Deltex Medical Group plc (LON:DEMG), the global leader in oesophageal Doppler monitoring (“ODM”) today announced its results for the six-month period ended 30 June 2017.
Statutory results
· Revenue up 7% to £2.9m (H1 2016: £2.7m)
· Gross margin increased to 76% (H1 2016: 64%)
· Operating cash costs reduced by £0.3m to £2.9m (H1 2016: £3.2m)
· Cash operating loss reduced by 57% to £0.6m (H1 2016: £1.4m):
· Net cash used in operating activities was £0.4m, £1.1m (73%) lower than in H1 2016 (£1.5m)
· Cash available of £0.2m (31 December 2016, £0.6m) with £0.5m additional capital raised in July
Key performance measures (vs. H1 2016)
· US probe revenues up £0.2m, 21%, at £1.0m
· Total US revenues up £0.3m, 35% (20% local currency), at £1.2m
o Target of 30th platform account achieved
o Two further large hospitals added since with additional accounts pending
· International probe and total revenues down £0.1m (9%) due to timing differences on distributor orders: satisfactory progress with end user sales
· UK probe revenues at £0.7m down 12% with total UK revenues at £1.0m down 3%
Operating Highlights
· US sales development continues progress
· Margin improvement following manufacturing process changes
· Veterinary system introduced in H1 for launch in H2
· High Definition – Impedance Cardiography (HD – ICG) added to CardioQ-ODM+ platform in H1: full launch into export markets in H2 subject to regulatory approvals
· Unique offer to customers from combining the three leading advanced haemodynamic technologies on a single monitoring platform
· Additional new product releases in the pipeline
Nigel Keen, Deltex Medical Group Plc Chairman, commented: “In the first half of 2017, Deltex Medical increased its sales, improved its margins and reduced its costs. We are therefore substantially on course to reach our key short-term objective of moving through the operating cash break-even point.
“The Company entered the traditionally stronger second half with sales traction in its US and International businesses, a difficult but improved UK trend and the prospect of incremental returns from investments made in product development. The move from a single to a multiple technology platform increases significantly the Company’s marketing, commercial and strategic options.”
There will be an Investor Event this evening, 11 September, at El Vino Masons Avenue, 12-14 Masons Avenue London, EC2V 5BT from 18:00 and will take the form of a Company presentation followed by a Q&A session.
Investors and shareholders who wish to attend the event should register their interest here:
https://www.eventbrite.co.uk/e/deltex-investor-event-tickets-37415825742
There will be a management webinar for investors on 12 September 2017 at 12.45pm. If you would like to join the webinar, please register here:
https://www.equitydevelopment.co.uk/2017/08/30/deltex-medical-webinar-tuesday-12th-september-1245pm/
The presentations from both events will also be made available on the Company’s website.
