Deltex Medical Group PLC Trading Update (4114U)
18 January 2017 - 6:00PM
UK Regulatory
TIDMDEMG
RNS Number : 4114U
Deltex Medical Group PLC
18 January 2017
18 January 2017
Deltex Medical Group plc
("Deltex Medical", "Deltex" or "the Company" or the "Group")
Trading update in respect of year ended 31 December 2016
Deltex Medical Group plc (AIM: DEMG), the global leader in
oesophageal Doppler monitoring ("ODM"), today announces an update
on its trading performance for the year ended 31 December 2016.
Highlights
Group revenues
Group revenues for 2016 expected to be GBP6.3m (2015: GBP6.2m:
GBP6.4m including research barter sales).
Probe revenues
USA
-- Total probe revenue increased c 40% for the year to GBP1.9m
(2015: GBP1.3m), with H2 probe revenue (excluding research sales)
up c 50% after benefit of stronger dollar
-- Run-rate going into 2017 c 50% higher than at same stage in
2016 with continuing growth anticipated in 2017, both from existing
and new accounts
-- 30(th) platform account announced today completing a key
milestone in our US expansion programme
-- Strong and growing pipeline of new accounts
International
-- Total probe revenue increased over 20% for the year to GBP1.7m and over 30% in H2
-- Largest growth in revenues from focus markets including France, Scandinavia, Peru and Korea
UK
-- Total probe revenue at GBP1.9m, a decrease of 26% (H1 decline: 36%; H2 decline: 16%)
-- Positive market reception to new probes and new clinical
evidence leading to improving trend in probe consumption in H2
Overall
-- Return to growth in probe revenues (with the benefit of
current exchange rates): up 4% over the year to GBP5.4m and over
10% in H2 to GBP3.1m
Other revenues
-- Monitor and maintenance revenue down c40% to GBP0.5m as a
result of monitor sales slippage into 2017 due to rescheduling of
capital allocations in a small number of hospitals
-- UK sales of Casmed products up over 25% at GBP0.4m
Cash
-- Cash at bank of GBP0.6m (1 July 2016: GBP0.95m including the
fundraise announced in July 2016)
-- All probe tip assembly brought in-house from January 2017
with planned savings in excess of GBP30,000 a month
-- Substantially reduced cash burn in H2 2016 which reflects
full effect of approximately GBP1m of annualised cost savings and
growth in high margin US probe sales
Notice of results
The Company expects to announce its results in the week of 20
March 2017.
Nigel Keen, Deltex Medical's Chairman, commented:
"Deltex made good progress in 2016. Growing sales traction in
the USA, our main focus market, and in other International markets,
together with success in stabilising our UK business mean that our
core revenue stream of high margin disposable probe sales has
returned to growth in the second half.
"Together with cost reductions effected in the first half of the
year, increasing returns from completed investments in margin
improvement and well advanced product development programmes, this
sales traction is improving the Company's operating and cash
performance."
For further information, please contact:-
Deltex Medical Group 01243 774 837
plc investorinfo@deltexmedical.com
Nigel Keen, Chairman
Ewan Phillips, Chief
Executive
Jonathan Shaw, Group
Finance Director and
Company Secretary
Nominated Adviser &
Broker
Arden Partners plc 020 7614 5900
Chris Hardie
Financial Public Relations
IFC Advisory 0203 053 8671
Tim Metcalfe
Graham Herring
Heather Armstrong
Notes for Editors
Deltex Medical manufactures and markets haemodynamic monitoring
technologies. Deltex Medical's ODM is the only technology to
measure continuously 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.
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 around 700,000 patients have been treated to date using
Deltex Medical's single patient disposable probes.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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