Deltex Medical Share Discussion Threads

[february 30th] 08/9/2016 15:39

www.proactiveinvestors.com/companies/stocktube/5928/deltex-medical-group-plc-poised-for-rapid-us-growth-5928.html

[bigt20] 08/9/2016 15:34

wigwammer,

The historical situation is relevant as it points to the companys track record in terms of cash outflows and fundraisings which is a pointer to its future behaviour.
This company has a reluctance to live within its means despite being asked to do so by THE COUNT at various AGMs where I was present.

[yump] 08/9/2016 15:32

US revenues appear to be growing faster than the probe numbers - no doubt there's some pricing reason for that.

I thought I'd dig a bit deeper, as on the face of it the probe numbers increase from this half compared to same period last year looks a bit tame...

There are double the number of US accounts.

Probe units in this half: 5785
Probe units in 2015 half: 5025

So that's an increase of say 750 probes which is 125 a month.

There are say 15 more accounts. So if the growth is from the new accounts, that's a paltry 8 probes a month averaged out.

That's with no growth from 2015 half year existing US accounts, which would not be good.

If there was growth from the existing accounts, then the new accounts are generating very little.

So 2 questions really:

1. Does it just take ages for new accounts to buy more than a handful of probes ?
2. Is there very little growth from earlier accounts ?

Or both ?

Only looking back I seem to remember pretty significant sales from the first US accounts, which extrapolated would have led to rapid probe sales growth.

Either I've got the figures wrong, or things don't really add up. Or at least don't look like they are going to add up very quickly.

PS.
With all the fuss about the US, what about ROW ?!!
Going from 2310 probes to 3780 probes.
That seems more worthy of excitement...?

[february 30th] 08/9/2016 15:26

What exactly were people expecting with these results? I was worried about them, not least because there hadn't been any news about new US accounts. But given one's expectations on the eve of results, they were probably as good as they could be. The US taking over from the UK in terms of probe revenue, some signs of a pick up in the UK, three new accounts in the US, continued growth in the US, growth in South Korea and France. Also, the general tone of the RNS was upbeat.

As for cash, I suppose if more money is needed in the very short-term, the placing will be close to being finalized. On the other hand, the results create a good picture, in terms of raising money on favorable terms - whether that is a loan or a placing above 4p.

Also, Deltex is now primarily an exporter, who can benefit from the continued weakness of the Pound. Of course that assumes the Pound will remain weak, which is maybe not as clear-cut as some people think.

Maybe Deltex should re-list on NASDAQ, especially given its US strength. Even move the company HQ to the US.

[wigwammer] 08/9/2016 15:05

"What makes you think the cash outflows are getting materially smaller?"Like any other holder here, I believe the US can continue to grow such that the cash requirement falls. I also anticipate (as we have seen in recent months) that as confidence builds around the story, any further dilution to cover the shrinking cash requirement can be met at a higher issue price. Therefore, less shares have to be issued = dilutions becoming marginal.I have little interest in the historic situation, because it is largely irrelevant to what happens from here on in.I'm afraid there is little subjectivity in what i am saying here, other than a belief that the company can grow. If you don't believe this then I suggest you sell your shares (though I suspect you have sold a lot of them already, possibly at not a very good price).

[bigt20] 08/9/2016 14:47

May I suggest you look at the track record of cash outflows and fund raising. What makes you think the cash outflows are getting materially smaller? I suspect the cash outflow during the first six months of this year took some by surprise.

BTW., if we have another fundraising, it doesnt make the dilution smaller, because you are increasing the number of shares in issue.

[wigwammer] 08/9/2016 14:00

"I would hardly call another cash call marginal."How can you make this claim until you know the requirement and size of the issue?Clearly, if the cash losses are shrinking and an issue is undertaken at 6p rather than 4p, then the dilution will be getting smaller.

[ramnik007] 08/9/2016 13:26

Share issue rot: probably when NHS rot stops and US reaches 2000 probes / month or International grows @ 30%

[bigt20] 08/9/2016 13:21

At say 6p., I would hardly call another cash call marginal.

When will the share issues stop?

[wigwammer] 08/9/2016 13:06

Sort of.We haven't had an answer to your point, but the shares are nearly 50% above the last cash call.Key point - even if there is further dilution coming, it will likely be marginal as cash losses fall and confidence in the story rises (with commensurate price rise).

[bigt20] 08/9/2016 12:57

We need an answer to this:


BigT205 Sep '16 - 21:58 - 8347 of 8360 0 0 Edit
It will be interesting to read what the company is going to do in order to achieve
an increase in the balances of cash and cash equivalents (please see cashflow statement in the Accounts if you do not understand)without a fundraising and/or the working capital being run down.

[gnnmartin] 08/9/2016 12:40

Wayward, it is just the spread widening so far, but at least there is not significant selling pressure, well, so far!

[gnnmartin] 08/9/2016 12:35

US news is comforting, UK news is shocking (again).

[waywardlad] 08/9/2016 12:33

Well, someone likes the results, or mms playing games again:-)

Maybe willi is loading up!

[arf dysg] 08/9/2016 09:47

"a once and for all open offer"


"once and for all" - haha hahaha ha!

"no more placings" - ha ha ha haaaaaaaaaaaaaaa

ha haha haha haha haa haa haa haa haa
haa haa hahaha hahaha hahaha


"We won't do it again, we promise!"

Haaaaaaaaaaaa

Cough, choke, splutter!

Ow! My aching ribs!

gasp

[dj trading] 08/9/2016 08:18

Cashburn £300k/month
(-70k movement and £1733k financing)
(less than my estimate from the July TS based on limited detail)

Presumably fundraising imminent given YE cash £0.5m and post YE placing raised only £0.45m

[bigt20] 08/9/2016 08:08

And dilute us yet again, wonderful!

[parsons4] 08/9/2016 07:49

I think they will need to raise more capital, hopefully a once and for all open offer to take them into "cash breakeven" That would be the right thing to do !!!

[bigt20] 08/9/2016 07:43

Stabilising the UK sales is vital.

[yump] 08/9/2016 07:29

I think that 'positioning' post might have been on the wrong thread, it makes no sense at all.

Anyway, looks like they are delivering on what they said previously.

[wigwammer] 07/9/2016 23:38

??? They've already given us a big heads up on the results in the pre close statement. Hint: it doesn't look that great.Point is, will they release something else with the detail (fingers crossed) or not (oh b*gger).

[djgrantb] 07/9/2016 19:45

If today's positioning ahead of the result tomorrow is anything to go by, where in for weaker results. All will be revealed at 0800 local.

[ramnik007] 06/9/2016 08:46

Lets hope cash burn rate has slowed significantly, and both US & other international markets are gaining more traction since last update. Perhaps wishful thinking!

[bigt20] 05/9/2016 21:58

It will be interesting to read what the company is going to do in order to achieve
an increase in the balances of cash and cash equivalents (please see cashflow statement in the Accounts if you do not understand)without a fundraising and/or the working capital being run down.