AorTech's full year operating losses widen on bad debt provisions

AorTech International on Monday reported an increase in full year operating losses, reflecting bad debt provisions.

The biomaterials and medical device IP company said operating losses rose to $575,000 in the year ended 31 March 2016 from $455,000 the previous year.

The company incurred bad debt provisions from two major debtors, including $150,000 from SynCardia and $219,000 from iSense. SynCardia stopped making its monthly payments as it filed for bankruptcy while iSense owes debt under the terms of a licence regarding the continuous glucose monitoring business.

Meanwhile, the company was embroiled in litigation in regards to a former employee failing to return confidential information related to the group’s heart valve project and its polymers.

Group revenue climbed to $901,000 from $857,000 and net trading profit edged up to $128,000 from $98,000 before exceptional costs, exchange differences and bad debt provisions

Administrative expenses, before exceptional costs, foreign exchange differences and bad debt provisions came to $773,000, up slightly from $761,000 in the previous year.

Including bad debt provisions of $369,000, the net trading profit was reduced to a net trading loss of $241,000.

Shares fell 2.37% to 27.58p at 1531 BST.