27th Jan 2016 08:38
LONDON (Alliance News) - Deltex Medical Group PLC shares dropped in early trade on Wednesday after the company said its sales for 2015 were broadly flat year-on-year but added that it was seeing a decline in revenue from the UK.
Shares in the company, which makes oesophageal Doppler monitoring technology, were down 16% to 4.7 pence early Wednesday, one of the worst performers in the AIM All-Share.
The company said revenue for 2015 was around GBP6.4 million, compared to GBP6.5 million a year earlier, as good growth in the US and other export markets for the group was offset by a 21% fall in probe revenue in the UK and a further fall in monitoring revenue due to cuts to National Health Service funding.
US probe revenue was up 31%, driven by the addition of new platform accounts. Deltex said Wednesday it had added another account to its US platform programme in the Great Lakes territory. The contract is with a hospital in the area and is the third new platform contract won in the Great Lakes area since Deltex first won a deal there in the first quarter of 2015. It said the hospital, which will use 500 probes in the first year in colorectal surgery, is the flagship of a seven hospital chain, and it expects the contract will be extended to the other six hospitals later in 2016.
Elsewhere, international probe revenue rose 26%, though was held back by the weakness of some currencies to sterling.
"Deltex Medical enters 2016 with growing traction in the US and other export markets driving overall momentum and reducing its exposure to the challenging UK market," said Nigel Keen, Deltex's chairman.
"In addition to the returns we are beginning to see from our investment in the US market, we are expecting to see increasing returns over the next twelve months from investments we have made in product development and further operational improvements which start to roll-out in the first quarter of 2016," Keen added.
By Sam Unsted; [email protected]; @SamUAtAlliance
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