Deltex makes 'significant reduction' in costs

Deltex said it was able to deliver "substantially improved profitability and cash generation" during the three months ended 31 December and now expects that it will be EBITDA positive in the new year.

While Deltex expected lower levels of revenues during the initial phase of the implementation as it switched its focus towards driving revenues from existing customers, the targeted approach offset much of those concerns as several other costs were able to be "significantly reduced".

Overall, the AIM-listed firm recorded revenues slightly behind expectations at approximately £5m, while full-year losses before exceptional items were expected to be "broadly in line with market expectations".

Gross cash was up 200% at £600,000.

Chairman Nigel Keen said: "The initial results from the new business strategy of building a more stable business as a result of improved profitability and cash generation are most encouraging; we are looking forward to seeing further progress during 2019."

As of 0840 GMT, Deltex shares had shot up 15.79% to 1.10p.