Deltex Medical's H1 UK revenue falls as international revenue rises

Medical technology company Deltex Medical reported a fall in half year UK revenue but an increase in international revenue as it plans to expand in the US.

The Chichester based company said in its trading update for six months ended 30 June it had a 30% fall in total UK revenue. UK probe revenue fell 36% to £800,000.

In May the company said they launched new and easier to use probes in the UK and said in the second half of the year it has planned to introduce additional products.

Total international revenue grew 18% and international probe revenues increased by 11% to £700,00.

The AIM listed company said it had continued growth from France, Scandinavia Peru, and South Korea. It also said that they had “excellent” results from the Spanish government sponsored multicentre randomised trial of the company’s flagship product, ODM. The national enhanced recovery guidelines published favoured ODM.

The company is on track with its plans to expand in the US market. US probe revenues were up 40% to £900,000. It has 25 platform accounts in the US, up from 17 in January, 8 evaluations completed and 24 under way in its hospital expansion.

Deltex Medical said that sales in statutory reporting are expected to be flat at about £2.7m compared to 2015. Cash available at the end of the June was £500,000 with an additional £450,000 new capital raised, which was announced on 1 July.

Chairman Nigel Keen said: "2016 is a transitional year for Deltex. Our primary objective is to get the business past the operating cash break-even point and we have made important progress in the first half of the year.

"Probe revenues from the US, our main focus market, have overtaken UK probe revenues and we have made substantial progress towards achieving our US platform targets. Overall, exports have increased substantially since we started our US expansion programme and now comprise about two-thirds of group revenues.

"We expect the momentum established in the US and other export markets to continue, with good potential for improvement in the disappointing UK performance to convert this into a strong recovery. In addition, we expect to see positive impacts coming through from cost reductions previously announced, margin improvement and the introduction of new products."

Deltex Medical manufactures and markets haemodynamic monitoring technologies. Its main product, ODM, is the only technology to measure continuous blood flow in the central circulation in real time.

The company said its aim is to maximise value for opportunities from haemodynamic management across the world. It operates directly in the UK, US, Spain and Canada and has distribution deals in 30 countries.

Shares in Deltex Medical were up 4.21% to 4.95% at 1518 BST.