Deltex Medical Share Discussion Threads

[babysitter] 30/1/2023 23:39

There must be different income stream models.
Pay per probe if disposable
Pay per access to monitor if reusable
Pay monthly fee if hardware intial outlay too heavy
Etc

[haroldthegreat] 30/1/2023 21:37

if the money was in the probes and these are external and can be cleaned the probe income will evaporate ! or will it ?

[schloo] 30/1/2023 13:33

Not sure why the jitters on here. There was a good statement in December and the return to sales growth was confirmed the other day. That was achieved with the (very) old monitor.

The story gets exciting again when the new box is released. Andy posted on social media 6 hours ago from Dubai that he will be demonstrating "the soon to be released TrueVue system" at Arab Health this week. Given its 24 years since the last new box, a few 24 hours of delay now seems trivial and good to see that they are busy building an order pipeline for it.

[mrc2u] 25/1/2023 15:11

Price back down. Goes to show that you should not follow up a good statement like they had in December with a late and distinctly ordinary one in January. Where is the new box? Where is the large order that was pending?But there was growth, so problem feels like it is with the Board not the management.MrC

[gbenson1] 25/1/2023 08:00

So true amt, I too have been "invested" in DEMG from day one, perhaps one day we might see a little return, I just wish we could get out to a wider audience. I agree with some it's about time for a change at the top, we need to be more dynamic..

[amt] 25/1/2023 07:44

Great work DJ and a fair summary.
It's a long slog and still no sign of getting my loses back but we live in hope and at least a lot of lives will have been saved or improved by our investments.

[dj trading] 24/1/2023 09:24

YE TS
Rev circa £2.5m as expected
Cash burn reduced to £60k/month in 2H however, after very high 1H burn the average annual burn was still £113k/month

and no obvious progress on New monitor

22 Dec Update "...regulatory approvals needed before the New Monitor can be launched onto the market will take several more weeks to be completed, including further testing."

Jan 24th TS "the Group continues to make good progress"
No surprise to me that "weeks" likely to become months - or longer! imo

As I said previously the new monitor will need a lot of launch capital before any receipts and so I'm expecting another fundraising in 1H 23 assuming they can get it away or alternatively further significant loans from the chair

The only hope remains a bid from a competitor looking for the IP and Brand but why now if not over the last few years?

imo dyor Dave

Updated revenue and cash burn
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
2019 Rev £4.2m Gen! £23k/month - (includes contract termination receipt of £192k?)
2020 Rev £2.4m Burn £19k/month _ (Note C19 UK/US support £0.4m)
2021 Rev £2.3m Burn £77k/month _ (Note C19 UK/US support £0.3m)
2022 Rev £2.5m Burn £113k/month - (estimate based on Jan TS)

[haroldthegreat] 24/1/2023 07:50

If the probe is external can it be sterilized and reused ? If so the business model is altered..

[babysitter] 24/1/2023 07:28

This, from December 22nd - "In addition, the Group has a large advanced opportunity in the pipeline"
- has developed into a -
"Small number of substantial orders"!

[mrc2u] 24/1/2023 07:23

No idea why it took them 3 and a half weeks to put that trading update together. Bet they knew the sales number by lunch on the first working day of the year. Sales up 10% is good news even if it is only down to a single order announced last January to boost their fundraise. But no big orders yet, still no new monitor and the Chair hasn't quit. Price up to 1.5p anyone?MrC

[gbenson1] 24/1/2023 07:19

Always nice to see the company revenue increase and the potential international orders. Most importantly is the launch of the new monitor and it's increased financial worth which is still stuck in the pipeline..

[gbenson1] 18/1/2023 11:30

3 nice buy nibbles, yes their 1.29 to buy on ii, they've started circling the wagon already!!

[gnnmartin] 17/1/2023 14:31

I expect they just ran out of shares.

[bigt20] 17/1/2023 14:05

I suspect they are waiting for approval by the regulators.

BTW. it has not helped that the mm pushed their asking price to 1.4 too quickly.
It choked off demand for the shares.

[gbenson1] 16/1/2023 14:06

It's all gone quiet again just like prior to the TU, DEMG should be promoting their new monitor more rigorously and shouting from the roof tops, I know their trying to minimise spend but we need more promoting of our industry approved and accepted products. Think its gonna take news on the new monitor release and the sales opportunity mentioned in the TU to CPR the Sp back to life!! Hoping for a RNS very shortly..

[dj trading] 11/1/2023 15:23

Director remuneration in 2021 was 19.5% of turnover!!!! 2022?!!!
How do they justify that?

CEO £216k
FDs £102k (changed in May 21)
Non Execs £122k (£17k cash and £105k equity)
Total £440k on turnover of just £2.26m!!!

Share option awards
CEO
2020 4,000,000 ex price 1.325p
2021 5,000,000 es price 1.8p
2022 15,000,000 ex price 1.35p

CFO
2022 8,500,000 ex price 1.35p

Note share price has fallen 95% in the past 10 years from 25p to 1.2p ish

[dj trading] 10/1/2023 19:11

Revenue and cash flow history update - last updated 2019 sorry
Burn is cashflow movement less 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
2019 Rev £4.2m Gen! £23k/month - (includes contract termination receipt of £192k?)
2020 Rev £2.4m Burn £19k/month _ (Note C19 UK/US support £0.4m)
2021 Rev £2.3m Burn £77k/month _ (Note C19 UK/US support £0.3m)
1H22 Rev £1.2m Burn £167k/month - (receivables +100k in 1H so adj burn around £150k/month)

From the Dec TS FY Rev above 2021 so perhaps £2.5m with £1.3m in 2H
Cash at 30th June £413k and adding the recent additional loan of £250k the total cash available since July 1st is still only £663k.

Given burn likely to be £75-£100k/month I'm going to assume cash close to/at zero (excluding £250k loan) at the date of the TS (Dec 2022) so just £250k at year end? which isn't going to last more than 3 months I assume even with a lot of belt tightening

The new monitor, when it's finally approved (could be months imo given they are still testing for regulatory compliance!) is going to require launch capital before any significant receipts so I'm expecting a further fundraising in the next few months unless the Chair is willing to make further very significant loans.

All imo dyor etc.
Dave

[mrc2u] 10/1/2023 09:08

>>dogloverOK. Let me try to address what I think your points might be.Do I have £250,000? No. If I did, would I put it into DEMG? No, I would not put any more in while Keen is chair. If I had £250k and there were a new chair, I would put it in as equity not debt. Debt is toxic in small loss making companies and DEMG can not afford the interest.MrC

[doglover2003] 09/1/2023 17:04

mrC2u

It is a pity that you do not wish to address the points I make.

[mrc2u] 09/1/2023 15:40

>>dogloverI have been in DEMG for years too as have many in this thread.A new chair could reenergize the company. It has been treading water for years. There is, hopefully, going to be a new box after quarter of a century. It needs real oomph behind it, not the same platitudes.MrC

[doglover2003] 09/1/2023 11:25

Mrc

If I wasn't persistent I would have dropped DEMG many years ago.

But you are non being consistent by saying that you:

* would not lend to DEMG unsecured ( whilst Nigel is Chair)

* Nigel taking £100k back in interest is excessive

If the company needs the funding ( and you will not provide it) where is it to come from?

The Company needs continuing funding for now at least.

Anyway, what magic wand do you think a new Chairperson could wave?

The mistake that the company did make was NOT to take it Private when the opportunity was there.

[mrc2u] 09/1/2023 10:09

>>dogloverAdmirable persistence! I have no problem with Keen putting his cash into the business, but do think taking £100,000 a year back out in interest is a bit rich and worry he will be motivated to take a low ball offer.And I really, really, really think DEMG needs a new chair. He has been at it for a third of a century and it's not going that well, is it?MrC

[doglover2003] 08/1/2023 20:02

mrC2u, thanks for your reply.

Let's take this step by step.

You confirm that you would not have provided a loan as Nigel has done.
As for your reason relating to Nigel's leadership I don't think that has a bearing on on the matter that we are discussing.

The question you have to ask is why was Nigel himself prepared to make this facility available at this point of time when you would not have. I would also admit that I also would not have been prepared to make such a loan.

I am sure you will agree with me that no one other than Nigel understands where the company stands at present better having shephered the company since its incorporation, I believe.

I do not think that it a stretch to conclude that Nigel will have a pretty good idea whether Trueview is going to make sufficient difference to warrant this demonstration of support.


If you think about it how many shares could he have purchased with £250k if there had been a placing alongside a prospectus laying out the company's current position and forecast etc.

If you agree that this is a make or break time for the company compare the outcomes for Nigel between a Placing and this loan:

PLACING

High upside from rise in share price.
Downside 100 % loss of investment


LOAN

Upside limited to same rate of growth in share price but for a lower investment
Downside 100 % loss of investment including Loan

Essentially, the same financial commitment would not justify the loan unless the company could limp on to cover repayments of the new loan as well as the existing £500k.

My conclusion is that Nigel wants to demonstrate his continued belief in the company and expectation that Trueview will deliver.

If I am wrong about this then perhaps both he and I are fools.

[mrc2u] 08/1/2023 16:15

>>dogloverWell, I certainly wouldn't lend it to DEMG while Keen is still chair. Has he been chair for 33 or 34 years now?I am sure he doesn't want his career to end with DEMG going bust, but surely he would do better financially to bring in a fresh chair, thin down and refresh the Board and all that.MrC