10th Sep 2013 12:00
LONDON (Alliance News) - Deltex Medical Group PLC Tuesday said its pretax losses widened in the first half, as sales for some of its products declined during the period.
The medical-services company posted an increase in pretax losses to GBP1.4 million for the period ended 30 June, from GBP1.3 million last year, while revenue dipped to GBP2.9 million, from GBP3.2 million in 2012.
This was attributed to a decrease in revenue for critical care probes and a fall in what the company called "other revenue".
Deltex which specialises in oesophageal doppler monitoring said surgical probe revenues increased 12% to GBP2.3 million, from GBP2.0 million a year earlier, buoyed by growth in the UK and US.
Oesophageal doppler monitoring measures blood-flow velocity in the descending
thoracic aorta using a flexible ultrasonic probe inserted into the patient's oesophagus.
Deltex said it made an operating loss of GBP1.4 million, after posting an operating loss of GBP1.2 million last year. This was attributed to collaboration costs of GBP0.3 million compared with no such costs in 2012, after it began working with Premier Inc., a Charlotte, North Carolina-based heathcare company.
Despite pretax losses increasing, the company said it entered the second half with confidence.
"We have increased our installed base, reduced our cash costs and started a major collaboration in the USA with Premier Inc. to accelerate the creation of a mass market for our products," Chairman Nigel Keen said in a statement.
"We have made considerable progress in both the UK and USA towards establishing a critical mass of hospitals implementing our products deeply and broadly in order to deliver sustainable and accelerated growth."
The company also has started to reposition its distribution arrangements in France, Canada and Scandinavia, as these markets become more developed.
The firm did not recommend payment of an interim dividend.
Deltex shares were trading at 16.20 pence Tuesday, down 0.33 pence or 2.1%.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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