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(Sharecast News) - RUA Life Sciences reported a sharp increase in revenue for the 18 months ended 30 September on Tuesday, reflecting its successful transition from a research-led organisation to a revenue-generating medical device group.
The AIM-traded company, which develops and commercialises implantable polymer technologies under the Elast-Eon brand, said revenue for the extended reporting period was expected to reach 6.6m, up from 2.2m in the 12 months to March 2024.
On a pro-rata basis, that equated to 4.4m, or 5.1m for the final 12 months of the period.
Growth was driven by the group's shift from research and development to commercial operations.
Biomaterials royalties increased 80% to 0.9m, while the UK contract manufacturing division grew 105% to 3.5m.
The French subsidiary Abiss, acquired in September 2024, contributed 2.2m in revenue over its first full year of ownership.
RUA said it had also reduced its reliance on a single customer within its UK contract manufacturing business.
In the final six months of the period, its largest client accounted for 54% of revenue, down from about 95% previously, with 33% derived from a new supply contract announced in January and 13% from new business development.
The company said it expected to remain EBITDA positive for the full period, building on the 0.5m adjusted EBITDA profit reported for the 12 months to March, which included a 0.9m bargain purchase gain from the Abiss acquisition.
That compared with an EBITDA loss of 1.6m in the year to March 2024.
Cash utilisation fell significantly over the period, with the group expecting to report cash of 3.2m as at 30 September, down slightly from 3.5m in March due to higher working-capital needs linked to growth.
"The growth achieved by RUA over the past 18 months has been exceptional demonstrated both by the revenues reported and by the ever growing opportunities with existing and new customers," said chief executive Bill Brown.
"This has been a true team effort and I am very grateful to everyone within the RUA Group for their contribution."
RUA said it expected to publish its full audited results for the 18-month period by the end of January.
At 1556 GMT, shares in RUA Life Sciences were flat at 12p.
Reporting by Josh White for Sharecast.com.