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Having read again the full commentary of the chairman, it is teeming with positives. Worth doing.

Also, further in the weeds of the report, it seems likely there will be a further upgrade to the fair value of ABISS once it’s all been audited at the 18 month Sept 25 stage. That will help the balance sheet even if it’s a non-cash adjustment and will give a boost to the bottom line profit.

The RNS read to me like they are going to avoid any forward talk of potential developments in favour of announcing deals and contracts only when signed off. I think that makes PR initiatives unlikely as a waste of money. They got rid of Equity Development as an unnecessary cost, for example.

I can understand that approach. They expressed irritation about the share price and have recognised that only concrete developments will cut it. Knowing this company, having managed expectations today with the talk of long lead times, I wouldn’t be surprised if a deal gets announced out of the blue quite soon. That would be a catalyst for a rerating and deliver a poke in the eye for the short term opportunists who have sold out in the millions over the last twelve months.

Cavendish new update. Maintains price target of 50p.

“….We believe the progress indicates RUA is a significantly de-risked, revenue-generating business with numerous growth opportunities, pointing to a valuation above the current market value. Furthermore, the largely developed but strategically de-emphasised graft and valve products offer ‘free’ upside opportunities above the value of the core business.”

Abiss appears to have a huge opportunity ahead with its competitors apparently moving out. Picking up European business will also dilute the over reliance on Coloplast and the US markets.

Historically, this company has chewed up cash. These latest accounts are a breath of fresh air, as is the strategy now being pursued. I like that they are no longer going to say anything about the HV and vascular developments until they have something to announce. It’s clear they think the market is impatient and sells off when there isn’t a quick outcome to expectations that have been aired in the past. It also makes me think there actually will be something significant to announce somewhere down the line rather than an ongoing anticipation and a solid drip of selling by people who need dopamine rushes.

Witness the early sales this morning. As Samsmith says, we are inherently undervalued, so why sell? The company has today made that very point about the stock market not recognising them. I think that is a message of some sort in itself. Maybe it’s an invitation to the industry to offer the true value?

Delayed 90k sale appeared but was well absorbed.

On a related point, the April update referred to the late stages of “characterisation testing” being done for AurTex. Researching what a characterisation test is for a medical device, it broadly seems to be the last chemical element checks needed to clear the way for the next stage of implanting in a living creature, presumably an animal (which I guess would happen after a deal with a partner).

Yet the share price languishes where it did after the rns came out saying the MTA partner was prioritising other projects. Short sighted people thought that was the end of HV and sold heavily.

I really hope now that positive strides can be reported on AurTex. This was hinted at in the April update.

We had an update on 24th April and an indication of mid-June for the interims. Could be tomorrow or Friday to comply. I don’t see that as poor to be honest, even if it feels like an eternity!

Off topic - to netcurtains. Don’t forget ARC that I mentioned to you last month. £7M cash in hand, £11M m/cap, 5% div yield and regular profit, almost all annual recurring revs. Solid, not spectacular, but mispriced?

End of off topic.

Can you not put a limit order at 13 in? I expect you can get a grand’s worth at that price.

Some here will recall that RUA’s Ross McPhillie won the Young Engineer 2024 award at Scottish Engineering for his development work on RUA’s prosthetic heart valve.

There is now a podcast ahead of the 2025 awards with Ross McPhillie the guest. It’s well worth a listen (30 mins in full). For those less patient, listen from 9 minutes to 16 mins for the specific talk of RUA’s involvement and progress.

https://www.scottishengineering.org.uk/the-industry-wave-the-brand-new-podcast-brought-to-you-by-scottish-engineering/

See last trading update:

“Reporting timetable

Following the change of accounting reference date announced on 30 October 2024, publication of full unaudited accounts for the 12-month period ending 31 March 2025 is expected to occur in MID-JUNE 2025. Further the Group expects to publish audited accounts for the 18-month period ending 30 September 2025 by end of January 2026.”

Further refining my previous two posts, the quotes from the trading update included some emphases on events maybe manifesting soon…….

***********************************

(Contract Manufacturing)

“The CDMO business currently presents the greatest SHORT-TERM opportunities for the Group…”

(Biomaterials)

“….together with potential NEAR TERM new licenses for Elast-Eon in new therapeutic areas under discussion with a major device manufacturer.”

(Structural Heart)

“….Further characterisation work is NEARING COMPLETION to provide data for a large valve company on the impact of "aging" AurTexTM on its mechanical properties.”

***********************************

Seeing how the likes of ITM and SCE have gained velocity from bombed out levels on the back of promising RNS announcements, RUA could do likewise if it can persuade the sceptical audience that concrete developments are, in actual solid fact, taking place!

We continue to live in hope….!

It’s not beyond possibility that we are still talking the heart valve prototype and that the message put out last year about the MTA partner prioritising other matters was simply to take off the heat, divert the scent for the dogs and give space for the parties to get on in peace with the development.

We don’t know this but so much appeared to be succeeding with the tests that it seemed a bit off for the partner simply to push it aside.

There were so many comments in the last update with ample space to read between the lines.

All my speculating naturally….

I’ll reply with what I’ve been typing just this minute. Maybe not connected but here goes:

In the absence of much else happening, I want to focus on a couple of comments made in the recent trading update:

****************************

Under Contract Manufacturing:

“…. most excitingly, the Group is actively pursuing an opportunity to combine our textiles expertise with ElastEon to create a novel device for a global device company. This opportunity is only available due to the unique IP developed within the Group over the last few years.”

Under Biomaterials:

“…. potential near term new licenses for Elast-Eon in new therapeutic areas under discussion with a major device manufacturer.”

Under Vascular:

“…. Several opportunities have, however, presented for the supply of the graft product or technology developed as components for other devices. These opportunities will be exploited through the Contract Manufacture business.”

Under Structural Heart:

“…. Further characterisation work is nearing completion to provide data for a large valve company on the impact of "aging" AurTexTM on its mechanical properties. Interest in AurTex has been expressed by various parties, both in heart valve use and other therapeutic areas, but all discussions are at an early stage.”

****************************

Given that the heart valve leaflet material was borne out of the R&D work that developed the vascular graft material and that it has always been intended for Contract Manufacturing to carry out the operations of manufacture, I can’t help but think/imagine that all of the above pointers are referencing a big project in development that could result in some good licensing and CM contracts. This has that feel to it, that a major is involved in potentially bringing a new device, containing Elasteon and textiles technology, unique to RUA, to market or at least the next stage of development and licensing.

It’s almost as though it got a mention four times in the update.

On the other hand, I could be hallucinating…….

I think they’ve said “mid-June”.

My feeling is the company is happy with its own activities and progress and they believe this will eventually generate a sensible share price, without needing a megaphone. I do not rule out that they are working on relationships with various “global” groups and one of these might be leading to an “event” of some kind. It feels like the company is reluctant to be too open about this, albeit hints are dropped in trading statements.

The interim accounts report in June will have to be more detailed about everything but it would be nice to get some decent “event” RNS before the interims.

Don’t rightly know just now.

Belated recognition once the second interims come out maybe (in June)?

Hopefully backing up the positive noises with some concrete developments in different areas reinforcing the recent advances in revenues.

I don’t personally think this is a “dog” and I have not sold any and still hold a very large number as the investment case is intact.

Chances are many of those enthusiasts from a few months back have gone elsewhere for short term excitement, citing gains and staying silent on losses incurred.

It has gone very quiet here with even the keen ones apparently with nothing to say or speculate about. Whatever happened to NickE? He seemed especially keen and well researched.

One thing is certain, anything special that gets announced is likely to send the share motoring…..when will that day come? This is the loaded question.

Hi Net,

ABISS is a French subsidiary so the UK/India pact won’t help there but the main RUA contract manufacturing division is UK based, so the Indian MedTech market could be a new focus for management in the future, perhaps.

Edit, Lachlan option should read:

- - 120,000 shares exercisable at 44.5p (without the bit in brackets after)….