Nigel Keen, Chairman of Deltex Medical, commented: “The progress made towards operating cash breakeven and profitability through improved consumable margins and reduced overheads made during 2017 was partially offset by a disappointing second half sales performance.
“Since the end of the year we have put the Group on a significantly more secure financial footing through raising GBP2.0m additional capital and reducing our cash costs by GBP1.0m on an annualised basis.
“We have seen a number of new accounts coming on stream in the US market, including a very major one which started using TrueVue(TM) Doppler as the result of a rigorous and successful evaluation. Our French distributor has been awarded the largest tender which we have seen to date for the use of TrueVue(TM) Doppler and we have continued to migrate our business towards our multi-modal TrueVue(TM) System. The TrueVue(TM) System allows us to refresh our market positioning and through the TrueVue(TM) System we have the possibility of guiding treatment for greater numbers of patients.
“In the meantime, the largest ever randomised trial of our core TrueVue(TM) Doppler technology has been published with excellent results and very broad applicability for patients undergoing surgery who need to be protected from expensive, life-shortening complications. This is further compelling evidence that many of these complications are avoided through the use of TrueVue(TM) Doppler.”
Deltex Medical Group plc (LON:DEMG), the global leader in Oesophageal Doppler Monitoring (ODM), today announced its audited results for the year ended 31 December 2017.
Statutory results
-- Operating loss reduced by GBP0.4m to GBP2.0m (2016: GBP2.4m) -- Group revenues GBP0.4m lower at GBP5.9m (2016: GBP6.3m) -- Gross margins improved to 75% (2016: 68%) -- Cash at 31 December 2017 of GBP0.2m with a further GBP2.0m after expenses raised in 2018
Key performance measures
-- US pay per use probe revenues up 8% at GBP1.4m (2016: GBP1.3m) -- Top two US territories achieved 50% or over pay per use revenue growth
— Revenues from US managed care contracts down 20% at GBP0.4m (2016: GBP0.5m) due to one lost account
— International probe revenues flat at GBP1.6m (2016: GBP1.6m) with 5% growth from major markets
-- UK probe sales down by 26% at GBP1.4m (2016: GBP1.9m) -- Monitor revenues flat at GBP0.4m (2016: GBP0.4m) -- Consumable gross margin increased to 82% (2016: 74%) generating GBP0.4m additional margin -- Loss before non-cash costs reduced by 31% to GBP1.1m (2016: GBP1.6m)
— Net cash used in operating activities halved to GBP0.9m (2016: GBP1.8m); c. GBP1.0m annualised cost reductions implemented/planned in 2018
Operating Highlights
2017
-- 30(th) US platform account milestone achieved -- TrueVue(TM) System launched on CardioQ-ODM+ platform
— TrueVue(TM) Impedance, high-definition impedance cardiography, added to CardioQ-ODM+ platform in UK and select International markets
2018 to date
-- Major new US top rated hospital account after rigorous evaluation of TrueVue(TM) Doppler -- 8-year tender worth at least EUR4m awarded across Paris hospitals
— FEDORA trial published: TrueVue(TM) Doppler delivered 75% fewer post-operative complications, including significant reductions in acute kidney injury and healthcare acquired infections
-- Three-year contract extension for UK distribution of CASMED cerebral oximetry products -- Global release announced today of unique TrueVue Loops display
— Q1 revenues held back by expected timing differences on monitor sales: year on year growth in all three sales operations in April including UK probe revenues
