Pre-close statement and trading update
Wednesday 22 January 2020
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 2019.
In 2019 the Group made good progress with the execution of its new strategy. Costs were further reduced and a number of steps taken to refocus the business. Together these measures contributed to the generation of cash during the year and the creation of a stable platform to target profitable growth.
The healthcare market continues to evolve, particularly in the USA. The increasing focus on patient safety and reducing avoidable complications, such as acute kidney injuries, continues to help highlight the benefits of haemodynamic monitoring. Pressure from 'payers' to lower hospital-related costs is also helpful for Deltex Medical's TrueVue technology and market position.
Overall revenues for the year ended 31 December 2019 were approximately £4.3 million (2018: £5.0 million) reflecting the implementation of the new strategy focusing on generating profitable revenues and the cessation of the distribution of lower margin third-party products in the UK (which had estimated annual sales in 2018 of £0.4 million). The reduction in low margin revenues has been offset at an operating level by the positive results of the new strategy and we expect to report positive adjusted EBITDA for the year.
Cash on the balance sheet at 31 December 2019 was £0.9 million (2018: £0.6 million)
Nigel Keen, Chairman of Deltex Medical, said:
"During 2019 the management team successfully completed the reconfiguration of the Group and has established a stable platform from which the business can now expand."
"The £0.9 million of cash on the balance sheet - £0.3 million up from a year ago - provides tangible evidence that the first part of our strategy has been successful."
"With the business now stabilised, the next stage of the execution of the strategy is focussed around generating profitable growth."
For further information, please contact:
Deltex Medical Group plc
01243 774 837
Nigel Keen, Chairman
Andy Mears, Chief Executive
David Moorhouse, Group Finance Director
Nominated Adviser & Broker
Arden Partners plc
020 7614 5900
Turner Pope Investments (TPI) Ltd
0203 657 0050
Notes for Editors
Deltex Medical manufactures and markets haemodynamic monitoring technologies. Deltex Medical's proprietary oesophageal Doppler monitoring ("ODM") (TrueVue Doppler) measures blood flow velocity 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 blood flow and measures such changes in 'real time'. Deltex Medical is the only company in the enhanced haemodynamic space to have built a robust and credible evidence base demonstrating both the clinical and economic benefits of its core technology, TrueVue Doppler. This technology has been proven in a wide range of clinical trials to reduce complications suffered by patients after surgery and consequently 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 transmits low magnitude, high frequency electrical signals through the thorax and measures the changes to this signal 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.
Haemodynamic management is now becoming widely accepted as a vital part of the anaesthesia protocol for 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 via agreements with approximately 40 distributors overseas.
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