25th Jan 2019 09:07
LONDON (Alliance News) - Shares in medical devices firm Deltex Medical Group PLC jumped Friday after it forecast 2019 profitability amid a new strategy looking to trim costs.
Shares in Deltex were 26% higher at 1.20 pence on Friday.
In 2018, revenue is expected to be "slightly behind" expectations at GBP5.0 million. This is compared to GBP5.9 million the year prior. The full year pre-exceptional loss, however, is expected to be "broadly in line" with market expectations.
Cash on its balance sheet at the end of 2018 stood at GBP600,000, up from GBP200,000 the year before.
This follows the medical devices firm announcing a new strategy in September 2018 which helped to cut costs.
For the three months ended December, the firm explained it experienced "substantially improved profitability and cash generation". Deltex now expects to be earnings before interest, taxes, depreciation and amortisation positive in 2019.
During the initial phase of the new strategy, however, the firm anticipated revenue to be lower as it focused on existing customers already using its high-margin TrueVue Doppler probes. This resulted in lower revenue but higher profitability.
"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," Deltex Chair Nigel Keen said.
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