14th Jan 2015 08:51
LONDON (Alliance News) - Deltex Medical Group PLC shares declined on Wednesday after the company said it expects its loss to be wider than market expectations, as its sales were hit by National Health Service de-stocking in the UK and by contract delays in its international business.
Deltex said it expects its losses to be around GBP1.2 million wider than market expectations. According to Morningstar, brokers are forecasting a GBP2.3 million loss for the company at present, suggesting Deltex expects its loss for the year to the end of December to be around GBP3.5 million.
Deltex expects group sales to fall to GBP6.5 million from GBP7.2 million for the year, hit by problems in its UK and International arms.
In the UK, surgical probe revenue was down 20%, with Deltex attributing the fall to de-stocking by NHS organisations amidst cuts to government funding. The group is refocusing its UK sales and marketing operation for 2015 as a result of the issues.
In Deltex's International business, overall surgical probe revenue dropped 29% owing to a number of anticipated major orders not being completed by year-end.
Its US arm held up better, with surgical probe revenue rising 14% on a reported basis and 20% in constant currencies.
Deltex shares were down 11% to 3.875 pence on Wednesday morning, one of the worst performers in the AIM All-Share.
By Sam Unsted; [email protected]; @SamUAtAlliance
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
Deltex Medical