Aortech moving to AIM as losses grow

Shares in Aortech International lost almost a third of their value yesterday after the Scottish heart device maker reported deeper interim losses and plans to move to the Alternative Investment Market.

Aortech, which also announced the departure of its chairman, Edward McDaid, with immediate effect, said it would exit the main London Stock Exchange and relist on the junior AIM market on 18 December. The shares, which were changing hands for more than £10 two years ago, slipped 6.75p to 15p.

"The whole package is rubbish," one City trader said, adding the results were worse than expected and that if the shares moved to the AIM market, institutions would be forced to sell, pushing the price still lower.

Aortech, which warned in September that its first-half losses would widen by 40 per cent because of lower than expected sales, yesterday revealed its losses had dropped by more than 50 per cent to £7.6m in the six months to 30 September.

The company has £9m in the bank and expects annual cash burn to be £6m by the end of March 2003. "You do the sums," was the reaction in the market.

Laurie Rostron, a venture capitalist, replaces Mr McDaid.