Deltex Medical Group PLC – Results for the year ended 31 December 2018

Deltex Medical Group plc (AIM: DEMG), the global leader in oesophageal doppler monitoring, today announces its audited results for the year ended 31 December 2018.

Key financial information

• 2018 full year revenues: £5.0m (2017: £5.9m)
  
• 2018 operating loss (pre-exceptional costs and other gain): £(0.9)m (2017: £(1.9)m)
  
• H2 2018 operating profit (pre-exceptional costs): £0.1m (H2 2017: loss £(0.9)m)
  
• Q4 2018 operating profit (pre-exceptional costs): £0.4m (Q4 2017: loss £(0.2)m)
  
• Q4 2018 cash generation: £0.2m (Q4 2017: cash used: £(0.3)m)
  
• cCash at 31 December 2018: £0.6m (2017: £0.2m)

Key operating information

• increasing interest in haemodynamic monitoring from the market, due to heightened focus on patient safety
• implementation of new strategy started in June 2018:
  –  targeting profit and cash generation, over top-line revenue growth
  – lower operating costs associated with re-sized business, including substantially smaller US and UK direct sales teams
  – currently establishing a sustainable platform allowing growth to be targeted from the re-sized business
  – once a robust platform is in place, the business will start to strategically target growth
  
• lower year-on-year revenues attributable, in large part, to substantially reduced expenditure on sales and marketing in H2 2018

Nigel Keen, Chairman of Deltex Medical, said:

“I am delighted to see the profitability and cash generation in the fourth quarter of 2018, which helps to validate Deltex Medical’s new strategy.

“The Group continued to generate cash in the first quarter of 2019.”

“The focus on patient safety, from both regulators and patient advocacy groups, is increasing which is helping to create interest in Deltex Medical’s TrueVue System.”