Deltex Medical Group PLC
25 July 2006
Deltex Medical Group plc
Pre-close update on the six months ended 30 June 2006
25 July 2006 Deltex Medical Group plc ('Deltex Medical' or the 'Company'), the
AIM listed haemodynamic monitoring company, today announces an update on
progress in the six months ended 30 June 2006.
During the first half of 2006 the Company made significant further progress
towards its goal of establishing the use of its CardioQTM system as a standard
of care in the monitoring and management of patients undergoing major surgery
and in intensive care. As a result, sales for the period were in excess of £1.5
million, compared to £1.4 million in the corresponding period in 2005.
In the Company's largest market, the UK, sales continued to grow steadily, with
growth in each of probe sales, monitor sales and maintenance revenue. June was
the twentieth consecutive month when UK probe sales were higher than in the
corresponding month the year before. March was a record month for probe sales
and June the second highest ever.
The heightened level of interest in the CardioQ in the USA is yet to have a
significant impact on sales, however revenues were ahead of the corresponding
period as a result of early signs of increases in probe volumes from several of
the key accounts which the Company's small US sales team is actively supporting.
In 2005 the Company restructured its commercial relationships with its
distributors in the Far East and Latin America and sales in the first half of
the year have also shown continued progress. The Company has embarked on a
similar process with its main distributor partners in Europe. As a result all
the Company's major distributors have moved on to schedules of regular monthly
orders for probes rather than occasional stocking orders. This gives the
Company greater visibility of future orders, which assists improvements in
production and stock control. It has involved the Company supporting stock
reduction programmes by a number of its distributors leading to sales in Europe
being lower than in the first half of 2005.
Cash consumption has been in line with the Company's plans and the Directors
believe that the Company has sufficient cash resources to achieve profitability.
Nigel Keen, Deltex Medical's Chairman, commented:
'The progress we have made in each of the UK, US and Far East and Latin American
markets together with the changes we have implemented in Europe mean that we go
into the second half of the year with increasing momentum in all of our areas of
activity.'
For further information, please contact:-
Deltex Medical Group plc 01243 774 837
Nigel Keen, Chairman nigel.keen@deltexmedical.com
Andy Hill, Chief Executive andy.hill@deltexmedical.com
Ewan Phillips, Finance Director ewan.phillips@deltexmedical.com
Financial Dynamics
David Yates david.Yates@fd.com 0207 831 3113
John Gilbert john.gilbert@fd.com
Notes for Editors
Deltex Medical manufactures and markets the CardioQ monitor, which uses
disposable ultra-sound probes inserted into the oesophagus to determine the
amount of blood being pumped around the body - 'circulating blood volume'.
Reduced circulating blood volume is known as hypovolaemia, which leads to
insufficient oxygen being delivered to the organs. This causes medical
complications including peripheral and major organ failure which can lead to
death. Hypovolaemia, which is akin to severe dehydration, affects virtually
every patient having surgery because of the combined effects of pre-operative
starvation, the impact of the anaesthetic agents and trauma from the surgery
itself. Using fluids and drugs, guided by the CardioQ, to optimise the amount
of circulating blood significantly reduces post-operative complications allowing
patients to make a faster, more complete recovery and return home earlier.
The CardioQ incorporates the Company's proprietary software and a small
diameter, easy-to-use, minimally invasive, disposable oesophageal probe that is
used for transmitting and receiving an ultra-sound signal. By using this
technology, the CardioQ provides clinicians with the ability to haemodynamically
optimise critically ill patients and those undergoing routine moderate to major
surgery through the controlled administration of fluid and drugs. Haemodynamic
optimisation has been scientifically proven to improve the speed and quality of
patient recovery and reduce hospital stay.
There are already over 1,250 CardioQs currently in use in hospitals worldwide
and distribution arrangements are in place in over 30 countries. In addition,
there are currently more than 90 clinical publications on the use of the CardioQ
which have repeatedly:-
• validated the results of the Monitor against known standards for measuring
cardiac output, demonstrating that the technology works
• proved that the CardioQ works in a wide range of surgical procedures
• demonstrated that the Company's technology provides significant health and
economic benefits by helping to reduce post-operative complications and
length of hospital stays by an average of 30 to 40 per cent for a wide range
of patients.
This information is provided by RNS
The company news service from the London Stock Exchange
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