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(Sharecast News) - RUA Life Sciences reported a sharp improvement in earnings and cash burn for the 18 months ended 30 September on Friday, after doubling revenues and strengthening its contract development and manufacturing business through an acquisition.
The AIM-traded medical device-focused contract development and manufacturing organisation (CDMO) generated revenues of 6.7m over the 18-month period, compared with 2.2m in the prior 12 months to March 2024, representing like-for-like growth of 104%.
EBITDA improved by 2m to a positive 0.4m from a loss of 1.6m previously, while the loss before tax narrowed by 85% to 0.2m from 2.0m.
Growth was driven primarily by the CDMO division, where revenues rose to 5.8m from 1.7m, supported by the bargain purchase of French business Abiss, which resulted in a 0.9m gain.
RUA said its biomaterials business also delivered solid progress, with like-for-like growth of 23% despite sterling strength, lifting revenues to 914,000 from 496,000 a year earlier.
Research and development spend was reduced to 438,000 from 873,000 as the group continued to pursue a strategy focused on commercialising intellectual property within its vascular and structural heart platforms.
Year-end cash stood at 3.25m, down from 3.93m a year earlier, while the company said activity levels achieved during the period had continued into the current financial year, supported by an encouraging pipeline of new business opportunities.
Chairman Geoff Berg said the group had met its strategic objectives ahead of schedule.
"The two year objectives set at the time of the 2023 strategy review, of doubling revenues, reducing cash burn and focussing on profitability have been achieved ahead of time through strong trading and the purchase of the Abiss subsidiary in France," he said.
"We look forward to building upon this success through broadening both services for current customers and expanding the customer base further."
At 1120 GMT, shares in RUA Life Sciences were down 10.94% at 14.03p.
Reporting by Josh White for Sharecast.com.