Deltex Medical Share Discussion Threads

[gumption] 15/2/2020 16:10

I’m actually in agreement with you DJ - who made the decision for the internal hire? Nigel and the Non Execs. Who needs to go? Take a guess. Past their time.

[dj trading] 15/2/2020 15:57

gumption - I'm not blaming anyone - it was you blaming Nigel! I'm just pointing out the current CEO's CV

The current CEO has spent his entire career at Deltex and had responsibility for International Sales prior to becoming CEO and was appointed as a Director of Deltex Medical Group Ltd in 2004 (not the plc)

So he has been a senior executive at Deltex for 16 years. Is an internal CEO appointment the right way to go? Time will tell. Hope he succeeds but the focus on cash breakeven isn't usually the best way to grow a business.

They need to invest to grow or change direction.
DJT

[gumption] 15/2/2020 14:41

Erm... not as CEO, though, DJ Trading! Can’t really blame him for 30 years of blinkered chairmanship.

[dj trading] 15/2/2020 14:04

"gumption14 Feb '20 - 19:43 - 10718 of 10720
I would have hoped that Nigel would have fallen on his sword by now and stood down for some fresh blood - he is the only constant factor in Deltex’s rather gloomy looking history."

Ignoring the fact that the CEO has been with the Company for 30 years! (Doesn't appear to have any other experience outside Deltex)

[dj trading] 15/2/2020 13:55

"janatha14 10717 of 10719
Stage one - 2019 - cashflow break even. Tick."

Not really - if you take out the £322k from options (at 1p) and circa £192k one off contract termination payment in 2019
And in 1H there were beneficial other working cap movements. 2H?

So improving but not break-even on an ongoing basis yet.

[janatha] 15/2/2020 06:58

gumption

Agreed.

[gumption] 14/2/2020 19:43

I would have hoped that Nigel would have fallen on his sword by now and stood down for some fresh blood - he is the only constant factor in Deltex’s rather gloomy looking history. For a company with so much potential to still be doggedly sticking at prices like 1.275p is heart breaking (and ridiculous).

[janatha] 14/2/2020 18:01

Stage one - 2019 - cashflow break even. Tick.

Stage two - 2020 - " stable platform from which business can now expand....generating profitable growth." On the way to being ticked.

Bearing in mind the share price was 2p in June 2019 when whether DM would achieve cashflow positive was at best speculative and here we are, 8 months later, and the share price is stuck at 1.275p when we have already sailed through cashflow positive and when the management have shown enormous confidence in stage two happening by recently buying a big chunk of shares.

I hope the share price stays at 1.275p until the end of the month as I will then have the wherewithal to happily top up. The share price will bounce back up ( hopefully not before the end of the month ). Must be a risk that somebody snaps DM up with the share price at this wretched level; just as this turnaround story is finally turning. I trust that Nigel would not sell out at anywhere near these levels.

[trentendboy] 14/2/2020 15:52

No posts at all on Doomedtex board and yet this continues in increase.

I guess most have sold and moved on

[trentendboy] 13/2/2020 09:08

Interesting to compare the recent LID results with DEMG's latest trading update.

Completely different trajectories.

Really brings it home where the winners and losers unfortunately.

Cash must be very tight now and the model is too little too late

[mrc2u] 11/2/2020 16:19

They need to be out there actively finding new investors. At risk of being the broken record:New & fewer NEDsNew & fewer brokersNew financial PRThen it's a question of correcting price to value gap and seeking a buyerMrC

[janatha] 11/2/2020 14:41

Management bought shed load in mid - Dec. Wonder if Michael Stubbs or John Reilly will step up and buy a wad as DM is much better value than it was a year ago when they were buying heavily.

Also would be nice to hear some news from management on US.

[mrc2u] 27/1/2020 11:51

Juicy but at 1.50pLast chance to buy at these prices?MrC

[nobbygnome] 24/1/2020 11:36

Not much stock left on the offer on the RSP but the MMs are bidding up for well over a million shares. It won’t take much to get the price going here!

[gbenson1] 24/1/2020 08:31

That's a bit more like it!

[yump] 22/1/2020 18:21

I hope you guys do OK if you have invested recently, but I've been here too long to think that their product will sell in any volume into the markets they've been trying to get into for years. A big marketing spend won't convince clinicians. Its not like a consumer brand where you could develop a buzz. Its almost a massive set of individual sales to individual departments, with their own sets of agendas. That is very expensive, unless you've got the only product and the only solution.

[nobbygnome] 22/1/2020 18:16

>> DJ

A lot of what you say is disingenuous. For example in many markets they are not doing the selling so the reduction in head count will have no effect. Plenty of chances for growth in some of those markets.

In their own markets the growth is going to come from the US. They have made limited increases in man power there!

[dj trading] 22/1/2020 17:57

My 2019 PBT Guess -£0.4m or worse

Whilst they have addressed the cash burn it is at the cost of a much depleted sales team and with the benefit of option exercise receipts, contract termination receipt and other beneficial balance sheet movements?

On the assumption that the sales team were producing some results in the past it is likely that Revenue will continue to decline this year imo as it was only flat at £6-7m when they had a large team, NICE and US growth opportunities. I don't see how they are going to grow or even maintain sales without investing in sales and marketing. Sadly they appear to be in terminal decline as I have said before. I can't see an answer.

The best hope is a buy out - perhaps from a large player wanting exposure in a new area and able to compete with Edwards etc.

[dj trading] 22/1/2020 17:30

"Nobbygnome22 Jan '20 - 07:41 - 10700 of 10707
And of course there is the looming spectre of a takeover by one of the big boys, probably Edwards. These figures will certainly be of interest to such a company."

If Edwards were interested they would have moved long before now. Deltex is insignificant to them!

Edwards annual PBT is circa $1.2bn!!! and they have cash of $1.2bn!!!

DJT

[dj trading] 22/1/2020 17:16

Monthly cash burn
(Movement in cash balance + financing)

2010 Rev £6.3m Burn £95k/month
2011 Rev £6.3m Burn £157k/month
2012 Rev £6.8m Burn £162k/month
2013 Rev £7.2m Burn £197k/month
2014 Rev £6.5m Burn £220k/month
2015 Rev £6.4m Burn £180k/month
2016 Rev £6.3m Burn £198k/month
2017 Rev £5.9m Burn £102k/month
2018 Rev £5.0m Burn £128k/month (1H18 Burn Â;£158k/month 2H18 Burn 98k/month)

1H19 Rev £2.0m Gen. £20k/month* (*But note beneficial move of other working cap items - stock/debtors and creditors of £61k/month)

2H19*Rev £2.3m Burn £0k/month# (#Adj for £126k options and assumes circa £192k contract termination received as per RNS
Other working capital movements unknown until FY results)

*From TS 22 Jan 2020
dyor

[bigt20] 22/1/2020 14:48

ramnik00722 Jan '20 - 07:33 - 10699 of 10705

THE COUNT! was suggesting they lived within their means, years and years ago.....
I remember him saying at the AGM's (note plural).

[arf dysg] 22/1/2020 14:03

"refrained" - did not do something

"restrained" -
understated;
proceeded calmly but didn't rush wildly in;
did something to a limited extent;
talked quietly instead of shouting

[nobbygnome] 22/1/2020 12:22

The point is that on what we know the company is fundamentally undervalued. A cash flow positive medical device company should be valued at 3 times turnover so certainly above 2p. They don’t have to over emphasise that point; it is there for everyone to see!

[parsons4] 22/1/2020 11:26

At least they didn't over-do the statement, in fact they were quite refrained which is a nice change. I am quite happy to keep my holding, looking for a steady increase in profits over the next few years.

[gbenson1] 22/1/2020 10:24

Well the trading statement was a bit of a damp squib for me, it didn't tell us anything we didn't already know or assume, I guess we need some sales/contract news to move the Sp north!