RUA Life Sciences PLC shares rose on Wednesday, after it reported that its annual loss narrowed, and it is trading in line with expectations.

RUA also announced a £400,000 contract win, which it said will be delivered over the next four months.

Shares in the Glasgow-based holding company of multiple medical device businesses were up 7.7% to 11.85 pence each in London on Wednesday around midday.

In the year ended March 31, RUA said revenue was flat at £2.2 million.

Its pretax loss narrowed to £2.0 million from £2.3 million as RUA cut administrative expenses.

Looking ahead, RUA said current trading is in line with company expectations and that ‘significant opportunities are being pursued to grow revenues.’

Chair Geoff Berg commented: ‘The past year has seen a switch for RUA from being a business with future funding requirements to finance R&D projects to a fully funded business with a focus on cash generation and return to profitability. The balance sheet was strong at the year end with some £4 million in cash and prospects for growth remain exciting.’

Separately, RUA said it has won a new contract in its Contract Manufacture business unit.

It said the contract has been signed with an existing customer, and it will undertake a short turnaround textile processing project.

The project will be delivered to the customer over the next four months with a total contract value of over £400,000, RUA said, and there is the potential for conversion to a longer-term supply contract for the processed textile material.

Chief Executive Bill Brown said: ‘Being awarded this line of business from a major medical company is a testament to the quality of product provided by RUA and the supporting quality management system that provides our customers with the confidence to place critical business with RUA.’

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