13th Jul 2020 11:50
(Alliance News) - RUA Life Sciences PLC posted a widened loss for financial 2020 despite a rise in revenue.
The stock was trading 2.3% lower at 107.50 pence each on Monday morning in London.
The medical device businesses - formerly known as AorTech International PLC - posted revenue of GBP489,000 in the year ended March 31, up 5.6% from GBP463,000. However, its pretax loss stretched to GBP897,000, from GBP609,000 recorded the year prior.
The widened loss was attributed to the company's focus on developing its range of medical devices, which led to an increase in costs. Total administrative expenses were GBP1.4 million, up from GBP1.1 million in financial 2019.
No dividend was declared, unchanged from the year prior.
Looking ahead, RUA expressed a positive outlook setting aside any Covid-19 related uncertainties and any negative impact to the business resulting from the enactment of policy decisions to contain its spread.
"We are fortunate to be focussed on the medical device industry and are developing devices to improve patients' lives. Covid-19 appears to have originated as a disease that has crossed from one species to another. All of the products we are developing are designed to eliminate the use of animal sourced by-products. Your board believes that there will be a growing demand for non-animal sourced products and the benefits of Elast-Eon places RUA Life Sciences in a strong position to exploit those opportunities," said Chair William Brown.
"The group's product development activities have continued to make good progress since the year end. The graft project has reached a major milestone of achieving its first animal implant and the initial results will be available in the near future. Similarly, we are pleased how the heart valve project is progressing and expect to be undertaking the pilot hydro-dynamic testing to verify the computational modelling which will also allow us to progress to regulatory testing," he added.
As at the end of March, the Glasgow-based company had cash of GBP2.0 million.
By Ife Taiwo; [email protected].
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