16 Dec 2021 07:30
Schroder UK Public Private Trust plc
Update on Rutherford Health plc
The Company (LSE: SUPP) announces that its portfolio company Rutherford Health plc ("Rutherford"), an operator of cancer treatment centres in the UK, has received commitments for new funding in the amount of £10 million. The Company and other shareholders have together committed to provide a bridge loan in the amount of £8 million (the "Loan"). In addition, LF Equity Income Fund has committed to provide a convertible loan facility of £2 million.
The Company has committed a total of £3 million to the Loan which will accrue interest at the rate of 15% p.a. The Loan will be provided in two tranches of 50% each. The first tranche will be drawn immediately and the second tranche can be drawn down by Rutherford at any time in the next six months subject to certain conditions. As a next step, Rutherford intends to source additional long-term funding to strengthen the business as it grows revenues in its existing facilities.
The Loan is provided in the context of a wider reorganisation of Rutherford whereby Mark Jackson has been appointed as the new Non-executive Chairman of Rutherford with effect from 7 December 2021. Mark worked for many years as a GP practice lead before founding and growing his own successful company. He has also served on the Boards of a number of well-known companies in the health and care sectors, including several years as the Chairman of Exemplar Health Care, Deputy Chairman of Allied Healthcare, as well as Non-Executive Director at UME Group.
In addition, Mike Moran stepped down as Chief Executive Officer ("CEO") with effect from 9 December 2021. The intention is for a new CEO with significant operational experience in the UK Healthcare Services industry to be appointed in early 2022. An experienced interim, Sean Sullivan, has been appointed as a Chief Restructuring Officer to bridge the intervening period. Also in the interim, Rutherford intends to appoint a strategic advisory firm to support its development of a growth orientated business plan going forward.
The Company's stake in Rutherford was valued at £33.9m as at 30 September 2021. The impact of these developments will be considered by the Company's AIFM in relation to the NAV calculation as of 31 December 2021.
Enquiries:
Schroder Investment Management Limited
Estelle Bibby (Press) | 0207 658 3431 |
John Spedding | 0207 658 3206 |