AorTech's annual royalty revenues grow, sees 'positive' R&D progress

Medical polymers manufacturer AorTech said royalty revenues continued to grow in its last trading year and highlighted that progress in research and development projects had all been "positive".

AorTech said growth in polymer licensing and royalty revenues had risen from £463,000 to £490,000 in the twelve months ended 31 March.

The AIM-listed group added that research and development activities were currently exceeding board expectations and said its integration of RUA Medical Devices was "progressing to plan".

Despite the increased investment in R&D, AorTech said its year-end cash resources stood at £1.98m, only slightly down from the £2.4m recorded at the same stage a year earlier.

Chief executive David Richmond said: "In the short time since the combination of AorTech and RUA, the focus on new product development has already produced results.

"Regarding the impact of Covid-19 on the RUA Medical business, we continue to monitor the opening of elective surgery in the US and are well-positioned to recommence supply to meet customer orders."

AorTech also said the manufacturing of its polymeric heart valves had been undertaken, with early trials far exceeding its initial expectations and the feasibility of the novel manufacturing concept being proven.

As of 1040 BST, AorTech shares had shot up 17.84% to 87.20p.