22nd Jan 2020 11:51
(Alliance News) - Deltex Medical Group PLC said Wednesday it expects positive earnings for 2019 despite a revenue decline.
The oesophageal doppler monitoring firm said it made good progress on its new strategy in 2019, with costs further reduced and more cash generated.
Deltex's cash position as at December 31 was GBP900,000, up from GBP600,000 the prior year.
Revenue for the year is set to decline by 14% to GBP4.3 million from GBP5.0 million in 2018, reflecting the implementation of the new strategy, ending the distribution of lower margin third-party products in the UK.
Despite this, Deltex said the reduction in revenue will be offset by benefits from the new strategy. As a result, the group expects to report positive adjusted earnings before interest, taxes, depreciation and amortisation.
For 2018, Deltex reported an adjusted Lbitda of GBP431,000.
Looking ahead, the group said the healthcare market is continuing to evolve, particularly in the US, as the increased focus on patient safety and reduction of avoidable complications highlight the benefits of haemodynamic monitoring.
In addition, the ongoing pressure to lower hospital-related costs is expected to be helpful to Deltex's market position and TrueVue product.
"During 2019 the management team successfully completed the reconfiguration of the group and has established a stable platform from which the business can now expand," said Chair Nigel Keen.
"With the business now stabilised, the next stage of the execution of the strategy is focussed around generating profitable growth."
Shares in Deltex, which is based in Chichester, were down 5.3% at 1.33 pence on Wednesday in London.
By Dayo Laniyan; [email protected]
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