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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Deltex Medical Group Plc | LSE:DEMG | London | Ordinary Share | GB0059337583 | ORD 0.01P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 0.135 | 0.13 | 0.14 | 0.135 | 0.135 | 0.135 | 104,139 | 08:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Electromedical Apparatus | 2.48M | -1.15M | -0.0006 | -2.17 | 2.4M |
From Apr 2019 to Apr 2024
TIDMDEMG
RNS Number : 3024Q
Deltex Medical Group PLC
11 September 2017
Deltex Medical Group plc
("Deltex Medical" or "the Company")
Interim results for the six months ended 30 June 2017
11 September 2017 - Deltex Medical Group plc (AIM: DEMG), the global leader in oesophageal Doppler monitoring ("ODM") today announces its results for the six-month period ended 30 June 2017.
Statutory results
-- Revenue up 7% to GBP2.9m (H1 2016: GBP2.7m) -- Gross margin increased to 76% (H1 2016: 64%) -- Operating cash costs reduced by GBP0.3m to GBP2.9m (H1 2016: GBP3.2m) -- Cash operating loss reduced by 57% to GBP0.6m (H1 2016: GBP1.4m):
-- Net cash used in operating activities was GBP0.4m, GBP1.1m (73%) lower than in H1 2016 (GBP1.5m)
-- Cash available of GBP0.2m (31 December 2016, GBP0.6m) with GBP0.5m additional capital raised in July
Key performance measures (vs. H1 2016)
-- US probe revenues up GBP0.2m, 21%, at GBP1.0m -- Total US revenues up GBP0.3m, 35% (20% local currency), at GBP1.2m o Target of 30(th) platform account achieved o Two further large hospitals added since with additional accounts pending
-- International probe and total revenues down GBP0.1m (9%) due to timing differences on distributor orders: satisfactory progress with end user sales
-- UK probe revenues at GBP0.7m down 12% with total UK revenues at GBP1.0m down 3%
Operating Highlights
-- US sales development continues progress -- Margin improvement following manufacturing process changes -- Veterinary system introduced in H1 for launch in H2
-- High Definition - Impedance Cardiography (HD - ICG) added to CardioQ-ODM+ platform in H1: full launch into export markets in H2 subject to regulatory approvals
-- Unique offer to customers from combining the three leading advanced haemodynamic technologies on a single monitoring platform
-- Additional new product releases in the pipeline
Nigel Keen, Deltex Medical's Chairman, commented:
"In the first half of 2017, Deltex Medical increased its sales, improved its margins and reduced its costs. We are therefore substantially on course to reach our key short-term objective of moving through the operating cash break-even point.
"The Company entered the traditionally stronger second half with sales traction in its US and International businesses, a difficult but improved UK trend and the prospect of incremental returns from investments made in product development. The move from a single to a multiple technology platform increases significantly the Company's marketing, commercial and strategic options."
There will be an Investor Event this evening, 11 September, at El Vino Masons Avenue, 12-14 Masons Avenue London, EC2V 5BT from 18:00 and will take the form of a Company presentation followed by a Q&A session.
Investors and shareholders who wish to attend the event should register their interest here:
https://www.eventbrite.co.uk/e/deltex-investor-event-tickets-37415825742
There will be a management webinar for investors on 12 September 2017 at 12.45pm. If you would like to join the webinar, please register here:
https://www.equitydevelopment.co.uk/2017/08/30/deltex-medical-webinar-tuesday-12th-september-1245pm/
The presentations from both events will also be made available on the Company's website.
For further information, please contact:-
Deltex Medical Group 01243 774 837 plc investorinfo@deltexmedical.com Nigel Keen, Chairman Ewan Phillips, Chief Executive Jonathan Shaw, Group Finance Director Nominated Adviser & Broker Arden Partners plc 020 7614 5900 Chris Hardie Ciaran Walsh Joint Broker Turner Pope Investments 0203 621 4120 (TPI) Ltd jess@turnerpope.com Ben Turner James Pope Financial Public Relations IFC Advisory 0203 053 8671 Tim Metcalfe Graham Herring Heather Armstrong
Notes for Editors
Deltex Medical manufactures and markets haemodynamic monitoring technologies. Deltex Medical's proprietary ODM is the only technology to measure blood flow in the central circulation in real time. Minimally invasive, easy to set up and quick to focus, the technology generates a low-frequency ultrasound signal, which is highly sensitive to changes in flow and measures them immediately. Deltex Medical has been the only company in the enhanced haemodynamic space to build a robust and credible evidence base proving the clinical and economic benefits of its core technology, ODM which is proven to reduce complications suffered by patients after surgery and save hospitals the costs of treating those complications.
Deltex Medical's CardioQ-ODM+ platform also now provides clinicians with two further advanced haemodynamic monitoring technologies. High Definition Impedance Cardiography is an entirely non-invasive monitoring technology which creates an electrical field across the chest and measures the disruption to this field when the heart pumps blood. Pulse Pressure Waveform Analysis uses peripheral blood pressure signal analysis to give doctors information on changes in the circulation and is particularly suited to monitoring lower risk or haemodynamically stable patients.
Company goal
Haemodynamic management is now becoming widely accepted as an important major new medical modality. Consequently, the Company's focus is on maximising value from the opportunities presented as enhanced haemodynamic management is adopted into routine clinical practice around the world. The Company aims to provide clinicians with a single platform, a 'haemodynamic workstation', which offers them a range of technologies from simple to sophisticated to be deployed according to the patient's condition and skill and expertise of the user. Doing this will enable the Company to partner healthcare providers to support modern haemodynamic management across the whole hospital.
The Company is currently in the implementation phase of achieving this goal in a number of territories worldwide, operating directly in the UK, USA, Spain and Canada and through distribution arrangements in a further 30 countries.
There are over 3,400 monitors installed in hospitals around the world and around 700,000 patients have been treated to date using Deltex Medical's single patient disposable products.
Chairman's statement
Overview
In the first half of 2017 Deltex Medical made good progress in delivering increasing returns on the investments it has been making in developing its business.
Group revenues rose by 7% to GBP2.9m, continuing the export-led return to growth reported in the second half of 2016. This, combined with increased margins and reduced costs, meant the Company achieved significant reductions in both actual and underlying cash consumption in line with its primary objective of getting past the operating cash break-even point. Net cash used in operating activities was GBP0.4m which is GBP1.1m (73%) lower than in H1 2016 (GBP1.5m).
The operating loss before non-cash costs was over GBP0.8m (57%) lower at GBP0.6m (H1 2016: GBP1.4m): the operating loss before non-cash items in the traditionally stronger second half was GBP0.4m in 2016.
Since 2014, Deltex Medical has invested in building a US market position primarily through hiring additional sales staff with a peak incremental cost of c. GBP100,000 per month in 2015/16. In January 2017, we reached a key milestone target in opening our 30(th) US platform account and, since March, the margin on US sales has broadly covered all regular US staff costs (excluding bonuses). US revenues were up by GBP0.3m (35%) in the first half to GBP1.2m (20% growth in local currency).
In January, we introduced a series of probe manufacturing process changes with average monthly savings of over GBP30,000. These efficiency gains are the primary driver of an increase in gross margins on consumables to 80% (H1 2016: 70%).
The third major area of recent investment has been in product development as we have sought to move from being a single technology business to a provider of haemodynamic monitoring platforms. We expect to see revenue contributions in the second half from the two new products released in the first half: non-invasive High-Definition Impedance Cardiography (HD-ICG) as an additional haemodynamic monitoring modality on our CardioQ-ODM+ platform. The addition of non-invasive HD-ICG means that we are the first advanced haemodynamic monitoring company to offer hospitals a complete monitoring solution from infant to geriatric, from awake to anaesthetised and from the clinic to the intensive care unit. We have also launched the Vet-Q system aimed at the veterinary market. We have been encouraged by positive customer feedback to date on both of these new products in advance of wider launches in the coming weeks.
We have additional products in development which will add further capabilities to the CardioQ-ODM+ platform.
This new configuration and broadening of our product offering allows us to substantially move our commercial strategies forward. In particular, uniquely, we can now offer a broad range of haemodynamic monitoring capabilities alongside the gold standard ODM guided intervention on a single monitor. This enables hospitals to improve patient safety as well as providing healthcare quality improvement whilst at the same time offering hospitals procurement efficiencies from using a single system for this type of monitoring throughout the hospital.
Pro forma results
For the six month period ended 30 June 2017
Hot Features
Premium
Half Half Full
year year year
2017 2016 2016
GBP'000 GBP'000 GBP'000
--------------------------- --------- --------- ---------
Consumable revenues
Probes 2,377 2,318 5,458
Other 172 146 331
---------------------------- --------- --------- ---------
Total consumable revenue 2,549 2,464 5,789
---------------------------- --------- --------- ---------
Cost of sales- consumable (522) (743) (1,483)
---------------------------- --------- --------- ---------
Gross profit consumables 2,027 1,721 4,306
---------------------------- --------- --------- ---------
Monitor and sundry income
Sundry income/(expense)* 28 12 (5)
Net monitor income less
costs** 213 75 253
---------------------------- --------- --------- ---------
241 87 248
Cash costs (2,907) (3,176) (6,176)
---------------------------- --------- --------- ---------
Loss before non-cash
costs (639) (1,368) (1,622)
---------------------------- --------- --------- ---------
Non- cash costs (443) (355) (747)
---------------------------- --------- --------- ---------
Operating loss (1,082) (1,723) (2,369)
---------------------------- --------- --------- ---------
* Included in Sundry income/(expense) are 3(rd) party revenues of GBPNil (2016: GBP20k).
** Net monitor income Half Half Full
less costs comprises: year year year
2017 2016 2016
GBP'000 GBP'000 GBP'000
-------------------------- --------- --------- ---------
Revenue from monitors
sold 239 130 360
Maintenance revenue 37 37 74
Cost of sales - monitors (63) (92) (181)
--------------------------- --------- --------- ---------
Total 213 75 253
--------------------------- --------- --------- ---------
Trading results
Consumable revenues at GBP2,549,000 were GBP85,000 (3%) ahead of 2016. An increase in ODM probe revenues of GBP182,000 (21%) from USA and a GBP26,000 (18%) increase in third party consumable sales in the UK were partially offset by a GBP90,000 (12%) decrease in UK probes and a GBP33,000 (5%) decrease in International probe sales. Within the International business, probe sales to European distributors were GBP37,000 (7%) ahead, whereas probe sales to ROW distributors were GBP75,000 (47%) lower as a result of timing differences on large orders compared with the prior year which are expected to reverse in H2.
Gross profit on consumables was 80% (2016: 70%). In January, we implemented a new probe tip manufacturing process which has generated significant savings on every probe built. Consumable margins have also benefited from changes in mix with sales growth driven from the highest margin US business. Offsetting these gains, margins have been adversely affected by a weaker pound affecting the cost of imported components and the products we distribute for overseas manufacturers.
Net monitor and sundry income contributed GBP213,000 of net income (H1 2016: net income of GBP75,000) driven primarily by a GBP109,000 increase in monitor revenues to GBP239,000 (H1 2016: GBP130,000).
Cash costs were GBP269,000 (8%) lower than in H1 2016 despite the adverse effect of foreign exchange movements and with the full year impact of a small number of additional net cost reductions expected to come through in the second half.
The cash operating loss at GBP639,000 was GBP729,000 lower than in H1 2016 (H1 2016: GBP1,368,000). Non-cash costs were GBP443,000 (H1 2016: GBP355,000). The second half is traditionally stronger and the Company expects further improvements in profitability to come through as a result of ongoing momentum in US and other export markets and the full year impact of margin improvements and cost reductions already in place. In addition, the Company expects to see increasing returns from investment made in recent years in product development.
Cash available at 30 June 2017 was GBP188,000 before the Company raised an additional GBP550,000 of equity capital in July. The Company consumed GBP417,000 of cash in operating activities during the first half, a reduction of GBP1,113,000 (73%) compared to the prior year (H1 2016: GBP1,530,000). Over half this improvement was driven by reduced operating losses with the balance due to changes in working capital positions. In addition, the Company consumed GBP216,000 in investing activities, a GBP57,000 reduction from the prior year (H1 2016: GBP273,000) as it started to complete new product development projects.
Markets
USA
The first half year was a transitional one for our US business. In January, we reached a key milestone in our US expansion programme when we opened our 30(th) platform account. This gives us a critical mass of important hospital accounts from which to roll-out our products in the USA going forward. Since January we have added two more large hospital accounts and have a number of such accounts in the final stages of the approval processes. We are seeing our pipeline expand both from new leads and within hospital systems with established accounts.
Our intention is to maintain the platform concept going forward by keeping a particular focus on 30 strategic accounts at any one time while also continuing to increase the numbers of hospitals adopting our products: in the future, we do not intend to announce new large account wins unless they are of particular note.
Having completed the platform programme in January, we have been reviewing the deployment of our US staff to match better, the disposition of the platform accounts, pipeline and growth opportunities. We expect this process to be complete within a month and to result in a small net reduction in headcount over Q4 2016. While this process has temporarily dampened growth in those territories affected, it has also brought forward the Company's second key US milestone of eliminating its regular investment in additional US staff costs. Since it started its US expansion programme, the Company's investment in building a US salesforce peaked at around GBP100,000 a month in 2015/16 in respect of regular monthly costs (all payroll costs excluding bonuses). In the six months from March to August inclusive the gross margin on US revenues was approximately equal to regular US payroll costs: between March and June, before the traditionally slower summer months of July and August, the margin on probe sales alone was sufficient to cover the regular US payroll costs.
UK
UK ODM probe sales of GBP662,000 were GBP90,000 (12%) lower than prior year (H1 2016: GBP752,000). The impact of this on total UK sales was partially offset by higher monitor sales (GBP82,000; H1 2016: GBP32,000) and a GBP5,000 increase in other sales. The overall decline in UK sales of GBP35,000, while disappointing, represents signs of stabilisation in a market that remains very challenging. Probe sales in July and August continued the overall H1 trends of modest declines. The Company has adjusted its UK sales and marketing costs in order to preserve the year to date cash generation of the UK business at broadly the same levels as 2016.
Whilst the manufacture of HD-ICG modules is ramping up we have used the small initial stock of modules which have been delivered to start to build a pipeline in the UK and have been pleased with the positive clinical response in particular for awake patients in both critical care and surgery. We plan a full launch after receipt of our main stocking order scheduled for later this month. The addition of HD-ICG to our existing ODM and PPWA offers mean that we are now moving our marketing focus from ODM led interventions to broader patient monitoring.
International
International probe revenues were GBP685,000. This was GBP33,000 (5%) behind the prior year. Probe sales to European distributors were up by GBP37,000 (7%) to GBP557,000 (H1 2016: GBP520,000), whereas probe sales to Rest of World distributors were down GBP75,000 (47%) at GBP83,000 (H1 2016: GBP158,000). European probe sales were underpinned by continuing solid performance in France and Scandinavia with 9% growth in probe sales to France, our largest export market by volume. The decline in Rest of World probe sales is due to timing differences on sales to our distributors in Peru and South Korea, both of whom report underlying growth in their sales to third parties. Since 30 June 2017, our Peruvian distributor has been awarded tenders to supply additional hospitals; monthly run-rates of probe sales to hospitals in Korea have stepped up satisfactorily since the Government put in place revised reimbursement for ODM probes in Q1. The Company expects this underlying growth to come through in higher sales to the distributors in the second half.
International monitor sales of GBP37,000 include the revenue from the first sale of our new Vet-Q system. Monitor sales were GBP51,000 lower than in H1 2016 (GBP88,000) due to the inclusion in the first half in 2016 of a large monitor sale to our South Korean distributor at a very low margin.
Outlook
In the first half of 2017, Deltex Medical increased its sales, improved its margins and reduced its costs. We are therefore substantially on course to reach our key short-term objective of moving through the operating cash break-even point.
The Company entered the traditionally stronger second half with sales traction in its US and International businesses, a difficult but improved UK trend and the prospect of incremental returns from investments made in product development. The move from a single to a multiple technology platform increases significantly the Company's marketing, commercial and strategic options.
Condensed Consolidated Statement of Comprehensive Income
for the six-month period ended 30 June
Half Half Half Half Half Half Full Full Full
year year year year year year year year year
2017 2017 2017 2016 2016 2016 2016 2016 2016
Probes Other Total Probes Other Total Probes Other Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
----------------- -------- --------- --------- --------- --------- --------- --------- --------- ---------
Total revenue 2,377 500 2,877 2,318 372 2,690 5,458 873 6,331
Total cost
of sales (402) (292) (694) (650) (309) (959) (1,250) (752) (2,002)
------------------ -------- --------- --------- --------- --------- --------- --------- --------- ---------
Gross profit 1,975 208 2,183 1,668 63 1,731 4,208 121 4,329
Administrative
expenses (1,088) (1,175) (2,197)
Sales and
distribution
costs (1,949) (1,971) (4,037)
Research and
development
and Quality
and regulatory (228) (308) (464)
Total costs (3,265) (3,454) (6,698)
Operating loss* (1,082) (1,723) (2,369)
Finance income - 1 1
Finance costs (82) (73) (150)
------------------ -------- --------- --------- --------- --------- --------- --------- --------- ---------
Loss before
taxation (1,164) (1,795) (2,518)
Tax credit
on loss 71 85 142
------------------ -------- --------- --------- --------- --------- --------- --------- --------- ---------
Loss for the
period (1,093) (1,710) (2,376)
------------------ -------- --------- --------- --------- --------- --------- --------- --------- ---------
Other
comprehensive
income
Items that
may be
subsequently
reclassified
to profit or
loss:
Net translation
differences
on overseas
subsidiaries (14) 122 234
------------------ -------- --------- --------- --------- --------- --------- --------- --------- ---------
Other
comprehensive
expense for
the period,
net of tax (14) 122 234
------------------ -------- --------- --------- --------- --------- --------- --------- --------- ---------
Total
comprehensive
loss for the
period (1,107) (1,588) (2,142)
------------------ -------- --------- --------- --------- --------- --------- --------- --------- ---------
Total
comprehensive
loss for the
period
attributable
to:
Owners of the
Parent (1,116) (1,586) (2,137)
Non-controlling
interests 9 (2) (5)
------------------ -------- --------- --------- --------- --------- --------- --------- --------- ---------
(1,107) (1,588) (2,142)
----------------- -------- --------- --------- --------- --------- --------- --------- --------- ---------
Loss per share
- basic and
diluted (0.4p) (0.7p) (0.9p)
------------------ -------- --------- --------- --------- --------- --------- --------- --------- ---------
*Operating
loss comprises:
Cash loss (639) (1,368) (1,622)
Non - cash
charges (net) (443) (355) (747)
------------------ -------- --------- --------- --------- --------- --------- --------- --------- ---------
Operating
loss (1,082) (1,723) (2,369)
------------------ -------- --------- --------- --------- --------- --------- --------- --------- ---------
Condensed Consolidated Balance Sheet
at 30 June 2017
Unaudited Unaudited Audited
30 June 30 June 31 December
2017 2016 2016
Note GBP'000 GBP'000 GBP'000
------------------------------------ ---------- ---------- ------------
Assets
Non - current assets
Property, plant and equipment 284 486 431
Intangible assets 2,521 2,137 2,396
--------------------------------- ---------- ---------- ------------
Total non-current assets 2,805 2,623 2,827
Current assets
Inventories 921 922 760
Trade and other receivables 1,858 2,077 2,499
Current income tax recoverable 178 210 107
Cash and cash equivalents 188 518 582
--------------------------------- ---------- ---------- ------------
Total current assets 3,145 3,727 3,948
--------------------------------- ---------- ---------- ------------
Total assets 5,950 6,350 6,775
--------------------------------- ---------- ---------- ------------
Liabilities
Current liabilities
Borrowings 7 (706) (563) (858)
Trade and other payables (2,223) (2,137) (2,414)
--------------------------------- ---------- ---------- ------------
Total current liabilities (2,929) (2,700) (3,272)
Non-current liabilities
Borrowings 7 (983) (1,028) (967)
Provisions (259) (117) (119)
--------------------------------- ---------- ---------- ------------
Total non-current liabilities (1,242) (1,145) (1,086)
--------------------------------- ---------- ---------- ------------
Total liabilities (4,171) (3,845) (4,358)
--------------------------------- ---------- ---------- ------------
Net assets 1,779 2,505 2,417
--------------------------------- ---------- ---------- ------------
Equity
Share capital 8 2,968 2,745 2,849
Share premium 32,570 31,922 32,269
Capital redemption reserve 17,476 17,476 17,476
Other reserves 4,733 4,669 4,685
Convertible loan note
reserve 84 84 84
Translation reserve 246 148 260
Accumulated losses (56,139) (54,374) (55,037)
--------------------------------- ---------- ---------- ------------
Equity attributable to
owners of the Parent 1,938 2,670 2,585
Non-controlling interests (159) (165) (168)
--------------------------------- ---------- ---------- ------------
Total equity 1,779 2,505 2,417
--------------------------------- ---------- ---------- ------------
Condensed Consolidated Statement of Changes in Equity
for the six month period ended 30 June 2017
Equity attributable to owners of the Parent
Capital Convertible Non-controlling
Group Share Share redemption Other loan Translation Accumulated interest Total
capital premium reserve reserve note reserve losses Total equity
reserve
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
--------------- --------- --------- --------------- --------- ------------ ------------- ------------- --------- ---------------- ---------
Balance
at
1 January
2016 2,196 30,394 17,476 4,661 - 26 (52,666) 2,087 (163) 1,924
Comprehensive
income
Loss for
the period - - - - - - (1,708) (1,708) (2) (1,710)
Other
comprehensive
income
Exchange
movements
taken
to reserves - - - - - 122 - 122 - 122
--------------- --------- --------- --------------- --------- ------------ ------------- ------------- --------- ---------------- ---------
Total
comprehensive
income
for the
six month
period - - - - - 122 (1,708) (1,586) (2) (1,588)
--------------- --------- --------- --------------- --------- ------------ ------------- ------------- --------- ---------------- ---------
Shares
issued
during
the period 549 - - - - - - 549 - 549
Premium
on shares
issued
during
the period - 1,647 - - - - - 1,647 - 1,647
Issue
expenses - (119) - - - - - (119) - (119)
Equity
element
of
convertible
loan note - - - - 84 - - 84 - 84
Credit
in respect
of service
cost settled
by award
of options - - - 8 - - - 8 - 8
--------------- --------- --------- --------------- --------- ------------ ------------- ------------- --------- ---------------- ---------
Balance
at
30 June
2016 2,745 31,922 17,476 4,669 84 148 (54,374) 2,670 (165) 2,505
--------------- --------- --------- --------------- --------- ------------ ------------- ------------- --------- ---------------- ---------
Balance
at
1 January
2017 2,849 32,268 17,476 4,685 84 260 (55,037) 2,585 (168) 2,417
Comprehensive
income
Loss for
the period - - - - - - (1,102) (1,102) 9 (1,093)
Other
comprehensive
income
Exchange
movements
taken
to reserves - - - - - (14) - (14) - (14)
--------------- --------- --------- --------------- --------- ------------ ------------- ------------- --------- ---------------- ---------
Total
comprehensive
income
for the
six month
period - - - - - (14) (1,102) (1,116) 9 (1,107)
--------------- --------- --------- --------------- --------- ------------ ------------- ------------- --------- ---------------- ---------
Shares
issued
during
the period 119 - - - - - - 119 - 119
Premium
on shares
issued
during
the period - 307 - - - - - 307 - 307
Issue
expenses - (5) - - - - - (5) - (5)
Credit
in respect
of service
cost settled
by award
of options - - - 48 - - - 48 - 48
--------------- --------- --------- --------------- --------- ------------ ------------- ------------- --------- ---------------- ---------
Balance
at
30 June
2017 2,968 32,570 17,476 4,733 84 246 (56,139) 1,938 (159) 1,779
--------------- --------- --------- --------------- --------- ------------ ------------- ------------- --------- ---------------- ---------
Condensed Consolidated Statement of Cash Flows
for the six month period ended 30 June 2017
Unaudited Unaudited Audited
Half Half Full year
year year to
to to
30 June 30 June 31 December
2017 2016 2016
Note GBP'000 GBP'000 GBP'000
----------------------------------- ----- ---------- ---------- -------------
Cash flows from operating
activities
Net cash used in operations 5 (355) (1,492) (1,880)
Interest paid (62) (38) (96)
Income taxes received - - 160
----------------------------------- ----- ---------- ---------- -------------
Net cash used in operating
activities (417) (1,530) (1,816)
----------------------------------- ----- ---------- ---------- -------------
Cash flows from investing
activities
Purchase of property,
plant and equipment (6) (18) (26)
Capitalised development
expenditure (210) (256) (533)
Interest received - 1 1
----------------------------------- ----- ---------- ---------- -------------
Net cash used in investing
activities (216) (273) (558)
----------------------------------- ----- ---------- ---------- -------------
Cash flows from financing
activities
Issue of ordinary share
capital 402 2,059 2,508
Expenses in connection
with share issue (5) (119) (118)
Proceeds from (decrease)/increase
in invoice discounting
facility (131) (313) (109)
Repayment of borrowings - (1,000) (1,000)
Proceeds from borrowings - 1,125 1,125
Expenses in connection
with new borrowings - - (42)
Repayment of obligations
under finance leases (18) (19) (37)
----------------------------------- ----- ---------- ---------- -------------
Net cash generated from/(used
in) financing activities 248 1,733 2,327
----------------------------------- ----- ---------- ---------- -------------
Net decrease in cash
and cash equivalents (385) (70) (47)
Cash and cash equivalents
at beginning of the year 582 575 575
Exchange gain/(loss)
on cash and cash equivalents (9) 13 54
----------------------------------- ----- ---------- ---------- -------------
Cash and cash equivalents
at end of the period 188 518 582
----------------------------------- ----- ---------- ---------- -------------
1 Nature of the financial information
Deltex Medical Group plc (the Company) is a company incorporated in England and Wales. The condensed consolidated interim financial statements consolidate those of the Company and its subsidiaries (together referred to as the Group). They have been prepared in accordance with International Financial Reporting Standards (IFRS), as adopted by the European Union, in accordance with IAS 34 'Interim Financial Reporting' and on a going concern basis. These condensed consolidated interim financial statements, which are unaudited, do not include all of the information required for full annual financial statements, and should be read in conjunction with the consolidated financial statements of the Group for the year ended 31 December 2016. New standards, amendments to standards or interpretations which were effective in the financial year beginning 1 January 2017 have not required any changes to previously published accounting policies or other changes following their implementation.
These condensed consolidated interim financial statements do not constitute statutory accounts within the meaning of Section 434 of the Companies Act 2006. The summary of results for the year ended 31 December 2016 is an extract from the published consolidated financial statements of the Group for that period which have been reported on by the Group's auditors and delivered to the Registrar of Companies. The Independent Auditors' Report on the Annual Report and Accounts for 2016 was unqualified, did not draw attention to any matters by way of emphasis, and did not contain a statement under 498(2) or 498(3) of the Companies Act 2006.
These condensed consolidated interim financial statements have been prepared applying the accounting policies and presentation that were applied in the preparation of the Group's published consolidated financial statements for the year ended 31 December 2016, and are expected to be applied in the preparation of the financial statements for the year ending 31 December 2017.
These condensed consolidated interim financial statements were approved by the Board of Directors and approved for issue on 11 September 2017.
2 Revenue
Sales 2017 2017 2017 2017 2017 2017 2016 2016 2016 2016 2016 2016
Probes Monitors Probes Monitors Other Total Probes Monitors Probes Monitors Other Total
units units GBP'000 GBP'000 GBP'000 GBP'000 units units GBP'000 GBP'000 GBP'000 GBP'000
------------- ------- --------- -------- --------- -------- -------- ------- --------- -------- --------- -------- --------
Direct
markets
UK* 7,450 13 662 82 227 971 8,040 5 752 32 222 1,006
USA 5,755 7 1,030 120 8 1,158 5,785 1 848 10 2 859
Spain 180 - 20 - - 20 180 - 18 - - 18
Canada 185 - 25 - 4 29 165 - 22 - 4 26
Distributor
markets
Europe 9,565 5 557 32 15 604 9,555 3 520 11 8 540
Rest
of world 1,740 17 83 5 7 95 3,780 50 158 77 6 241
24,875 42 2,377 239 261 2,877 27,505 59 2,318 130 242 2,690
------------- ------- --------- -------- --------- -------- -------- ------- --------- -------- --------- -------- --------
1
3 Results by operating segment
The following analysis is regularly presented to the chief operating decision maker of the business, the Chief Executive Officer on a monthly basis.
Segment results include items directly attributable to a segment as well as those, which can be allocated on a reasonable basis.
The segment results for the six months ended 30 June 2017 are as follows:
Probes Other Total
GBP'000 GBP'000 GBP'000
------------------- --------- --------- ---------
Revenue from
customers 2,377 500 2,877
------------------- --------- --------- ---------
Reconciliation
to result for
the year:
Cost of goods
sold (694)
Total costs (3,265)
------------------- --------- --------- ---------
Operating loss (1,082)
------------------- --------- --------- ---------
Finance expense (82)
------------------- --------- --------- ---------
Loss before
taxation (1,164)
Tax credit
on loss 71
------------------- --------- --------- ---------
Loss for the
financial period (1,093)
------------------- --------- --------- ---------
The segment results for the six months ended 30 June 2016 are as follows:
Probes Other Total
GBP'000 GBP'000 GBP'000
------------------- --------- --------- ---------
Revenue from
customers 2,318 372 2,690
------------------- --------- --------- ---------
Reconciliation
to result for
the year:
Cost of goods
sold (959)
Total costs (3,454)
------------------- --------- --------- ---------
Operating loss (1,723)
------------------- --------- --------- ---------
Finance income 1
Finance expense (73)
------------------- --------- --------- ---------
Loss before
taxation (1,795)
Tax credit
on loss 85
------------------- --------- --------- ---------
Loss for the
financial period (1,710)
------------------- --------- --------- ---------
The segment results for the twelve months ended 31 December 2016 are as follows:
Probes Other Total
GBP'000 GBP'000 GBP'000
------------------- --------- --------- ---------
Revenue from
customers 5,458 873 6,331
------------------- --------- --------- ---------
Reconciliation
to result for
the year:
Cost of goods
sold (2,002)
Total costs (6,698)
------------------- --------- --------- ---------
Operating loss (2,369)
------------------- --------- --------- ---------
Finance income 1
Finance expense (150)
------------------- --------- --------- ---------
Loss before
taxation (2,518)
Tax credit
on loss 142
------------------- --------- --------- ---------
Loss for the
financial period (2,376)
------------------- --------- --------- ---------
4 Dividends
The Directors cannot recommend payment of a dividend (2016: nil).
5 Notes to the Condensed Consolidated Statement of Cash Flows
Unaudited Unaudited Audited
Half Half Full year
year year to
to to
30 June 30 June 31 December
2017 2016 2016
GBP'000 GBP'000 GBP'000
------------------------------- ---------- ---------- -------------
Loss before taxation (1,164) (1,795) (2,518)
Adjustments for:
Net finance costs 82 72 149
Depreciation of property,
plant and equipment 109 108 282
Amortisation of intangible
assets 85 125 143
Effect of exchange rate
fluctuations on borrowings 2 - (30)
Loss on disposal of property,
plant and equipment 1 18 23
Share based payments 72 112 25
-------------------------------- ---------- ---------- -------------
Operating cashflows before
movement in working capital (813) (1,360) (1,926)
(Increase)/Decrease in
inventories (123) (44) 53
Decrease in trade and other
receivables 600 614 447
(Decrease)/increase in
trade and other payables (87) (702) (455)
Increase/(decrease) in
provisions 68 - 1
-------------------------------- ---------- ---------- -------------
Net cash used in operations (355) (1,492) (1,880)
-------------------------------- ---------- ---------- -------------
6 Loss per share
Basic loss per share is calculated by dividing the earnings attributable to ordinary shareholders by the weighted average number of ordinary shares issued during the year. The Group had no dilutive potential ordinary shares in either year, which would serve to increase the loss per ordinary share. Therefore, there is no difference between the loss per ordinary share and the diluted loss per ordinary share.
The loss per share calculation for six months to 30 June 2017 is based on the loss after tax attributable to owners of the parent of GBP1,102,000 and the weighted average number of shares in issue of 291,220,142. The loss per share calculation for the six months to 30 June 2016 is based on the loss after tax attributable to owners of the parent of GBP1,708,000 and the weighted average number of shares in issue of 255,776,307.
7 Borrowings
Unaudited Unaudited Audited
30 June 30 June 31 December
2017 2016 2016
GBP'000 GBP'000 GBP'000
------------------------------ ---------- ---------- ------------
Current borrowings:
Invoice discounting facility 600 527 739
Convertible Loan note 90 - 90
Finance leases 16 36 29
------------------------------- ---------- ---------- ------------
706 563 858
Non-current borrowings:
Convertible Loan note 983 1,010 963
Finance leases - 18 4
------------------------------- ---------- ---------- ------------
983 1,028 967
------------------------------ ---------- ---------- ------------
Total Borrowings 1,689 1,591 1,825
------------------------------- ---------- ---------- ------------
8 Share capital
Unaudited Unaudited Audited
30 June 30 June 31 December
2017 2016 2016
GBP'000 GBP'000 GBP'000
------------------------------ ---------- ---------- ------------
296,819,511 Called up,
allotted and fully paid
(June 2016: 274,470,066,
December 2016: 284,935,182) 2,968 2,745 2,849
------------------------------- ---------- ---------- ------------
During the period, the Company issued 11,034,482 new ordinary shares of 1p each under a private placing. The company also issued 662,069 new ordinary shares of 1p each to one of the Company's advisers who elected to take shares in lieu of a cash payment for their services to the Company. These transactions were at 3.625p per share. The Company also issued 187,778 new ordinary shares of 1p each pursuant to the exercise of share options under the Company's EMI share option scheme. The exercise price for these options was 1p per share.
9 Events after the interim period
On 27 July 2017, the Company issued 16,296,296 new ordinary shares of 1 pence each at a price of 3.375p per share which was at a discount of 10% to the closing mid-market price on 20 July 2017, raising GBP550,000, before expenses, pursuant to share subscriptions dated 21 July 2017.
10 Distribution of the announcement
Copies of this announcement are sent to shareholders on request and will be available for collection free of charge from the Company's registered office at Terminus Road, Chichester, West Sussex, PO19 8TX. This announcement is also available, free of charge, from the Company's website at www.deltexmedical.com.
11 Cautionary statement
This announcement contains forward looking statements which are made in good faith based on the information available at the time of its approval. It is believed that the expectations reflected in these statements are reasonable but they may be affected by a number of risks and uncertainties that are inherent in any forward-looking statement which could cause actual results to differ materially from those currently anticipated. Nothing in this document should be considered to be a profit forecast.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR SFLEFSFWSESU
(END) Dow Jones Newswires
September 11, 2017 02:01 ET (06:01 GMT)
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