REG - Deltex Med Grp PLC - Half year trading update

Deltex MedicalAnnouncement

07/07/2022 07:17

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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
£1.2 million unaudited (2021: £1.1 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 £0.6 million (30 June 2021: £0.6 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 (mailto: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 Finance)  info@allenbycapital.com (mailto:info@allenbycapital.com)

 Tony Quirke (Sales & Corporate Broking)

 Joint Broker
 Turner Pope Investments (TPI) Ltd                  020 3657 0050
 Andy Thacker                                       info@turnerpope.com (mailto: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
(http://www.deltexmedical.com)

 

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