Deltex Medical Share Discussion Threads

[janatha] 29/8/2019 09:38

Wonder if John Reilly will top up some more at these levels?

[schloo] 28/8/2019 09:50

DJT

Don't agree with all your analysis and I think you will find, when the interims come out, that the trading cash was positive after interest & tax in the first half. Doubt the average is more than £10,000 or £20,000 per month but that would be very good

I have it on excellent authority that none of Ewan's options were exercised in the first half, that he has exercised 2.6m since 1 July and that he intends to exercise the remaining 9.6m before the end of the year which means over £100,000 extra cash in in the second half. The second half is traditionally stronger than the first half even before the sales carried forward at end of H1 this time

FWIW Ewan does not expect to create any overhang from the option exercises

[dj trading] 27/8/2019 23:01

I note several posters here saying DEMG now profitable
But the TS says "positive adjusted EBITDA" that isn't profit in my book especially with significant interest, depreciation and amortisation charges (some of which is cash - ie interest and capitalised deve exp was £0.4m last full year)
My guess PBT for 1H19 -£0.3m or worse

And MrC2U (aka Arf) and others posting about cash generation
Hang on Cash Dec 2018 was £0.6m cash June 2019 £0.6m - ie NO Change
But Cash June 2019 includes approx £200k from the exercise of options ie fundraising that isn't mentioned in TS (Options 8.7m Jan and 10.9m May at 1p)
So Operational Cash has actually fallen by £200k


The Company of course celebrate the fact that "net cash (cash at bank less invoice discount facility drawdown) improved by £300,000 to £328,000 at the end of the period."
That's not good! - assuming collection time unchanged just means sales have reduced as they have reported - and perhaps getting worse towards period end given the percentage reduction in the Invoice Discount Facility balance at 1H19 period end compared to FY18 balance.

Rev H119 has reduced by 23% from H2 18 - no surprise given sales force has been reduced significantly (I assume they were adding some value previously?!!!!)
Rev/6 month from H117 - H119 is 2.9, 3.0, 2.3, 2.6, 2.0.

Good that the focus is on cash but the business appears to be in terminal decline to me.

Edit 08.30 28/8 - Ewan's options look like they have been exercised in H1 so comment removed and I have changed cash analysis para above

dyor imo etc.

[mrc2u] 27/8/2019 21:17

Have you told LID's management that you have found out that they are under geared?Awesome, truly awesomeMrC

[buywell3] 27/8/2019 17:19

Please cut and paste my posts with you mrc2u on the other DEMG thread so that the other posters there can see my reasoning regarding LiDCO never being interested in buying Deltex.

It seems unfair that you alone have benefited from today's tutorial


regards

buywell

[trentendboy] 27/8/2019 17:05

Boom da buywell

[mrc2u] 27/8/2019 15:50

Please ignore earlier advice to look at the accounts. It would clearly be too much for youMrC

[buywell3] 27/8/2019 13:38

With 514,868,109 shares now in issue ( see latest RNS) that number will have dropped a bit

But using it and being generous

Tangible value of the company is :

514,868,109 X 0.01p = 5,148,681p

or
--------
£51,4868
--------

So IMO based upon net tangible asset value per share the current Mkt Cap of £ 7.19M

is 139 Times what it is in fact worth.

-----------------------------------------------------------------------------------------------------


LiDCO by the same token :

Net Tangible Asset Val PS ------------- 2.1p

With 244M shares in issue should have a tangible worth of £ 5.14M

Si its prsent Mkt Cap of £ 9.65 M is not even 2 times its tangible worth V DEMG at 139 Times



LiDCO buying DEMG as mentioned on the other thread is just plain daft since DEMG valuation is currently just plain cuckoo

dyor .... and try harder next time

[buywell3] 27/8/2019 13:26

DEMG last reported :

Operating Profit ....... -0.98 M (LOSS)


But on the plus side :


Net Tangible Asset Val PS ....... 0.01 pence or ..... 1/100th of a penny a share

[mrc2u] 27/8/2019 09:38

DEMG is cash positive, profitable and worth at least twice the current market value

[buywell3] 27/8/2019 08:26

TOTAL BORROWINGS

Last Two Fiscal Year Ends

31/12/2017 --- £ 1.82 Millions

31/12/2018 --- £ 1.97 Millions


So in the above total debt has risen £ 150,000

Of which short term debt of £ 590,000 Due < 1 Yr

Note : All of the above taken today from a reputable brokers website

[buywell3] 27/8/2019 08:14

You have not answered the questions mrC2u

Is this because you don't want to know that DEMG is carrying increasing borrowings ?



(a) What is the figure for DEMG Total Borrowings ?

(b) And is it higher or lower than the previous two years ?

----------------------------------------------


You do know you will get your bottom smacked very soon by those on the other thread for coming over here don't you



mrC2u 24 Aug '19 - 10:08 - 218 of 218
0 0 0
Yes - any idiot who reads the accounts knows the details

Although clearly not every idiot

[mrc2u] 24/8/2019 13:53

Net cash increased in H1 by £300,000DEMG is cash positive, profitable and worth at least twice the current market cap

[buywell3] 24/8/2019 11:42

So having read those details mrC2u

(a) What is the figure for DEMG Total Borrowings ?

(b) And is it higher or lower than the previous two years ?

----------------------------------------------


You do know you will get your bottom smacked very soon by those on the other thread for coming over here don't you



mrC2u 24 Aug '19 - 10:08 - 218 of 218
0 0 0
Yes - any idiot who reads the accounts knows the details

Although clearly not every idiot

[mrc2u] 24/8/2019 10:08

Yes - any idiot who reads the accounts knows the detailsAlthough clearly not every idiot

[buywell3] 23/8/2019 20:53

What about the borrowings of 0.59M Due < 1 Yr

Anyone know the details ?

[mrc2u] 23/8/2019 16:59

DEMG can afford the interest several times over as they are cash positiveThey are also profitable and worth at least twice current market priceByeBye

[buywell3] 23/8/2019 15:11

8% is 100k a year in interest

These loan notes are going to get issued a lot cheaper than 6p as has already happened with some

Could be circa another 100M shares to get issued at 1.25p IMO




Partial redemption of convertible loan note



Deltex Medical Group plc (AIM: DEMG), the global leader in Oesophageal Doppler Monitoring ("ODM"), gives notice that it has issued 2,000,000 New Ordinary Shares of 1p each at a price of 1.25p each, equal to the closing share price on 17 May 2018.

As stated in the Company's shareholder circular (the "Circular"), published on 24 January 2018, it was agreed that a holding of £25,000 nominal amount of convertible loan notes could be redeemed. The holder of these convertible loan notes requested that the nominal amount be reinvested in the Company at the same price as the fundraising in January. In the light of this, the Directors have allotted 2,000,000 New Ordinary Shares of 1p each using the allotment authorities granted to the Directors at the annual general meeting of the Company on 9 June 2017.

[trentendboy] 23/8/2019 14:54

Insane 8% but I guess risks of losing it all are very high - way off 6p.

Warrant stuff is a little confusing but looks like everything is way underwater

[bigt20] 23/8/2019 14:39

I think you are right mrC2u

[janatha] 23/8/2019 14:14

mrC2u

Agreed.

[mrc2u] 23/8/2019 14:08

Wouldn't read too much into price movements in a small company on low volumes in AugustThese will be much higher after the interims are out. Shame we will have to wait until late September for that: they used to be much more prompt. But expect a decent move up once everyone back to work after summer holidays MrC

[buywell3] 23/8/2019 12:49

A subscription raising £1.125 million by way of new convertible loan notes due 2019 ("Loan Notes") with an interest rate of 8% and a conversion price of 6 pence.

The Loan Notes are repayable in full on the third anniversary of their date of issue although they may be prepaid in whole or in part at the Company's discretion at any time.


Loan Notes



The Company intends to raise £1.125 million by the issue of the Loan Notes. Of these, Imperialise Limited (a company associated with Nigel Keen, non-executive Chairman of the Company), has agreed to subscribe for £500,000 nominal amount of the Loan Notes.



The Loan Notes are unsecured and interest is payable at 8% per annum.

The Loan Notes are repayable in full on the third anniversary of their date of issue although they may be prepaid in whole or in part at the Company's discretion at any time.



The Loan Notes are convertible at any time up until repayment into 18,750,000 ordinary shares at the effective price of 6p, being a premium of 30 per cent. over the share price at close of business on 2 February 2016 and a premium of 50 per cent. over the Issue Price.

The Company can also enforce conversion if the ordinary share price is equal to or exceeds 18p for any period of 30 consecutive days.

If the Company elects to prepay all or any of the Loan Notes, it will issue to the note holders warrants to subscribe for ordinary shares at 6 pence per share (at the rate of 5,000 warrants for every £300 nominal of Loan Notes repaid (and pro rata for any greater or lesser amount repaid)).

Such warrants will be exercisable within the same period as corresponds to the conversion rights previously attaching to the Loan Notes prepaid.

[trentendboy] 23/8/2019 12:37

The will be exercised and sold instantly to at least get something from the company for it goes belly up.

Looks for the sales soon

[trentendboy] 23/8/2019 12:34

The dilution has been relentless