RUA Life Sciences (AIM:RUA) PLC, a medical device company specialising in the Elast-Eon biostable polymer, saw its share price drop 12% in the wake of its trading update, which recorded a 28% drop in revenues for the six months ended 30 September 2023.
The decrease is attributed to a reversal in the revenue weighting within its Contract Manufacture business and temporary shipping order disruptions.
Despite this, RUA Life Sciences (AIM:RUA) saw a 6% increase in biomaterials royalties from Elast-Eon, reaching £199,000.
The company remains optimistic, noting a strong performance in October and anticipates a return to normal trading volumes, aligning with full-year revenue expectations.
Despite tight cost control, the group's losses before tax are expected to widen by 22% to £1.4 million, primarily due to the second-half revenue shortfall. As of 21 November, RUA Life Sciences' cash position has improved, standing at over £1.0 million.
The stock, down 42% year-to-date, fell 3.8p to 27.7p in early trading on Friday.