RUA Life Sciences posts narrower first-half pre-tax loss

(Sharecast News) - RUA Life Sciences narrowed its first-half post-tax loss to £203,000 from £635,000, it reported on Tuesday, as revenue rose 6.1% to £2.75m and adjusted EBITDA swung to a £76,000 profit from a £227,000 loss. The AIM-traded medical device and biomaterials group said gross margin improved to 74.9% from 73.5%, while administrative expenses fell 6.2% to £2.31m.

Revenue in medical devices and components was broadly flat at £2.25m, as UK contract development work offset weaker Abiss France demand, while biomaterials revenue rose to £490,000 from £349,000, helped by royalty underpayments identified through audits.

Cash at 31 March stood at £2.37m, down from £3.25m at the September year-end, reflecting working capital movements that RUA expects to reverse by year-end.

Chairman Geoff Berg said the group had been transformed into a profitable contract manufacturer, with its core biomaterials and medical devices activities expected to move the business into net profitability in the second half, while the post-period RUA Structural Heart spin-out provided additional upside.

At 1006 BST, shares in RUA Life Sciences were up 9.86% at 19.5p.

Reporting by Josh White for Sharecast.com.

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