11th Sep 2014 10:48
LONDON (Alliance News) - Deltex Medical Group PLC Thursday said it has entered its second half with an increased focus on export markets, as it targets the growing US market to offset challenges in the UK.
Deltex produces oesophageal Doppler monitoring equipment, which is used to measure blood flow during surgery by generating a low-frequency ultrasound signal utilising the Doppler effect. The Doppler effect, discovered by Austrian physicist Christian Doppler, is the change in frequency of a wave for an observer moving relative to its source, such as the way in which the noise of a siren changes when it passes by.
Deltex posted a pretax loss of GBP1.6 million for the half year to end-June, widened slightly from GBP1.4 million in the previous year, although revenue rose slightly to GBP3.0 million from GBP2.9 million, as this was offset by an increase in administrative expenses.
During the first half, US surgical probe sales rose 23% at constant currency as the company increased its focus on the US market. Deltex is implementing plans to expand its US coverage based around the development of its pipeline, and is recruiting staff to cover the new territories.
Surgical probe sales in other export markets were up 16% at constant currency, as Deltex made progress through distributors in France, Sweden and Peru, and through its subsidiaries in Canada and Spain.
However, in its home market of the UK, surgical probe revenues were down 13% due to de-stocking in the first four months by the National Health Service.
Additionally, the NHS's inaction in driving the wider adoption of oesophageal Doppler monitoring equipment, and "confusion" as to its effectiveness compared to other intra-operative fluid management technologies, has held back adoption of Deltex's technology, it said.
The UK is Deltex's largest market; and the company said that momentum in this market could be restored were the NHS to publicise its revised financial mechanisms, which would provide incentive to adopt Deltex's technology.
If adoption of this technology continues to be delayed or weak from the NHS, Deltex still expects growth to come from clinical consensus as evidence reinforces the effectiveness of its technology compared to other intra-operative fluid management. Deltex said that results from important trials support this position are expected to be published in the next three to nine months.
Shares in Deltex were trading up 4.2% at 9.25 pence Thursday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
Copyright 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
Deltex Medical