REG - RUA Life Sciences - Trading Update

Rua Life SciencesAnnouncement

24/11/2023 07:00

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RNS Number : 5148U  RUA Life Sciences PLC  24 November 2023

24 November 2023

 

RUA Life Sciences Plc

("RUA Life Sciences", the "Company" or the "Group")

 

Half-Year Trading Update

 

RUA Life Sciences (AIM: RUA), the holding company of a group of medical device
businesses focused on the exploitation of the world's leading long-term
implantable biostable polymer (Elast-Eon™), today provides an unaudited
trading update for the six-month period ended 30 September 2023, being the
first half of the 2024 financial year ("H1 2024").

Revenue

In the previous financial year, revenue within the Contract Manufacture
business was weighted in the first half. The current year has seen this
weighting reverse due to a temporary disruption in the timings of shipping
orders to customers. As a result, total Group revenue (including royalties)
for the period decreased to £794k, representing a year-on-year decline of 28%
(H1 2023: £1,104k).

·      Biomaterials royalties for the period from Elast-Eon increased to
£199k, representing year on year growth of 6% (H1 2023: £187k)

·      Contract Manufacture revenues for the period decreased to £595k,
representing a year on year decline of 35% (H1 2023: £917k)

Notably, however, post period end, October was a strong month for Contract
Manufacture and by the month end, revenues had recovered to be just 6% behind
budget for the year to date, and Management anticipates full order fulfilment
by the end of November with trading in line with budget and subsequently back
to normal trading volumes. Consequently, the Group is confident that full-year
revenues will align with management expectations for the current financial
year.

Cash

Despite the order disruption, the Group continued to manage its resources
tightly with cash at 30 September 2023 of £0.5m (31 March 2023: £1.5m). With
a catch-up in order shipments together with the receipt of R&D Tax Credits
of £381k, the cash position at 21 November 2023 stood at over £1.0m.

Loss for period

As a result of the heavy second-half weighting and the resulting shortfall in
revenues, Group losses before tax for the period are expected to temporarily
widen by 22% to £1.4m (H1 2023: £1.1m), reflecting the shortfall in revenues
however, costs remained tightly controlled.

Bill Brown, Chairman of RUA Life Sciences, stated: "Taking into account the
recent catch-up in shipments, our Biomaterials and Contract Manufacturing
businesses continue to perform in line with expectations and demonstrate
growth potential. As announced on 20 November with the Strategy Update our
focus is to minimise the future investment required for the Group to
commercialise its development projects and provide a pathway for the Group to
reach profitability and cash generation in a significantly shorter timeframe."

The Group expects to announce its interim results in the second half of
December 2023.

 

The information communicated in this announcement contains inside information
for the purposes of Article 7 of the Market Abuse Regulation (EU) No.
596/2014.

 

For further information contact:

 

 

 RUA Life Sciences

 Bill Brown, Chairman                                                    Tel: +44 (0)1294 317073

 Caroline Stretton, Group Managing Director                              Tel: +44 (0)1294 317073

 Cavendish Capital Markets                                               Tel: +44 (0)20 7220 0500
 Limited

 (Nominated Adviser and Broker)

 Giles Balleny/Dan Hodkinson (Corporate Finance)

 Charlie Combe (Broking)

 Michael Johnson (Sales)

 

 

 About RUA Life Sciences

 

The RUA Life Sciences group was created in April 2020 when RUA Life Sciences
Plc (formerly known as AorTech International Plc) acquired RUA Medical Devices
Limited to create a fully formed medical device business. RUA Life Sciences is
the holding company of the Group's four trading businesses, each exploiting
the Group's patented polymer technology.

 

Our vision is to improve the lives of millions of patients by enabling medical
devices with Elast-Eon(TM), the world's leading long-term implantable
polyurethane. Whether it is licensing Elast-Eon(TM), manufacturing a device or
component, or developing next generation medical devices, a RUA Life Sciences
business is pursuing our vision.

 

Elast-Eon™'s biostability is comparable to silicone while exhibiting
excellent mechanical, blood contacting and flex-fatigue properties. These
polymers can be processed using conventional thermoplastic extrusion and
moulding techniques. With over 8 million implants and 15 years of successful
clinical use, RUA's polymers are proven in long-term life enabling
applications.

 

The Group's four business units are:

 

 RUA Contract Manufacture:  End-to-end contract developer and manufacturer of medical devices and
                            implantable fabric specialist.

 RUA Biomaterials:          Licensor of Elast-Eon(TM) polymers to the medical device industry.

 RUA Vascular:              Commercialisation of open surgical vascular grafts and patches

 RUA Structural Heart:      Development of polymeric leaflet systems for heart valves.

 

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