Deltex Medical Share Discussion Threads

[sailing john] 18/1/2017 10:36

My assumption is that new US hospital accounts are breakeven at best for the first 6-12 months because of the cost of a trainer. Presumably this service is removed once enough anesthetists are proficient giving a significant hike in profitability as contracts move to supply and support only.
I think they will need to raise up to £1m this year perhaps in two smaller tranches (to reduce dilution) if they think there is going to be some price progression later this year.

[zho] 18/1/2017 10:29

Equity Development:

FY16 group revenues reached £6.3m in FY16 vs £6.2m (ex-research barter sales of £0.2m) marginally lower than the £6.4m total in FY15. KPI probe sales reached £5.4m (£5.2m) with sustained momentum from US revenues, up 40% to £1.9m in FY16, counterbalancing UK weakness. Looking ahead, with two new platform accounts added post year end, DEMG has reached a milestone of 30 US platform accounts, which could see higher margin US sales outperform other geographies for the first time in 2017.

By contrast, as flagged, UK sales declined 26% vs FY15 to £1.9m as a result of attrition and the lack of advanced haemodynamic management within the NHS. Meanwhile, revenues from international sales grew 20% to £1.7m led by France, Scandinavia, Peru and Korea, illustrating the potential in these most ODM-receptive markets.

The overall picture is of higher margin US sales on track to lead revenues from FY17. This, coupled with cost-cutting initiatives including in-house probe assembly leading to c £30,000 net savings/month, suggest margin expansion towards historical 70% levels is in sight. DEMG‘s end 2016 cash position of £0.6m, net of an £0.5m fund raise in July, provides short term funding. Pressure on sales has led to downgrades and a volatile 12-month share price performance. The current EV sales multiple of 2x implies expectations of further downgrades, although the current run rate in the US suggests DEMG could have reversed the overall financial downward trend. We will reinstate forecasts at the FY16 results due to be reported in the week of 20 March.

[yump] 18/1/2017 10:21

Thanks. Be safer to raise 500K or so I guess - no point in underinvesting when things are turning up.

In theory, if the US is still in what you might call a trial phase, with early adoption still taking place, then if the product has in most hospitals still got to be rolled out, sales should accelerate very significantly. ie. there's increasing sales from earlier hospitals plus increasing number of new hospitals.

Not quite a gravy train yet though !

[sailing john] 18/1/2017 09:57

Yump - yesish
1H burn was £1.8m or £300k/month
2H burn unknown as we don't know about other movements in working cap
I have assumed the invoice discounting facility (note 8 in 1H report) will have increased back to circa £0.8m from £0.5m giving a 2H burn of around £100k/month if other WC balances unchanged
So yes a step change move in the right direction but a further small fundraise likely imo
But everything else appears to be moving in the right direction (even if just a slowing of reduced usage in UK) and I'm impressed with US growth. Roughly one third split between UK, US and RoW.
SJ

[yump] 18/1/2017 09:06

Does this look right ?

Year end 2015: Cash of GBP0.6m: GBP3.0m (after expenses) raised in Q1 2016 to repay GBP1m convertible loan and provide additional working capital

|Interims 2016: Cash available of GBP0.5m (31 December 2015, GBP0.6m) with GBP0.45m additional capital raised in July
So that looks like a burn of about 2.0m for first half ?

Today's update: Cash at bank of GBP0.6m (1 July 2016: GBP0.95m including the fundraise announced in July 2016)
Burn of about 350K ? which is a drastic reduction.

If so, with accelerating probe sales and reducing NHS drops, perhaps this actually is now at a watershed or tipping point or whatever it should be called.

[sailing john] 18/1/2017 09:04

Has remained on watch since I sold out many years back
There appears to have been a step change reduction in cash burn in 2H
I expect a further fundraise this year but might even be profitable in 2018!?
GL - SJ

[february 30th] 18/1/2017 07:09

Last 24 US Accounts:

Monthly

012015|X
022015|
032015|X
042015|X
052015|X
062015|X
072015|
082015|
092015|X
102015|
112015|XXX
122015|XX
012016|X
022016|
032016|
042016|XX
052016|XX
062016|XX
072016|
082016|
092016|XXX
102016|
112016|X
122016|
012017|XX

Cumulative:

012015|X
022015|X
032015|XX
042015|XXX
052015|XXXX
062015|XXXXX
072015|XXXXX
082015|XXXXX
092015|XXXXXX
102015|XXXXXX
112015|XXXXXXXXX
122015|XXXXXXXXXXX
012016|XXXXXXXXXXXX
022016|XXXXXXXXXXXX
032016|XXXXXXXXXXXX
042016|XXXXXXXXXXXXXX
052016|XXXXXXXXXXXXXXXX
062016|XXXXXXXXXXXXXXXXXX
072016|XXXXXXXXXXXXXXXXXX
082016|XXXXXXXXXXXXXXXXXX
092016|XXXXXXXXXXXXXXXXXXXXX
102016|XXXXXXXXXXXXXXXXXXXXX
112016|XXXXXXXXXXXXXXXXXXXXXX
122016|XXXXXXXXXXXXXXXXXXXXXX
012017|XXXXXXXXXXXXXXXXXXXXXXXX

[february 30th] 13/1/2017 18:16

There'll be a trading update some time this month.

[gbenson1] 13/1/2017 10:35

Someone's building a stake with 150-100k buys, trying to keep under the radar, should we expect RNS shortly??

[bigt20] 12/1/2017 22:57

I wonder if bed blocking is an issue in Trusts that use ODM?

If you increase throughput in beds that are not bedblocked then bed availability may be less of an issue in those Trusts and thus people can be moved out of A&E and into wards quicker??

[arf dysg] 12/1/2017 10:04

The Americans have indeed decided to take the P out of "sulphur". I would never take the P, oh no. This may open a whole new can of worms, sick of parrot, breakfast of dog, ear of pig, etc.


Just don't get me started on the "spelling" of Microsoft products.

"traveling" instead of "travelling", "specialty" instead of "speciality"... the list goes on.

[supernumerary] 10/1/2017 21:10

She was probably concerned about its miscegenated origins - bureau from the French and -ocracy from the Greek?

Hard to understand such lexicographical pedantry when we have our own dear royal family to show us the benefits of diversity ;¬)

[doglover2003] 10/1/2017 19:28

--- > Yump

Your last post relating to bureaucracy reminds me of on incident when I was at college in 1963.

I had to write an essay on the British Political parties and I found it appropriate to use the word "bureaucracy" in relation to party organisation.

For some reason the use of this word seemed to reduce my tutor to what seemed like a state of apoplexy causing her to daub my essay in bold large red scribble ......
"THERE'S NO SUCH WORD".

What better can you expect from the loony LEFT?

I am still, today, scratching my head about it.

[troutisout] 10/1/2017 14:00

'medieval textbooks' showing your age there yump!

[yump] 10/1/2017 13:52

I've now gone to the naughty corner for repeated misspeeling bureaucracy, normally careful about speelings, so quite depressed.

Particulary as I was horrified recently by a UK chemistry school textbook spelling Sulphur as Sulfur. Although I think Sulfur might be old English, if you could do the funny old 'f' out of the medieval textbooks, which would give it some credibility.

[arf dysg] 10/1/2017 12:59

How To Spell The Word "Bureaucracy"
-----------------------------------



1) Think of "Bureau". (like a bureau de change)

2) Think of "crazy". (like the exchange rates and commission of a bureau de change)

3) You're nearly there.


Bureaucracy - coming to an organisation near you.

Come to think of it, the word "organisation" is frequently more a hope than an actual achievement.

[gbenson1] 03/1/2017 08:36

Nice start to the New Year, some buying interest, is 2017 the year??

[p1nkfish] 02/1/2017 15:42

Drag out top management of the BBC too, into the street.
No place to hide for the enemies of the people.

Come the Revolution, not long to wait.

[yump] 02/1/2017 11:16

Come the revolution brother (or sister)...

[p1nkfish] 02/1/2017 01:02

Quite a few institutions in the UK are less than fit for purpose.
House of Lords, NHS management etc.
Want to see something positive from demg before committing cash and hope they get it together. Excellent product.

[yump] 01/1/2017 13:06

Feb 30th.

Hit the nail on the head there. Quite sad really. I know we give practitioners some stick on here, but at some level there is a lack of real management over groups of clinicians.

My wife has retired from the NHS now, but the farcical lottery of getting a consulting room was something that should have been in management hands as it was a resource management issue. Unfortunately it appeared that managers were mainly concerned with hassling clinicians about targets, rather than actually managing resources.

What actually happened frequently was that the clinicians with the most clout got the room, regardless of patient needs. Or, more disturbingly, the clinical group set up as part of the latest 'project'. Early intervention groups come to mind, who suddenly got cart-blanche to block book rooms, that they then didn't use. But 'you can't use that room - its booked'. Farcical, Yes Minister at its worst.

I don't know what level it was at, but from an outsiders point of view, it seemed a case of simply putting the responsibility for managing the rooms into the hands of a manager who had absolute say over availabiliity and priority.

If that's happening with simple room allocation, what hope is there for more complex areas where decisions should be rational.

[bigt20] 31/12/2016 11:39

mrC2u29 Dec '16 - 18:33 - 8526 of 8528

Interesting how he avoided the multi centre study funded by the Spanish government.

[february 30th] 30/12/2016 08:54

The key point about CardioQ is perhaps that medicine is often divided into hermetically sealed specializations. The anesthetist's priority is to make sure the patient survives the operation undamaged. Whether the patient spends an extra day or two in hospital is unlikely to be of much interest to him or her. NHS finances, and patients, might benefit from CardioQ, but not the individual practitioner.

[mrc2u] 29/12/2016 18:33

What a surprise. No answers just opinions, mostly that you know best. Have a happy and hopefully very long holiday in Trollville by the sea