16 Jun 2014 07:00
AorTech International Plc ("AorTech" or the "Company")
Trading and commercial update
AorTech is pleased to provide an update to shareholders on the current position and recent developments at the Company.
Since the resignation of the former Chief Executive of the Company, a considerable amount of time and effort has been undertaken by the Board to ensure that customers and licensee relationships are fully and properly established in order for AorTech, together with its licensees, to maximise the potential value of the technology.
A great deal of work has had to be undertaken with our most recent licensee, Biomerics, which has a manufacturing and supply agreement and which will, therefore, be responsible for the manufacture and supply of AorTech's polymers to all of our customers and potential customers. The costs of the capital equipment required and the labour and time costs for the polymer validation process are now expected to exceed the original estimate. It is anticipated that the validation process will be completed by the end of July 2014.
In parallel with this validation process Biomerics is now marketing AorTech's material to other medical device companies. Several of AorTech's licensees are experiencing delays through the development and regulatory requirement phases and have yet to achieve commercialisation of their products.
The Board continues to carefully monitor all cash expenditure and has made further savings since the interim stage. The Company has been much simplified with the closure of the US operating base and all operations have now been transferred to the UK. The benefit of the majority of these savings will be seen during the current year.
The Board also wishes to inform shareholders that the Company has instigated legal proceedings against its former Chief Executive. These proceedings relate to certain alleged activities of Mr Maguire whilst an employee of the Company and are aimed at ensuring that Mr Maguire complies with his obligations under the terms of his service contract with the Company.
As a consequence of this litigation and the work done in respect of the Biomerics license, the Company has incurred some exceptional charges for the year ended 31 March 2014.
The Company expects to announce its preliminary results during the course of July and results for the year ended 31 March 2014 are anticipated to show revenue of approximately $0.6m and a loss before interest and tax before exceptionals, loan note premium adjustment and amortisation of approximately $1.0m
The cash position at 31st March 2014, was over $600,000 after having incurred the additional costs as detailed above.
Enquiries:
AorTech International plc
Bill Brown, Chairman
Tel: +44 (0) 7730 718296
finnCap
Stuart Andrews/James ThompsonfinnCap as Nominated AdviserTel: 020 7220 0500