Deltex Medical Group PLC AGM Statement (6047H)
09 June 2017 - 4:00PM
UK Regulatory
TIDMDEMG
RNS Number : 6047H
Deltex Medical Group PLC
09 June 2017
9 June 2017
Deltex Medical Group plc
("Deltex Medical", "Deltex" or "the Company")
Chairman's Statement to Annual General Meeting
At the Annual General Meeting of Deltex Medical Group plc (AIM:
DEMG), the global leader in oesophageal Doppler monitoring (ODM),
to be held today the Company's Chairman, Nigel Keen, will make the
following statement:
The Company is making good progress to date in 2017. Compared to
2016, sales are higher, margins improved and operating costs
reduced.
In the USA, our key development territory, we have continued
both to add new accounts and increase probe revenues. In January we
reached our target of 30 platform accounts and, since then, we have
added a further two key accounts: a major University Hospital in
our West Coast territory and, in the Mid-Atlantic territory, a
large hospital in the prestigious Johns Hopkins network. In
addition we are working to conclude the contracting process with
two additional key accounts following successful evaluations and
continue to develop the pipeline.
US revenues for the five months to end of May increased over 40%
compared to the same period in 2016. This growth includes the
impact of a GBP0.1m monitor order in Q1 and foreign exchange
tailwinds. We are in the process of redeploying our US field team
to best support the platform programme accounts. March was the
first month in which the margin on US probe revenues (excluding
monitors) covered regular US staff costs and we are looking to
broadly maintain this relationship as we add additional staff. US
probe margin in May was sufficient to cover the costs of the two
additional field staff added since March. Total regular monthly US
staff costs in May were $220,000. Reducing towards zero the amount
by which regular US staff costs exceed probe margin is a major
contributory factor to the Company's improved operating cash
profile: the monthly excess of regular US staff costs over margin
from probe sales has been funded out of equity during this phase of
our US expansion plans and peaked at around $150,000 a month in
2015.
Probe consumption in our International business is continuing to
grow satisfactorily especially in our more developed focus markets
and revenues after five months are marginally ahead of the prior
year. Although we currently anticipate International sales to be
ahead of management expectations for the first half, timing
differences on large orders from our distributors in Peru and South
Korea in 2016 make it likely that total first half International
revenues will be lower than in 2016.
In contrast with growing sales in export markets, the UK remains
challenging. Year to date UK revenues at the end of May 2017 were
slightly behind 2016 (c3%) having been slightly ahead in the first
quarter reflecting delays in many NHS organisations setting budgets
for their new financial year which started in April. Our UK
business remains profitable and it is encouraging that it continues
to stabilise: at the same stage in 2016, UK revenues were c25%
behind the prior year. Our goal remains to get the UK business back
into growth by the end of the year and we have been encouraged by
the positive response to our new High Definition Impedance
Cardiography (HD-ICG) product since its launch last month.
Customers can add HD-ICG to their existing CardioQ-ODM+ monitors
at low cost, and together with the existing ODM and Pulse Pressure
Waveform Analysis functionality means we are now offering the three
leading modern advanced haemodynamic monitoring technologies on a
single platform. This gives us a unique offer and means that, for
the first time, we can support demand for advanced haemodynamic
monitoring across the whole hospital. We plan to launch HD-ICG to
our International distributors in September and in the USA as soon
as we receive FDA clearance. In the meantime we continue to
differentiate the premium clinical effectiveness of ODM through
clinical evidence and today announced the positive results from the
first randomised controlled trial of ODM in thoracic surgery.
The Company's key priority this year is to move the business
through the cash break-even point at the operating level to enable
us to continue to grow our business from our own internally
generated resources. We have made significant progress towards this
goal so far this year through growth in sales of existing products,
manufacturing efficiencies and reduced overheads. Looking forward
we expect to also start to generate cash returns from investments
made in recently released new products as well as having a number
of other exciting new product developments in hand.
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
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 proprietary 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 which is proven
to reduce complications suffered by patients after surgery and save
hospitals the costs of treating those complications.
Deltex Medical's CardioQ-ODM+ platform also now provides
clinicians with two further advanced haemodynamic monitoring
technologies. High Definition Impedance Cardiography is an entirely
non-invasive monitoring technology which creates an electrical
field across the chest and measures the disruption to this field
when the heart pumps blood. Pulse Pressure Waveform Analysis uses
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.
Company goal
Haemodynamic management is 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 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 condition and the skill and
expertise of the user. Doing this will enable the Company to
partner healthcare providers to support modern haemodynamic
management across the whole hospital.
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 3,400 monitors installed in hospitals around the
world and around 700,000 patients have been treated to date using
Deltex Medical's single patient disposable products.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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