25th Jul 2018 11:26
LONDON (Alliance News) - Deltex Medical Group PLC on Wednesday said second-quarter trading has not made up for a difficult first quarter, which led to leadership changes in mid-June.
For the six months to June, revenue was down to GBP2.3 million from GBP2.6 million, with probe revenue falling to GBP2.0 million from GBP2.4 million.
Deltex, which makes blood monitoring and fluid management equipment, said US revenue fell GBP200,000 due to a weaker dollar as well as ordering changes in two large accounts.
International sales fell GBP100,000 due to an inventory adjustment by a distributor, and UK revenue was down by the same figure due to tough trading associated with the UK National Health Service.
Deltex said cost reductions made earlier have started to be seen, and it expects these to continue in the second half of 2018. Cash at the end of June was GBP1.1 million, up from GBP200,00 a year prior.
Chairman Nigel Keen said: "We have responded to disappointing trading in the first half by and the leadership of the group has been changed to sharpen the focus on driving recurring revenues across our substantial user base.
"The funds we raised at the beginning of the year have enabled us to re-size the group to help us to match the current trading levels of the group."
Keen added: "We enter the traditionally stronger second half with anticipated growth in our key export markets, a more stable UK position, significantly lower costs in our US operation, higher probe margins and a slimmed down, re-focussed management team."
In mid-June, former Deltex Chief Executive Ewan Phillips left after it said it expected interim revenue to be disappointing, and it made the managing director of its main operating subsidiary Andy Mears as its new CEO.
Shares were 11% lower on Wednesday at a price of 0.89 pence each.
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