REG - Deltex Med Grp PLC - Year-end trading update

Deltex MedicalAnnouncement

18/01/2024 07:00

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RNS Number : 0643A  Deltex Medical Group PLC  18 January 2024

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With the publication of this announcement, this information is now considered
to be in the public domain.

 

18 January 2024

 

Deltex Medical Group plc

("Deltex Medical" or the "Group")

 

Year-end trading update

 

The Board of Deltex Medical (AIM: DEMG) provides a trading update following
the close of the financial year ended 31 December 2023.

 

Highlights

 

·    New TrueVue System launched in the UK and EU and now being launched
in other international territories.

·    Successfully completed field trials in the UK for the new TrueVue
System which enabled first sales in November 2023.

·    Invested in and successfully accomplished the cost-cutting and
restructuring plan, removing approximately £1.0 million of annualised costs.

·    Unaudited revenue for the year in line with management expectations
at £1.8m.

 

Operational update

 

The financial year ended 31 December 2023 ("FY23") marked several notable
milestones for the Group's next generation TrueVue System. Following the
launch of the Group's new TrueVue System in June 2023, the Group received
positive feedback on the new system following in-hospital testing in the UK
and the Group made first sales of the new TrueVue System in November 2023.
Further shipments of the new system are taking place this month following
receipt of components for the first larger production run, giving the Group a
strong start to 2024.

 

Now that the next generation TrueVue System has been successfully launched in
the UK and Europe, Deltex Medical is actively promoting it internationally. In
relation to the middle east region, the Group is exhibiting at Arab Health
2024 which will be held in Dubai at the end of January 2024. In addition, the
Group will be promoting the new TrueVue System in southeast Asia at the World
Congress of Anaesthesia in Singapore at the beginning of March.  The Group
will also focus this year on applying for US regulatory approval of the new
system, as well as for other key territories such as Latin America and South
Korea.

 

Deltex Medical continues to support a small number of potentially substantial
tenders from its International division. In this regard, in January 2024, the
Group received initial probe orders from one of its Latin American
distributors, to supply probes for the initial former generation TrueVue
systems already installed as part of this two-year contract.

 

The Group continues to develop the new non-invasive Doppler-based haemodynamic
monitoring device that is complementary to its existing product range, and
which will also run on the new TrueVue System, and work continues on a
prototype for clinical evaluation in a leading UK hospital.

 

Group results

 

Following a period of weak trading and reduced cashflow in the first half of
2023, as announced by the Group on 26 June 2023, the Group is pleased to have
since successfully completed a fundraising and the restructuring of the
Group's business as well as achieving annualised cost savings of approximately
£1.0 million.

 

Group unaudited revenues for the year ended 31 December 2023 were £1.8
million (2022: £2.5 million), in line with management's expectation. Cash at
hand for the Group as at 31 December 2023 was £0.7 million (2022: £0.5
million). While the Group has experienced weaker trading for the year ended 31
December 2023, the Board believes that recent improvements, including but not
limited to, the launch of its new TrueVue System combined with the Group's new
streamlined cost base, positions the Group well for long-term growth.

 

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 Broker                                    020 3328 5656

Allenby Capital Limited

 Jeremy Porter / Vivek Bhardwaj (Corporate Finance)              info@allenbycapital.com
 Tony Quirke / Stefano Aquilino (Sales & Corporate Broking)

 

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, although
sedated patients in intensive care are still an important part of our
business. The Group's new, next generation system makes the use of the ODM
technology more intuitive and provides augmented data on the status of each
patient.

 

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
released on the new next generation system, will substantially increase the
addressable market for the Group's haemodynamic monitoring technologies and is
complementary to the long-established ODM evidence base.

 

Deltex Medical's 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;

·    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 is positioning this new,
non-invasive technology for use throughout the hospital. Deltex Medical's
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.

 

Deltex Medical's 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 the Group's new non-invasive technology.

 

Both the existing single-use ODM probe and the new, non-invasive device will
connect to the same, next generation system launched in July 2023. Monitors
are sold or, due to hospitals' often protracted procurement times for capital
items, loaned in order to encourage faster adoption of the Group's technology.

 

Deltex Medical's customers

 

The principal users of Deltex Medical's products are currently anaesthetists
working in a hospital's operating theatre and intensivists working in ICUs.
This customer profile will change as the Group's new non-invasive technology
is adopted by the market. In the UK the Group sells directly to the NHS. In
the USA the Group sells directly to a range of hospital systems. The Group
also sells through distributors in more than 40 countries in the European
Union, Asia and the Americas.

 

Deltex Medical's objective

 

To see the adoption of Deltex Medical's 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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