RUA Life Sciences PLC on Friday said that it expects revenue to fall in the first half, after seeing contract manufacture sales decrease during the period.

RUA Life Sciences is a Glasgow-based medical technology holding company. Shares in the company were down 13% at 27.55 pence each in London on Friday morning.

For the six months to September 30, the firm expects total revenue of £794,000, down 28% from £1.1 million a year prior.

During the half, biomaterials royalties from Elast-Eon increased to £199,000, up 6% from £187,000 the previous year, Meanwhile, contract manufacture revenue for the period decreased to £595,000, representing a year on year decline of 35% from £917,000.

However, RUA Life Sciences did note that October - which fell after the period end - was a strong month for contract manufacture. It explained that by the month’s end, revenue had recovered to be just 6% behind budget for the year to date.

Management now anticipates full order fulfilment by the end of November with trading in line with budget and subsequently back to normal trading volumes. Consequently, the group is confident that full-year revenues will align with management expectations for the current financial year.

Pretax loss, meanwhile, is expected to widen by 22% to £1.4 million from £1.1 million.

‘Taking into account the recent catch-up in shipments, our Biomaterials and Contract Manufacturing businesses continue to perform in line with expectations and demonstrate growth potential,’ said Chair Bill Brown.

‘As announced on 20 November with the Strategy Update our focus is to minimise the future investment required for the Group to commercialise its development projects and provide a pathway for the Group to reach profitability and cash generation in a significantly shorter timeframe.’

The group expects to announce its interim results in the second half of December 2023.

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