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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Aortech International Plc | LSE:AOR | London | Ordinary Share | GB0033360586 | ORD 5P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 126.50 | 123.00 | 130.00 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
From Apr 2019 to Apr 2024
TIDMAOR
RNS Number : 9442Y
AorTech International PLC
11 December 2017
AORTECH INTERNATIONAL PLC ("AorTech", "the Company" or "the Group")
Unaudited Interim Results
For the six months ended 30 September 2017
CHAIRMAN'S STATEMENT
I am pleased to set out below the key financial figures for the six months to 30 September 2017 and, more importantly, provide an update on some very positive developments at AorTech.
Unaudited results for the six months to 30 September 2017
Over the six month period to 30 September 2017, revenues increased to $271,000 from the $240,000 achieved in the corresponding period last year. Administration costs were again tightly controlled at $239,000 - a reduction of $110,000 compared to the same period last year - and at similar levels to the second half of the last financial year.
A profit of $32,000 was achieved before charging exceptional costs and amortisation, a substantial improvement on the loss of $109,000 in the corresponding period last year.
The working capital position also improved with cash increasing, as anticipated, from $114,000 at 31 March 2017 to $286,000 at 30 September 2017 (30 September 2016: $216,000).
Overall, the trading results reflect a continuation of the stabilisation of the Company's financial position reported in the audited results for the year ended 31 March 2017.
Resolution of Dispute
As previously stated, AorTech has always been keen to resolve the litigation with its former Chief Executive and related parties. I am therefore pleased that we have been able to announce that the parties have amicably resolved their dispute and the terms of settlement have been incorporated into a confidential settlement agreement. The confidentiality terms limit our ability to disclose fully the terms of the settlement, but I can say that AorTech is satisfied with the outcome.
This dispute has consumed a considerable amount of management time and resources and diverted energy that would have been better focused on developing the business. One major benefit, however, is that the litigation process has resulted in a much deeper understanding of the technical benefits of AorTech's Intellectual Property portfolio ("IP") and where efforts should in future be focused in capitalising on the core properties of Elast-Eon(TM) to generate value for shareholders.
Platform Technology
Elast-Eon(TM) polymers are now widely accepted as being the most biostable of all polyurethane materials and, as such, are being used in long term implantation. With several million implants and ten years of successful clinical use, AorTech polymers are used in cardiology and urological applications, including pacing leads, cardiac cannulae and coronary artery stents. Devices manufactured from AorTech polymers have numerous US FDA PMA approvals, 510ks, and CE Marks. Elast-Eon(TM) is approved for long term human implants in all major markets.
The business model has not really changed over the 15 years since AorTech withdrew from medical device manufacturing in Scotland and focused on licensing its polymer technology to medical device companies. AorTech has however simplified its operations by subcontracting polymer manufacture to Biomerics rather than operate its own polymer plant. This change has dramatically improved the fundamental economics of the business and has resulted in long term contractual revenue streams that are secure as long as the licensees continue to market the devices that have been enabled by incorporating into their designs the Elast-Eon(TM) technology.
Our licensees have generated considerable value by utilising Elast-Eon(TM). One example of this is a cardiovascular device that differs only from competing devices by having a thin Elast-Eon(TM) coating. This coating provides the device with superior properties and allows a sales price of many multiples of standard devices. The cost of materials and license fees, however, are less than 5% of the device's sales value.
The value added to licensees is not only greater than licence fees payable, but the value of the licence fees to our customers is significantly more than the market capitalisation of AorTech
A New Chapter
The long-running litigation dispute created a number of uncertainties for AorTech and its shareholders and at the time of announcing results for the year to 31 March 2017 the share price was implying that AorTech was likely to fail.
The recent trading results should indicate to shareholders that the business is on a more stable footing and the risk of failure diminished. The cash position improved during the six months to 30 September 2017 and at the end of November 2017 had further increased to $328,000. As a result of the conclusion of the litigation, AorTech will have certain costs to pay and make reimbursements to our insurance provider. However, we anticipate that the net cash position should improve further.
The Board has conducted a thorough review of the Company's IP and where it fits into the medical device market, leading to the conclusion that there are a number of opportunities available to grow AorTech's business. A detailed strategic plan to allow AorTech to commercialise its platform technology is currently being considered and we will report to shareholders when the process is concluded.
We have the opportunity of putting past issues behind us and building on the core IP within the business. As part of this "fresh start", I am delighted to welcome Stockdale Securities as our new Nominated Adviser and broker and look forward to working with them to help AorTech reach its true potential.
Bill Brown, Chairman 11 December 2017
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CONDENSED CONSOLIDATED INTERIM INCOME STATEMENT
Six months ended 30 September 2017 Unaudited Unaudited Audited
Twelve
Six months months
Six months to 30 to 31
to 30 Sept March
Note Sept 2017 2016 2017
US$000 US$000 US$000
Revenue 271 240 614
------------------ ------------------- ----------------
Administrative expenses (239) (349) (571)
Exceptional administrative expenses
2 (1) (49) 12
Other expenses - amortisation of intangible
assets 4 (146) (152) (292)
------------------ ------------------- ----------------
Operating loss (115) (310) (237)
Loss attributable to owners of the parent
company (115) (310) (237)
Taxation - - -
Loss attributable to equity holders of
the parent company (115) (310) (237)
================== =================== ================
Loss per share (basic and diluted) -
US cents (2.07) (5.58) (4.27)
CONDENSED CONSOLIDATED INTERIM STATEMENT OF COMPREHENSIVE
INCOME
Unaudited Unaudited Audited
Six Twelve
Six months months months
to to 30 to
30 Sept Sept 31 March
2017 2016 2017
US$000 US$000 US$000
Loss for the period (115) (310) (237)
Other comprehensive income:
Exchange differences 85 (122) (204)
Income tax relating to other comprehensive - - -
income
------------------ ------------------- ----------------
Other comprehensive income for the period,
net of tax 85 (122) (204)
------------------ ------------------- ----------------
Total comprehensive income for the period,
attributable to equity holders of the
parent company (30) (432) (441)
------------------ ------------------- ----------------
CONDENSED CONSOLIDATED INTERIM BALANCE
SHEET
Unaudited Unaudited Audited
30 Sept 30 Sept 31 March
2017 2016 2017
US$000 US$000 US$000
Assets
Non current assets
Intangible assets 828 1,093 914
Total non current assets 828 1,093 914
----------------- ---------------- ---------------
Current assets
Trade and other receivables 249 145 392
Cash and cash equivalents 286 216 114
Total current assets 535 361 506
----------------- ---------------- ---------------
Total assets 1,363 1,454 1,420
----------------- ---------------- ---------------
Liabilities
Current liabilities
Trade and other payables (75) (127) (102)
-----------------
Total current liabilities (75) (127) (102)
----------------- ---------------- ---------------
Net assets 1,288 1,327 1,318
================= ================ ===============
Equity
Issued capital 16,235 15,769 15,189
Share premium 3,349 3,253 3,133
Other reserve (2,684) (2,607) (2,511)
Foreign exchange reserve 7,748 8,230 8,752
Profit and loss account (23,360) (23,318) (23,245)
Total equity attributable to
equity holders of the parent
company 1,288 1,327 1,318
================= ================ ===============
CONDENSED CONSOLIDATED INTERIM CASH FLOW
STATEMENT
Unaudited Unaudited Audited
Twelve
Six months months
Six months to 30 to 31
to 30 Sept March
Sept 2017 2016 2017
US$000 US$000 US$000
Cash flows from operating activities
Group loss after tax (115) (310) (237)
Adjustments for:
Amortisation of intangible assets 146 152 292
Decrease / (increase) in trade
and other receivables 143 98 (149)
Decrease in trade and other payables (2) (38) (106)
----------------- ---------------- ---------------
Net cash flow from operating activities 172 (98) (200)
----------------- ---------------- ---------------
Cash flows from investing activities
Purchase of intangible assets - - -
----------------- ---------------- ---------------
Net cash flow from investing activities - - -
----------------- ---------------- ---------------
Net increase / (decrease) in cash
and cash equivalents 172 (98) (200)
Cash and cash equivalents at beginning
of period 114 314 314
Cash and cash equivalents at end
of period 286 216 114
================= ================ ===============
CONDENSED CONSOLIDATED INTERIM STATEMENT OF CHANGES IN EQUITY
Share Foreign Profit
Share premium Other exchange and loss Total
(Unaudited) capital account reserve reserve account equity
US$000 US$000 US$000 US$000 US$000 US$000
Balance at 1
April 2016 17,426 3,595 (2,881) 6,627 (23,008) 1,759
Transactions
with owners - - - - - -
Loss for the
period - - - - (310) (310)
Other
comprehensive
income
Exchange
difference (1,657) (342) 274 1,603 - (122)
Income tax
relating to
components
of other
comprehensive
income - - - - - -
--------------- ---------------- -------------- --------------------- ----------------- -------------
Total
comprehensive
income
for the period (1,657) (342) 274 1,603 (310) (432)
Balance at 30
September 2016 15,769 3,253 (2,607) 8,230 (23,318) 1,327
Transactions
with owners - - - - - -
Profit for the
period - - - - 73 73
Other
comprehensive
income
Exchange
difference (580) (120) 96 522 - (82)
Income tax
relating to
components
of other
comprehensive
income - - - - - -
--------------- ---------------- -------------- --------------------- ----------------- -------------
Total
comprehensive
income
for the period (580) (120) 96 522 73 (9)
Balance at 31
March 2017 15,189 3,133 (2,511) 8,752 (23,245) 1,318
Transactions
with owners - - - - - -
Loss for the
period - - - - (115) (115)
Other
comprehensive
income
Exchange
difference 1,046 216 (173) (1,004) - 85
Income tax
relating to
components
of other
comprehensive
income - - - - - -
--------------- ---------------- -------------- --------------------- ----------------- -------------
Total
comprehensive
income
for the period 1,046 216 (173) (1,004) (115) (30)
Balance at 30
September 2017 16,235 3,349 (2,684) 7,748 (23,360) 1,288
=============== ================ ============== ===================== ================= =============
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
1. BASIS OF PREPARATION
These condensed consolidated interim financial statements are for the six months ended 30 September 2017, and have been prepared with regard to the requirements of IAS 34 on "Interim Financial Reporting". They do not include all of the information required for full financial statements, and should be read in conjunction with the consolidated financial statements of the Group for the year ended 31 March 2017.
These condensed consolidated interim financial statements have been prepared in accordance with the accounting policies set out below which are based on the recognition and measurement principles of IFRS in issue as adopted by the European Union (EU) and effective at 31 March 2017. They were approved for issue by the Board of Directors on 11 December 2017.
After considering the period end cash position, making appropriate enquiries and reviewing budgets and profit and cash flow forecasts for a period of at least twelve months from the date of signing these interim financial statements, the Directors have formed a judgement at the time of approving the interim financial statements that there is a reasonable expectation that the Group has sufficient resources to continue in operational existence for the foreseeable future. For this reason the Directors consider the adoption of the going concern basis in preparing the condensed consolidated interim financial statements is appropriate.
The financial information for the six months ended 30 September 2017 and the comparative figures for the six months ended 30 September 2016 are unaudited and have been prepared on the basis of the accounting policies set out in the consolidated financial statements of the Group for the year ended 31 March 2017.
These extracts do not constitute statutory accounts under section 434 of the Companies Act 2006. The financial statements for the year ended 31 March 2017, prepared under IFRS, received an unqualified audit report, did not contain statements under sections 498(2) and 498(3) of the Companies Act 2006 and have been delivered to the Registrar of Companies.
The accounting policies have been applied consistently throughout the Group for the purposes of preparation of these condensed consolidated interim financial statements.
The functional currency of AorTech International Plc is GBGBP as this is where all sales arise. However, to reflect the substance of transactions Directors have chosen to use US$ as their presentational currency. Exchange differences therefore arise in each period representing the retranslation of reserves from a functional currency of GBGBP to their presentational currency of US$.
Loss per share has been calculated on the basis of the result for the period after tax, divided by the weighted average number of ordinary shares in issue in the period of 5,557,695. The comparatives are calculated by reference to the weighted average number of ordinary shares in issue which were 5,557,695 for the year ended 31 March 2017.
2. EXCEPTIONAL ADMINISTRATIVE EXPENSES
This comprises the exceptional administrative expense represented by the ongoing 10% cost of litigation against the Company's former CEO.
3. SEGMENTAL REPORTING
The Company is an Intellectual Property (IP) holding company
whose principal activity is exploiting the value of its IP
and know-how.
All revenue and operating result originated in the United
Kingdom.
Unaudited Unaudited Audited
Six Six Twelve
months months months
to 30 to 30 to
Sept Sept 31 March
2017 2016 2017
US$000 US$000 US$000
Analysis of revenue by products
and services
Licence fees - services 70 52 125
Royalty revenue 201 188 489
271 240 614
================ ========== ===============
4. INTANGIBLE ASSETS
The following table shows the impact of additions, exchange rate adjustments
and amortisation on intangible assets.
Intellectual Development
property costs Total
US$000 US$000 US$000
At 1 April 2016 1,052 315 1,367
Exchange rate adjustment (94) (28) (122)
Amortisation (109) (43) (152)
---------------------- ---------------------- ------------------
At 30 September 2016 849 244 1,093
Exchange rate adjustment (31) (8) (39)
Amortisation (100) (40) (140)
---------------------- ---------------------- ------------------
At 1 April 2017 718 196 914
Exchange rate adjustment 47 13 60
Amortisation (105) (41) (146)
---------------------- ---------------------- ------------------
At 30 September 2017 660 168 828
---------------------- ---------------------- ------------------
5. INTERIM ANNOUNCEMENT
The interim results announcement was released on 11 December 2017. A copy of this Interim Report is also available on the Company's website www.aortech.net.
AorTech International Plc
Bill Brown, Chaiman and Chief Executive
Tel: +44 (0) 7730 718296
Stockdale Securities Ltd as Nominated Advisor
Tom Griffiths / El Hanan Lee
Tel: +44 (0) 207 601 6100
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR OKDDKCBDKPBD
(END) Dow Jones Newswires
December 11, 2017 04:08 ET (09:08 GMT)
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