Deltex Medical Group plc (AIM: DEMG), the global leader in oesophageal Doppler monitoring (“ODM”) today announces its results for the six-month period ended 30 June 2017.
Statutory results
-- Revenue up 7% to GBP2.9m (H1 2016: GBP2.7m) -- Gross margin increased to 76% (H1 2016: 64%) -- Operating cash costs reduced by GBP0.3m to GBP2.9m (H1 2016: GBP3.2m) -- Cash operating loss reduced by 57% to GBP0.6m (H1 2016: GBP1.4m):
— Net cash used in operating activities was GBP0.4m, GBP1.1m (73%) lower than in H1 2016 (GBP1.5m)
— Cash available of GBP0.2m (31 December 2016, GBP0.6m) with GBP0.5m additional capital raised in July
Key performance measures (vs. H1 2016)
-- US probe revenues up GBP0.2m, 21%, at GBP1.0m -- Total US revenues up GBP0.3m, 35% (20% local currency), at GBP1.2m o Target of 30(th) platform account achieved o Two further large hospitals added since with additional accounts pending
— International probe and total revenues down GBP0.1m (9%) due to timing differences on distributor orders: satisfactory progress with end user sales
-- UK probe revenues at GBP0.7m down 12% with total UK revenues at GBP1.0m 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’s 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.
