Deltex Medical Group PLC Pre-close Trading Update (6504V)
July 25 2018 - 1:00AM
UK Regulatory
TIDMDEMG
RNS Number : 6504V
Deltex Medical Group PLC
25 July 2018
25 July 2018
Deltex Medical Group plc
("Deltex Medical" or the "Group")
Pre-close Trading Update
Change to increase the focus on driving sales from
the Group's established customer base
Deltex Medical Group plc (AIM: DEMG), the global leader in
Oesophageal Doppler Monitoring ("ODM"), today announces an update
on trading for the half year ended 30 June 2018.
As previously reported, first half revenues were below H1 2017
with Q2 revenues not making up for poor trading in the first
quarter. Leadership changes have been made to focus the business on
driving recurring revenues from the established customer base and
to reduce further the cost base of the business to match the
current trading of the Group.
H1 2018 Highlights
-- Total revenues of GBP2.3m (2017: 2.9m)
-- Probe revenues at GBP2.0m down from GBP2.4m in H1 2017
o US revenues down GBP0.2m, held back by the weaker US dollar
compared with H1 2017, together with changes in ordering by two
large accounts, masking encouraging growth in use by major hospital
systems
o International sales GBP0.1m lower due to temporary inventory
adjustment by our French distributor in preparation for the
transition to the previously announced new large Paris hospital
contract
o UK probe revenues down GBP0.1m with continuing tough trading
conditions associated with the NHS
-- Other revenues (including monitor sales) at GBP0.3m down from GBP0.5m in H1 2017
-- Benefits of earlier cost reductions made starting to be seen
in H1 with further cost savings expected in H2 which should lead to
a much reduced cash-burn
-- FDA 510(k) marketing approval received for "TrueVue(TM)
Impedance" on the CardioQ-EDM+ platform with US product launch
expected later in H2 2018
-- Cash at 30 June 2018 of GBP1.1m (30 June 2017: GBP0.2m)
Nigel Keen, Deltex Medical's Chairman, commented:
"We have responded to disappointing trading in the first half by
and the leadership of the Group has been changed to sharpen the
focus on driving recurring revenues across our substantial user
base. The funds we raised at the beginning of the year have enabled
us to re-size the Group to help us to match the current trading
levels of the Group. We enter the traditionally stronger second
half with anticipated growth in our key export markets, a more
stable UK position, significantly lower costs in our US operation,
higher probe margins and a slimmed down, re-focussed management
team."
For further information, please contact:-
Deltex Medical Group plc 01243 774 837
investorinfo@deltexmedical.com
Nigel Keen, Chairman
Andy Mears, Chief Executive
Jonathan Shaw, Group Finance
Director
Nominated Adviser & Broker
Arden Partners plc 020 7614 5900
Chris Hardie
Ciaran Walsh
Joint Broker
Turner Pope Investments (TPI) 0203 621 4120
Ltd info@turnerpope.com
Andy Thacker
Financial Public Relations
IFC Advisory 0203 934 6630
Tim Metcalfe
Graham Herring
Heather Armstrong
Notes for Editors
Deltex Medical manufactures and markets haemodynamic monitoring
technologies. Deltex Medical's proprietary ODM (TrueVue(TM)
Doppler) is the only technology to measure blood flow in the
central circulation in real time. Minimally invasive, easy to set
up and quick to focus, the technology generates a low-frequency
ultrasound signal, which is highly sensitive to changes in flow and
measures them immediately. Deltex has been the only group in the
enhanced haemodynamic space to build a robust and credible evidence
base proving the clinical and economic benefits of its core
technology, TrueVue(TM) Doppler, which is proven to reduce
complications suffered by patients after surgery and save hospitals
the costs of treating those complications.
Deltex Medical's TrueVue(TM) System on the CardioQ-ODM+ monitor
platform also now provides clinicians with two further advanced
haemodynamic monitoring technologies. High Definition Impedance
Cardiography (TrueVue(TM) Impedance) is an entirely non-invasive
monitoring technology which creates an electrical field across the
chest and measures the disruption to this field when the heart
pumps blood. Pulse Pressure Waveform Analysis
(TrueVue(TM) Pressurewave) uses peripheral blood pressure signal
analysis to give doctors information on changes in the circulation
and is particularly suited to monitoring lower risk or
haemodynamically stable patients.
Group goal
Haemodynamic management is now becoming widely accepted as an
important major new medical modality. Consequently, the Group's
focus is on maximising value from the opportunities presented, as
enhanced haemodynamic management is adopted into routine clinical
practice around the world. The Group aims to provide clinicians
with a single platform, a 'haemodynamic workstation', which offers
them a range of technologies from simple to sophisticated to be
deployed according to the patient's condition as well as the skill
and expertise of the user. Doing this will enable the Group to
partner healthcare providers to support modern haemodynamic
management across the whole hospital.
The Group is currently in the implementation phase of achieving
this goal in a number of territories worldwide, operating directly
in the UK, USA, Spain and Canada and through distribution
arrangements in a further 30 countries.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
TSTFKQDKCBKDBOB
(END) Dow Jones Newswires
July 25, 2018 02:00 ET (06:00 GMT)
Deltex Medical (LSE:DEMG)
Historical Stock Chart
From Apr 2024 to May 2024
Deltex Medical (LSE:DEMG)
Historical Stock Chart
From May 2023 to May 2024