(Sharecast News) - Biostable polymer medical device specialist RUA Life Sciences reported a gross profit of £0.62m in its first half on Monday, with a margin of 77%, representing a decrease from £0.88m and 79% year-on-year.
The AIM-traded firm said despite that reduction, it achieved a 12% reduction in its overall loss for the six months ended 30 September, to £1.01m compared to £1.14 in the same period last year.
Revenues saw a notable decline, primarily attributed to short-term revenue timing differences.
Total revenue for the first half amounted to £0.79m, marking a 28% decrease from the prior year's £1.1m.
Regarding liquidity, RUA Life Sciences reported cash on hand of £0.49m, a decrease from £2.51m on 30 September 2022 and £1.48m on 31 March.
The company said it expected to strengthen its cash position after the end of the period through the normalisation of revenues and the receipt of research and development tax credits.
Additionally, RUA Life Sciences reduced its operational investment in development projects by 11% to £0.47m in the first half of the 2023 financial year, down from £0.53m in the prior year.
The cost-cutting strategy aligned with its financial objectives.
In terms of technical advancements, RUA Life Sciences reported significant breakthroughs in heart valve leaflet material, opening up new commercial opportunities within its product portfolio.
Additionally, the firm noted increased commercial prospects within its contract manufacturing business segment, indicating a positive outlook for future growth and revenue generation.
"The objectives for the company are to maximise return on investment from each of the four business units," said chairman Bill Brown.
"A successful fund raise announced after the period end has provided RUA with the resources and balance sheet to allow the business units to pursue the agreed strategies to meet group objectives.
"We remain excited by the shorter-term commercialisation opportunities present in RUA Structural Heart and RUA Contract Manufacture, and the agreed regulatory pathway enables engagement with potential partners to facilitate the commercialisation of RUA Vascular."
Reporting by Josh White for Sharecast.com.
Rua Life Sci. (RUA)