Pre-Close Statement and Trading Update
Deltex Medical Group plc (AIM: DEMG), the global leader in oesophageal Doppler monitoring, has published a pre-close statement in relation to the year ended 31 December 2018.
The Group has implemented its new strategy as set out in the interim results published on 24 September 2018, which has led to a significant reduction in operating costs, particularly in relation to sales and marketing.
The Group was able to deliver substantially improved profitability and cash generation in Q4 2018 and will provide more information in the preliminary results, which are expected to be published in April 2019. The improved Q4 2018 financial performance leads the Board to expect that the Group will be EBITDA positive in 2019.
During the initial phase of the implementation of the new strategy, lower levels of revenues were expected as the Group focussed on driving revenues from existing customers already using its high margin TrueVue Doppler probes; however, this targeted approach has enabled other costs to be significantly reduced.
These actions have created a stable business which the Board believes provides a platform from which future sales growth can be generated from Deltex Medical’s TrueVue range of haemodynamic monitoring technologies.
Overall, revenues for the year ended 31 December 2018 were slightly behind expectations at approximately £5.0 million (2017: £5.9 million) and full year losses before exceptional items are expected to be broadly in line with market expectations. Gross cash on the balance sheet at 31 December 2018 was £0.6 million (2017: £0.2 million).
Nigel Keen, Chairman of Deltex Medical, said: “The initial results from the new business strategy of building a more stable business as a result of improved profitability and cash generation are most encouraging; we are looking forward to seeing further progress during 2019.”