16th Apr 2015 07:56
LONDON (Alliance News) - Shares in polymer technology company AorTech International PLC plunged Thursday after the company said it is too early to provide any guidance for its recently-ended financial year amid weaker-than-expected revenue from its manufacturing licence and as it seeks to secure money it is owed and as the litigation action taken against its former chief executive goes on.
AorTech said in line with the warning given in its interim results, its manufacturing licence is not generating the level of revenue it initially expected, although it remains in talks with product licensees to try and remedy the issue. It said no improvement in the situation has been seen, however, in the financial year to the end of March.
The group added that a long-standing debtor is continuing to meet its payment schedule and it does expect to recover the money it is owed, but it said the amount owed by this debtor has now increased to USD275,000 from USD175,000 previously. The group said its financial position remains dependent on collecting its debtor book.
AorTech also confirmed it is continuing to pursue its legal dispute with former chief executive Frank Maguire, in which Maguire has made a counterclaim for non-payment of expenses totalling USD168,000. AorTech said it thinks the claim is of "little merit" and is defending itself vigorously. The company has also brought a lawsuit against Maguire's new company which also faced counterclaims, though these were dismissed.
Overall, AorTech said it does not believe there has been any material change in the status of the litigation. The company maintains insurance in place to protect its intellectual property and said 90% of the ongoing legal costs of the disputes are covered by that insurance.
Shares in AorTech were down 37% to 15.5 pence on Thursday morning, one of the worst performers in the AIM All-Share index.
By Sam Unsted; [email protected]; @SamUAtAlliance
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