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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Rua Life Sciences Plc | LSE:RUA | London | Ordinary Share | GB0033360586 | ORD 5P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| -0.50 | -4.35% | 11.00 | 10.50 | 11.50 | 11.50 | 11.00 | 11.50 | 266,685 | 09:09:27 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Plastics,resins,elastomers | 2.18M | -2M | -0.0323 | -3.41 | 6.83M |
From Apr 2022 to Apr 2024
TIDMRUA
RNS Number : 2931J
RUA Life Sciences PLC
12 December 2022
12 December 2022
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 2022.
Highlights:
-- 56% increase in revenues to GBP1,104,000 (H1 FY2022: GBP708,000) -- Gross profit GBP875,000 - margin 79% up from H1 FY2022 75% -- 15% reduction in loss to GBP1,143,000 (H1 FY2022: GBP1,311,000)
-- Strong cash position at GBP2.5 million (30 September 2021: GBP4.8 million, 31 March 2022: GBP3 million)
-- Investment in development projects increased 7% to GBP908,000 (H1 FY2022: GBP849,000) -- Progress made in regulatory pathway for Vascular business segment -- Increased commercial opportunities within Contract Manufacturing business segment
Bill Brown, Chairman of RUA Life Sciences, commented:
"The period has seen good progress made across the four business segments. Biomaterials has continued its steady growth, Contract Manufacturing has outperformed our expectations by delivering increases in sales of 66% at improved margins. The Vascular business has made good progress with its regulatory objectives whilst building on the foundations for a viable commercial business. Structural Heart has identified a solution to the key risks associated with polymeric heart valve leaflets and further strengthened the Group's IP in this area. All business segments are primed for further growth in value over the next few years."
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 Cenkos Securities plc (Nominated Adviser and Broker) Tel: +44 (0)20 7397 8900
Giles Balleny / Max Gould (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-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 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:
Hot Features
Premium
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 sealed Vascular Graft products .
Structural Heart Development of the Group's tri leaflet polymeric
: heart valves .
A copy of this announcement will be available shortly at www.rualifesciences.com/investor-relations/regulatory-news-alerts .
CHAIRMAN'S STATEMENT
I am pleased to set out below an overview of the unaudited interim results of RUA Life Sciences Plc for the six months to 30 September 2022. The period has seen progress in all four business units and for the first time, the segmental reporting of the business now reflects the split amongst Biomaterials, Contract Manufacture, Vascular and Structural Heart.
Unaudited interim results for the six months to 30 September 2022
The results below are the consolidated figures for the entire group and are further analysed in the relevant segmental update. The Group has maintained the level of revenue growth seen from the first to the second half of the year to March 2022. In the six months to September 2022 revenues of GBP1,104,000 were achieved representing an increase of GBP396,000 or 56% over revenues in the six months to September 2021.
Gross margins remained high at 79% resulting in gross profit of GBP875,000 being reported against the GBP528,000 achieved last year thus contributing an additional GBP347,000, an uplift of 66%. Investment in the talent base of the business continued which contributed to the increase in administrative expenses from GBP1,658,000 last year to GBP1,889,000. This increase includes further investment into the Vascular business unit in particular.
The net impact of growth in turnover together with increased investment resulted in a GBP168,000 reduction of the group loss to GBP1,143,000.
Working capital continues to be tightly managed with cash at the period end amounting to GBP2,509,000 a reduction of GBP454,000 from the previous year end. Not included in this cash flow or results for the interim period is the claim for R&D Tax Credits for the year to 31 March 2022. Our policy is to account for R&D Tax Credits on a cash basis and the GBP328,000 claimed has yet to be received from HMRC.
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 clinical performance of Elast-Eon products continues to be excellent, particularly in the area of Cardiac Rhythm Management leads, where over 8 million have been implanted since 2006. The most recently published data indicate that the presence of Elast-Eon lead insulation dramatically reduces the probability of abrasion malfunction in tachycardia leads at 15 years by 80%, from around 5% probability to only 1%.
The Biomaterials business saw royalty and license fee income increase by 20% compared to the first half of last year rising from GBP156,000 to GBP187,000 with the growth driven by increased volumes of Elast-Eon being purchased by licensees. The Biomaterials business is however very much second half weighted as a result of the timings of when royalty fees are recognised. In the financial year ended March 2022, 68% of Biomaterials revenue was recognised in the second half of the year.
Net margins in Biomaterials remain high with the contribution to the Group increasing from GBP116,000 (74%) last year to GBP154,000 (82%) in the current period.
Contract Manufacturing
The Contract Manufacturing business segment is the end to end, third party contract developer and manufacturer of medical devices that formed part of the RUA Medical acquisition in 2020. This business has had a very successful period growing revenues from GBP552,000 in the first half of last year to GBP917,000, an increase of 66%. We do not specifically report on the gross margins achieved in this business area but the net contribution to the group during the period amounted to GBP384,000 being a net contribution of 42%.
We have implemented price increases within Contract Manufacturing for the first time in almost ten years but the major growth driver was a result of increased demand for product from the major customer. This increase in itself was a result of two factors, one being the post Covid increase in hospital procedures in the key US market in particular and the other being a stock build for European markets in advance of the transition from MDD to MDR regulations. During the second half year, we anticipate a continued growth in US orders and maintaining steady levels of European orders whilst MDR stock build is fully initiated.
Business development has progressed well within the Contract Manufacturing business, with a new manufacturing contract signed with a global business for the processing and supply of two components for its medical device portfolio. First sales have now been achieved with the first batches manufactured, passed QC and shipped to the customer under the terms of the supply agreement. There will be a gradual ramp up in volumes over the next 12 months with sales expected to stabilise between GBP10,000 and GBP12,000 a month. In addition, the business is currently working on a number of requests for quotations for both components and completed devices. These quotations are for devices that are currently in the market and as such could convert to manufacturing revenue in a relatively short period of time compared to development projects. The annualised revenue potential from these quotations could more than double the current scale of the Contract Manufacturing business.
Vascular
The Vascular business segment is currently in the development stages of commercialising the Group's range of Elast-Eon sealed vascular grafts and related products. Expensed investment into this area amounted to GBP619,000 during the period compared to GBP532,000 last year reflecting an increase in investment for regulatory planning, manufacturing process and commercial preparation.
Regulatory progress has been positive but time consuming. Data had previously been submitted to the FDA on the large bore grafts which demonstrated that there was a difference in the healing process to predicate textile grafts currently in the market. These differences are arguably beneficial due to a lower inflammatory response and little or no adhesion to the device when tested in vivo. However, they were different enough for the FDA to want to have a better understanding of the healing process before allowing the devices to be marketed. Rather than convert the device to the longer and more costly PMA process, the FDA has agreed to a continuance of the 510k pre-market notification process but with additional work designed around providing additional information on the healing process. The in vivo work historically undertaken had data collected at the six-month end point and comparisons made with the predicate device. At this point, the competitor grafts were adhered to the perivascular tissue whereas the RUA grafts were encapsulated but were not adhered to the perivascular tissue. In order to provide more information on this healing process, further in vivo work will be undertaken to clarify the healing process at one and three months in addition to the six-month end point. Having agreed this process, the requirements for a human clinical study were much reduced from what they could have been and in broad terms the study will be of limited scale and utilise a single arm Performance Goal design, with the primary end point of the trial being measured at six months post operation. The regulatory team is currently working towards setting up this trial and finalising the budget. While the preliminary in vivo work is currently underway, we continue to assess the best time to start the clinical trial. RUA will advise in more detail on the expected costs and revised timescales in due course but in the meantime is actively exploring opportunities to finance at least part of the clinical stages through non-dilutive funding routes and grant finance.
Product development and the manufacturing process has made significant strides over the period. The Quality Management System is in the process of being transferred to a digital eQMS system along with the purchasing process, providing both greater control and cost efficiencies that should increase with the scale of the business. Importantly, the RUA ISO 13485 quality management certification has been expanded to cover the entire group and the scope has been expanded from contract manufacture to legal device manufacturer. This is a major achievement in itself. With regard to manufacturing efficiencies, a thorough review of process steps has resulted in a significant improvement in manufacturing yield. These efficiencies should enable the current clean rooms at Irvine to have sufficient capacity to provide for anticipated launch volume requirements for straight grafts together with demand of up to 10% market share in North America. The lessons learnt from this process are now being applied to optimising the design of the larger cleanroom at the second Irvine facility.
On the commercial developments, product costings indicate that after allowing for distributor margin, RUA should be able to achieve a gross margin of around 80% on products sold. Average selling prices into hospitals range from around $900 to $3,000 depending on the type of device. With regards to the sale of grafts into hospitals in both the US and other key markets, it has always been our strategy to work with distributors rather than establish a direct sales force. We have been in discussions with a number of parties and are confident that not only is our strategy correct but there is serious interest in partnership opportunities.
Structural Heart
This is the business segment responsible for developing the Group's polymeric heart valve technology. Expensed investment in this area amounted to GBP289,000, a 9% reduction on the same period last year. The reduction in spend has come about through increasing the capacity of the in-house team being more than offset by undertaking fewer tasks with outside contractors.
The focus over the past six months has been risk review and mitigation. All biological valves fail and the medical profession even has a name for it - Structural Valve Deterioration (SVD). In SVD however, the failure mode is slow, and patients develop symptoms to allow the SVD to be recognised and treated. Unlike biological valves, the failure rate of mechanical valves is very low, the problem however is the failure can be catastrophic. This phenomenon was witnessed during the 1980's with the unfortunate death of a small number of patients implanted with the Bjork Shiley mechanical valve, leading to closure of the Shiley valve business and ultimately to the market dominance of the biological valve. Testing has shown that Elast-Eon is exceptionally biostable, non-calcific and non-thrombogenic and as such has the desirable properties to avoid or at least reduce the incidence of SVD. The major task for a polymeric valve (assuming the polymer is suitable for long term implantation) is to persuade regulators, surgeons and most importantly patients that the valve should not be subject to catastrophic failure. Polymer valves have been shown to pass long term durability testing yet there remains a "fear of the new" that will need to be overcome. RUA has made major steps in improving the manufacture of 100% polymeric leaflets but has been concentrating this year on a safer, more durable alternative.
The in vivo studies carried out on the vascular grafts indicated that Elast-Eon coating the fabric of the graft performed in an identical manner to what would have been expected of pure Elast-Eon. The fatigue properties and tear resistance of the graft material were however many times better than the base Elast-Eon polymer. Based on this discovery, RUA has taken the coating technology developed for the graft and, building upon that core IP, developed a method of creating a true composite material that retains the proven blood contacting properties of Elast-Eon with much improved mechanical properties. Finite Element Analysis (FEA) modelling of the material has been very promising, indicating the material should have the necessary flexibility without the risk of delamination. The valve design developed for the 100% Elast-Eon leaflets has been evolved to take advantage of the new material properties and the initial prototypes have demonstrated very encouraging hydrodynamic results, particularly with regards to the energy required to open the valve. The final stage is to complete the engineering work on the manufacture of the valves to replace the manual manufacturing process and allow sufficient numbers of the desired quality to undergo durability testing.
Conclusion and Outlook
All four business units within the RUA portfolio have made good progress over the year to date. Biomaterials has seen revenues grow in the half year with the expectation of a similar second half weighting to performance as enjoyed last year. The Contract Manufacturing business has successfully increased unit pricing to customers and been able to increase volumes without having to increase head count. Business development has resulted in first shipments to a new global customer and the business has been asked to quote for further new business which, if successful, could more than double turnover in this area. The Vascular business has overcome the regulatory hurdles of last year and has worked closely with the FDA towards a clear regulatory plan. The time taken has been used to establish a robust manufacturing process from which the cost of manufacture will allow a very attractive margin even from the pilot plant. The commercial opportunity is in active discussion and our partnering strategy will be the subject of future updates. Structural Heart has undertaken some true inventive steps in the year to date and the device envisaged is being designed to eliminate all of the objections that have been made about polymeric heart valves.
RUA Life Sciences still has a way to go to meet all of its strategic objectives but in considering the progress of each segment of the business, each one has added value in the year to date and we look forward to this continuing in the future.
Bill Brown, Chairman
12 December 2022
CONDENSED CONSOLIDATED INTERIM INCOME STATEMENT
Six months ended 30 September 2022
Unaudited Unaudited Audited
Six months Six months Twelve months
to 30 Sep to 30 Sep to 31 Mar
2022 2021 2022
Note GBGBP000 GBGBP000 GBGBP000
----------- ----------- --------------
Revenue 2 1,104 708 1,625
Cost of sales (229) (180) (267)
----------- ----------- --------------
Gross profit 875 528 1,358
Other income 98 37 66
Administrative expenses (1,889) (1,658) (3,315)
Other expenses:
Share-based payments (46) (68) (145)
Bad debt expense - - (3)
Depreciation & amortisation (174) (145) (313)
----------- ----------- --------------
Total administrative
expenses (2,109) (1,871) (3,776)
----------- ----------- --------------
Operating loss (1,136) (1,306) (2,352)
Finance income/(expense) (11) (9) (8)
----------- ----------- --------------
Loss before taxation (1,147) (1,315) (2,360)
Taxation 4 4 293
----------- ----------- --------------
Loss attributable
to equity holders of
the parent company (1,143) (1,311) (2,067)
----------- ----------- --------------
Loss per share (basic
and diluted) - GB Pence (5.15) (5.91) (9.32)
CONDENSED CONSOLIDATED INTERIM STATEMENT OF FINANCIAL POSITION
Unaudited Unaudited Audited
30 Sep 30 Sep
2022 2021 31 Mar 2022
Note GBGBP000 GBGBP000 GBGBP000
Assets
Non-current assets
Goodwill 3 301 301 301
Other intangible assets 4 495 547 521
Property, plant and
equipment 5 2,543 2,231 2,597
---------- ---------- ------------
Total non-currents
assets 3,339 3,079 3,419
---------- ---------- ------------
Current assets
Inventories 68 177 124
Trade and other receivables 681 866 1,120
Cash and cash equivalents 2,509 4,763 2,963
---------- ---------- ------------
Total current assets 3,258 5,806 4,207
---------- ---------- ------------
Total assets 6,597 8,885 7,626
---------- ---------- ------------
Equity
Issued capital 7 1,109 1,109 1,109
Share premium 7 11,729 11,729 11,729
Capital redemption
reserve 11,840 11,840 11,840
Other reserve (1,507) (1,629) (1,552)
Profit and loss account (17,685) (15,786) (16,542)
---------- ---------- ------------
Total equity attributable
to equity holders of
the parent company 5,486 7,263 6,584
---------- ---------- ------------
Liabilities
Non-current liabilities
Borrowings 364 305 199
Lease liabilities 0 5 83
Deferred tax 71 159 75
Other Liabilities 140 204 174
---------- ---------- ------------
Total non-current
liabilities 575 673 531
---------- ---------- ------------
Current liabilities
Borrowings 86 60 23
Lease liabilities 4 8 39
Trade and other payables 397 847 410
Other liabilities 49 34 39
---------- ---------- ------------
Total current liabilities 536 949 511
---------- ---------- ------------
Total liabilities 1,111 1,622 1,042
---------- ---------- ------------
Total equity and liabilities 6,597 8,885 7,626
---------- ---------- ------------
At 30 September 2022
Unaudited Unaudited Audited
Six months Six months Twelve
to 30 to 30 months to
Sep 2022 Sep 2021 31 Mar 2022
GBGBP000 GBGBP000 GBGBP000
Cash flows from operating activities
Group loss after tax (1,143) (1,311) (2,067)
Adjustments for:
Depreciation and amortisation 174 145 312
Share-based payments 46 68 145
Interest (income) / expense 9 7 8
Tax credit in year - - (293)
(Increase) / decrease in trade
and other receivables 439 563 (53)
(Increase) / decrease in inventories 56 (93) (39)
Increase / (decrease) in taxation (4) (4) 87
Increase / (Decrease) in trade
and other payables (38) (471) (453)
Net cash flow from operating
activities (461) (1,096) (2,353)
----------- ----------- -------------
Cash flows from investing activities
Purchase of property, plant &
equipment (94) (397) (904)
Interest received / (paid) (9) (7) (8)
----------- ----------- -------------
Net cash flow from investing
activities (103) (404) (912)
----------- ----------- -------------
Cash flows from financing activities
Proceeds from borrowing 150 - -
Repayment of loans and lease
liabilities (40) (31) (66)
Net cash flow from financing
activities 110 (31) (66)
----------- ----------- -------------
Net increase / (decrease) in
cash and cash equivalents (454) (1,531) (3,331)
Cash and cash equivalents at
beginning of period 2,963 6,294 6,294
----------- ----------- -------------
Cash and cash equivalents at
end of period 2,509 4,763 2,963
----------- ----------- -------------
CONDENSED CONSOLIDATED INTERIM CASH FLOW STATEMENT
Six months ended 30 September 2022
Condensed consolidated interim statement of changes in equity
Issued Capital Profit
share Share redemption Other and loss Total
capital premium reserve reserve account equity
GBGBP000 GBGBP000 GBGBP000 GBGBP000 GBGBP000 GBGBP000
Balance at 31 March 2021 12,949 11,729 - (1,697) (14,475) 8,506
Transfer of deferred shares (11,840) - 11,840 - - -
Share-based payments - - - 68 - 68
--------- --------- -------------------- --------- --------- ---------
Transactions with owners (11,840) - 11,840 68 - 68
--------- --------- -------------------- --------- --------- ---------
Total comprehensive income
for the period - - - - (1,311) (1,311)
Balance at 30 September
2021 1,109 11,729 11,840 (1,629) (15,786) 7,263
--------- --------- -------------------- --------- --------- ---------
Share-based payments - - - 77 - 77
Issue of equity share capital - - - - - -
- exercise of warrants
Issue of equity share capital - - - - - -
(net of issue costs) - fundraise
--------- --------- -------------------- --------- --------- ---------
Transactions with owners - - - 77 - 77
--------- --------- -------------------- --------- --------- ---------
Total comprehensive loss
for the period - - - - (756) (756)
--------- --------- -------------------- --------- --------- ---------
Balance at 31 March 2022 1,109 11,729 11,840 (1,552) (16,542) 6,584
--------- --------- -------------------- --------- --------- ---------
Transfer deferred share to - - - - - -
capital redemption reserve
Share-based payments - - - 46 - 46
--------- --------- -------------------- --------- --------- ---------
Transactions with owners - - - 46 - 46
--------- --------- -------------------- --------- --------- ---------
Total comprehensive loss
for the period - - - - (1,143) (1,143)
--------- --------- -------------------- --------- --------- ---------
Balance at 30 September
2022 1,109 11,729 11,840 (1,506) (17,685) 5,487
--------- --------- -------------------- --------- --------- ---------
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 2022 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 2022.
The financial information for the six months ended 30 September 2022 and the comparative figures for the six months ended 30 September 2021 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 2022 and, on the recognition, and measurement principles of IFRS in issue as effective at 30 September 2022. 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 2022 have been extracted from the audited statutory accounts which were approved by the Board of Directors on 8 July 2022, prepared under IFRS. The Independent Auditor's Report on the Report and Financial Statements for the year ended 31 March 2022 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 9 December 2022.
Going concern
The 2022 Annual Report audit report drew attention to the material uncertainty relating to going concern as follows:
"We draw attention to the going concern accounting policy in note 1 of the financial statements, which states that the RUA Life Sciences Group is loss-making and cash-consumptive, and its revenue streams have been impacted by the COVID-19 pandemic and the resulting macro-economic uncertainty and the setback of a regulatory delay for the Vascular Graft Range. These events and conditions may result in lower than forecasted revenues and increased costs associated with the regulatory delay. This increases the risk that the group will not be able to execute its business plan, which could adversely impact its ability to generate profit or raise sufficient capital to meet capital and liquidity requirements. As stated in note 1, these events or conditions, together with the requirement for financing indicate that a material uncertainty exists that may cast significant doubt on the company's ability to continue as a going concern. Our opinion is not modified in respect of this matter."
The Board and management have prepared and reviewed financial forecasts and cashflow requirements. The review included key assumptions, sensitivities, and contingency plans to cover eventualities, including the associated cash flow projections. The review has been updated and also taken into consideration the potential impact of changing market conditions and other risks and uncertainty, paying particular attention to the impact of potential delays in the regulatory process of our Vascular grafts.
The Directors concluded that given the combination of the cash balance of GBP2.5m at 30 September 2022 and the forecast monthly cash utilisation, the Group has sufficient liquidity throughout a period of at least 12 months from the date of approval of this interim financial report.
As a result, the Directors have a reasonable expectation that the Group as a whole has adequate resources to continue in operational existence for a period of at least 12 months from the date of this interim financial report. For this reason, they continue to adopt the going concern basis in preparing the unaudited interim report for the half year ended 30 September 2022.
The financial statements do not include any adjustments that would be necessary if the group or company was unable to continue as a going concern.
Principal Risks and Uncertainties
The principal risks and uncertainties affecting the business activities of the Group remain those detailed on pages 19-22 of the Annual Report 2022, a copy of which is available on the Company's website www.rualifesciences.com
Loss per share
Loss per share has been calculated on the basis of the result for the period after tax, divided by the weighted average number of ordinary shares in issue in the period of 22,184,798. (30 September 2021: 22,184,798 and 31 March 2022: 22,184,798).
2. SEGMENTAL REPORTING
The principal activity of the RUA Life Sciences Group comprise exploiting the value of its IP & know-how, medical device contract manufacturing and development of cardiovascular devices.
Following the acquisition of RUA Medical Devices Ltd and an internal organisation and reporting review, the Board has decided the business will report by business unit segments, namely royalty and license income (Biomaterials), Contract Manufacturing, product development (Vascular) & product innovation (Structural Heart), rather than trading entities, which is consistent with both how the business will be managed and reported internally in the future.
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 tri leaflet polymeric heart valves.
Operating results which cannot be allocated to an individual segment are recorded as central and unallocated.
Analysis of revenue by income Unaudited Unaudited Audited
stream
Six months Six months Twelve months
to 30 Sep to 30 Sep to 31 Mar
2022 2021 2022
GBGBP000 GBGBP000 GBGBP000
Biomaterials 187 156 487
Contract Manufacture 917 552 1,138
Vascular - - -
Structural Heart - - -
----------- ----------- --------------
Total 1,104 708 1,625
----------- ----------- --------------
Analysis of revenue by geographical
location Unaudited Unaudited Audited
Six months Six months Twelve months
to 30 Sep to 30 Sep to 31 Mar
2022 2021 2022
GBGBP000 GBGBP000 GBGBP000
Europe 6 43 192
USA 1,072 643 1,379
RoW 26 22 54
----------- ----------- --------------
Total 1,104 708 1,625
----------- ----------- --------------
The Group's revenue for six months to 30 September 2022 is segmented as follows:
Analysis of revenue by income
stream
Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited
Contract Structural Central
Biomaterials Manufacture Vascular Heart and unallocated Total
GBGBP000 GBGBP000 GBGBP000 GBGBP000 GBGBP000 GBGBP000
Contract Design &
Manufacture of Medical
Devices - 917 - - - 917
Royalty revenue 187 - - - - 187
-------------- ------------- ---------- ----------- ----------------- ----------
Total 187 917 - - - 1,104
-------------- ------------- ---------- ----------- ----------------- ----------
Analysis of revenue by geographical
location
Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited
Contract Structural Central
Biomaterials Manufacture Vascular Heart and unallocated Total
GBGBP000 GBGBP000 GBGBP000 GBGBP000 GBGBP000 GBGBP000
Europe 7 -1 - - - 6
USA 154 918 - - - 1,072
RoW 26 - - - - 26
------------------------ ------------- ---------- ----------- ----------------- ----------
Total 187 917 - - - 1,104
------------------------ ------------- ---------- ----------- ----------------- ----------
Restatement of Analysis of revenue by income stream six month to 30 September 2021 is as follows:
Analysis of revenue by income
stream
Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited
Contract Structural Central
Biomaterials Manufacture Vascular Heart and unallocated Total
GBGBP000 GBGBP000 GBGBP000 GBGBP000 GBGBP000 GBGBP000
Contract Design &
Manufacture of
Medical
Devices - 552 - - - 552
Royalty revenue 156 - - - - 156
-------------- ------------- ---------- ----------- ----------------- ----------
Total 156 552 - - - 708
-------------- ------------- ---------- ----------- ----------------- ----------
Analysis of revenue by geographical
location
Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited
Contract Structural Central
Biomaterials Manufacture Vascular Heart and unallocated Total
GBGBP000 GBGBP000 GBGBP000 GBGBP000 GBGBP000 GBGBP000
Europe - 44 - - - 44
USA 134 508 - - - 642
RoW 22 - - - - 22
---------------------- ------------- ---------- ----------- ----------------- ----------
Total 156 552 - - - 708
---------------------- ------------- ---------- ----------- ----------------- ----------
Segment Analysis for period to 30
September 2022
Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited
Contract Structural Central
Biomaterials Manufacture Vascular Heart and unallocated Total
GBGBP000 GBGBP000 GBGBP000 GBGBP000 GBGBP000 GBGBP000
Consolidated group
revenues from external
customers 187 917 - - - 1,104
Contributions to
group operating loss 154 384 (619) (289) (766) (1,136)
Depreciation - 139 - 8 1 148
Amortisation of intangible
assets - 22 - - 4 26
Segment assets 90 4,012 - 152 2,343 6,597
Segment liabilities 2 897 34 4 174 1,111
Intangible assets
- goodwill - 301 - - - 301
Other intangible
assets - 419 - - 76 495
Additions to non-current
assets - 94 - - - 94
Restatement of Segment Analysis six month to 30 September 2021 is as follows:
Segment Analysis 2021
Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited
Contract Structural Central
Biomaterials Manufacture Vascular Heart and unallocated Total
GBGBP000 GBGBP000 GBGBP000 GBGBP000 GBGBP000 GBGBP000
Consolidated group
revenues from external
customers 156 552 - - - 708
Contributions to
group operating loss 116 79 (532) (317) (652) (1,306)
Depreciation - 117 - - 1 118
Amortisation of intangible
assets - 22 - - 5 27
Segment assets 167 3,763 - 153 4,802 8,885
Segment liabilities 6 1,333 44 26 213 1,622
Intangible assets
- goodwill - 301 - - - 301
Other intangible
assets - 462 - - 85 547
Additions to non-current
assets - 313 - - 84 397
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 (as noted in note 5 below), and lead to the following goodwill being recognised:
No impairment review has been carried out in the six-month period.
GBGBP000
Gross carrying amount
Balance at 31 March 2021 301
Balance at 31 March 2022 301
-----------------
Balance at 30 September
2022 301
-----------------
4. INTANGIBLE ASSETS
Development Intellectual Customer Technology
costs property related based Total
Gross carrying amount
At 31 March 2021 337 3,325 247 141 4,050
At 30 September
2021 337 3,325 247 141 4,050
At 31 March 2022 337 3,325 247 141 4,050
At 30 September
2022 337 3,325 247 141 4,050
----------- ------------ -------- ---------- -----
Amortisation and
impairment
At 31 March 2021 334 3,099 29 14 3,476
Charge for the period 2 4 14 7 27
----------- ------------ -------- ---------- -----
At 30 September
2021 336 3,103 43 21 3,503
Charge for the period 1 3 15 7 26
----------- ------------ -------- ---------- -----
At 31 March 2022 337 3,106 58 28 3,529
Charge for the period - 4 15 7 26
----------- ------------ -------- ---------- -----
At 30 September
2022 337 3,110 73 35 3,555
----------- ------------ -------- ---------- -----
Net book value
At 30 September 2021 1 222 204 120 547
----------- ------------ -------- ---------- -----
At 31 March 2022 - 219 189 113 521
----------- ------------ -------- ---------- -----
At 30 September
2022 - 215 174 106 495
----------- ------------ -------- ---------- -----
5. PROPERTY, PLANT AND EQUIPMENT
Land & Plant Office Motor Total
Buildings & Machinery Equipment Vehicles
GBGBP000 GBGBP000 GBGBP000 GBGBP000 GBGBP000
Cost
At 31 March 2021 944 1,114 63 28 2,149
Additions 28 361 8 - 397
----------- ------------- ----------- ---------- ---------
At 30 September 2021 972 1,475 71 28 2,546
Additions 363 139 8 (3) 507
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
----------- ------------- ----------- ---------- ---------
Depreciation
At 31 March 2021 58 112 18 9 197
Charge 29 79 7 3 118
----------- ------------- ----------- ---------- ---------
At 30 September 2021 87 191 25 12 315
Charge 33 96 8 4 141
At 31 March 2022 120 287 33 16 456
Charge 30 106 8 4 148
At 30 September 2022 150 393 41 20 604
----------- ------------- ----------- ---------- ---------
Net book value
At 30 September 2021 885 1,284 46 16 2,231
----------- ------------- ----------- ---------- ---------
At 31 March 2022 1,215 1,327 46 9 2,597
----------- ------------- ----------- ---------- ---------
At 30 September 2022 1,185 1,301 52 5 2,543
----------- ------------- ----------- ---------- ---------
Included in the net carrying amount of property plant and equipment are right-of-use assets as follows:
30 September
2022
GBGBP000
Plant & Machinery 131
Motor vehicles 5
-------------
Total right-of-use
assets 136
-------------
7. ISSUED SHARE CAPITAL
The Company's issued share capital at 30 September 2022 comprises 22,184,798 Ordinary Shares of which none are held in treasury.
8. INTERIM ANNOUNCEMENT
The interim results announcement was released on 12 December 2022. A copy of this Interim Report is also available on the Company's website www.rualifesciences.com.
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END
IR BKDBBOBDDKBD
(END) Dow Jones Newswires
December 12, 2022 02:00 ET (07:00 GMT)
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