RUA Life Sciences plc (AIM: RUA), the AIM-quoted medical device holding company focused on the long-term implantable biostable polymer Elast-Eon™, has published a trading update for the 12 months ended 30 September 2026. The Group expects revenue of approximately £5.5 million, up from £5.1 million in the comparable prior period, while a non-recurring accounting gain from the deconsolidation of RUA Structural Heart drives an anticipated pre-tax profit of approximately £4.7 million. The update also highlights a milestone positive Adjusted EBITDA of approximately £0.3 million, underscoring progress towards sustainable underlying profitability.

Key Points

  • RUA Life Sciences plc (AIM: RUA) — AIM-listed medical device group exploiting the Elast-Eon™ biostable polymer
  • Group revenue expected at approximately £5.5 million for the year ended 30 September 2026, versus £5.1 million previously
  • Pre-tax profit of approximately £4.7 million anticipated, including a non-recurring £4.8 million deconsolidation gain from RUA Structural Heart spin-out; Adjusted EBITDA approximately £0.3 million positive
  • Investors will be watching the ABISS recovery, CDMO consolidation progress, and RUA Structural Heart's planned 2027 animal studies

CDMO and Biomaterials Drive Core Revenue as ABISS Falls Short of Target

The UK-based contract development and manufacturing (CDMO) business generated total revenue of £2.8 million during the period, comprising £2.4 million from commercial contract manufacturing and £0.4 million from contract design and development activities. Biomaterials royalty income is expected to reach £1.0 million, approximately 60% ahead of budget, principally reflecting historical underreported royalties identified through a customer royalty audit, with contractual interest also charged on the missed amounts. These gains partially offset weaker-than-expected performance at ABISS, the France-headquartered subsidiary, which achieved revenue of £1.4 million against a target of £1.9 million due to inventory reductions at a major customer.

ABISS Records £0.3m Loss as MOU Agreed for Scottish Production Transfer

The revenue shortfall at ABISS translated into an expected pre-tax loss of approximately £0.3 million, against a budgeted break-even position. The announcement states that the resolution of the inventory dispute with a major customer extended to the end of the financial period. However, the Board confirmed that ABISS and RUA have since agreed a Memorandum of Understanding with the customer, which will result in products currently manufactured in France being transferred to Scotland, the sale of some product IP to the customer, and financial support through the transition. ABISS is simultaneously pursuing a business development strategy targeting the European urogynaecology market, including a new distribution partner and a pelvic floor repair product development agreement.

RUA Structural Heart Spin-Out Generates £4.8m Non-Recurring Accounting Gain

During the period, the Group completed the previously announced spin-out of RUA Structural Heart, involving £3 million of external convertible loan funding and the capitalisation of £4.8 million of intercompany balances. The subsidiary is no longer consolidated within the Group, with RUA's ownership interest now treated as an investment. The deconsolidation is expected to generate a non-recurring accounting gain of approximately £4.8 million. Since the spin-out, RUA has recognised £0.150 million in support services revenue and £0.094 million in loan note interest income from the new independent entity. Animal studies on a novel valve design using AurTex™ leaflet material are planned during 2027.

Year-End Cash of £2.5m Below Budget as Audited Results Due January 2027

Cash and cash equivalents at 30 September 2026 are expected to be approximately £2.5 million, below the prior year-end position of £3.2 million and also below budget. The announcement attributes this principally to lower ABISS revenues, which required approximately £0.3 million of additional internal funding, alongside the timing of cash receipts from the royalty audit and R&D tax credits, both of which remained outstanding at year-end. The Group expects to publish audited results for the year ended 30 September 2026 towards the end of January 2027. CEO Bill Brown noted the CDMO and Biomaterials divisions as the core growth story, with RUA Structural Heart characterised as an IP-backed investment for future capitalisation.