RUA Life Sciences plc announce that the Company has completed a reorganizationof its activities with the hive down of the vascular graft business to RUA Vascular Limited (a 100% subsidiary of the Company) and the hive down of the heart valve business to RUA Structural Heart Limited (also a 100% subsidiary). The activities of developing vascular grafts and polymeric heart valves have been undertaken by RUA Life Sciences plc, with reporting of these activities being on a divisional basis rather than as operating subsidiaries. The introduction of segmental reporting has highlighted the benefits in financial control of separating the business units out from the parent's activities.

The time is now right to formalise the process which is anticipated to bring further benefits including simplifying regulatory transparency and increasing funding options for the Group. The hive downs have included the transfer of all related tangible and intangible assets (including intellectual property) of the parent Company to each of RUA Vascular Limited and RUA Structural Heart Limited. In addition, RUA Life Sciences plc will recover the costs attributable to each of the vascular graft and heart valve projects since 2018.

Total attributed cost recovery for RUA Vascular is £4.4 million and RUA Structural Heart is £3.1 million, which will remain as an intercompany debt. This will result in RUA Life Sciences plc booking a one off trading profit of some £7.5 million. This trading profit will appear in RUA Life Sciences's individual company accounts but be eliminated on consolidation of the group.