23 March 2021 – Rutherford Health plc (AQSE: RUTH, the "Group"), a healthcare group committed to providing innovative cancer care of the highest quality, is pleased to announce that it has agreed an infrastructure investment with Equitix Investment Management Ltd, (“Equitix”), for £40 million.
The investment is backed by the freehold transfer of the Rutherford Cancer Centre South Wales, and supported by other security to be put in place 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 South Wales centre for an agreed nominal sum.
The proceeds from the investment will be used by the Group for further investment in its infrastructure as well as used to provide working capital for the Group’s development for the medium term. Of the £40 million, £25 million is payable immediately with the balance payable in three equal tranches following the grant of additional security over the other centres. The additional funds need to be drawn down within six months although the Group anticipates doing so within the next three months. The initial payment will be used to repay the Group’s current debt of £18.6 million with TP Leasing Limited in full, leaving the Group debt free.
Offering state-of-the-art proton beam therapy as well as the latest technology in radiotherapy, imaging and chemotherapy, the Rutherford Cancer Centre South Wales was the first Rutherford centre to be operational in April 2018. The Rutherford Cancer Centre South Wales was also the first centre to offer proton beam therapy and the first to treat a patient in the UK in April 2018.
Mike Moran, CEO of Rutherford Health, commented:
“This infrastructure investment is the next stage in our long term development strategy and enables us to move forward debt free and with sufficient working capital for our immediate needs. The inflow of funds also broadens our options for the longer term. We are a resilient business, well positioned to grow further, bringing essential cancer care to more patients and supporting the NHS to address the crisis in cancer treatment. We look forward to updating the market further as the Group’s longer term funding strategy is developed.”
Hugh Crossley, CIO for Equitix said:
“We are delighted to work in partnership with Rutherford to provide the financing for the Cancer Centre. We have demonstrated a strong track record in our ownership and management of healthcare assets, particularly in this time of crisis where we have been working to support the NHS and, as such, we are pleased to be further consolidating our capabilities and adding these assets to our institutional investment portfolios.”
Information communicated within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 which is part of UK law by virtue of the European Union (withdrawal) Act 2018. Upon the publication of this announcement, this inside information is now considered to be in the public domain.
About Rutherford Health plc
Rutherford Health plc is a leading UK provider of innovative cancer care. Operating a network of four state-of-the-art centres in Wales, Reading, Northumberland and Liverpool, Rutherford Health offers a comprehensive range of the latest technology in cancer treatments, and is the only independent provider of proton beam therapy (“PBT”) in the UK. The Company also provides conventional radiotherapy, chemotherapy, immunotherapy, imaging and wellbeing services.
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.
Founded in 2007 and headquartered in London, Equitix is a leading infrastructure investment firm that manages over £7 billion on behalf of long-term investors, including a large proportion of UK pension funds. It manages six core infrastructure flagship funds, numerous co-investment funds dedicated to larger infrastructure projects, and a number of segregated managed accounts providing customized solutions. Its investment strategy focuses on core infrastructure projects, predominantly located in the UK and Europe, covering a wide range of sectors with a particular focus on social infrastructure, renewable energy, transportation and regulated utilities. Across all of its core funds, Equitix seeks to hold assets for the life of the fund which is typically 25 years. It has acquired over 300 core infrastructure projects since its inception, thereby establishing a strong reputation as a trusted partner, operator and fiduciary fund manager. For further information, visit www.equitix.co.uk
For more information please contact: Rutherford@Instinctif.com