Deltex Medical interim revenues broadly flat YOY

Medical technology business Deltex Medical Group said on Thursday that interim revenues were broadly flat year-on-year as it managed to eke out a positive underlying earnings performance in two of the first six months of the year.

Deltex Medical said unaudited revenues came to £1.064m in the first half, up from £1.059m a year earlier, with a further £92,000 in orders in-hand either awaiting components or payment in advance of shipping.

Group probe unit sales rose 16% year-on-year, driven by unit growth from its international operations of 21% which came despite the company "significantly reducing" its group-wide sales team for an annualised cost saving of roughly £1.1m.

Deltex noted that in its internal models, it was anticipating a monthly EBITDA loss in H124. However, it revealed that it was actually EBITDA positive in two months and said it expects its EBITDA to continue to improve throughout H2.

Chairman Nigel Keen said: "We have made good progress during H1 in selling and creating pipeline for the new TrueVue System into the UK and EU with many of our European distribution partners purchasing the new monitors and starting to give clinical demonstrations to their customer base.

"The significant growth in our probe unit sales into the International markets shows that our plan to focus more into International markets is working, and we expect to see this continue through H2 and remain confident for the rest of the year."

As of 1050 BST, Deltex Medical shares had slumped 10.30% to 0.15p.

Reporting by Iain Gilbert at Sharecast.com