Rutherford Health PLC
Interim Accounts for the six months ended 31 August 2021
2 November 2021: Rutherford Health plc (AQSE: RUTH, the "Company", or the "Group"), the healthcare group committed to providing innovative cancer care of the highest quality, announces its unaudited interim results for the six months ended 31 August 2021.
Highlights for the period
· Revenues up 36% to
· A key driver of revenue growth was from expansion of the Company's activities into Diagnostics.
· NHS contracts entered into at the end of the period in Thames Valley and
· Completed Infrastructure funding transaction of
· Significant reduction in capital spend during the period (
Post-period end operational highlights
· Trend towards increasing demand: particularly strong trading in September with monthly unaudited revenue in excess of
· Significant increase in number of Proton trained Oncologist's with practicing privileges (84 now compared to 65 at the beginning of the financial year) with a strong pipeline of additional of additional consultants.
· Opening of first Rutherford Diagnostics Centre in
· In partnership with Panthera, first patient treated in the first clinical trial to take place at a Rutherford Cancer Centre: expected to raise the profile of the Group and its state-of-the-art facilities.
· Focus on driving the Group's revenue generating opportunities.
The information contained within this announcement is deemed to constitute inside information as stipulated under the retained EU law version of the Market Abuse Regulation (EU) No. 596/2014 (the "
-Ends-
For more information, please contact:
Rutherford Health plc |
+44 (0) 16 3381 0661 |
Michael Moran, Chief Executive Officer |
Investors@therutherford.com |
|
|
Grant Thornton (Corporate Adviser) |
+44 (0) 20 7383 5100 |
Colin Aaronson/ George Grainger |
|
Instinctif Partners |
+44 207 457 2020 |
Melanie Toyne-Sewell / Jeremy Durrant / Rozi Morris |
Rutherford@Instinctif.com |
|
|
Media House International |
07788 414 856 / 0207 710 0020 |
Ramsay Smith |
ramsay@mediahouse.co.uk |
About Rutherford Health plc
Rutherford Health plc is a leading
The Group is listed on the Apex segment of the AQSE Growth Market under the symbol: RUTH. For more information, visit the Group's website: www.rutherfordhealth.com.
Chief Executive Officer's Statement
The first half of the year has been another extremely busy six months for the Group. This is a summary of events and interim results for Rutherford Health PLC for the six months ended 31 August 2021.
Covid-19 continues to have a significant impact on the cancer pathway, due to the backlog and continued delays in diagnostics. Patient numbers for the six months to 31 August 2021 were 166 for cancer treatment and 4,772 for diagnostics which compares to 229 and 2,370 respectively for the six months ended 31 August 2020. Revenues grew 36% compared to the first six months of the previous financial year. Within that, Proton Beam Therapy revenues remained steady at
Covid-19 Backlog
The enforced lockdowns and focus on fighting Covid-19 came at the cost of maintaining normal NHS services, such as routine and investigative Diagnostics. One of the impacts of this was fewer patients being diagnosed with cancer and progressing to treatment. This in turn resulted in the reduction in the number of cancer patients. Despite this, demand for Proton Beam Therapy remained resilient with similar patient numbers and revenues. The reduction in cancer patients was mainly in Radiotherapy as a key customer of the Group for this service is the NHS, and the focus on Covid-19 meant that they were less able to provide a similar patient flow to prior years.
NHS Radiotherapy revenues are expected to recover as the Diagnostic pathway is unlocked, and more patients are diagnosed with cancer. Towards the end of the period under review the Group signed contracts with two NHS trusts in
With the current cancer care backlog faced by the NHS, the Group remains fully available to help in any way to ensure that cancer treatments are not adversely affected any further by the pandemic.
Oncologist Recruitment & Training
At the beginning of the financial year the Group had 65 Oncologists signed up with Practicing Privileges. The Group now has 84, and 65 of these have had specialist training in Proton Beam Therapy from a leading centre in the
There are a further 61 Oncologists in active discussions and the Group expects to be able to offer Practicing Privileges and training to the majority of these.
The Group believe that continued engagement with Oncologists will lead to a greater awareness of Proton Beam Therapy among patients, and the healthcare community, and that this will lead to increased demand for the Group's services.
Rutherford Diagnostics
On 20 September 2021, the new Rutherford Diagnostic Centre Somerset opened in
The Rutherford Diagnostic Centre Somerset in
In preparation for the opening of the permanent centre, the Group had been providing facilities and staffing through a mobile solution.
Negotiations are already ongoing with several NHS Trusts in
Equitix Infrastructure Transaction
On 23 March 2021, the Company announced that it had agreed an infrastructure investment with Equitix Investment Management Ltd, ("Equitix"), for
The investment is backed by the freehold transfer of the Rutherford Cancer Centre South Wales and supported by other security over the Group's other centres. The agreement is for a term of 25 years on normal commercial rates on the expiry of which the Group will have the option to repurchase the freehold of the
The investment builds on the relationship with Equitix first developed through the launch of Rutherford Diagnostics. The investment allowed the Group to repay the Triple Point debt facility, and provided further working capital for the Group.
SDI & Potential Acquisition of GICC
In August 2021, the Group signed a conditional subscription agreement with SDI Holding Ltd to provide
The Group also signed a conditional agreement to acquire the Gulf International Cancer Centre in the
Outlook
Due to the impact of Covid-19, there was a reduction in the number of cancer patients in the first half year, however revenue still grew by 36% driven primarily by the growth of the Group's Diagnostics activities. The Group has been experiencing an increase in demand over the last couple of months, with September revenues exceeding
Despite the growth in revenue through the first six months of the financial year, the Company expects to make losses in the current financial year. Cashflow forecasts have been prepared to support the Going Concern assumption, and these include short term revenue growth and additional equity or debt investment which may not materialise.
Given the challenges of Covid-19 and the backlog of diagnostics slowing the revenue growth rate of the Group, the Company needs additional working capital to deliver on its growth plans. Accordingly, the company is exploring a number of options which may involve further infrastructure investment with Equitix, or the raising of funds through the capital markets.
It is an exciting time for Rutherford Health plc, and the Group looks forward to delivering on its potential.
Mike Moran MBE
Chief Executive Officer
group financial review
The first half of FY 2021/2022 has seen a continuation of revenue growth, along with the further development of the Diagnostics business with the new Rutherford Diagnostics Centre Somerset opening in September 2021.
A summary of key financial results is set out in the table below:
|
Unaudited |
Unaudited |
Audited |
|
2022 1HY £'000 |
2021 1HY £'000 |
2021 £'000 |
|
|
|
|
Revenue |
4,850 |
3,575 |
7,269 |
Operating expenses |
(19,163) |
(15,231) |
(30,911) |
EBITDA |
(14,313) |
(11,656) |
(23,642) |
Depreciation and Amortisation |
(4,163) |
(3,564) |
(7,499) |
Operating loss |
(18,476) |
(15,220) |
(31,141) |
Finance expense |
(1,426) |
(510) |
(1,300) |
Loss before tax |
(19,902) |
(15,730) |
(32,441) |
Tax credit |
- |
77 |
213 |
Loss for the period |
(19,902) |
(15,653) |
(32,228) |
Fair value loss on investment |
- |
- |
(346) |
Total Comprehensive Loss |
(19,902) |
(15,653) |
(32,574) |
Revenue
Revenue has grown by 36%, compared to the first half of FY 2021. Total revenue for the first half year ended 31 August 2021 was
Operating Results
Operating expenses increased by
Depreciation and Amortisation increased by
The operating loss during the six months was
The Group continues to recognise a potential deferred tax asset. At year end it was decided to continue to hold the asset on the balance sheet at the current level of
Financial Position
The Group balance sheet at 31 August 2021 can be summarised as set out in the table below:
|
Unaudited |
Unaudited |
Audited |
|
2022 1HY £'000 |
2021 1HY £'000 |
2021 £'000 |
Property, plant and equipment |
147,981 |
154,747 |
151,160 |
Intangible assets |
- |
180 |
60 |
Investments |
- |
3,704 |
- |
Deferred tax asset |
10,342 |
10,342 |
10,342 |
Net current assets/(liabilities) |
761 |
1,347 |
(16,137) |
Non-current liabilities |
(34,178) |
(8,737) |
(691) |
Net assets |
124,906 |
161,583 |
144,734 |
Capital Expenditure
Capital expenditure has slowed significantly in the period, as the estate is now complete. A further
Treasury Management
At 31 August 2021, the Group had total shareholders funds of
Finance costs have increased to
At 31 August 2021 the Group's cash balance stood at
The Group is in the early stages of its revenue life cycle, is currently loss-making and expects to continue making losses in the current financial year until revenue grows as expected. Detailed cash flow forecasts have been prepared to support the going concern presumption and include short term revenue growth targets that may not materialise.
The Group is funded through a combination of equity funding and an infrastructure facility, accounted for as debt to support the cashflow requirements during the growth phase of the business. Additional working capital is needed, and the Company is considering a number of options, including further infrastructure investment through Equitix, or the raising of funds through the Equity Capital Markets.
Further information is set out in note 3 to the financial statements.
Marcus King
Finance Director
Unaudited Consolidated Statement of Total Comprehensive Income
Unaudited Consolidated Statement of Total Comprehensive Income
Six Months ended 31 August 2021
|
|
Unaudited 6 months to 31 August 2021 |
Unaudited 6 months to 31 August 2020 |
Audited 12 months to 28 February 2021 |
|
Note |
£'000 |
£'000 |
£'000 |
Revenue |
|
4,850 |
3,575 |
7,269 |
Cost of sales |
|
(5,352) |
(3,389) |
(7,611) |
Gross (loss)/profit |
|
(502) |
186 |
(342) |
Administrative expenses |
|
(17,974) |
(15,406) |
(30,799) |
Operating loss |
|
(18,476) |
(15,220) |
(31,141) |
Finance expense |
|
(1,426) |
(510) |
(1,300) |
Loss before taxation |
|
(19,902) |
(15,730) |
(32,441) |
Income tax credit |
4 |
- |
77 |
213 |
Loss for the financial year |
|
(19,902) |
(15,653) |
(32,228) |
Fair value loss on investment |
|
- |
- |
(346) |
Total comprehensive loss |
|
(19,902) |
(15,653) |
(32,574) |
Earnings per share |
|
|
|
|
Basic and diluted earnings per share (pence) |
5 |
(10.1) |
(7.9) |
(16.5) |
Unaudited Consolidated Statement of Financial Position
As at 31 August 2021
|
|
Unaudited 6 months to 31 August 2021 |
Unaudited 6 months to 31 August 2019 |
Audited 12 months to 28 February 2021 |
|
Note |
£'000 |
£'000 |
£'000 |
|
|
|
|
|
Non-current assets |
|
|
|
|
Intangible assets |
|
- |
180 |
60 |
Property, plant and equipment |
|
147,981 |
154,747 |
151,160 |
Investments |
|
- |
3,704 |
- |
Deferred Tax Asst |
4 |
10,342 |
10,342 |
10,342 |
Non-current assets |
|
158,323 |
168,973 |
161,562 |
Current assets |
|
|
|
|
Trade and other receivables |
|
8,096 |
7,337 |
9,465 |
Current tax receivable |
|
230 |
510 |
460 |
Cash and cash equivalents |
|
3,115 |
3,977 |
1,493 |
Current assets |
|
11,441 |
11,824 |
11,418 |
Total assets |
|
169,764 |
180,797 |
172,980 |
EQUITY ATTRIBUTABLE TO THE COMPANY'S EQUITY HOLDERS |
|
|
|
|
Called up share capital |
|
198 |
198 |
198 |
Share premium account |
|
202,268 |
202,268 |
202,268 |
Fair Value reserve |
|
- |
(459) |
- |
Retained Earnings |
|
(77,560) |
(40,424) |
(57,732) |
Total equity |
|
124,906 |
161,583 |
144,734 |
LIABILITIES |
|
|
|
|
Non-current liabilities |
|
|
|
|
Borrowings |
|
34,178 |
8,737 |
632 |
Current liabilities |
|
|
|
|
Borrowings |
|
3,867 |
- |
17,641 |
Trade and other payables |
|
6,813 |
10,477 |
9,973 |
Total liabilities |
|
44,858 |
19,214 |
28,246 |
Net equity and liabilities |
|
169,764 |
180,797 |
172,980 |
Unaudited Consolidated Statement of Changes in Equity
Six months ended 31 August 2021
|
|
Share |
|
|
|
|
Called up |
premium |
Profit and loss |
Fair Value |
|
|
share capital |
account |
account |
reserve |
Total |
|
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
AT 1 MARCH 2020 |
192 |
192,596 |
(24,816) |
(459) |
167,513 |
Loss for the period |
- |
- |
(15,653) |
- |
(15,653) |
TOTAL COMPREHENSIVE EXPENSE FOR THE PERIOD |
- |
- |
(15,653) |
- |
(15,653) |
Proceeds of share issues |
6 |
9,672 |
- |
- |
9,678 |
Share-based payments |
- |
- |
45 |
- |
45 |
TOTAL INVESTMENTS BY AND DISTRIBUTIONS TO OWNERS |
6 |
9,672 |
45 |
- |
9,723 |
AT 31 AUGUST 2020 |
198 |
202,268 |
(40,424) |
(459) |
161,583 |
Loss for the period |
- |
- |
(16,575) |
- |
(16,575) |
Fair value loss on investment |
- |
- |
- |
(346) |
(346) |
TOTAL COMPREHENSIVE EXPENSE FOR THE PERIOD |
- |
- |
(16,575) |
(346) |
(16,921) |
Share-based payments |
- |
- |
72 |
- |
72 |
Reclass divestment |
- |
- |
(805) |
805 |
- |
TOTAL INVESTMENTS BY AND DISTRIBUTIONS TO OWNERS |
- |
- |
(733) |
805 |
72 |
AT 28 FEBRUARY 2021 |
198 |
202,268 |
(57,732) |
- |
144,734 |
Loss for the period |
- |
- |
(19,902) |
- |
(19,902) |
TOTAL COMPREHENSIVE EXPENSE FOR THE PERIOD |
- |
- |
(19,902) |
- |
(19,902) |
Share-based payments |
- |
- |
74 |
- |
74 |
TOTAL INVESTMENTS BY AND DISTRIBUTIONS TO OWNERS |
- |
- |
74 |
- |
74 |
AT 31 AUGUST 2021 |
198 |
202,268 |
(77,560) |
- |
124,906 |
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited Consolidated Statement of Cash Flows
Six months ended 31 August 2021
|
|
Unaudited 6 months to 31 August 2021 |
Unaudited 6 months to 31 August 2020 |
Audited 12 months to 28 February 2021 |
|
|
£'000 |
£'000 |
£'000 |
Loss before income tax |
|
(19,902) |
(15,730) |
(32,441) |
Adjustments for: |
|
|
|
|
- Depreciation and amortisation |
|
4,163 |
3,564 |
7,500 |
- Finance costs |
|
1,426 |
510 |
1,300 |
_ Loss on disposal of Fixed Assets |
|
- |
- |
(180) |
- Non-cash employee benefits expense - share-based payments |
|
74 |
45 |
117 |
Changes in working capital |
|
|
|
|
- Trade and other receivables |
|
1,369 |
2,376 |
248 |
- Trade and other payables |
|
(3,160) |
(5,467) |
(5,971) |
Cash flows from operating activities |
|
(16,030) |
(14,702) |
(29,427) |
Income taxes received/(paid) |
|
230 |
77 |
263 |
Net cash generated from/(used in) operating activities |
|
(15,800) |
(14,625) |
(29,164) |
Cash flows from investing activities |
|
|
|
|
Purchase of property, plant and equipment |
|
(924) |
(7,820) |
(9,055) |
Disposal of property plant and equipment |
|
- |
- |
1,132 |
Proceeds from sale of Investment |
|
- |
- |
3,358 |
Net cash used in investing activities |
|
(924) |
(7,820) |
(4,565) |
Cash flows from financing activities |
|
|
|
|
Net proceeds from issue of shares |
|
- |
9,677 |
9,678 |
Net proceeds/(repayments) of loans |
|
19,793 |
(1,850) |
7,677 |
Lease payments |
|
(46) |
(62) |
(15) |
Interest paid |
|
(1,401) |
(500) |
(1,275) |
Net cash generated from financial activities |
|
18,346 |
7,265 |
16,065 |
Net increase/(decrease) in cash and cash equivalents |
|
1,622 |
(15,180) |
(17,664) |
Cash and cash equivalents at the start of the period |
|
1,493 |
19,157 |
19,157 |
Cash and cash equivalents at the end of the period |
|
3,115 |
3,977 |
1,493 |
Notes to the Financial Statements
1. General Information
Rutherford Health plc (hereinafter the 'Company', and together with its subsidiaries, the 'Group') is a public limited company incorporated and domiciled in the
The Group's principal activity is that of developing cancer centres & diagnostic centres including Proton Beam Therapy, together with facilitating the provision of clinical treatment.
2. Accounting policies
The principal accounting policies applied in the preparation of these financial statements are as set out in the Company's financial statements for the financial year ended 28 February 2021.
3. Basis of preparation
The interim accounts, which have not been audited, have been prepared in accordance with international accounting standards in conformity with the requirements of the Companies Act 2006. The "requirements of the Companies Act 2006" here means accounts being prepared in accordance with "international accounting standards" as defined in section 474(1) of that Act, as it applied immediately before Implementation Period ('IP') completion day (end of transition period), including where the Group also makes use of standards which have been adopted for use within the
The Group is funded through a combination of equity and borrowings which supported the building of its facilities and cashflow requirements during the growth phase of the business. During the 6 months to 31 August 2021, the Group have generated further funds from a secured borrowing of
All four centres were operational in 2020/2021, however revenues are growing at a slower rate than initially anticipated. As a result, the Group expects to continue to be loss-making in the current financial year, and potentially beyond.
The Group has prepared cashflow forecasts that take account of the current capital expenditure plans and an expectation of increases in patient numbers across all its sites. However, the Group is still in the early stages of its revenue life cycle and the future cash flow forecasts prepared by the Group include some significant growth assumptions.
Sensitivity analysis has been prepared on the cash flow projections to evaluate the uncertainty as to the future impact on the Group of the ongoing COVID-19 global pandemic. There has continued to be a slower growth rate in patient numbers due to COVID-19 and the sensitivity analysis assumes: continued slowdown in revenue growth across the centres, no reductions in overheads and forecast capital expenditure continues to plan.
A downside scenario is currently considered unlikely, not least because the current low rate of treatment of cancer in the
4. Tax
The carrying value of deferred tax will be assessed at year end.
5. Earnings per share
|
Unaudited 6 months to 31 August 2021 |
Unaudited 6 months to 31 August 2020 |
Audited 12 months to 28 February 2021 |
Weighted average number of ordinary shares used as the denominator in calculating basic earnings per share |
198,011,701 |
197,526,427 |
197,777,462 |
Total comprehensive loss for the period |
|
|
|
Basic and diluted earnings per share (pence) |
(10.1) |
(7.9) |
(16.5) |
6. Auditor Review
These Interim statements have not been reviewed by the Company's Auditor.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.