RUA Life Sciences, the medical device business built around the long-term implantable biostable polymer Elast-Eon, has issued a trading update for the six months to 31 March 2026, saying it expects to report revenue growth of around 6%, rising from £2.6m to £2.8m.
The UK-based contract development and manufacturing business was the key driver of growth with revenues rising 32% to £1.3m on the back of new development contracts, while the biomaterials business rose 41% to £0.5m, partly reflecting historical royalty underpayments uncovered during a licensee audit.
These gains were partially offset by the Abiss group, where a major customer reduced its inventory position, resulting in an anticipated 23% fall to £1.0m despite 3% growth in direct own-product sales.
Gross margin is expected to edge up from 74% to 75%, while continued cost discipline should cut administrative costs 8% from £2.5m to £2.3m.
Notably, RUA anticipates reaching EBITDA breakeven for the period on an adjusted basis, an improvement of around £0.4m year on year.
The first half is traditionally working capital intensive, and the business consumed £0.9m over the period, leaving cash of £2.4m at 31 March 2026; this is expected to normalise in the second half as accrued income is billed and R&D tax credits are received.
Bill Brown, CEO of RUA Life Sciences, said: “RUA has achieved a great deal over the past two years with the development of the CDMO business, funding of RUA Structural Heart and the acquisition of Abiss. Despite lower trading levels over the past six months, Abiss remains a major opportunity, to not only deepen relationships with customers but develop independently to commercialise its own product base.”
The RUA Structural Heart unit recently raised £3m through a convertible note issuance, so one would expect this to power the top line in the coming periods.