Deltex Medical annual loss widens during "difficult" 2014

The AIM-listed company said its pre-tax loss rose to £3.1m, a 40.9% increase year-on-year, as revenue declined 16.3% to £4.6m, in what it described as a "difficult year".

Deltex, whose main product are oesophageal Dopple monitoring systems used to measure blood flow during surgery, cited de-stocking in the NHS as a driving factor behind a 20% decline in sales of surgical probes and a 10% drop in revenue from critical care probes.

The NHS was also criticised by the company for its implementation of oesophageal Doppler monitoring systems which was "dramatically scaled down in ambition" and was introduced over a year late, as hospitals were allowed to adopt different technologies as substitutes without incurring in financial penalties.

The group said that, while the government is undertaking a review of technology in use in the NHS, it "considers it highly unlikely that momentum will be restored by central NHS initiatives in the foreseeable future".

Sales of surgical probe in the US, a market into which the company has been expanding, grew 14% but were hampered by the strong pound and grew 20% in local currency.

"The company has the financial and other resources required to see through its US market development plans as well as to bring to market a number of exciting and innovative product developments," said chairman Nigel Keen.

Deltex shares were down 9.30% to 4.20p at 11:33 on Wednesday.