Deltex Medical Group PLC Pre-close Trading Update (4474S)
July 09 2020 - 01:00AM
UK Regulatory
TIDMDEMG
RNS Number : 4474S
Deltex Medical Group PLC
09 July 2020
9 July, 2020
Deltex Medical Group plc
("Deltex Medical" or the "Group")
Pre-close Trading Update
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, 2020.
The Group's trading has been affected in a number of different
ways by COVID-19 ("CV-19") in the first half:
-- in January and February, Deltex Medical started to see a
decline in probe sales from elective surgical procedures across its
global client-base as hospitals prepared for the influx of CV-19
patients;
-- this was followed by a two month period of strong growth in
sales to intensive care units ("ICUs"), predominately in the UK,
where Deltex Medical's technology was used to assist clinicians
working in NHS hospitals managing CV-19 patients, particularly to
help reduce the risk of acute kidney injuries ("AKIs");
-- once the number of CV-19 cases started to decline in NHS
hospitals, then the strong sales of Deltex Medical probes into NHS
ICU departments also started to reduce and the well publicised
delays in the restart of elective surgery have hampered progress in
the first half; and
-- more recently, the Group has started to see a resumption in
sales in the US and to its international network of distributors
linked to the re-start of elective procedures in overseas
hospitals.
Total revenues for the half-year ended 30 June 2020 were GBP1.2
million (2019: GBP2.0 million).
In order to conserve its cash resources, the Group started to
furlough employees from May and has reduced substantially its cash
outflows.
Cash at hand on 30 June, 2020 was GBP0.6 million (30 June, 2019:
GBP0.6 million; 31 December, 2019: GBP0.9 million).
The Group has been awarded an Innovation Continuity Grant by
Innovate UK worth approximately GBP0.2 million to help the funding
of its new product development programme which last year was
awarded an Innovate UK Smart award. The cash associated with this
grant is expected to be received by the Group in the second half of
2020.
Based on market feedback from the UK and the USA as well as via
discussions with its international distributors, the Group believes
that the pent up demand for elective procedures should result in a
rebound in activity levels in the second half.
Nigel Keen, Deltex Medical's Chairman, commented:
"COVID-19 created opportunities and challenges for Deltex
Medical in the first haIf. We were pleased to see the benefits that
the Group's technology brought to intubated CV-19 patients in ICUs
at high risk of acute kidney injuries and we have renewed a number
of important relationships with Intensivists in the UK."
"The Board is monitoring closely how quickly elective surgery
resumes - and in which territories - as this will be key to revenue
growth and cash generation."
"We are delighted to win additional grant funding from Innovate
UK worth c. GBP0.2 million which helps underscore the potential of
Deltex Medical's technology as well as assists the Group with its
cash resources."
"Given the potential activity levels associated with pent-up
demand associated with elective surgery, it is at the moment too
early to predict what the outcome will be for the full year and a
further update will be provided at the time of the Group's interim
results."
For further information, please contact:
Deltex Medical Group plc 01243 774 837
Nigel Keen, Chairman investorinfo@Deltexmedical.com
Andy Mears, Chief Executive
David Moorhouse, Group Finance Director
Arden Partners plc 020 7614 5900
Ciaran Walsh
Dan Gee-Summons
Joint Broker
Turner Pope Investments (TPI) Ltd 0203 657 0050
Andy Thacker info@turnerpope.com
Zoe Alexander
Notes for Editors
Deltex Medical manufactures and markets haemodynamic monitoring
technologies which are primarily used in critical care and general
surgical procedures. Deltex Medical's proprietary oesophageal
Doppler monitoring ("ODM") (TrueVue Doppler) measures blood flow
velocity 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 blood flow and measures such changes in
'real time'. Deltex Medical is the only company in the enhanced
haemodynamic space to have built a robust and credible evidence
base demonstrating both the clinical and economic benefits of its
core technology: TrueVue Doppler. This technology has been proven
in a wide range of clinical trials to reduce complications suffered
by patients after surgery and consequently can save hospitals
money.
Deltex Medical's TrueVue System on the CardioQ-ODM+ monitor
platform now provides clinicians with two further advanced
haemodynamic monitoring technologies. TrueVue Impedance is an
entirely non-invasive monitoring technology which transmits low
magnitude, high frequency electrical signals through the thorax and
measures the changes to this signal when the heart pumps blood.
TrueVue PressureWave uses the 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 a
vital part of the anaesthesia protocols for surgical patients, as
well as treating ventilated intensive care patients, including
ventilated COVID-19 patients. 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 clinical condition as well as the skill
and expertise of the user. Doing this will enable the Group to
partner with 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 and the USA, and via agreements with approximately 40
distributors overseas.
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
TSTKKFBNPBKDQOK
(END) Dow Jones Newswires
July 09, 2020 02:00 ET (06:00 GMT)
Deltex Medical (LSE:DEMG)
Historical Stock Chart
From Feb 2024 to Mar 2024
Deltex Medical (LSE:DEMG)
Historical Stock Chart
From Mar 2023 to Mar 2024