14th Jul 2015 07:51
LONDON (Alliance News) - Deltex Medical Group PLC on Tuesday said its US expansion plans are on track and international revenue has increased in the first half, though the UK market remains weak amid the uncertainty caused by funding for the National Health Service.
Deltex, which makes oesophageal Doppler monitoring technology, used to measure blood flow during surgery, said it expansion plans in the US are on track, with US surgical probe revenue rising 28% in the first half to the end of June and 11 platform accounts now opened, up from six at the start of the year. It said ten further evaluations in the US have been completed, with three more underway and 11 in discussions.
In its international business, surgical probe revenue is up 19% in the first half, with the strongest growth coming in France and Peru. Monitor revenue is slightly weaker, due to strong comparatives, but the company has secured a contract in Canada.
The new deal in Canada, announced in a separate statement on Tuesday, had been expected to be signed in the second half of 2014, but now is expected to generate revenue in the second half of 2015 and will allow the company to establish its first reference accounts in the Canadian market, Deltex said.
The tender is for three years initially and covers a number of hospitals across a single province in Canada. No financial details were disclosed.
In the UK, however, Deltex said its revenue fell 13% in the first half, with surgical probe revenue falling 25% due to ongoing issues in the NHS. It expects sales to improve in the second half on the back of new product launches and said it anticipates stronger cash generation thanks to cost-cutting measures implemented earlier this year.
Shares in Deltex were up 1.2% to 6.2 pence on Tuesday morning.
By Sam Unsted; [email protected]; @SamUAtAlliance
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