Deltex Medical Group PLC Pre-close statement and trading update (0678O)
January 25 2019 - 2:00AM
UK Regulatory
TIDMDEMG
RNS Number : 0678O
Deltex Medical Group PLC
25 January 2019
25 January, 2019
Deltex Medical Group plc ("Deltex Medical" or the "Group")
Pre-close statement and trading update
Deltex Medical Group plc (AIM: DEMG), the global leader in
oesophageal Doppler monitoring, today publishes a pre-close
statement in relation to the year ended 31 December 2018.
The Group has implemented the new strategy as set out in the
interim results published on 24 September 2018, which has led to a
significant reduction in operating costs, particularly in relation
to sales and marketing.
The Group was able to deliver substantially improved
profitability and cash generation in Q4 2018 and will provide more
information in the preliminary results, which are expected to be
published in April 2019. The improved Q4 2018 financial performance
leads the Board to expect that the Group will be EBITDA positive in
2019.
During the initial phase of the implementation of the new
strategy, lower levels of revenues were expected as the Group
focussed on driving revenues from existing customers already using
its high margin TrueVue Doppler probes; however, this targeted
approach has enabled other costs to be significantly reduced.
These actions have created a stable business which the Board
believes provides a platform from which future sales growth can be
generated from Deltex Medical's TrueVue range of haemodynamic
monitoring technologies.
Overall, revenues for the year ended 31 December 2018 were
slightly behind expectations at approximately GBP5.0 million (2017:
GBP5.9 million) and full year losses before exceptional items are
expected to be broadly in line with market expectations. Gross cash
on the balance sheet at 31 December 2018 was GBP0.6 million (2017:
GBP0.2 million).
Nigel Keen, Chairman of Deltex Medical, said:
"The initial results from the new business strategy of building
a more stable business as a result of improved profitability and
cash generation are most encouraging; we are looking forward to
seeing further progress during 2019."
For further information, please contact:
Deltex Medical Group plc 01243 774 837
Nigel Keen, Chairman investorinfo@deltexmedical.com
Andy Mears, Chief Executive
Jonathan Shaw, Group Finance Director
Nominated Adviser & Broker
Arden Partners plc 020 7614 5900
Ciaran Walsh
Dan Gee-Summons
Joint Broker
Turner Pope Investments (TPI)
Ltd 0203 621 4120
Andy Thacker info@turnerpope.com
Notes for Editors
Deltex Medical manufactures and markets haemodynamic monitoring
technologies. Deltex Medical's proprietary oesophageal doppler
monitoring ("ODM") (TrueVue Doppler) 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 such changes in
'real time'. Deltex Medical has been the only Group in the enhanced
haemodynamic space to build a robust and credible evidence base
proving the clinical and economic benefits of its core technology,
TrueVue Doppler, which has been demonstrated to reduce
complications suffered by patients after surgery and save hospitals
the costs of treating those complications.
Deltex Medical's TrueVue System on the CardioQ-ODM+ monitor
platform now provides clinicians with two further advanced
haemodynamic monitoring technologies. TrueVue Impedance 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. TrueVue PressureWave uses
the 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.
Group goal
Haemodynamic management is now becoming widely accepted as an
important part of the anaesthesia protocol for high risk surgical
patients. Consequently, the Group's focus is on maximising value
from the opportunities presented, as enhanced haemodynamic
management is adopted into routine clinical practice around the
world. The Group 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 as well as the skill and expertise of
the user. Doing this will enable the Group to partner healthcare
providers to support modern haemodynamic management across the
whole hospital.
The Group is currently in the implementation phase of achieving
this goal in a number of territories worldwide, operating directly
in the UK and the USA - and through distribution arrangements in
approximately 40 other countries.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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