7th Aug 2015 07:19
LONDON (Alliance News) - AorTech International PLC Friday said it expects to make further progress in its current financial year, as it posted a narrowed pretax loss for its recently ended financial year.
For the year to end-March the biomaterials and medical device intellectual property company posted a loss from continuing operations of USD326,000, narrowed from a loss of USD823,000, on revenue of USD844,000, compared to USD418,000.
The company is currently embroiled in legal action against its former Chief Executive Officer Frank Maguire, and the company of which Maguire is current chief, Foldax. Maguire has made a counter claim for alleged non-payment of expenses amounting to USD168,000.
Exceptional costs relating to the litigation during the year were USD204,000. It has not made any provisions for any potential gains or losses as the action has not progressed sufficiently, AorTech said.
The company is proposing a share capital reorganisation, which comes up for shareholder approval at its upcoming annual general meeting in September, as its shares are currently trading at a price significantly below their nominal value of 250 pence per share. It is proposing that each existing share will be sub-divided and re-designated into one ordinary share of 5 pence, and a deferred share of 245 pence.
Shares in AorTech were up 5.9% at 27.00 pence Friday morning.
"Despite the time and commitment required in the litigation action, the past year has been one of relative success. Revenue from license fees and royalties are now greater than overheads, the company was cash positive in the second half of the year, progress is being made with our key licensees and we expect the year 2015/16 to be one of further progress," the company said in a statement.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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