Aortech losses widen but can focus on future after legal battle

AorTech International on Friday reported a fall in annual revenues and larger losses as the company finally completed long-running legal dispute with a former chief executive.

The AIM traded heart valve implant developer reported that over the course of the year ended 31 March revenues fell 12% to $0.54m as administrative expenses increased 13% to $0.63m.

As a result, the firm’s operational loss increased by 54% to $0.38m when excluding exceptional items such as the receipt of $0.34m in litigation proceeds.

Elsewhere, AorTech successfully raised $3.4m to fund a new business strategy and ended the year with a cash balance of $0.6m, up from the $114,000 that the company had at the end of its previous full year.

Bill Brown, executive chairman of AorTech, said: “The company on which I report today has changed beyond all recognition from the AorTech I reported on last year. A year ago, AorTech was embroiled in litigation with its former chief executive and, as such, the focus of the company was on historic events. Resolving the litigation has allowed AorTech to switch focus to its very exciting future.”

The company said it is transitioning into a medical device company with a portfolio in the cardiovascular field.

The new strategy sees AorTech pursuing licensing and supply business through manufacturing partner Biomerics in order to advance the development of the firm’s IPs and move further up the value chain.

AorTech International’s shares were down 1.4% at 71.50p at 0926 BST.