RUA Life Sciences (LSE:RUA) reported a transformational 18-month period to 30 September 2025, with revenue more than tripling to £6.7m versus the prior 12-month period, alongside a sharp improvement in profitability. Loss before tax narrowed to £0.2m, while EBITDA turned positive at £0.4m, reflecting both scale benefits and tighter cost control. The acquisition of French contract development and manufacturing organisation Abiss played a central role, strengthening the group’s CDMO platform, contributing a £0.9m bargain purchase gain and lifting CDMO revenues to £5.8m. Biomaterials revenues also advanced, rising 23% on a like-for-like basis to £914,000 despite adverse currency movements.
Strategically, the group has accelerated progress against its 2023 objectives by shifting away from R&D-intensive development towards a more commercially focused growth model. Reduced R&D expenditure, lower cash burn and disciplined cost management have enabled RUA to achieve its targets of doubling revenue and moving towards sustainable profitability ahead of schedule. The company ended the period with £3.25m in cash, supported by improving operational cash generation and a growing pipeline of development and manufacturing contracts. Management expects current activity levels to be maintained, providing scope to deepen relationships with existing customers, secure new clients and further commercialise its vascular and structural heart intellectual property within a highly regulated but attractive, high-margin medical device market.
From an investment perspective, the outlook is underpinned by strong top-line momentum and a conservative balance sheet, although profitability remains modest and operating cash flow is still negative. Technical indicators are supportive, with the shares in a clear uptrend, but a very high price-to-earnings multiple detracts from the overall valuation assessment.
More about RUA Life Sciences
RUA Life Sciences is a UK-based medical device-focused contract development and manufacturing organisation specialising in implantable textile components and devices. The group’s capabilities are underpinned by its proprietary long-term implantable biostable polymer, Elast-Eon, and delivered through subsidiaries including RUA Biomaterials and the recently acquired French CDMO Abiss. RUA’s strategy centres on international growth via polymer licensing, component supply and partnerships that monetise its polymer, composite materials and manufacturing process intellectual property, with the aim of becoming a long-term partner to major medical device companies while maximising shareholder value through profitable growth or selective disposals.
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