Rua Life Sciences Share Discussion Threads

[early not wrong] 11/9/2024 07:13

Acquisition funds itself from operating cashflow in less than 6 months.
They mentioned a 'corporate opportunity in the trading statement in the summer.
Looks like they've executed it very well.
Also, they've helped out Coloplast - perhaps that goodwill has more payback given the 'projects' RUA has ongoing.
Looks good.

[parsons4] 10/9/2024 09:37

Its cheap because BB has not nearly proved himself yet. We definitely have a very different looking business compared with a few years ago. Let's hope that BB's plans get the company to where it should be considering the potential ground-breaking products.

[bsg] 10/9/2024 09:28

Too cheap, must be something fishy somewhere?

[rivaldo] 10/9/2024 09:16

The acquisition looks absolutely fantastic for just €80k given:

- €2.2m revenues
- €185k EBITDA and €223k positive cash flows last year
- €279k net cash (with a €293k Covid support loan to repay)
- both RUA's and Abiss's pre-existing relationship with the giant Coloplast

Cavendish will be updating their forecasts after the due diligence is completed, but the £6.6m m/cap including the forecast £3.1m net cash is looking increasingly good value imo.

[bones] 09/9/2024 07:45

Sounds feasible Langland. Hopefully due diligence goes smoothly. New Cavendish note suggests gross margins are in the same ballpark as RUA’s existing CM business.

[langland] 09/9/2024 07:36

Coloplast clearly the driver here (imo). 21bn gbp mkt cap. Danish. Maybe they're getting Rua to act as consolidator before they take out combined entity in year or so. That's what I'm hoping for.

[mikeh30] 09/9/2024 06:47

Pretty much doubled their annual revenue for £80k

[thiopia] 09/9/2024 06:29

This must have been one of the developments alluded to

Several page Cavendish note out. Expects this to add £2m to topline, Acquisition multiple of 0.4 EV/EBITDA. !

Seems like they have got a bargain

[parsons4] 09/9/2024 06:28

Well this seems like a very cheap acquisition and we now know what BB has been involved with over the last few months. Hopefully he can now tie up a deal with the large heart-valve manufacturer.

[thiopia] 28/8/2024 12:15

IntraVnus

Posts: 804

Price: 11.85

Buy

Spot the difference

Today 10:37

Subtle switch of publicly stated timescale on Contract Manufacturing business?

24th July 2024:

“Our stated ambition for Contract Manufacture is to double the scale of the business over the medium term.”

27th August 2024:

“RUA is currently engaged in a number of potential developments which would add to growth in the short term.”

[cocker] 27/8/2024 18:48

A step in the right direction, but then again, we have had quite a few of them in the past. With regards to share price should be worth 50p on revs alone, the bloke is deluded as yet have never made a profit.

[hedgehog11] 27/8/2024 16:42

I've thought for a while that if RUA expect to turn a profit either from CM or licensing / a windfall from sale of HV they would want to keep the vascular for themselves. It would be a shame for them to partner this out and then find they have the funding to progress it alone.
I'm getting a sense that HV is leaning towards licensing.

[rivaldo] 27/8/2024 07:50

Yep, today's update reads very well. I particularly like the expansion of the £400k contract to around £700k in the current financial year.

And it sounds like the initial testing of AurTex has gone well given that "further data is now being shared".

With well over £3m net cash against the £6.7m m/cap RUA are in a terrific position funding-wise and are making obvious progress towards much improved numbers via growing revenues and reduced costs.

[bones] 27/8/2024 06:49

Harrogate, I don’t think vascular is top of the priorities currently, I would say! It’s a back up and, who knows, could end up being something bought out later.

[harrogate] 27/8/2024 06:39

Hard to argue with that summary. Do you sense though that the attempt to get someone to fund the graft development isn't really progressing?

[bones] 27/8/2024 06:36

I’m happy enough with the update. Contract manufacturing looks like it’s on an upward trajectory now and gaining traction.

The partner looking at the HV material is still interested and wants further data. We don’t know the context of that though.

The underlying trend of revenue growth and cost cutting adds security to the stock. Gets rid of any threats of placings and such like which often kills a share price. It would be handy to get clear of the 11p anchored range from the last raise which has suffocated the price so far.

[early not wrong] 02/8/2024 11:01

hxxps://rualifesciences.com/our-businesses/rua-biomaterials/our-polymer-technology/e-rim/
or search Elasteon TM RIM and it comes at the top under E-RIM. Maybe its older but I have never seen it before.

[langland] 02/8/2024 09:29

ENY,
Do you have a link to your previous post no 3669 please?

[bones] 24/7/2024 13:56

Significant shareholder list updated as of 30th June 2024, included in header post.