Trading update for the 6-months ended 31/03/2026

22 May 2026

RUA Life Sciences plc

("RUA Life Sciences", the "Company" or the "Group")

Trading update for the 6-month period to 31 March 2026

RUA Life Sciences, the holding company of a group of medical device businesses focused on the exploitation of the world's leading long-term implantable biostable polymer (Elast-Eon^TM), is pleased to announce a trading update for the six months ended 31 March 2026 (the "Period")

Trading update

The focus of the Group over the period has been to continue the growth of the UK CDMO business and develop the other assets within the Group. Strong progress has been made as demonstrated by the recent announcement of the funding and spin out of RUA Structural Heart.

Revenue

The Group expects to report revenue growth for the Period of approximately 6% increasing from £2.6 million to £2.8 million. The key drivers were:

·     New development contracts helping the UK based CDMO business to grow revenues 32% to £1.3 million.

·   Biomaterials business grew 41% to £0.5 million due to certain historical underpayments discovered following the audit of royalties from licensees.

·     As announced in March, a major customer of the Abiss group was reducing its inventory position during the period resulting in a 30% reduction in sales on a comparative basis. Direct sales of own products saw growth of 3%. The overall impact is anticipated to be a 23% reduction in the Period from £1.3 million to £1.0 million.

Gross Margin

A slight increase in gross margin from 74% in the prior period to 75% is anticipated.

Costs

Continued strong focus on cost control is expected to result in an 8% reduction in total Administrative costs from £2.5 million to £2.3 million.

EBITDA

The Group expects to be at EBITDA breakeven for the Period as adjusted for share-based payments and non-recurring items, being an improvement of c£0.4m compared to the same period last year.

Cash control

The six-month period to March each year is traditionally more working capital intensive for RUA and the business consumed £0.9 million over the period with cash at 31 March 2026 of £2.4 million. It is expected the position will again normalise over the second half as accrued income is billed and paid and R&D tax credits received.

Outlook

Structural Heart

On 12 May RUA announced the completion of a £3 million fundraise by way of a convertible loan note and the spin out of the Structural Heart business. In the second half of the financial year, RUA Structural Heart Ltd ("RSH") will be accounted for as an investment rather than a subsidiary. The funds raised will support the future development of RSH. RUA will recognise a gain of approximately £4.9 million as a result of prior research and development expenditure being recognised as an asset. Eliminating RSH costs will have a net cash benefit of approximately £500,000.  In addition, following the conversion of its inter-company debt with RSH into £4.8 million of convertible loan notes, RUA's bottom line will also benefit from approximately £250k of PIK interest to be accrued annually.

Medical Devices and Components

Contract Development and Manufacturing (CDMO)

The UK based Contract Development and Manufacturing business generates revenues from both development contracts and manufacturing contracts, with a business model in which successful development projects have the potential to transition into manufacturing contracts.

The majority of CDMO revenue is generated by two Manufacturing contracts which continue to perform with strong activity levels. However, during the Period, Development Contracts have been agreed with customers that should result in additional business worth around £500,000 over the remainder of the 2026 calendar year. RUA has seen a fourfold growth in the level of Development work over the past year and importantly the Development work has the potential to convert into over £5 million per annum of manufacturing contracts.

Abiss

As previously announced, Abiss, the Group's France-based manufacturer of implantable devices, is suffering from reduced sales as a major customer seeks to reduce its inventory position. RUA is currently in discussions with the customer to align inventory holdings whilst providing revenue visibility for the next two years. RUA expects the second half to see an uplift in activity with a catch up on budget.

Separately, Abiss has its own portfolio of medical devices, including a next-generation mini-sling for the treatment of Stress Urinary Incontinence and is developing a strategy to exploit these product opportunities.

Reporting timetable

The Interim Accounts for the six-month period ending 31 March 2026 are expected to be published at the end of June 2026. 

Bill Brown, CEO of RUA Life Sciences, stated: "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 information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the UK version of the EU Market Abuse Regulation (2014/596), which is part of UK law by virtue of the European Union (Withdrawal) Act 2018, as amended and supplemented from time to time.

For further information contact:

RUA Life Sciences                                                                                                                                  

Bill Brown, Chief Executive                                                                         Tel: +44 (0)1294 317073

Lachlan Smith, Group Chief Financial Officer