Deltex Medical Share Discussion Threads

[the count] 26/7/2017 10:04

--->BUYWELL3

You said precisely that in the 3rd line of your post 8915.

[buywell3] 26/7/2017 08:40

Took them 6 months


9 June 2017


Chairman's Statement to Annual General Meeting

In the USA, our key development territory, we have continued both to add new accounts and increase probe revenues.

In January we reached our target of 30 platform accounts and, since then, we have added a further two key accounts: a major University Hospital in our West Coast territory and, in the Mid-Atlantic territory, a large hospital in the prestigious Johns Hopkins network







I said

buywell324 Jul '17 - 12:34 - 8915 of 8921 0 0 Edit
Anyone have any idea why the BOD of DEMG didn't take up all the shares this time round

They did last time so what's changed

Apart from only winning 2 accounts in the last 6 months





The Count25 Jul '17 - 13:14 - 8920 of 8921 1 0
--->BUYWELL3

You stated....'Apart from only winning 2 accounts in the last 6 months'.

Where did this come from exactly?

[the count] 25/7/2017 13:14

--->BUYWELL3

You stated....'Apart from only winning 2 accounts in the last 6 months'.

Where did this come from exactly?

DEMG's trading statement said....'Four additional major accounts added in H1 with approvals in place at two more'.

So who should we believe exactly? Do help us.

They also stated....'Pipeline expanded and increasing opportunities for spread within hospital systems once opened'.

The company have also told us that when achieving the 30 target hospitals, that they would not be announcing new accounts as they win them.

They also stated they would be concentrating most of their US resource to growing probe useage within those accounts rather than concentrate on opening new accounts.

Despite that, it cannot be a bad thing that they have continued to add these new accounts and also that their sales pipeline has grown. Or do you think otherwise?

THE COUNT!

[february 30th] 24/7/2017 13:43

You would have thought that the company is now nicely packaged for a 7-8p takeover. A bit of cash in the bank, so there is no emergency, but no immediate prospect of fireworks. But as doglover2003 has perhaps hinted at, there is the possibility of good growth in the company's products if there was the kind of cash available if a larger company took them over.

[fozdad] 24/7/2017 13:19

I hate to be picky buywell, but that was last year (the clue is in the date), last time there was a share issue, the directors stumped up for less than half the placing.

But hey, never let a fact get in the way of a de-ramp eh?

[yump] 24/7/2017 13:07

ADVFN is littered with people who clearly have nothing better to do, now that bucket shop phone selling is no longer the gravy train it used to be.

[arf dysg] 24/7/2017 12:41

Hey, Bakewell, (not that I'm saying you're a tart), why do you have to re-post the text of the announcement, and copy the announcement to tinyurl when it's already on THIS VERY PAGE??? Up above us, there it is, labelled "Deltex Medical Group PLC Share placing".

I've copied the URL here, although it's already above us, just underneath the share-price graphs, just below the "Fundamental Data" box.

[buywell3] 24/7/2017 12:34

Anyone have any idea why the BOD of DEMG didn't take up all the shares this time round

They did last time so what's changed

Apart from only winning 2 accounts in the last 6 months

IMO that had something to do with it, they bought a few granted , but last time they bought the lot.

10 March 2016

Deltex Medical Group plc

Placing and Issue of Shares

Deltex Medical Group plc (AIM: DEMG), the global leader in oesophageal Doppler monitoring ("ODM"), today announces that it has raised £516,000 by means of a placing (the "Placing"). The Company has also issued shares to certain advisers as payment for services.

Highlights

· A placing of 12,900,000 new ordinary shares of 1p each in the Company ("New Ordinary Shares") at a price of 4 pence per share (the "Placing Price")
· The Placing proceeds will be applied to working capital and to accelerate the US roll-out; and
· The issue of a further 1,566,150 New Ordinary Shares to certain advisors in settlement of fees for services supplied to the Company, at the Placing Price.

Application has been made for the 14,466,150 Ordinary Shares to be admitted to trading on AIM. The shares will rank pari passu with the existing issued shares of the Company and dealings are expected to commence on 15 March 2016.

Upon Admission, the 14,466,150 New Ordinary Shares will represent 5.3% of the Company's enlarged issued share capital, being 272,619,544 Ordinary Shares ("Enlarged Issued Share Capital") and the Company does not hold any shares in treasury.

This figure may be used by shareholders as the denominator for calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company under the FCA's Disclosure and Transparency Rules.

Confirmation of Directors shareholdings

In the placing that was announced on 3 February 2016 (the "February Placing") certain directors (or their family interests) subscribed for 14,750,000 Ordinary Shares.

[arf dysg] 24/7/2017 10:08

Hello, Gavapentin. You'll see that the bottom is in the same place it was in six months ago.

I've found the bottom!
I've found the bottom!

I'VE FOUND THE BOTTOM!



...and I didn't need a torch and a map.

[gavapentin] 24/7/2017 09:46

My 6 monthly post
;)

[doglover2003] 22/7/2017 14:48

Yump,

To achieve results two steps are required:

1) Agreement to employ the technology at the institution

2) Getting anaesthetists individually to use it

Ewan has suggested that it should take 18 months to get to 100 probes per month at a hospital. So, this is the standard that we should judge by and it can be applied to the known number of accounts 18 months plus.

Whether or not this will be achieved again comes down to convincing the individuals concerned. So, I agree with you "Selling to the entire organisation is hard work".

[buywell3] 22/7/2017 13:51

For those that are interested I have today posted what I hope is a decent researched post on another UK company small cap company that makes medical devices .

Unusually this one has cash,no debt , and makes a profit

I put this here if you are interested as a peace offering

Don't click on it though if you don't have around 45 mins to fully take it in.

[yump] 22/7/2017 11:39

doglover

Maybe financial constraint, but I think from just a business point of view, internally the question needed to be asked as to why the small number of initial US accounts ages ago provided significantly more probe revenues per account than the collection of sign-ups since then.

I went through the figures somewhere and was a bit shocked to find that quite a large proportion of current US revenues are what you might call legacy, in that those US accounts were started years ago.

Maybe it takes that long to develop them properly.

So I welcomed the change in emphasis, because chasing around opening more accounts seems a bit pointless.

I can remember when trying to sell an industrial insulation system, that we had to reign back the sales forces enthusiasm for opening new doors and get them to fully sell into the places where the first sales took place. It made a huge difference to the bottom line, although it was harder for the sales force. Trial and initial stuff is always easier. Selling to the entire organisation is hard work.

[yump] 22/7/2017 11:32

Well you'll have a better price than my average !

[bscuit] 21/7/2017 23:47

Evening all. I took part in the placing as a first [?] investment. Pity about share price fall on reasonable TS.

[doglover2003] 21/7/2017 17:30

yump,

My conclusion is that Deltex have felt financially constrained from targeting more accounts. The response of trying to obtain a higher return from existing accounts is certainly less resource intensive.

Being so financially constrained one would have expected an extra effort to be made for positive results and above trend.

Therefore, I hope you are right that they just need a bit more time than 6 months to get some real return.

H2 is indeed very important ...... and it needs Monitoring!

[buywell3] 21/7/2017 13:40

I wasn't going to say that ....... what doglover2003 said

Did I point out that only 2 accounts were added in 2017 ?
I think I did ....

Re $US earned from sales .... surely these are not a minus , hedging can be done if needed

I like companies now that transfer ops to the USA to take advantage of earning dollars

The thing is DEMG have proved that if they can get sales and accounts then others can also ........ if you get my drift ................... without mentioning any names

[doglover2003] 21/7/2017 10:31

Yump

I wouldn't get too excited about USA yet.

The key figures are H2 2016 and H1 2017.

There was no growth over this period.

Although there is an historic bias towards H2 growth ( averaging 10% to 20%)the lack of significant growth in number of accounts in H1 2017 in relation to H2 2016 means that additional volume would need to come from existing accounts. However, the lack of progress from H2 2016 to H1 2017 suggests that this may be difficult.

Also, recall that the sales force has been increased over that period and there is no obvious return from this increased resource whilst the concentration was on obtaining extra volume from existing accounts. The increase in actual sales volume can probably be explained mainly by the increase in the average of ACTIVE accounts in H1 2017 over H2 2016 which would mean that the Sales effort has not been effective.

However, I consider your estimate for H2 2017 £1.273 m to be possible but challenging when the exchange rate is going in the wrong direction.

[arf dysg] 21/7/2017 10:23

buywell3 (21 Jul '17 - 07:47) "I'm not going to say anything"

I wonder how long that will last?


buywell3 (21 Jul '17 - 08:01)

Fourteen minutes.



As for today's news, it is a small placing compared to many others.

I'm glad to see they're getting costs under control. Cost reduction and production improvement is absolutely the right thing to do.

[yump] 21/7/2017 08:21

For those who are interested in actual analysis, this is what will happen if the 20% growth in probe sales gives for example 25% growth in second half. I have assumed that the 20% growth referred to is in comparison with 1st. half 2016 and also that the 25% is applied to 2nd. half 2016 to get the 2nd. half 2017 figure:

I'd be hoping for some signs of acceleration in growth rate, but at the moment its pretty linear.

Even so the power of compounding means that 2017 US probe sales would almost have doubled in 2 years:

Full year US probe sales:
2017 £2.3mln (estimate)
2016 £1.87mln
2015 £1.33mln

Half year figures:

2017 1273 2nd. half
2017 1018 1st. half
2016 1021 2nd. half
2016 848 1st. half
2105 725 2nd. half
2015 608 1st. half

IF it starts accelerating as well, 2018 is going to provide some fireworks imo.

[buywell3] 21/7/2017 08:05

Yes it reads very well ....................................... for some

dyor as always IMO only etc etc , GLA

[chrisdgb] 21/7/2017 08:04

Indeed, nice summary, all about the US and that is in good shape/traction improving so happy to add...

[buywell3] 21/7/2017 08:01

I have said what I think somewhere else

I am starting to feel sorry for folks here