Pre-close Trading Update

RNS Number : 9279S

Deltex Medical Group PLC

14 July 2015

 

14 July 2015

Deltex Medical Group plc

("Deltex Medical", "the Company" or "the Group")

Pre-close Trading Update

Strong growth in US and other export markets, UK market remains weak

Deltex Medical Group plc (LSE-AIM: DEMG), the global leader in oesophageal Doppler monitoring ("ODM"), today announces an update on trading in the first half of the year.

Highlights

·      US expansion plans on track

o  US surgical probe revenues up 28% at £0.6m

o  11 platform accounts, an increase from six in January

o  Satisfactory order pipeline progress and expansion; ten evaluations completed with three additional under way and 11 more under discussion

·      International surgical probe revenues up 19% at £0.6m

o  Strongest growth in France and Peru

o  Monitor revenues £0.2m behind unusually strong 2014 but on plan

o  Canadian tender win announced today

·      UK market remains weak as NHS financial problems continue

o  UK revenues of £1.4m down 13%: reduction in surgical probe revenues of 25% offset by early sales of new products

o  New product launches and marketing campaigns anticipated to impact positively sales in H2 2015

o  Cost reductions implemented in January 2015 to maximise UK cash generation

Results in statutory reporting format

Group sales in statutory reporting format are expected to be approximately £2.7m (2014: £3.0m). Cash available at 30 June 2015 was £1.3m.

The Company plans to announce its interim results for the six months ended on 16 September 2015.

Nigel Keen, Deltex Medical's Chairman, commented:

"In the first half Deltex has made good progress with building a strong base of users from which to roll-out our products nationally in the USA. To support our sales worldwide we have, enhanced and broadened our product range and are additionally strengthening our digital educational and marketing programmes.

We expect the financial returns from these successes to show through more strongly in the second half reducing the impact of the NHS on our business. In the second half of the year we expect increasing traction of the use of ODM in US hospitals and we will start to roll-out a series of new products to enhance our offering to clinicians."

For further information, please contact:-

Deltex Medical Group plc	01243 774 837 [e-mail]
Nigel Keen, Chairman
Ewan Phillips, Chief Executive
Barry Curtis, Company Secretary
Nominated Adviser & Broker
Arden Partners plc	020 7614 5900
Chris Hardie
Joint Broker	020 7533 7727
Zeus Capital Limited
Phil Walker
Dominic Wilson
Financial Public Relations
Newgate	020 7653 9850
Tim Thompson
Robyn McConnachie
Ed Treadwell

Notes for Editors

Deltex Medical manufactures and markets haemodynamic monitoring technologies. Deltex Medical's ODM 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 company in the enhanced haemodynamic space to build a robust and credible evidence base proving the clinical and economic benefits of its core technology, ODM. Randomised, controlled trials using Doppler have demonstrated that early fluid management intervention will reduce post-operative complications, reduce intensive care admissions, and reduce the length of hospital stay.

During 2013, the Company launched the CardioQ-ODM+ monitor that offers clinicians both of the two best-established technologies, Deltex Medical's ODM technology as well as Pulse Pressure Waveform Analysis ('PPWA') in one monitor. This allows clinicians to have unique real time insights into each of flow, pressure and resistance, the three pillars of haemodynamics.

Company goal

ODM is increasingly recognised as a standard of care for patients undergoing major surgery and in critical care. The broader clinical area of haemodynamic management of which ODM is a core constituent is also now becoming widely accepted as an important major new medical modality. Consequently, the Company's focus is on maximising value from the opportunities presented as enhanced haemodynamic management is adopted into routine clinical practice around the world.

The Company 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.

There are over 3,200 monitors installed in hospitals around the world and over 600,000 patients have been treated to date using Deltex Medical's single patient disposable probes.

 

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