7th May 2014 11:41
LONDON (Alliance News) - Deltex Medical Group PLC Wednesday said it had performed as it expected so far in the first half of 2014, and expects strong growth in the second half of the year.
In a statement to the company's annual general meeting, Chairman Nigel Keen said the company was seeing encouraging results in the US as it added more dedicated trainer accounts.
"Our international distributors have reported an increase in end-user sales and we expect to see increased probe sales to them over the course of the year," he added.
Keen said UK surgical probe utilisation was in line with the company's expectations, growing satisfactorily. It has grown its UK trainer account base to 13, from two, over the last 16 months, and expects to add more hospitals to the programme in coming months.
However, UK revenue has lagged the consumption growth due to de-stocking in the National Health Service. The company expects most of the growth in UK surgical probe revenue to come through in the second half if the de-stocking unwinds as it has done in previous years, Keen said.
Deltex Medical added its fifth US dedicated trainer account in January, up from two a year ago, and Keen said the company expects to add more accounts during the course of the year.
The company's US strategy is to penetrate a small number of hospitals broadly and deeply in order to build a solid platform for national roll-out as clinical understanding of its products for fluid management during and after surgery rises.
Elsewhere, "our distributors have reported increases in end user sales of our products in the majority of our more important target markets including France, Scandinavia, Germany, Austria and Peru," Keen said. "These increases are expected to flow through to increased probe sales over the course of the year."
The company's joint venture in Canada has made a satisfactory start to the year and is pursuing a small number of post-evaluation tender opportunities which would give the business a significant step-up, albeit from a small base, the chairman added.
Deltex Medical Group PLC shares were down 3.9% at 12.50 pence Wednesday.
By Steve McGrath; [email protected]; @stevemcgrath1
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