Deltex Medical Group plc LON:DEMG), the global leader in Oesophageal Doppler Monitoring (“ODM”), today announced an update on trading in the half year ended 30 June 2017.
Highlights
· Overall revenue growth of £0.2m (7%) to £2.9m
o US revenues ahead by £0.3m (35%)
o International sales £0.1m lower (9%) due to order timings: underlying growth in larger markets of France, Scandinavia, South Korea and Peru
o UK revenues marginally reduced at 3% behind H1 2016 with £0.1m fall in probe sales mostly offset by other revenue streams
· US probe revenues ahead by over 20%
o Four additional major accounts added in H1 with approvals in place at two more
o Pipeline expanded and increasing opportunities for spread within hospital systems once opened
· Benefits of investments made in operating improvements starting to come through
o C.£30,000 cost savings per month in manufacturing efficiencies since January 2017
o UK launch of High-Definition Impedance Cardiography technology on CardioQ-ODM+ platform: pipeline building with encouraging response to date
o First Veterinary ODM system released in advance of September launch
· Cash at 30 June of £0.2m before additional fundraise of £0.55m to be announced today
Nigel Keen, Deltex Medical Group plc Chairman, commented: “The improved trends seen in the second half of 2016 have continued into the first half of 2017 and driven a return to growth in Group revenues. Both the level and rate of cash consumption in the first half of 2017 were substantially reduced from the first half of 2016. We enter the traditionally stronger second half with underlying growth in all our key export markets, a more stable UK position, higher probe margins and lower costs.
“We have made substantial progress towards evolving the Company from a single technology to a multiple technology business and are now starting to offer the three major modern advanced haemodynamic monitoring technologies on a single platform.”
