REG - Deltex Med Grp PLC - Results for the year ended 31 December 2021
07/04/2022 07:00
For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20220407:nRSG5512Ha&default-theme=true
RNS Number : 5512H Deltex Medical Group PLC 07 April 2022
7 April 2022 - Deltex Medical Group plc (AIM: DEMG), the global leader in
oesophageal Doppler monitoring, today announces its results for the year ended
31 December 2021.
Deltex Medical Group plc ("Deltex Medical" or the "Group")
Results for the year ended 31 December 2021
HIGHLIGHTS
Financial
§ revenues: £2.3 million (2020: £2.4 million)
§ International division performed well in 2021 with growth of 40% to £0.9
million (2020: £0.7 million)
§ gross margin up slightly to 70% (2020: 68%)
§ overheads flat at £2.7 million (2020: £2.7 million, excluding exceptional
items)
§ adjusted EBITDA: £(0.5) million (2020: £(0.2) million)
§ loss for the year: £(1.0) million (2020: £(0.8) million)
§ cash at hand (31 December, 2021): £0.4 million (2020: £0.9 million),
before £1.4 million (gross) fund raising announced on 8 February 2022
Business
§ during 2021 many of Deltex Medical's principal markets were effectively
closed as elective surgical procedures were cancelled around the world due to
the pandemic. Elective surgery is now starting to resume globally
§ many hospitals barred access to salespersons and clinical educators for a
large proportion of the year, which compounded the sales challenges facing the
Group
§ post pandemic, there is now a substantial backlog in elective surgical
procedures around the world which represents a significant commercial
opportunity for Deltex Medical as its TrueVue Doppler technology has been
shown to reduce patient length-of-stay and hence increase hospital throughput
/ capacity
§ there are now encouraging signs of hospital access improving for our sales
teams
§ excellent progress was made in research and product development during
2021, both in the development of our new, next generation monitor which will
be launched in 2022 and our new non-invasive Doppler-based haemodynamic
monitoring technology which has broader applications within the hospital
setting
§ trading in 2022 has started positively including the announcement in
January 2022 of a US$0.2 million order from the Americas
Commenting on the results, Nigel Keen, Chairman of Deltex Medical, said:
"2021 was a challenging year for Deltex Medical; however, as the pandemic
subsides the prospects for the Group in 2022 are encouraging."
"The size of the backlog in elective surgery around the world creates an
opportunity to leverage the benefits of Deltex Medical's technology,
particularly in relation to increasing patient throughput and improved
outcomes."
"The expected return to normal levels of elective surgery represents a
significant commercial opportunity for the Group."
"The launch of our next generation state-of-the-art monitor coupled with our
new, easy-to-use non-invasive monitoring device, with its broader
applicability throughout the hospital, provides opportunities for the Group to
expand its addressable markets."
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 0207 614 5900
Arden Partners plc info@arden-partners.com
Paul Shackleton
Benjamin Onyeama-Christie
Joint Broker 0203 657 0050
Turner Pope Investments (TPI) Ltd info@turnerpope.com
Andy Thacker
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 controlled 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 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.
Visit us online for further information at www.deltexmedical.com
(http://www.deltexmedical.com)
Chairman's Statement
Real-time oesophageal Doppler haemodynamic monitoring:
improves patient outcomes; increases hospital throughput
Introduction
As expected, 2021 turned out to be a challenging year for Deltex Medical,
although I can report that we are encouraged by the way that 2022 has started.
Our technology is principally used during elective surgery. Unfortunately,
elective surgery was effectively closed for much of the year as health systems
across the world continued to grapple with the impact of the COVID-19
("Covid") pandemic whilst deciding how best to restart elective surgery.
Intensive Care Units ("ICUs") once again filled up with mainly unvaccinated,
extremely sick patients. Staff shortages compounded the provision-of-care
challenges facing hospitals.
Although at the beginning of the pandemic, starting in late March 2020, there
was an uptick in sales of the Group's haemodynamic monitoring technology into
ICUs, this rapidly became dwarfed by the drop-off in the use of our products
associated with the cessation of elective surgery in almost all hospitals in
the world.
In all our markets there is now a large backlog of patients requiring elective
surgical procedures. This represents a clinical and, increasingly, a political
problem, particularly for government-funded healthcare systems. An NHS
publication "Delivery plan for tackling the COVID-19 backlog of elective care"
published on 8 February 2022 states that "Six million people are now on the
waiting list, up from 4.4 million before the pandemic."
On 1 December 2021 the UK's National Audit Office published a report entitled:
"NHS Backlog and waiting times in England". This report states that "Under two
plausible scenarios, the elective care waiting list will be longer in 2025
than it is today." Further, this report suggests that under one of these
scenarios the waiting list in March 2025 will contain 12.0 million patient
pathways, compared to 5.8 million in September 2021.
The size and scale of the backlog means that hospitals and health systems
should be looking to use our technology to help them rapidly reduce the
elective surgery backlog and this represents a significant commercial
opportunity for the Group. Conversely, the sheer size and scale of the backlog
may also make it challenging to sell new technology into a stressed operating
theatre environment, as clinicians are under acute pressure to work rapidly
through operating lists. In addition, many hospitals have been slow at
reopening access in the operating theatre to people not directly involved in
the surgical process. This makes it more difficult for our clinical educators
to provide clinical support to new clinicians who have been significantly less
active in respect of elective surgery for the last two years.
While the environment starts to normalise, we will focus our commercial
activities on hospital accounts that had previously adopted and used the
Group's TrueVue Doppler technology in the operating theatre. In addition to
driving back up usage rates from existing users, we will separately introduce
a number of different initiatives to drive adoption of our new, non-invasive
haemodynamic monitoring technology which we will be launching later this year.
We believe that this new, broad application, non-invasive technology will, as
well as being adopted by new users, help drive interest in, and usage of, our
long-standing minimally invasive ODM technology. This is due to the new device
allowing anaesthetists to quickly assess which of their patients will benefit
from having the use of the advanced ODM technology.
The evidence showing that the use of our Doppler-based haemodynamic monitoring
technology improves patient outcomes and increases hospital capacity (as a
result of shorter patient length-of-stay) is strong. We believe that the
next generation monitor which we will launch in 2022 and the new completely
non-invasive device, which will also be available on this monitor, will
represent a compelling solution for clinicians and hospital systems needing to
handle their patient throughput more effectively.
Financial results
Group revenues for the year ended 31 December 2021 were £2.3 million (2020:
£2.4 million) and reflect the impact of Covid on elective surgery. In 2021
the entire year's results were affected by the pandemic whereas in 2020 we had
reasonable activity levels in the first quarter. Probe revenues declined by
9.6% to £1.9 million (2020: £2.1 million). Monitor revenues increased by 25%
to £202,000 (2020: £161,000) reflecting improved trading in our
International division in the year.
The consolidated gross margin in 2021 was 70% (2020: 68%). The slight increase
in gross margin reflects a number of manufacturing efficiency savings that we
were able to capture during the year.
Overheads were flat in the year totalling some £2.7 million (2020: £2.7
million, excluding exceptional costs of £232,000).
In the year the total value of UK and US government salary support schemes was
£0.3 million (2020: £0.4 million).
Adjusted EBITDA for the year (comprising earnings before interest, tax,
depreciation and amortisation, share-based payments, non-executive directors'
fees, as well as any exceptional items) was a loss of £(0.5) million (2020:
£(0.2) million).
Loss for the year was £(1.0) million (2020: £(0.8) million).
Cash at hand at 31 December 2021 was £0.4 million (2020: £0.9 million).
This cash resource has since been supplemented by a fund raising of £1.4
million (gross) which was announced on 8 February 2022.
Business activities
Whilst our direct sales operations in the UK and the USA struggled to gain
access to customers during the year as the majority of hospitals had put in
place bans on visits by salespeople or clinical educators, our International
division saw revenues grow by 40% to £926,000 (2020: £661,000). This growth
helps to demonstrate the potential of, and associated opportunity with, our
international network of some 40 distributors across the world.
During 2021 the Group's research and development team focussed on completing
the development of our next generation monitor for launch in 2022. Launch of
this monitor will provide us with immediate access to new potential revenue
streams through sales of this updated device to existing users, as well as
providing a platform for the introduction of our new non-invasive haemodynamic
monitoring technology later this year.
Employees
On behalf of the Board, I would like to thank Deltex Medical's highly trained
and dedicated employees, most of whom are based in the UK and the USA, for
their continuing efforts and dedication in the very taxing environment which
we saw throughout 2021. In these very difficult circumstances, our employees
displayed great flexibility and fortitude, and remained responsive to our
customers' wishes throughout the year.
Current trading and prospects
As access to hospitals improves for our direct sales forces in the UK and the
USA then we expect our business to begin to normalise.
We also anticipate that our international business will continue to grow in
2022 and we have already announced a US$0.2 million order from a territory in
the Americas which we expect will generate significant contracted single-use
probe revenues this year.
Following the £1.4 million (gross) fund raising announced in February 2022,
Deltex Medical, with the benefit of its grant awards, will have sufficient
financial resources to complete the development of its next generation monitor
and its new, broad application, non-invasive haemodynamic monitoring
technology
Our initial focus is to drive activity levels back up to those achieved by the
Group prior to the pandemic. Once attained, we believe that there is clear
scope to grow the business, both in the UK, USA and in other international
territories.
Nigel Keen
Chairman
6 April 2022
Business Review
Overview
Deltex Medical is the world leader in highly accurate oesophageal Doppler
monitoring ("ODM"), via its TrueVue platform, which allows real-time
monitoring of a patient's haemodynamic status.
A substantial number of peer-reviewed, randomised controlled trials have shown
that an ODM-driven haemodynamic protocol can result in statistically
significant reductions in post-operative complications, resulting in lower
costs for hospitals due to shorter patient length-of-stay. This is not only
good for patients but also increases throughput and capacity for hospitals,
which will be a key factor in the near term for reducing the backlog in
elective surgery.
Deltex Medical's technology was originally developed in an ICU in London to
assist with the treatment of acutely unwell critical care patients. Over time
demand for the Group's high fidelity oesophageal Doppler-based haemodynamic
monitoring technology has migrated from the ICU to the operating theatre, and
particularly for elective surgery. Before the pandemic, approximately 80% of
the Group's revenues were associated with elective surgical procedures in
operating theatres. Accordingly, the cessation of elective surgery for much of
2021 was highly disruptive to Deltex Medical's commercial activities.
During 2021, our research and development team made impressive and substantial
progress both in completing the development of our new, next generation
TrueVue monitor and also in developing a complementary, non-invasive
haemodynamic monitoring technology which leverages the extensive evidence base
supporting the use of our existing ODM technology. The new device allows
instantaneous non-invasive deployment anywhere in the hospital. This
substantially broadens the potential applications, and hence addressable
market size, for the Group's technology.
Our key challenge for 2022 is to ensure that, as hospitals open up and the
volume of elective surgery increases, the Group is able to capitalise on these
increased activity levels in operating theatres as well as capturing all the
upside associated with our new non-invasive Doppler-based technology.
COVID-19
When Covid first emerged in 2020, the Group initially experienced increased
demand for its TrueVue Doppler technology in ICUs, as clinicians worked to
establish the optimal treatment protocols for severely sick Covid patients.
Over the last two years Covid treatment protocols have improved and the
importance of haemodynamic monitoring as a part of optimal Covid treatment is
now better understood. However, in developed countries the number of patients
in ICUs has declined, in large part as vaccination rates have increased
substantially, resulting in a decline in demand for the Group's oesophageal
Doppler technology in ICUs for the treatment of ventilated Covid patients.
Around the world there is now a substantial backlog in elective surgical
procedures as a result of the closure of operating theatres during the
pandemic.
A chart published by the British Medical Association showed the increase in
the NHS backlog of elective care from 4.4 million people at the start of the
pandemic to 6.1 million in December 2021.
A second chart published by the National Audit office showed that under two
plausible scenarios, the NHS backlog in March 2025 could be substantially
higher than today, with one estimate putting the backlog as high as 12.0
million.
This backlog in elective care, which is a global phenomenon, represents a
significant commercial opportunity for Deltex Medical as use of its TrueVue
Doppler technology should result in greater patient throughput in respect of
elective surgery, and hence increased hospital capacity.
One of the largest challenges that the Group, in common with most medical
device companies, currently faces is that many hospitals around the world have
restricted access to salespersons and clinical educators to help reduce the
risk of the spread of Covid within hospitals.
Visits by Deltex Medical salespersons and clinical educators within the
operating room environment results in appropriate levels of operating theatre
staff trained in the use of ODM. The Group has internal studies which show
that higher probe usage in these units is associated with recent visits by
Deltex Medical employees. Conversely, it also has data which show that
hospitals which have not been visited by a Deltex Medical employee for some
time typically display reduced probe usage. As a result, one of the key
challenges which the Group is focussing on this year is improving access for
its direct sales force to hospitals in the UK and the USA.
The Group is considering a number of strategies to improve customer access,
including possibly collaborating with larger groups which, as a result of
their size and financial resources, have better reach and penetration into the
operating theatre market.
Covid has also had a significant adverse effect on global supply chains,
particularly in respect of semiconductors and raw materials. This has created
issues for the Group's product development activities, and, in particular,
contributed materially to the slippage of the launch of our next generation
monitor from 2021 into 2022.
During 2021 the Group adopted a number of work-from-home protocols. Whilst
working from home has had some advantages for some of our employees, it has
also created challenges as the Group's research & development ("R&D")
teams were forced to carry out complex development work remotely and without
full access to Deltex Medical's research laboratories located in our
headquarters in Chichester.
These Covid challenges should be seen in the context of the Group's
pre-pandemic results when the Group had positive adjusted EBITDA of £0.4
million in 2019 and revenues nearly twice the 2021 level. (2021 revenues:
£2.3 million; 2019: £4.3 million). Our primary focus is to return the
business to these previously achieved activity levels, and then start to build
profitable growth thereafter.
Product development and innovation
The ability to innovate and drive haemodynamic monitoring technology forward
remains a key component of the Group's strategy.
The need for the new, next generation monitor has been apparent for some time.
In 2021 a substantial proportion of our R&D activities were focussed on
bringing this monitor to market. We anticipate launching the new, next
generation monitor later this year.
Much of our product development work has been assisted by a number of
competitively-won grant awards. For example, in 2021 the Group was notified of
grant awards worth approximately £0.6 million (gross) (2020: nil), including
a prestigious Smart Award from Innovate UK. Work eligible for the latest grant
starts in April 2022.
One notable grant award related to collaborative work between Deltex Medical
and the UK's National Physical Laboratory ("NPL") based in Teddington. This
collaborative research work has enabled the Group to extend the application
and utility of its oesophageal Doppler monitoring, including the development
of a non-invasive device with broad utility.
Deltex Medical's oesophageal Doppler is classified as a minimally-invasive
device; however, it still requires the insertion of a probe down the
oesophagus of a sedated or anaesthetised patient. The requirement for the
patient to be sedated has historically limited the application of our ODM
technology. However, development work carried out in 2021 with NPL has enabled
Deltex Medical to develop a new, non-invasive haemodynamic monitoring device
which can be placed at the base of the patient's neck (the suprasternal notch)
to generate real-time, highly accurate data on the haemodynamic status of the
patient. This non-invasive device, which can provide clinicians with an
instant measurement of a patient's haemodynamic status, will significantly
expand the possible applications and size of the addressable market for the
Group. In addition to adoption by new users, this non-invasive device should
help drive interest in, and usage of, our long-standing minimally invasive ODM
technology as the use of the new device will allow anaesthetists to assess
which of their patients will benefit from the more intense monitoring
available through the use of the TrueVue system.
Market developments
The majority of the Group's activities are currently centred around the
treatment of human patients within the hospital setting. However, we have also
been developing our haemodynamic monitoring platform for use in veterinary
applications in the treatment of small animals in a number of different sites
around the world. Although the size of this market is currently quite small,
we believe that it has the potential to grow. Accordingly, we are working
closely with, and supporting technologically, a number of key opinion leading
veterinarians who are interested in the application of the Group's TrueVue
Doppler technology in the treatment of sick animals.
Regulatory
Deltex Medical designs and manufactures Class II medical devices which it
sells around the world. As a result, its business activities can be
significantly affected by changes to regulations. At any time there are
typically a number of regulatory changes under consideration from the
regulatory bodies governing such devices.
Fortunately, to date the effect on the Group from Brexit has been relatively
limited, although we have been forced to register our products in Spain,
despite having sold into the Spanish market for more than 15 years. The
post-Brexit regulatory regime is still evolving and we keep actual or
prospective changes in regulations under close review.
In Europe we are currently in the process of transitioning from the Medical
Device Directive to the Medical Device Regulation ("MDR"). The European MDR
comprises a new set of regulations that govern the production and
distribution of medical devices in Europe. Compliance with this new regulation
is mandatory for medical device companies that want to sell their products
into the European marketplace.
There are certain provisions within the MDR which, if enforced in a timely
manner, could help Deltex Medical. For example, there is an increasing
requirement for manufacturers of medical devices to generate their own body of
efficacy data, and not to rely on third party data in regulatory submissions.
Deltex Medical benefits from a substantial body of published literature
relating to the use of its technology which shows statistically significant
effects associated with improving patient outcomes and reducing patient
length-of-stay. As the MDR comes into effect we anticipate that the value and
utility of the Group's own scientific evidence base should continue to
increase.
Three principal divisions: UK, USA and International
Deltex Medical structures its commercial activities around three divisions:
the UK; the USA and International.
Although in 2021 access to customer accounts was extremely limited, we have
had some notable successes with long-standing customers in both the UK and the
USA. For example, at some institutions we have been able to stay in close
contact remotely with anaesthetists, which has resulted in a steady stream of
probe usage, albeit at much lower levels than before the pandemic started.
However, it is clear that where our sales personnel are unable to obtain
meaningful access to anaesthetists, or other appropriate operating theatre
staff, then probe usage typically declines.
Over recent months there have been encouraging signs where we have been able
to start to re-engage with operating theatre personnel in a number of
hospitals. As hospitals open up again, we plan to expand the size of our sales
team in the USA and focus on our existing accounts, which should help us to
start to drive up high margin single-use probe revenues.
The International division performed well in 2021 with growth of 40% to £0.9
million (2020: £0.7 million). The Group's distributor in France achieved
strong activity levels, partly as a result of a long-term contract with the
Association of Public Hospitals in Paris. In January 2022 one of the Group's
distributors in the Americas won contracts worth some US$0.2 million which
combined the sale of monitors with predetermined and contracted probe sales to
a number of public hospitals.
Not all of the Group's international distributors performed strongly during
the pandemic. Many of these distributors comprise businesses focussed on
selling equipment and consumables into operating theatres which, similar to
Deltex Medical, have seen much lower activity levels in 2021.
Conclusion
The Covid pandemic is transitioning to becoming endemic in the community and
the elevated vaccination rates around the world mean that hospitals are now
starting to open up access to suppliers, and their sales teams, once again.
They are also starting to work hard to reduce their respective backlogs in
elective surgery.
We made a number of important steps forward with our product development
programmes in 2021 and look forward to the launch this year of the next
generation monitor as well as the finalisation of the new, non-invasive device
with substantially larger addressable market size.
In February 2022 we announced a £1.4 million (gross) fund raising which will,
among other things, enable us to take advantage of the substantial grant
finance that totalled £0.6 million (gross) that we were awarded last year.
Our key challenge for 2022 is to release the next generation TrueVue monitor,
along with our new non-invasive ultrasound device, and see elective surgery
activity levels return to the levels that were being achieved before the Covid
pandemic became evident.
Andy Mears
Chief Executive
6 April 2022
Consolidated statement of comprehensive income
For the year ended 31 December 2021
2021 2020
Note £'000 £'000
Revenue 2,259 2,398
3
Cost of (684) (757)
sales 4
Gross profit 1,575 1,641
Administrative expenses (1,585) (1,472)
Sales and distribution expenses (957) (964)
Research and Development, Quality and Regulatory (207) (246)
Impairment reversal on trade receivables - 11
24
Exceptional costs - (232)
9
Total costs (2,749) (2,903)
4
Other operating 312 469
income 10
Other gain 57 171
7
Operating loss (805) (622)
Finance costs (173) (172)
6
Loss before taxation (978) (794)
Tax credit on loss 12 9
7
Loss for the year (966) (785)
Other comprehensive expense
Items that may be reclassified to profit or loss:
Net translation differences on overseas subsidiaries (2) (6)
Other comprehensive expense for the year, net of tax (2) (6)
Total comprehensive loss for the year (968) (791)
Total comprehensive loss for the year attributable to:
Owners of the Parent (969) (804)
Non-controlling interests 1 13
(968) (791)
Loss per share - basic and
diluted 11
(0.17p) (0.15p)
Consolidated balance sheet
As at 31 December 2021
2021 2020
Note
£'000 £'000
Assets
Non-current assets
Property, plant and equipment 12 264 305
Intangible assets 13 3,135 2,554
Financial assets at amortised cost 16 157 153
Total non-current assets 3,556 3,012
Current assets
Inventories 15 796 895
Trade receivables 16 455 576
Financial assets at amortised cost 16 15 15
Other current assets 16 91 122
Current income tax recoverable 69 61
Cash and cash equivalents 413 853
Total current assets 1,839 2,522
Total assets 5,395 5,534
Liabilities
Current liabilities
Borrowings 18 (702) (159)
Trade and other payables 18 (1,478) (1,416)
Total current liabilities (2,180) (1,575)
Non-current liabilities
Borrowings 18 (1,028) (993)
Trade and other payables 18 (228) (274)
Provisions 20 (57) (51)
Total non-current liabilities (1,313) (1,318)
Total liabilities (3,493) (2,893)
Net assets 1,902 2,641
Equity
Share capital 21 5,849 5,773
Share premium 26 33,502 33,444
Capital redemption reserve 26 17,476 17,476
Other reserve 26 573 505
Translation reserve 26 133 135
Convertible loan note reserve 26 82 82
Accumulated losses 26 (55,588) (54,648)
Equity attributable to owners of the Parent 2,027 2,767
Non-controlling interests (125) (126)
Total equity 1,902 2,641
Consolidated statement of changes in equity
For the year ended 31 December 2021
Capital redemption Convertible loan note reserve Non- controlling
Share capital Share premium reserve Other reserve Translation Accumulated Total interest Total equity
reserve losses
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Balance at 1 January 2021
5,773 33,444 17,476 505 82 135 (54,648) 2,767 (126) 2,641
Comprehensive income
Loss for the period - - - - - - (967) (967) 1 (966)
Other comprehensive income for the period - - - - - (2) - (2) - (2)
Total comprehensive income for year - - - - - (2) (967) (969) 1 (968)
Transactions with owners of the Group
Shares issued during the year 76 58 - - - - - 134 - 134
Equity-settled share- based payment - - - 95 - - - 95 - 95
Transfers - - - (27) - - 27 - - -
Balance at 5,849 33,502 17,476 573 82 133 (55,588) 2,027 (125) 1,902
31 December 2021
Consolidated statement of changes in equity
For the year ended 31 December 2020
Capital redemption Convertible loan note reserve Non- controlling
Share capital Share premium reserve Other reserve Translation Accumulated Total interest Total equity
reserve losses
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Balance at 1 January 2020
5,249 33,230 17,476 439 82 141 (53,823) 2,794 (139) 2,655
Comprehensive income
Loss for the period - - - - - - (798) (798) 13 (785)
Other comprehensive income for the period - - - - - (6) - (6) - (6)
Total comprehensive income for year - - - - - (6) (798) (804) 13 (791)
Transactions with owners of the Group
Shares issued during the year 524 217 - - - - - 741 - 741
Issue expenses - (3) - - - - - (3) - (3)
Equity-settled share- based payment - - - 39 - - - 39 - 39
Transfers - - - 27 - - (27) - - -
Balance at 5,773 33,444 17,476 505 82 135 (54,648) 2,767 (126) 2,641
31 December 2020
Consolidated statement of cash flows
for the year ended 31 December 2021
2021 2020
£'000 £'000
Cash flows from operating activities
Loss before taxation (978) (794)
Adjustments for:
Net finance costs 173 172
Depreciation of property, plant and equipment 74 103
Amortisation of intangible assets 40 40
Write off of research and development projects not taken forward - 222
Modification gain on convertible loan note - (119)
Share-based payment expense 95 39
Other tax income (57) (52)
Effect of exchange rate fluctuations (2) (6)
(655) (395)
Decrease in inventories 89 13
Decrease in trade and other receivables 148 680
Increase/(decrease) in trade and other payables 191 (303)
Increase/(decrease) in provisions 6 (11)
Net cash used in operations (221) (16)
Interest paid (131) (132)
Income taxes received 61 80
Net cash used in operating activities (291) (68)
Cash flows from investing activities
Purchase of property, plant and equipment (23) (6)
Capitalised development expenditure (net of grants) (621) (165)
Net cash used in investing activities (644) (171)
Cash flows from / (used in) financing activities
Issue of ordinary share capital - 253
Expenses in connection with share issue - (3)
Net movement in invoice discount facility 43 (23)
Standby loan facility drawdown 500 -
Principal lease payments (41) (37)
Net cash generated from financing activities 502 190
Net decrease in cash and cash equivalents (433) (49)
Cash and cash equivalents at beginning of the period 853 908
Exchange loss on cash and cash equivalents (7) (6)
Cash and cash equivalents at end of the period 413 853
1. Nature of the financial information
This Results Summary containing condensed financial information for the year
ended 31 December 2021 should be read in conjunction with the Deltex Medical
Group Plc's Annual Report & Accounts 2021 which were in accordance with
UK-adopted International Accounting Standards. The consolidated financial
statements have been prepared under the historical cost convention and on a
going concern basis.
Financial information contained in this document does not constitute statutory
accounts within the meaning of section 434 of the Companies Act 2006 ('the
Act'). The statutory accounts for the year ended 31 December 2020 have been
filed with the Registrar of Companies and those for the year ended 31 December
2021 will be filed with the Registrar of Companies following the Annual
General Meeting. The report of the independent auditor on those statutory
accounts was unqualified, did not draw attention to any matters by way of
emphasis and did not contain a statement under section 498(2) or (3) of the
Act. The report for year ended 31 December 2020 of the independent auditor on
those statutory accounts was unqualified and did not contain a statement under
section 498(2) or (3) of the Act. The report drew attention by way of emphasis
to the matters set out in the going concern accounting policy regarding the
inherent uncertainties regarding Covid-19 and the impact on demand for the
Group's products. The auditor's opinion was not modified in respect of these
matters.
2. Accounting policies
The Group's principal accounting policies can be found on pages 47 to 49 of
the Group's Annual Report & Accounts 2021.
Going concern
The Directors have reviewed detailed budgets and forecasts until 30 June 2023,
which take into account, among other things, the possible continued effects of
Covid on the Group's business. This review indicates that the Group is
expected to continue trading as a going concern based on projected net cash
flows derived from sales of the Group. In February 2022, the Group raised
£1.4 million (gross) through a share subscription which provided additional
cash resources to the Group. In addition, the Group agreed a 12 month
extension to the standby loan facility which is now repayable on or before 31
December 2023.
The Directors consider that they have reasonable grounds to believe that the
Group will have adequate resources to continue in operational existence for
the foreseeable future and it is therefore appropriate to prepare the
financial statements on the going concern basis.
3. Revenue
For the year ended 31 December 2021
Direct markets Indirect markets
Probes Monitors Other Probes Monitors Other Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000
UK 524 60 86 - - - 670
USA 561 55 47 - - - 663
France - - - 489 29 8 526
Scandinavia - - - 105 - 2 107
South Korea - - - 134 - 2 136
Portugal - - - 35 - - 35
Other countries 10 - - 53 58 1 122
1,095 115 133 816 87 13 2,259
For the year ended 31 December 2020
Direct markets Indirect markets
Probes Monitors Other Probes Monitors Other Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000
UK 652 102 83 - - - 837
USA 858 16 26 - - - 900
France - - - 170 - 10 180
Scandinavia - - - 95 - 2 97
South Korea - - - 159 - 1 160
Portugal - - - 86 - - 86
Other countries 15 32 - 78 11 2 138
1,525 150 109 588 11 15 2,398
The Group's revenue disaggregated between the sale of goods and the provision
of services is set out below. All revenues from the sale of goods
are recognised at a point
in time; maintenance income is recognised over time.
2021 2020
£'000 £'000
Sale of goods 2,192 2,338
Maintenance income 67 60
2,259 2,398
The following table provides information about trade receivables and contract liabilities from contracts with customers. There were no
contract assets at either 31 December 2021 or 31 December 2020.
31 December 31 December
2021 2020
£'000 £'000
Trade receivables which are in 'Trade and other receivables' 455 576
Contract liabilities (57) (58)
The following aggregated amounts of transaction prices relate to the performance obligations from existing contracts that are unsatisfied or
partially unsatisfied as at 31 December 2021:
2022 2023 2024 Total
£'000 £'000 £'000 £'000
Revenue expected to be recognised 36 7 14 57
Revenue recognised in 2021 which was included in contract liabilities
at 31 December 2020 amounted to £54,000. Revenue recognised in 2020
included in contract liabilities at 31 December 2019 amounted to
£46,000.
4. Dividends
The directors cannot recommend payment of a dividend (2020: nil).
5. Basic and diluted loss per share
The loss per share calculation is based on the loss of £967,000 and the weighted average number of shares in issue of 580,712,339. For 2020, the loss per share calculation is based on the loss of £798,000 and the weighted average number of shares in issue of 526,448,659. While the Group is loss-making, the diluted loss per share and the loss per share are the same.
6. Subsequent events
On 8 February 2022, the Group raised £1,396,000, before expenses, through
subscription for 111,720,000 new Deltex Medical ordinary shares at a price of
1.25 pence per share.
Also on 8 February 2022, the standby loan facility which was set up on 20 September 2021, was extended for an additional year, and is repayable in full on or before 31 December 2023. As already noted, the facility is provided by Imperialise Limited, a company controlled by Nigel Keen. The interest rate remains unchanged on the facility at 8% per annum, and is unsecured.
Distribution of Annual Report and Accounts
The Group will also shortly be posting a copy of the Annual Report and
Accounts for the year ended 31 December 2021 to shareholders, together with a
Notice of Annual General Meeting to be held at 11.00 am on 18 May 2022 at the
offices of DAC Beachcroft LLP, 25 Walbrook, London, EC4N 8AF.
A copy of the Annual Report and Accounts and of the Notice of Annual General
Meeting will also shortly be available from the Company's website at
www.deltexmedical.com
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 (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END FR UNOWRUWUSRARRecent news on Deltex Medical
See all newsREG - AIM Deltex Med Grp PLC - Cancellation - Deltex Medical Group Plc
AnnouncementREG - FTSE Russell - Deltex Medical Group
AnnouncementREG - Deltex Med Grp PLC - Result of General Meeting
AnnouncementREG - Deltex Med Grp PLC - Holding in Company
AnnouncementREG - Deltex Med Grp PLC - Holding(s) in Company
Announcement