Nigel Keen, Chairman of Deltex Medical LON:DEMG commented: “Deltex made significant progress in 2015 despite continuing difficulties in the UK. Total export sales were approximately 20% ahead with over 40% growth in the USA, which has become our key territory for development. Whilst trading in the UK will continue to be challenging, we expect this overseas success to drive overall group growth going forward.
We are focused on increasing the number of US platform accounts, with the consequent probe revenue run-rate, and on improving margins, reducing overheads and adding incremental revenue streams in the business as a whole. Successful implementation of these key tasks will deliver the operating cash required for us to continue to grow our business from our own internally generated resources.”
Deltex Medical Group plc LON:DEMG, the global leader in oesophageal Doppler monitoring (ODM), today gave DirectorsTalk its audited results for the year ended 31 December 2015.
Highlights
-- US revenues up 41% at GBP1.5m
o US probe revenues up 33% to GBP1.3m (23% in local currency)
o Number of US platform accounts increased from six to 17 in 2015 with three more added to date in 2016
o Further step-up in growth in Q1 2016 with US probe revenues up >50%
— International probe revenues up 27% at GBP1.4m; 41% volume increase with adverse euro movement: continued growth in Q1 2016
— UK revenues down GBP1m with probe sales reduced by 21% (GBP0.7m): continued falls in Q1 2016 (c.20% on an underlying basis)
— Compared to Q4 2015, cash costs reduced by over GBP100,000 a month to date in 2016 before additional US costs to support expansion of circa GBP30,000 a month
Statutory results
-- Revenue flat at GBP6.4m (2014: GBP6.5m) -- Gross margins at 63% (2014: 70%) reflecting investment in long term improvements -- Operating loss GBP3.5m (2014: GBP3.0m)
— Cash of GBP0.6m: GBP3.0m (after expenses) raised in Q1 2016 to repay GBP1m convertible loan and provide additional working capital
