AORTECH, the medical device group formerly based in Lanarkshire, has reported a $215,000 (£137,000) loss in the first half, entirely due to the $212,000 cost of litigation against former chief executive Frank Maguire.
Chairman Bill Brown, the former Edinburgh-based fund manager, said the board and particularly chief executive Eddie McDaid, one of the company's original founders who replaced Mr Maguire a year ago, had faced "almost daily challenges to try and resolve a myriad of issues that have arisen, some of which are related to the tenure of the previous CEO".
The group was hopeful that a proportion of the costs to date together with 90 per cent of all future costs would be covered by insurance.
Revenue grew from $71,000 to $524,000 (£334,000), and administration costs fell to $340,000. Last year's operating loss of $373,000 (£237,000) "would have been broadly break even but for those litigation costs", Mr Brown added.
He said Aortech and its manufacturing licensee Biomerics were "disappointed" inquiries from potential new customers had not progressed further.
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