the delay to the Vascular clinical trial.
William Brown
Chairman
25 July 2023
GROUP MANAGING DIRECTOR'S REPORT
"This period has seen continuing sales growth from our two
highly profitable and cash generative business units, RUA
Biomaterials and RUA Contract Manufacture, which underpin current
Group valuation. We have continued to de-risk the regulatory
process and formalised the route to market for RUA Vascular's large
bore graft range, and identified additional positive properties
within RUA Structural Heart's polymeric heart valve technology
platform ."
Caroline Stretton
GROUP MANAGING DIRECTOR
Sales performance has surpassed expectations
Contract manufacturing and polymer licensing business units are
performing ahead of expectations. Total revenue of GBP2,179,000
(2022: GBP1,625,000) represents an increase of 34% over the same
period in the previous year (2022: 6%). The strategic changes that
we made to business processes and working practices during the
period have transitioned the business from a narrowly focused
contract developer and manufacturer to a fully-fledged medical
device manufacturing business that is focused on bringing our
pipeline products to market. Key to this is our continuing
investment and commitment to Research and Development activities,
with R&D spend increasing 19% to GBP1,072,000 (2022:
GBP903,000). Loss before tax for the period has decreased
marginally to GBP2,322,000 (2022: GBP2,360,000) as a result of
increased growth from our two cash generative businesses.
RUA Biomaterials
The Group's platform technology is based upon Elast-Eon, and RUA
Biomaterials owns all the Elast-Eon IP, and licenses use of
Elast-Eon to medical device companies. Elast-Eon has been proven to
have all of the characteristics necessary for a long-term
implantable biomaterial, and has been the enabling technology
behind over 8 million life-sustaining devices over the last 15
years. Elast-Eon polymer licence and royalty income of GBP554,000
(GBP2022: GBP487,000) represents growth of 14% during the period.
This increased uptake is due to successfully promoting the
Elast-Eon polymer as a world leading material to the medical device
industry. RUA Biomaterials is akin to an annuity business, and
maintains a high operating profit margin (89%) (2022: 86%), since
its only real outlays are IP costs. The Group continues to use the
Elast-Eon polymer within its vascular and heart valve product
pipelines, with the aim of improving device performance and
eliminating the risks of animal-derived material in cardiovascular
devices.
RUA Contract Manufacture
Third party contract manufacturing revenue surpassed
expectations by increasing 43% to GBP1,625,000 (2022:
GBP1,138,000). This was due to our continued focus on quality and
delivery leading to increased demand from existing customers and
the onboarding of a new global medical technology company and
resultant long term manufacturing and supply contract. Significant
process efficiencies and effective cost control measures have been
realised during the period, resulting in an attractive operating
profit margin of 49% (2022: 39%), 100% on-time-in-full (OTIF)
service levels were maintained during the entire period, and a
recent customer satisfaction survey scored an average of 98%, which
reflects the organisation's commitment to quality and service.
All business development activities during the period have
focused on long term high value strategic opportunities, and
significant headway has been made with plans to increase Original
Equipment Manufacturer ( OEM) customer demand to create a high
growth business. A s well as onboarding the new global medical
technology customer during the period, an opportunity pipeline with
Request For Quote (RFQ) values of cGBP2m in annualised revenue over
the next 2-3 years is in place.
RUA Vascular
RUA Vascular is focused on the $1billion global vascular graft
market, where polyester vascular grafts have been available on the
market for over 50 years with little innovation. Many of these
grafts contain animal-derived sealants. RUA Vascular's
Elast-Eon-enabled products for open surgical repair are an
innovative solution addressing the many risks associated with
animal-derived tissue (supply chain constraints, cross-species
contamination, environmental concerns, and ethical/patient choice).
With a growing acceptance in the surgical community of an
inevitable switch away from animal-sourced products, RUA Vascular
has a real opportunity to become a significant player in the open
surgical graft market.
During this period, all R&D efforts have been focused on the
first launch from the vascular pipeline, a large bore straight
graft, which will also be the enabler for the development of more
complex products in the vascular graft portfolio. Whilst the
regulatory pathway was being addressed, we also took the
opportunity to further improve the product and significant progress
has been made on product development activities, as well as the
necessary precursor activities required for market launch.
Data collection on the large bore graft continues with in-vivo
and in-vitro trials, which has provided a level of certainty around
graft design, bench performance and biocompatibility. A num ber of
pre-submissions, or Q-subs, have allowed interactive discussions
between the Group and FDA to determine the regulatory path to
approval in the US, which will increase the certainty of market
clearance through the less onerous 510K route. During these
discussions, a Good Laboratory Practice (GLP) in-vivo study design
and a clinical trial design was agreed for demonstration of the
safety and efficacy of Elast-Eon as a graft sealant, and which
aligns with FDA's expectations. The clinical trial is a performance
goal study rather than a complex randomised trial, and will involve
121 patients, with a primary end point at 6 months post operation
to study graft performance, safety, and clinical efficacy. With the
trial being non-blinded, we will have sight of early clinical
results well before the end point. R ecruitment of the first
patient is anticipated in 2024, with regulatory submissions planned
to allow entry into the US market upon completion. The data
generated in the trial will be utilised to support further
marketing applications in multiple geographic regions including
Europe.
Significant work has been completed on manufacturing process
refinements and efficiencies of the existing pilot production line.
M anufacturing methodology has ensured consistent batch to batch
sealing of the graft by machines, eliminating the use of toxic
chemicals used during the manufacturing process. Initial production
capacity plans indicate that this pilot line is capable of meeting
the volumes and margins required for the launch of the large bore
vascular grafts. The new facility purchased in November 2021 to
accommodate a high output cleanroom facility, to support scale up
manufacturing of the vascular graft range and associated support
functions, will further allow for future growth but will require
further investment.
To be a leading player in the vascular graft market, it was felt
that a route to market would be much more efficient and cost
effective through a distribution model where existing and
experienced sales teams would be leveraged. The Group was therefore
delighted to sign an agreement in January 2023 with Corcym, a
global medical device company focussed on the structural heart
area, which provides a clear path to a global market for the range
of large bore vascular grafts. Corcym have an excellent sales
network in place, currently selling to cardiothoracic surgeons in
over 100 countries, and RUA Vascular's grafts are complementary to
their existing product portfolio. To allow Corcym the necessary
flexibility to maximise market penetration, a novel pricing model
was agreed whereby rather than agree specific price points by
territory, the partnership ethos of the agreement will see RUA and
Corcym share the gross principal margin achieved on global sales on
a 50:50 basis. This agreement validates not only the design
benefits of RUA's product offering but also the regulatory pathway
that has been adopted, and first revenues through the Corcym sales
outlet are expected upon clearance to market from the FDA.
In parallel with the Corcym distribution route to market,
interest continues to be strong for OEM component supply of the RUA
vascular graft to be used as part of another device. These
additional opportunities are also being advanced and discussions
will continue within the coming year.
RUA Structural Heart
Through incorporation of Elast-Eon polymer technology into a
novel leaflet system, the Group believes both valve failure and the
need for lifetime anticoagulant treatment (associated with
currently marketed aortic heart valves) will be avoided.
Alternative leaflet material is becoming much more important to
the industry, and polymeric valves are being talked about as the
future. The heart valve market is dominated by a small number of
very large companies, but much of the recent innovation in the
sector has been undertaken by start-ups. RUA recognises that a
route to market which involves a partnership/license for future
regulatory testing, clinical trial and launch to be more realistic
than seeking to compete directly. A second route to market, namely
OEM component supply of the proprietary composite material to major
Heart Valve companies as a replacement for biologic material in
their transcatheter aortic valves, has also been identified during
the period. This strategy of seeking to "own" the leaflet material
of choice may allow faster commercialisation with revenues
generated during the customer development phase.
During the current period, two heart valve programmes were
running in parallel - one with a 100% polymer leaflet and the other
a textile polymer composite leaflet. Both designs have been
developed, tested and de-risked to a stage where the design which
ensured the most resilient and appropriate technology, and greatest
potential, was prioritised. Our chosen lead design was the textile
polymer composite leaflet, which is very thin and flexible, yet
demonstrates tear resistance many times greater than a simple
polymeric sheet, whilst retaining the blood contacting properties
of Elast-Eon.
The valve manufacturing process has been refined, and valves of
sufficient quality have been produced that are able to withstand
durability testing via an Accelerated Wear Tester (where the valve
is subjected to accelerated conditions as if it had been implanted
in a heart). Hydro dynamic performance (which replicates conditions
within the heart) has also been very promising, with low opening
and closing pressure gradients and orifice areas. F atigue testing
capability has now been brought in-house, and a major milestone of
c200 million cycles has been achieved without any indication of
delamination or change to the structure of the material. Tes ting
of the lead designs (valve and leaflet) will be further advanced
and if benefits are demonstrated as anticipated, following on,
proof of concept in vivo trials to assess functionality,
durability, thrombosis and calcification deposition.
Novel IP on valve design and method of manufacture has also been
created.
Quality Management System
The Group extended scope of its ISO 13485:2016 certification in
support of its Quality Management System (QMS) to include the
entire Group of companies and to meet Medical Device Manufacturer
requirements. This is the second year in a row that no
non-conformities were noted during the ISO 13485 audit by our
Notified Body, which reflects the increasing expertise within the
Quality department. Electronic QMS software implementation has
begun which will enable the business to operate a modern, efficient
and compliant QMS to support future business growth.
Outlook
Continuing sales growth from our two highly profitable and cash
generative business units have exceeded expectations, and our two
pre-revenue business units continue to de-risk the regulatory
process and make good technological progress. A clear route to
market has been agreed for RUA Vascular's large bore graft upon
market clearance via Corcym, and we are progressing additionality
within our polymeric heart valve technology platform. We have
worked hard to build the solid foundations required by a fully
fledged medical device manufacturing business, and to empower staff
within the business with the necessary experience, knowledge and
skillsets to help deliver on RUA's ambitious plans. The Group looks
forward to continuing to maximise revenues, alongside further
product development, in the coming year, and ultimately delivering
on our strategy to disrupt the cardiovascular market with
innovative products and grow shareholder value.
CAROLINE STRETTON
Group Managing Director
25 July 2023
STRATEGY
The mission of the Group is to enhance patients' lives through
the development of pioneering innovative cardiovascular medical
devices using Elast-Eon(TM), the world leading long-term
implantable biostable polyurethane This is being undertaken
through:
-- International growth via licensing Elast-Eon(TM) to third parties through RUA Biomaterials;
-- International growth through RUA Contract Manufacture;
becoming a centre of excellence for designing, developing and
manufacturing Elast-Eon(TM) based medical devices, whilst
continuing to serve and expand its current OEM customer base;
-- Developing and launching a range of Elast-Eon(TM) sealed
vascular grafts through RUA Vascular; and
-- Developing innovative Elast-Eon(TM) polymeric heart valve and
leaflet technology through RUA Structural Heart.
RUA Life Sciences 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.
Summarised consolidated income
statement
Year ended 31 Year ended 31 March
March 2023 2022
Notes GBGBP000 GBGBP000
Revenue 2,179 1,625
Cost of sales (388) (267)
---------------- ----------------------
Gross Profit 1,791 1,358
Other income 72 66
Administrative expenses (4,169) (3,776)
---------------- ----------------------
Operating loss (2,306) (2,352)
Finance expense (16) (8)
---------------- ----------------------
Loss before taxation (2,322) (2,360)
Taxation 319 293
---------------- ----------------------
Loss from continuing operations
attributable to owners of
the parent company (2,003) (2,067)
---------------- ----------------------
Loss attributable to owners
of the parent company (2,003) (2,067)
---------------- ----------------------
Loss per share
Basic & Diluted (GB Pence
per share) 4 (9.03) (9.32)
There was no other comprehensive income for 2023 (2022:
GBPNil)
Summarised consolidated statement of financial position
31 March 31 March
2023 2022
Notes GBGBP000 GBGBP000
Assets
Non current assets
Goodwill 301 301
Other intangible assets 470 521
Property, plant and equipment 2,739 2,597
Total non current assets 3,510 3,419
----------------- ---------------
Current assets
Inventories 81 124
Trade and other receivables 588 1,120
Cash and cash equivalents 1,484 2,963
Total current assets 2,153 4,207
----------------- ---------------
Total assets 5,663 7,626
----------------- ---------------
Equity & Liabilities
Equity
Issued capital 1,109 1,109
Share premium 11,729 11,729
Other reserve (1,450) (1,552)
Capital redemption reserve 11,840 11,840
Profit and loss account (18,545) (16,542)
----------------- ---------------
Total equity attributable to equity
holders of the parent 4,683 6,584
----------------- ---------------
Liabilities
Non-current liabilities
Borrowings 165 199
Lease liabilities 200 83
Deferred tax 85 75
Other liabilities 116 174
----------------- ---------------
Total non-current liabilities 566 531
----------------- ---------------
Current liabilities
Borrowings 29 23
Lease liabilities 81 39
Trade and other payables 255 410
Other liabilities 49 39
Total current liabilities 414 511
----------------- ---------------
Total liabilities 980 1,042
Total equity and liabilities 5,663 7,626
----------------- ---------------
Summarised consolidated cash flow statement
Year ended
Year ended 31 March
31 March 2023 2022
GBGBP000 GBGBP000
Cash flows from operating activities
Group loss after tax (2,003) (2,067)
Adjustments for:
Amortisation of intangible assets 51 53
Depreciation of property, plant and
equipment 307 259
Share-based payments 102 145
Net finance costs 16 8
Tax credit in year (319) (293)
Decrease / (increase) in trade and
other receivables 327 (53)
Decrease / (increase) in inventories 43 (39)
Taxation received 533 87
Decrease in trade and other payables (203) (453)
---------------- -------------
Net cash flow from operating activities (1,146) (2,353)
Cash flows from investing activities
Purchase of property plant and equipment (449) (904)
Interest paid (28) (8)
Net cash flow from investing activities (477) (912)
---------------- -------------
Cash flows from financing activities
Proceeds from borrowing 229 -
Repayment of borrowings and leasing
liabilities (97) (66)
---------------- -------------
Net cash flow from financing activities 132 (66)
---------------- -------------
Net (decrease)/increase in cash and
cash equivalents (1,491) (3,331)
Cash and cash equivalents at beginning
of year 2,963 6,294
Effect of foreign exchange rate changes 12 -
---------------- -------------
Cash and cash equivalents at end
of year 1,484 2,963
================ =============
Summarised consolidated statement of changes in equity
Capital Profit
Issued Share Other redemption and loss Total
share capital premium reserve reserve account equity
GBGBP000 GBGBP000 GBGBP000 GBGBP000 GBGBP000 GBGBP000
-------------- --------- --------- ------------ --------- ---------
Balance at 31 March 2021 12,949 11,729 (1,697) - (14,475) 8,506
-------------- --------- --------- ------------ --------- ---------
Share-based payments - - 145 - - 145
Buyback of deferred shares (11,840) - - 11,840 - -
-------------- --------- --------- ------------ --------- ---------
Transactions with owners (11,840) - 145 11,840 - 145
-------------- --------- --------- ------------ --------- ---------
Total comprehensive loss
for the year - - - - (2,067) (2,067)
Balance at 31 March 2022 1,109 11,729 (1,552) 11,840 (16,542) 6,584
-------------- --------- --------- ------------ --------- ---------
Share-based payments - - 102 - - 102
Transactions with owners - - 102 - - 102
Total comprehensive loss
for the year - - - - (2,003) (2,003)
-------------- --------- --------- ------------ --------- ---------
Balance at 31 March 2023 1,109 11,729 (1,450) 11,840 (18,545) 4,683
-------------- --------- --------- ------------ --------- ---------
NOTES TO THE EXTRACTS FROM THE CONSOLIDATED FINANCIAL
STATEMENTS
1. Basis of preparation
The extracts from the Consolidated financial statements are for
the year ended 31 March 2023. The Consolidated financial statements
have been prepared in compliance with UK-adopted International
Accounting Standards.
The Consolidated financial statements have been prepared under
the historical cost convention, with the exception of fair value
adjustments made in connection with the acquisition of RUA
Medical.
The accounting policies remain unchanged from the previous
year.
2. Going concern
The Board has to consider that the Going Concern principle is
appropriate for the preparation of these accounts. At 31 March
2023, the Group had cash and cash equivalents of GBP1.48m (2022:
GBP2.96m) and, as at the date of signing these Financial
Statements, the cash balance was GBP0.9m.
RUA Life Sciences has two cash-generative units (RUA
Biomaterials and RUA Contract Manufacture). These cash-generating
units provide a healthy Gross Margin (89% and 49%), and
contributions to Group operating loss were GBP493,000 and
GBP794,000. The Group has two cash-consuming units (RUA Vascular
and RUA Structural Heart), and both these units require further
investment before commercialisation and cash generation can be
achieved. The investment will chiefly be for a GLP animal study and
Human Clinical Trials for RUA Vascular. The Board anticipates the
requirement for additional funding over the course of the financial
year as the internal cash generation will not cover the additional
investment required.
The Board has considered the current cash position, reviewed
budgets and profit and cash flow forecasts over the going concern
period (to October 2024) along with sensitivity analyses and made
appropriate enquiries. The Board has concluded that further
financing is required and has taken advice from the Company's Nomad
and Broker on the current state of the equity market and the
chances of a successful fundraise. The Board has formed a judgement
at the time of approving the financial statements that the Group
will have access to adequate resources, including new financing, to
continue in operational existence for the period of the going
concern assessment. If finance is not successful, which management
see as unlikely, management have a number of mitigating actions
which can be taken. There is a level of uncertainty around the
ability of management to implement the mitigations during the going
concern period, for this reason management have concluded a
material uncertainty is appropriate. For this reason, the Board
considers that the adoption of the going concern basis in preparing
the consolidated financial statements is
appropriate.
The Financial Statements have been prepared on a going concern
basis and do not include the adjustments that would result if the
Group was unable to continue as a going concern. Due to the factors
described above, specifically the uncertainty around the ability to
raise new financing and the ability to implement mitigating
actions, a material uncertainty exists, which may cast significant
doubt on the Group and the Company's ability to continue as a going
concern.
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 statement of financial position at 31
March 2023, the summarised consolidated income statement, the
summarised consolidated cash flow statement and the summarised
consolidated statement of changes in equity for the year then ended
have been extracted from the Group's statutory financial statements
for the year ended 31 March 2023 upon which the auditor's opinion
includes reference to 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 2023 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 2022 have been delivered to the Registrar of Companies. The
31 March 2023 accounts were approved by the Directors on 25 July
2023, but have not yet been delivered to the Registrar of
Companies.
4. Earnings per share
The basic loss per ordinary share of 9.03 pence (2022: loss of
9.32 pence) is calculated on the loss of the Group of GBP2,003,000
(2022: loss of GBP2,067,000) and on 22,184,798 (2021: 22,184,798 )
ordinary shares, being the weighted average number of shares in
issue during the year. Diluted earnings per share have not been
calculated as the Group is loss making.
Posting and availability of accounts
The annual report and accounts for the year ended 31 March 2023
will be sent by post or electronically to all registered
shareholders on 28 July 2022. Additional copies will be available
for a month thereafter from the Company's office 2 Drummond
Crescent, Riverside Business Park, Irvine, Ayrshire KA11 5AN.
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-sixth Annual General Meeting of RUA Life
Sciences plc will be posted with the Annual Report and Accounts and
will be held at Gailes Hotel, Marine Drive, Irvine, Ayrshire KA11
5AE on Tuesday, 22 August 2023 at 11:00am.
FORMAT OF THE AGM
The AGM will be a physical meeting. The Board encourages all
shareholders who are unable to, or do not wish to, attend the AGM
in person to vote by proxy.
If you wish to attend the AGM in person, it would assist the
Company's planning if you could please notify the Company in
advance by email to kate.full@rualifesciences.com, including your
name as shown on the Company's Register of Members.
Any changes to these arrangements will be published on the
Company's website as soon as possible before the date of the
meeting and will also be circulated via a Regulatory Information
Service.
Further details of the AGM 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
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END
FR RAMRTMTTTBRJ
(END) Dow Jones Newswires
July 26, 2023 02:00 ET (06:00 GMT)
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