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(Sharecast News) - Shares in AIM-listed Rua Life Sciences soared on Friday after the medical device business revealed that full-year margins will be stronger than expected as a result of strict cost control.
The stock was up 23% at 13.48p by 1144 BST, but has still fallen 75% over the past 12 months as a result of previously flagged operational issues which delayed shipment of products from the Contract Manufacturing business in the first half.
Nevertheless, the revenue shortfall experienced at the start of the financial year to 31 March has been "fully compensated by a strong H2 performance", Rus said.
As a result, full-year revenues will be £2.2m, in line with market expectations and matching the previous year's total.
Rua also announced that the recovery in revenues "has not been at the cost of gross margins, and it is anticipated that reported margins will exceed expectations". Operating costs are expected to come in at £3.4m for the year, some £0.2m below forecasts.
"Trading results for FY24 represent a meaningful step in delivering on the group's strategy outlined in November, and the efforts to focus the business on growth are showing promise," said chair Bill Brown.
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