RUA Life Sciences reports strong start to financial year

27th Aug 2024 12:33

(Sharecast News) - RUA Life Sciences, a medical device company specialising in implantable textiles and biostable polymers, reported a strong start to its financial year on Tuesday, with trading in the first four months exceeding management expectations.

The AIM-traded firm, which was holding its annual general meeting, announced that total revenue for the period ended 31 July reached around £0.8m.

With firm orders in hand, RUA anticipated total revenue for the half-year ending 30 September to surpass £1.2m - a significant increase from the £0.79m achieved during the same period last year.

The positive revenue growth was partly driven by the execution of a portion of the £0.4m project announced in July, which had now expanded to about £0.7m for the current financial year.

It said its tight control over costs, which came in significantly below budget during the period, coupled with increased revenue, was expected to result in a much-reduced loss compared to the first half of the prior year.

The board said it remained confident in meeting market expectations for the full financial year.

It said the growth achieved thus far was concentrated within the company's contract manufacturing business, which remained a key strategic focus for RUA.

The company said it was actively pursuing several potential developments that could contribute to further growth in the near term.

In addition to its progress in contract manufacture, RUA said it was also advancing its other strategic goals for the year.

They included securing a partner to finance the regulatory pathway for its vascular graft business and pursuing a licensing agreement for AurTex, its heart valve leaflet composite.

The AurTex material had recently been tested by a potential partner, with further data currently being shared as part of ongoing discussions.

"The exciting developments within the group and contract manufacture in particular have been achieved through our reputation amongst customers of delivering quality products on time," said group chief executive officer Bill Brown.

"We treat our customers as true partners and seek to react to their needs with agility.

"Growth is being driven by engaging with customers, understanding their problems and providing innovative solutions."

At 1202 BST, shares in RUA Life Sciences were up 8.73% at 11.69p.

Reporting by Josh White for Sharecast.com.