18 January 2021
Rutherford Health plc
Rutherford Health - Trading and Funding Update
Rutherford Health plc (the "Company", or the "Group"), the holding company of a group committed to providing innovative cancer care of the highest quality, today provides a business and trading update.
NHS England Framework
As announced on 13th January 2021, the Group entered into a framework agreement with NHS England under which it may be awarded contracts or sub-contracts by clinical commissioning groups, NHS Trusts or NHS Foundation Trusts to provide cancer treatment and diagnostic imaging services for NHS patients (the "NHS England Framework"). The NHS England Framework provides funding for NHS trusts in England to use the Group's centres for diagnosing and treating cancer patients.
Whilst revenue from the NHS England Framework is not guaranteed, the Company expects that NHS related activity in diagnostics, imaging, chemotherapy and radiotherapy will underpin much of the Group's fixed operational centre costs in the year ending February 2022. The NHS England Framework started in January 2021, with the first patients already booked for treatment in the Group's North East, Thames Valley and North West facilities
Other NHS Contracts
The Group has also recently signed a contract with the Welsh NHS Trust, Velindre, which is based in Cardiff and is responsible for radiotherapy treatments in South Wales. The expected impact of the Velindre contract is that the capacity for radiotherapy in the South Wales Centre could be fully utilised for 2021.
In addition to the NHS England Framework and the Velindre contract the Group is in advanced discussions with a number of other NHS trusts in England for the provision of diagnostic, radiotherapy and chemotherapy services outside the NHS England Framework.
As a result of Covid-19, there are growing waiting lists for cancer biopsies, diagnostics and surgery and the Company expects a significant increase in revenue and patient numbers over the coming months following the contracts awarded by the NHS and a strong pipeline for recruitment of oncologists trained in proton beam therapy.
The Company is continuing to explore potential sources of funding to support the Company's rapid growth and expects that it will need to do so in Q1. These include but are not limited to debt refinancing, sale and leaseback agreements and an equity fundraise potentially in conjunction with an admission to AIM. The Company will update shareholders in due course as appropriate.
The information contained within this announcement is deemed to constitute inside information as stipulated under the UK Market Abuse Regulation. 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 the contents of this announcement.