3 July 2020
Rutherford Health plc
£19.1 million Diagnostics Services Agreement with Somerset NHS Foundation Trust
Rutherford Health plc (the "Company" or "Group" or "Rutherford") is delighted to announce that it has entered into an agreement with Somerset NHS Foundation Trust (the "Trust") to provide diagnostics services (the "Service Agreement").
Under the terms of the Service Agreement, Rutherford, via its wholly-owned subsidiary, Rutherford Diagnostics Limited ("Rutherford Diagnostics"), will provide the Trust with a variety of diagnostics services including Magnetic Resonance Imaging, Computed Tomography, Ultrasound, X-Ray and other relevant diagnostic services.
These diagnostics services will be provided from a dedicated facility in Taunton, which Rutherford will provide in partnership with Equitix under the terms of a GBP55m Development Framework Agreement, announced on June 23, 2020. This dedicated facility is expected to become operational in the second half of 2021.
The Service Agreement is for a 5-year minimum term, which is extendable to 10 years, subject to the achievement of certain service levels. The Service Agreement is expected to commence in the second half of 2021 and (together with associated facilities management services) carries minimum revenue of approximately GBP1.9m per annum.
In addition, to providing services to NHS patients, the centre will be available to private medical insurance and self-pay patients in the South West.
Craven Street Capital Limited acted as financial adviser to Rutherford Health PLC and Rutherford Diagnostics Limited.
Mike Moran, Rutherford's CEO commented: "We are delighted to have signed this agreement with Taunton and Somerset NHS Foundation Trust. Rutherford has been working with NHS Trusts and NHS Shared Business Services to provide cancer services. This agreement further deepens our relationship with the NHS, which we are delighted to support. This partnership will enable us to provide services to both NHS and private patients in a cost-effective manner and is expected to create significant long-term value for the shareholders of Rutherford Health."
Steve Powell, Chief Diagnostics Officer of Rutherford Diagnostics commented: "This innovative long-term partnership with Somerset NHS Foundation Trust will enable their patients to access the most modern diagnostics equipment in a dedicated facility. We hope to develop further similar centres in partnership with other NHS Trusts in the coming months."
The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.
The directors of Rutherford Health plc accept responsibility for this announcement.