27th Nov 2015 08:27
LONDON (Alliance News) - AorTech International PLC on Friday said that trading in the first half of its financial year was in line with board expectations, as the company reported that it was profitable in terms of earnings before interest, tax, depreciation and amortisation but loss-making at operating level.
"The business continues to make progress and our manufacturing licensee has a growing prospects list. We recently commissioned a detailed report from a world leading biomaterials expert to review the potential of AorTech's IP portfolio. The report is extremely positive in that the Elast-Eon family of materials continues to be the leading material for implantable medical devices," Chairman Bill Brown said in a statement.
"Your board, in conjunction with the author of the report will be reviewing all of the recommendations contained therein. A range of opportunities have been identified which also includes the filing of additional patents to further strengthen AorTech's IP portfolio," Brown said.
Revenue fell to USD380,000 in the six months ended September 30, compared with USD524,000 in the corresponding half the prior year, which resulted in EBITDA profitability.
However, there were charges for amortisation of intangible assets and litigation costs, meaning that the company's sunk to a USD193,000 operating loss, although that narrowed from the USD215,000 operating loss reported the prior year.
In addition, AorTech was hit by a USD363,000 finance cost relating to loan note interest. In September shareholders approved the company's intention to approach loan note holders to convert their residual interest into ordinary shares.
"This charge recognises the full cost of the shares to be issued, less the provisions previously made," Brown said.
Shares in AorTech were untraded on Friday morning, having last traded at 29.00 pence.
By Samuel Agini; [email protected]; @samuelagini
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