TIDMDEMG
RNS Number : 5978R
Deltex Medical Group PLC
07 July 2022
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the UK Market Abuse Regulation
7 July 2022
Deltex Medical Group plc
("Deltex Medical" or the "Group")
Half year trading update
Deltex Medical Group plc (AIM: DEMG), the global leader in
oesophageal Doppler monitoring, today publishes an update on
trading for the half-year ended 30 June 2022 ("H1 2022").
Revenues for the six months ended 30 June 2022 increased
approximately 9% to GBP1.2 million unaudited (2021: GBP1.1
million).
Activity levels in the USA and UK during H1 2022 continued to be
adversely impacted by Covid-19, with restricted access into
hospitals' operating rooms and shortages of clinical staff causing
disruption to elective surgery volumes. However, within our
International division (which excludes the USA) we saw further
revenue growth, as many of the health systems our distributors sell
into continue to ease their Covid-19 restrictions.
The Board's expectation for the second half of 2022 is that the
number of elective procedures in the UK and USA will increase and
access into hospitals will improve for our teams of clinical
educators and sales experts. This, along with the anticipated
European launch of our next generation TrueVue monitor, which
includes a novel non-invasive modality, later this year is expected
to drive higher revenues.
Cash at hand on 30 June 2022 was GBP0.6 million (30 June 2021:
GBP0.6 million).
Nigel Keen, Chairman of Deltex Medical, said:
"Given the subdued state of the Group's core elective surgery
markets, combined with ongoing challenges associated with Deltex
Medical's clinical educators gaining access to key accounts, we are
pleased to see a return to growth in the first half."
"It is encouraging to see our international division continue to
grow strongly and we expect growth to return in the UK and USA
markets as Covid-related restrictions continue to ease."
"We are looking forward to the European release of the next
generation TrueVue monitor, which we are aiming to launch later
this year and expect to generate immediate capital replacement
revenues from our distribution partners and enable better access to
hospitals as clinicians evaluate this new technology."
For further information, please contact:
Deltex Medical Group plc 01243 774 837
Nigel Keen, Chairman investorinfo@Deltexmedical.com
Andy Mears, Chief Executive
Natalie Wettler, Group Finance Director
Nominated Adviser and Joint Broker
Allenby Capital Limited 020 3328 5656
Jeremy Porter/ Vivek Bhardwaj (Corporate info@allenbycapital.com
Finance)
Tony Quirke (Sales & Corporate Broking)
Joint Broker
Turner Pope Investments (TPI) Ltd 020 3657 0050
Andy Thacker info@turnerpope.com
James Pope
Notes for Editors
Deltex Medical's technology
Deltex Medical's TrueVue System uses proprietary haemodynamic
monitoring technology to assist clinicians to improve outcomes for
patients as well as increase throughput and capacity for
hospitals.
Deltex Medical has invested over the long term to build a unique
body of peer-reviewed, published evidence from a substantial number
of trials carried out around the world. These studies demonstrate
statistically significant improvements in clinical outcomes
providing benefits both to patients and to the hospital systems by
increasing patient throughput and expanding hospital capacity.
The Group's flagship, world-leading, ultrasound-based
oesophageal Doppler monitoring ("ODM") is supported by 24
randomised control trials conducted on anaesthetised patients. As a
result, the primary application for ODM is focussed on guiding
therapy for patients undergoing elective surgery.
During 2021, Deltex Medical's engineers and scientists carried
out successful research in conjunction with the UK's National
Physical Laboratory ("NPL"), which has enabled the Group's 'gold
standard' ODM technology to be extended and developed so that it
can be used completely non-invasively. This will significantly
expand the application of Deltex Medical's technology to
non-sedated patients. This new technological enhancement, which
will be available on the new next generation monitor, will
substantially increase the addressable market for the Group's
haemodynamic monitoring technologies and is complementary to the
long-established ODM evidence base.
Our new non-invasive technology has potential applications for
use in a number of healthcare settings, including:
-- Accident & Emergency for the rapid triage of patients,
including the detection and diagnosis of sepsis, an important
capability for patients presenting with COVID-19 symptoms;
-- In general wards to help facilitate a real-time, data-driven
treatment regime for patients whose condition might deteriorate
rapidly; and
-- In critical care units to allow regular monitoring of
patients post-surgery who are no longer sedated or intubated.
One of the key opportunities for the Group in 2022 is
positioning this new, non-invasive technology for use throughout
the hospital. Our haemodynamic monitoring technologies provide
clinicians with beat-to-beat real-time information on a patient's
circulating blood volume and heart function. This information is
critical to enable clinicians to optimise both fluid and drug
delivery to patients.
Our business model is to drive the recurring revenues associated
with the sale of single-use disposable ODM probes which are used in
the TrueVue System and to complement these revenues with a new
incremental revenue stream to be derived from our new non-invasive
technology.
Both the existing single-use ODM probe and the new, non-invasive
device connect to the same, next generation monitor which is due
for launch in 2022. Monitors are sold or, due to hospitals' often
protracted procurement times for capital items, loaned in order to
encourage faster adoption of our technology.
Deltex Medical's customers
The principal users of our products are currently anaesthetists
working in a hospital's operating theatre and intensivists working
in ICUs. This customer profile will change as our new non-invasive
technology is adopted by the market. In the UK we sell directly to
the NHS. In the USA we sell directly to more than 30 major
hospitals that appreciate the value of our evidence-based approach
to haemodynamic management. We also sell through distributors in
more than 40 countries in the European Union, Asia and the
Americas.
Deltex Medical's objective
To see the adoption of our next generation TrueVue System,
comprising both minimally invasive and non-invasive technologies,
as the standard of care in haemodynamic monitoring for all patients
from new-born to adult, awake or anaesthetised, across all hospital
settings globally.
For further information please go to www.deltexmedical.com
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