Shares in AorTech International plc (LON:AOR) more than doubled on Wednesday morning after the polymer heart valve developer slashed its losses last year.
For the 12 months ended 31 March, the loss from continuing operations came down by 65% to US$237,000 from US$604,000 in 2016.
Small operating profit
AorTech also swung to a small operating profit of US$55,000 (before amortisation) compared to a US$263,000 loss a year earlier.
The company managed to achieve that despite seeing revenues fall by almost a third to US$614,000 (2016: US$901,000) in the year, although it noted that it is now generating higher quality revenues that are recurring and supported by contracts.
Under its previous model, revenues from licences depended upon future product launches.
A sharp fall in administrative expenses to US$523,000 from US$715,000 in 2016 also helped AorTech swing to a small trading profit.
“Despite the fall in revenue over the year, the overall quality and maintainability of sales is much better year on year,” said chairman and chief executive Bill Brown.
“A new revenue-generating licence has been signed and enquiries have increased markedly. We have taken back control of our breast implant IP and are actively pursuing opportunities to exploit this alongside our other intellectual property, including heart valves and polymers.”
Ligation with ex-CEO continues
Aside from the numbers, AorTech revealed in its final results that it is still embroiled in its long-running litigation against its former chief executive Frank Maguire.
The case has been going on for more than three years now. AorTech are going after Maguire for alleged breach of his service agreement while Maguire claims he is still owed from travel expenses from his time at the company.
AorTech said it “remains confident in its position and is committed to pursuing justice”.
Shares soared by 135% to 27p.