29th Sep 2005 07:04
Deltex Medical Group PLC29 September 2005 Deltex Medical Group plc Interim results for the six months ended 30 June 2005 29 September 2005 - Deltex Medical Group plc ("Deltex Medical" or "Company"),the AIM listed haemodynamic monitoring company, today announces its results forthe six month period ended 30 June 2005. Financial Highlights • Turnover increased by 24% to £1.4 million • Loss reduced by over £1 million to £1.1 million • £500,000 in new equity finance • Cash burn rate reduced to lowest in Company's history • Sufficient cash to see Company to profitability Operating Highlights • Sales growth driven by probe sales • Probe sales increased in all key target markets • Continued expansion in UK sales pipeline; conversion into sales hampered by NHS Trust financial deficits • Company configured to reach profitability even in difficult UK market conditions • Improved prospects in UK private hospitals as well as NHS • New users in US military hospitals and Northern European intensive care and operating theatres Nigel Keen, Chairman of Deltex Medical, said: "In the first half of 2005 wecontinued to make steady progress in all our key target markets towards our goalof making haemodynamic optimisation a standard of care for patients undergoingmoderate and major surgery. "In the UK, the desire by doctors to use our products is growing significantlymore quickly than sales while NHS hospitals react to wide-spread reform of themarket by cutting to the bare minimum investment in innovative technologies "The Company is configured to reach profitability with its current cashresources, either very quickly through monitor sales or, if necessary, over alonger period through sustaining the current rates of growth in probe sales." For further information, please contact:- Deltex Medical Group plc 01243 774 837Nigel Keen, ChairmanAndy Hill, Chief ExecutiveEwan Phillips, Finance Director Financial DynamicsDavid Yates 0207 831 3113John Gilbert A conference call for analysts will be held today at 9.00am. Please call GemmaCross Brown for further details on 0207 831 3113. Notes for Editors Deltex Medical manufactures and markets the CardioQ monitor, which usesdisposable ultra-sound probes inserted into the oesophagus to determine theamount of blood being pumped around the body - 'circulating blood volume'.Reduced circulating blood volume is known as hypovolaemia, which leads toinsufficient oxygen being delivered to the organs. This causes medicalcomplications including peripheral and major organ failure which can lead todeath. Hypovolaemia, which is akin to severe dehydration, affects virtuallyevery patient having surgery because of the combined effects of pre-operativestarvation, the impact of the anaesthetic agents and trauma from the surgeryitself. Using fluids and drugs, guided by the CardioQ, to optimise the amountof circulating blood significantly reduces post-operative complications allowingpatients to make a faster, more complete recovery and return home earlier. The CardioQ incorporates the Company's proprietary software and a smalldiameter, easy-to-use, minimally invasive, disposable oesophageal probe that isused for transmitting and receiving an ultra-sound signal. By using thistechnology, the CardioQ provides clinicians with the ability to haemodynamicallyoptimise critically ill patients and those undergoing routine moderate to majorsurgery through the controlled administration of fluid and drugs. Haemodynamicoptimisation has been scientifically proven to improve the speed and quality ofpatient recovery and reduce hospital stay. There are already over 1,250 CardioQs currently in use in hospitals worldwideand distribution arrangements are in place in over 30 countries. In addition,there are currently more than 90 clinical publications on the use of the CardioQwhich have repeatedly:- • validated the results of the Monitor against known standards for measuring cardiac output, demonstrating that the technology works • proved that the CardioQ works in a wide range of surgical procedures • demonstrated that the Company's technology provides significant health and economic benefits by helping to reduce post-operative complications and length of hospital stays by an average of 30 to 40 per cent for a wide range of patients. Chairman's Statement Group Summary Deltex Medical's CardioQTM monitor uses disposable ultrasound probes insertedinto the oesophagus through the mouth or nose to determine the amount of bloodbeing pumped around the body - 'circulating blood volume'. Reduced circulatingblood volume is known as hypovolaemia and occurs as a consequence of blood lossor dehydration. If blood volume is reduced significantly, the body cannotdeliver sufficient oxygen to the vital organs. This causes medicalcomplications including peripheral and major organ failure, which can lead todeath. Hypovolaemia affects almost all patients undergoing surgery because ofthe combined effects of pre-operative starvation, the impact of anaestheticgases and the trauma of surgery itself. Guided by the CardioQ and using fluidsand drugs to optimise the amount of circulating blood and the heart'sperformance, doctors can significantly reduce post-operative complicationsallowing patients to make a fuller, more complete recovery and return homeearlier. The opportunities the CardioQ offers for improved quality andefficiency of care through helping patients get better, quicker can besummarised: the CardioQ saves lives and saves money. It is Deltex's strategy to make the use of the CardioQ a standard of care inoperating theatres for all patients undergoing moderate and high risk surgery aswell as for its use to be the treatment of choice in intensive care units forthe rapid monitoring of severely ill patients. Adopting the CardioQ as astandard of care empowers hospitals both to improve the quality of care theygive and the efficiency with which they give it. The efficiency benefits allowthe hospital to choose either to increase capacity, reduce costs, or redeployexisting resources to meet local priorities. Trading Results Sales Unaudited Half year to 30 June 2005 Probes Monitors Probes units units £'000Direct marketsUnited Kingdom 10,145 21 737United States of America 2,160 3 139Distributor marketsRest of Europe 4,460 10 193Far East & Latin America 2,830 2 96 --- --- --- 19,595 36 1,165 ======= ======== ======== Trading Results (continued)Sales Unaudited Half year to 30 June 2005 Monitors Other Total £'000 £'000 £'000 Direct marketsUnited Kingdom 115 42 894United States of America 13 1 153Distributor marketsRest of Europe 68 1 262Far East & Latin America 4 1 101 --- --- --- 200 45 1,410 ======== ======== ======== Trading Results (continued)Sales Unaudited Half year to 30 June 2004 Probes Monitors Probes units units £'000Direct marketsUnited Kingdom 8,376 28 567United States of America 2,170 - 133Distributor marketsRest of Europe 4,202 18 172Far East & Latin America 451 3 22 --- --- --- 15,199 49 894 ======= ======== ======== Trading Results (continued)Sales Unaudited Half year to 30 June 2004 Monitors Other Total £'000 £'000 £'000Direct marketsUnited Kingdom 127 24 718United States of America - - 133Distributor marketsRest of Europe 75 2 249Far East & Latin America 11 - 33 --- --- --- 213 26 1,133 ======== ======== ======== The loss for the six months to 30 June 2005 was nearly halved to £1,095,000(2004: £2,100,000). Group sales for the six months to 30 June 2005 were £1,410,000 (2004:£1,133,000), an increase of 24%. Probe sales accounted for 98% of the increasein group turnover as total probe sales increased by 30% from £894,000 in theprior period to £1,165,000 in 2005. Probe sales increased in each of theCompany's key markets and accounted for 83% of group sales, compared to 79% inthe first six months of 2004 and 73% in the equivalent period in 2003. Sales of probes in the UK continued to grow steadily in both intensive careunits and operating theatres. Average monthly probe sales were nearly £30,000 amonth higher than in the corresponding period in the previous year and reflectedincreased utilisation of the installed base of monitors. Our Europeandistributors report that their probes sales are growing satisfactorily, and, onaverage, at faster rates than the 12% by which our sales to them grew; we expectgrowth in our sales of probes in Europe to more closely match end-user demandonce certain of our distributors complete a managed reduction in their stockholdings. Sales of probes in the USA showed modest growth year on year but thiswas underpinned by stronger underlying growth at a number of our key targetaccounts. Sales of probes to our Far East and Latin American distributors aremore volatile than in other parts of the business, but were significantly up onthe prior period, increasing from £22,000 in the first half of 2004 to £96,000in the first half of 2005. Sales of monitors at £200,000 were slightly lower than in the correspondingperiod (2004: £213,000) with the decrease being mainly attributable to the UKmarket and to our largest customer, the National Health Service ("NHS"). Overthe last few months it has become increasingly clear that many NHS HospitalTrusts have been finding it very difficult or impossible to operate within theirfinancial means with many of them reporting record deficits. While the Truststry to come to terms with both new funding mechanisms and adverse pressures onpeople costs, many of them have aggressively restricted spending on newequipment. Deltex Medical is responding to these unusually challenging marketconditions in a number of ways at both local and national level. In themeantime, each of those hospitals which we have previously reported as seekingwide-scale implementation of the CardioQ system are continuing to work with ustowards installation of the necessary monitors. Furthermore, the number ofhospitals actively working towards wide-scale use of our products is increasingas clinical demand for those products grows significantly more rapidly thansales. We believe that Deltex Medical offers hospitals a highly compellingvalue proposition and that we are very well placed to compete strongly for thefunding available for innovative technology as market conditions improve. Overall, the value of monitor sales in Europe remained steady (£68,000 in 2005compared to £75,000 in the corresponding period in 2004); ten of the monitorssold into Europe were the dedicated paediatric monitor, the CardioQPTM,launched in 2004. In the USA, monitor sales were £13,000 ahead of the priorperiod with encouraging signs that US hospitals are beginning to respondpositively to the combined clinical and economic benefits of the CardioQ. The Company's key focus since 31 December 2004 has been to minimise the rate ofcash absorbed by the business so that the cash available to the Company at 1January 2005 would be sufficient to see the Company past the breakeven pointeven if the UK market for monitor sales remained difficult for a prolongedperiod. The average monthly rate of cash burn in 2004 was £160,000 per month.In the six months ended 30 June 2005, the Company reduced its headcount by over20%, cut back overheads, renegotiated terms with suppliers and strengthenedworking capital management; together with the growth in probe sales, these stepsreduced the monthly cash burn rate to approximately £60,000 per month before anyof the larger scale monitor orders which we are pursuing. Cash at 30 June 2005was £468,000 with the monthly cash burn reduced to its lowest level in theCompany's history. The net cash outflow before financing in the six monthsended 30 June 2005 was £818,000 (2004: £718,000) after the costs of theredundancy programme and related notice periods. The net cash outflow in thecorresponding period in 2004 was after a number of non-recurring cash in-flowsand the Company has seen a marked and sustainable reduction in cash consumptioncompared to 2004 since 30 June 2005. The Company entered the second half of 2005 configured so that it could reachprofitability with the cash resources available to it either very quicklythrough conversion into sales of only a small part of the monitor salespipeline, or more slowly through continued increases in probe sales to theexisting base of installed monitors. In order to allow a limited increase in flexibility in the approach to keymarkets, a level of headroom appropriate to its size and the ability toaccelerate the next phase of SupraQTM development, the Company has today placed2,631,578 new ordinary shares of 1p each at 19p per share to raise £500,000 ofcash. Application will be made for the new shares to be traded on AIM and it isexpected that dealings will commence on Monday 10 October 2005. Markets UK The UK is our most developed market and, since July 2002 it has been the primaryfocus of our sales and marketing efforts. In the three years since then we haveseen sustained growth, with probe sales more than doubling. September 2005 isthe sixteenth consecutive month where probe sales in the UK for the month havebeen over £100,000 and the eleventh consecutive month where probe sales havebeen higher than in the corresponding month twelve months previously. There arenow very few NHS hospitals in the UK where there is not at least some degree ofactive clinical advocacy for more frequent use of the CardioQ system and thereare many hospitals where the clinical support is both broad and deep; themajority of anaesthetists now recognise that they ought to be monitoring andhaemodynamically optimising at least some of their moderate and major risksurgical patients. This wide-scale clinical advocacy, supported by a substantial body of clinicalevidence, is driving the continued steady growth in probe sales. However, weestimate that current clinical desire to use our technology is several timeshigher than actual usage rates and that the degree of clinical acceptance hasgrown several times quicker than actual probe sales in the last two years.Although the NHS has long been recognised as being slow to finance adoption ofinnovative medical technologies, the problem has been exacerbated recently bygreater than normal financial restrictions. Many hospitals have run intofinancial deficit or are battling hard to avoid doing so. As a consequence manyhave scaled back dramatically already limited budgets both for purchasingcapital items such as CardioQ monitors and revenue items such as our probes. To succeed in this environment, medical device companies have not only todemonstrate that the case for investment in its products is sound but that suchan investment ought to be a high priority for each hospital. Deltex Medical isideally positioned to do this, and in the six months ended 30 June 2005succeeded in selling sufficient CardioQ monitors to NHS hospitals in Worcesterand Birmingham to enable them to make haemodynamic optimisation of moderate andmajor risk surgical patients a standard of care. A third Trust in theSouth-East of England purchased half the additional monitors it needed and isassessing their impact prior to completing the capital investment. A number ofhospitals around the UK have undertaken focused evaluations of the CardioQ inoperating theatres to see if they can reproduce the benefits shown elsewhere.These exercises are time-consuming and often complicated by the difficulty incollating management information on a hospital wide basis, however all suchexercises completed to date have shown reduced post-operative complications andreduced lengths of hospital stays and have therefore been consistent with allthe randomised controlled clinical trials undertaken with the CardioQ. Feedbackon results from other sites undertaking such evaluations is universally positiveand completion of the projects in the second half of the financial year isexpected to lead to monitor sales before the Company's year-end, provided thehospitals' senior managers can be engaged by the doctors and ourselves inreviewing and acting on the positive results of their local experience. The financial difficulties facing many NHS Trusts come at a time of far-reachingand fundamental change in the provision of healthcare in the UK, driven by theUK government's reform programme. Amongst other initiatives the government hasintroduced a set of national tariffs for surgical procedures and has encouragedprivate hospital providers to bid for contracts to treat large numbers of NHSpatients undergoing elective surgery. These contracts are forcing the privateproviders to change their business models to focus on volume, price and quality. The CardioQ offers these providers real opportunities as higher riskprocedures such as hip and knee replacements start to be covered by thecontracts. Accordingly, over the last few months, the Company has entered intodiscussions with a number of the private provider groups and has recentlycompleted a small pilot evaluation in one private hospital with encouragingresults. In June a group of eminent anaesthetists, surgeons and intensivists gathered inLondon for the launch of a lobbying pamphlet 'Modernising Care for PatientsUndergoing Major Surgery'. This document, produced by the 'Improving SurgicalOutcomes Group' was based upon Deltex Medical's core marketing message, the 'Podium Solution', and has at its heart the belief that haemodynamic optimisationis the key to unlocking much of the resource required to implement a number offundamental improvements in surgical patient care in UK hospitals. We are supporting the Improving Surgical Outcomes Group in its efforts topromote the goals of this document to doctors, senior health service managers,the Department of Health, politicians, patient groups and other stakeholders.These initiatives are aimed at raising awareness of the benefits of haemodynamicoptimisation at both national and local levels. Europe In the first half of 2005 we continued to tailor our sales message to fit thespecific circumstances of individual territories in continental Europe. As has been the case in the UK, the balance of revenue derived from monitors andprobes has shifted in Europe between the first half of 2004 (probes 69% andmonitors 30% of European sales) and 2005 (probes 74% and monitors 26% ofEuropean sales). This change reflects a redirection in focus in the moreestablished distributors to increase utilisation of the installed base ofmonitors. In France, our most established distributor-led market, we have been working tosupport our distributor's efforts to increase utilisation of the installedmonitor base in both the operating theatre and intensive care settings. Inaddition, we are establishing a relationship with key clinical opinion leaderswith an interest in improving surgical outcomes under the auspices of theEuropean-wide Enhanced Recovery After Surgery (ERAS) initiative. In Germany, we have seen a significant increase in doctors wishing to evaluatethe CardioQ in their clinical practice, particularly in the operating theatreand post-operative recovery units. To date in 2005, 24 hospitals haveapproached our distributor to evaluate the CardioQ. We are working closely withthe distributor to ensure that these evaluations are completed by the year-end.Already three hospitals have placed orders for single units following asuccessful evaluation and as a precursor to possible wider adoption. In May 2005 we announced that Radboud University Nijmegen Medical Centre in theNetherlands had become the first major university teaching hospital in Europe toadopt the CardioQ as a standard of care. Since this announcement, doctors atthe hospital have continued to use their CardioQ and CardioQPTM monitors at themaximum level authorised by the hospital since their installation. Doctorschampioning the use of our products are working with senior hospital managersand our distributor to obtain additional funding to expand use into operatingtheatres and a new intensive care unit. United States of America For the past three years we have focused our efforts in the USA on supporting asmall number of internationally recognised key opinion leaders. These doctorsare strong advocates of the use of CardioQ in a variety of clinical settings andthey are responsible for much of the physician-to-physician training thathappens in the USA. In addition, we are pursuing a number of projects that willhelp us develop a scalable business that we can implement with a third-party atan appropriate point in the future. We continue to seek discussions with leading managed care organisations andprivate hospital providers in the USA to explore the potential value of routineuse of CardioQ in these environments. We believe that, as is increasingly thecase in the UK, we are positioned to offer clinical and efficiency benefits thatwould be of great value in this market. Sales have remained broadly flat since we refined and reduced our investment inthe USA and this trend has continued for disposable probes in the first half of2005. Sales of monitors in the USA however, were higher in the first half of2005 compared to the same period in 2004. We are currently in discussion withthree further hospitals that have evaluated the CardioQ and wish to purchasemonitors and expect to end the year with monitor sales in the USA clearly aheadof those in 2004. In September 2005 we concluded the sale of four CardioQ monitors to the WilliamBeaumont Army Medical Center in El Paso, Texas. The monitors are intended foruse in medical and surgical patients in the intensive care unit and thosepatients undergoing elective or emergency surgery in the operating room.Physicians at the hospital are also working to make the CardioQ an integral partof patient care in a wider range of clinical applications, including traumasurgery and neurosurgery. The William Beaumont Army Medical Center treats active service personnel andtheir dependents and also provides field-based hospital facilities in areas ofconflict around the world as required by the US military. Far East and Latin America Each of our distributors in the Far East and Latin America has trained personnelthat can support the CardioQ in the field and the Company provides high-qualitytechnical support at a low cost via telephone and over the Internet. Sales to these markets remain occasional and of varying value, however in thesix months ended 30 June 2005 they were already £36,000 ahead of the whole of2004 with improved payment profiles. The quality of the business in theseregions has started to improve with a number of our distributors now reportinggrowing levels of regular probe sales. Research and Development During the first half of 2005 our research and development effort has focused oncompleting the clinical evaluation of two design variants of our whollynon-invasive monitoring platform, the SupraQTM. This has enabled us tounderstand better some of the anatomical and physiological constraints thataffect the ease and consistency of signal acquisition with this approach. As aresult of these evaluations we have identified a small number of hardware andsoftware modifications that we believe will enable us to improve ease of use andreliability to the level required for a first generation commercial device withthe potential to start to address the concept's known market potential. We areoptimistic that these changes constitute proprietary knowledge and consequentlymay offer the opportunity to further strengthen our patent position. All of our research and development activity in the second half of 2005 and thefirst quarter of 2006 will be directed to completing these modifications,bench-testing and completing the documentation required to enable prototypeunits to be evaluated in the clinical setting. In parallel with this, we areworking with our advisors to ensure that our intellectual property is properlyprotected. Prospects Deltex Medical is ideally placed to exploit the increased emphasis in its keymarkets on quality and cost-effectiveness of patient care. There are only tworeasons why any healthcare provider should invest in new technology - either toimprove care or reduce costs - and use of the Company's CardioQ monitor has beenshown time and again to do both. Whether uptake of our products happens on an incremental basis, as individualdoctors adopt them as a routine part of their clinical practice, or throughrapid and widespread 'step-change' in hospitals, hospital groups or entirehealthcare systems, we are ideally positioned to ensure that doctors are able tooffer their patients the proven benefits of haemodynamic optimisation. We remain confident in our ability to deliver increasing and sustainable valuefor our shareholders through our strategy of focusing on the twin goals ofbetter care, delivered more cost-effectively, for patients undergoing moderateand major surgery or those in intensive care. Nigel Keen Chairman 29 September 2005 Consolidated Profit and Loss Account for the six month period ended 30 June 2005 Unaudited Half Unaudited Half Audited Full year to30 year to 30 June year to 31 June 2005 2004 December 2004 £'000 £'000 £'000 Turnover 1,410 1,133 2,494Cost of sales (603) (533) (907) ---- ---- ----Gross profit 807 600 1,587 ---- ---- ----Net operating expenses - ongoing (1,921) (2,056) (3,722) - exceptional - (650) (652) ---- ---- ----Operating loss (1,114) (2,106) (2,787)Interest receivable and similar income 6 6 14 ---- ---- ----Loss on ordinary activities before taxation (1,108) (2,100) (2,773)Tax on loss on ordinary activities 13 - 19 ---- ---- ----Loss for the financial period (1,095) (2,100) (2,754) ========= ========= =========Loss per share - basic and diluted (1.6p) (3.4p) (4.3p) ========= ========= ========= The above results all relate to continuing operations. The loss on ordinaryactivities before taxation and the loss for the period has been computed on thehistorical cost basis. Statement of Group Total Recognised Gains and Losses for the six month period ended 30 June 2005 Unaudited Half Unaudited Half Audited Full year to 30 June year to 30 June year to 31 2005 2004 December 2004 £'000 £'000 £'000 ---- ---- ----Loss for the financial period (1,095) (2,100) (2,754)Currency translation differences in foreign currency netinvestment 6 2 (5) ---- ---- ---- (1,089) (2,098) (2,759) ========= ========= ========= Consolidated Balance Sheet at 30 June 2005 Unaudited 30 Unaudited 30 Audited 31 June 2005 June 2004 December 2004 £'000 £'000 £'000 Fixed assetsTangible assets 103 155 136 ---- ---- ----Current assetsStocks 559 604 758Debtors Amounts falling due within one year 755 810 783 Amounts falling due after more than one year 116 - 72Cash at bank and in hand 468 370 1,207 ---- ---- ---- 1,898 1,784 2,820Creditors:Amounts falling due within one year (1,032) (1,287) (920) ---- ---- ----Net current assets 866 497 1,900 ---- ---- ----Total assets less current liabilities 969 652 2,036 Creditors: amounts falling due after more than one year (5) - (7) Provision for liabilities and charges (38) - (35) ---- ---- ---- 926 652 1,994 ========= ========= =========Capital and reservesCalled up share capital 697 617 695Share premium account 12,201 10,381 12,182Merger reserve - 1,776 -Profit and loss account (29,448) (29,598) (28,359)Capital redemption reserve 17,476 17,476 17,476 ---- ---- ----Equity shareholders' funds 926 652 1,994 ========= ========= ========= Consolidated Cash Flow Statementfor the six month period ended 30 June 2005 Unaudited Half Unaudited Half Audited Full year to 30 year to 30 year to 31 June 2005 June December £'000 2004 2004 £'000 £'000 ---- ---- ---- Net cash outflow from operating activities (821) (780) (1,988) ---- ---- ----Returns on investments and servicing of financeInterest received 7 6 15Interest paid (1) - (1) ---- ---- ----Net cash inflow from returns on investments and servicing offinance 6 6 14 ---- ---- ----Taxation - 61 102 ---- ---- ----Capital expenditurePurchase of tangible fixed assets (3) (5) (9) ---- ---- ----Net cash outflow for capital expenditure (3) (5) (9) ---- ---- ----Net cash outflow before financing (818) (718) (1,881) ---- ---- ----FinancingNew finance leases - - 15Other borrowings 78 - 105Capital element of finance lease rentals (3) - (2)Issue of ordinary share capital 1 - 1,964Expenses in connection with share issue - - (85) ---- ---- ----Net cash inflow from financing 76 - 1,997 ---- ---- ----(Decrease)/increase in net cash during the period (742) (718) 116 ========= ========= ========= Notes to the Interim Statementfor the six month period ended 30 June 2005 1. Basis of preparation The financial information for the six months ended 30 June 2005 is not auditedbut has been prepared in accordance with generally accepted accountingprinciples in the UK. The accounting policies adopted are those which will beapplied in the financial statements for the year ended 31 December 2005. Theseare consistent with those set out in the audited financial statements for theyear ended 31 December 2004. The financial information does not constitutestatutory accounts as defined in Section 240 of the Companies Act 1985. 2. Turnover The Group's activities consist solely of the manufacture and marketing ofmedical devices. By origin, all sales are United Kingdom sales. Unaudited Half year to 30 June 2005 Probes Monitors Other Total £'000 £'000 £'000 £'000Analysis of turnover by destinationDirect MarketsUnited Kingdom 737 115 42 894United States of America 139 13 1 153Distributor MarketsRest of Europe 193 68 1 262Far East and Latin America 96 4 1 101 ---- ----- ---- ---- 1,165 200 45 1,410 ======= ======== ======= ======= Unaudited Half year to 30 June 2004 Probes Monitors Other Total £'000 £'000 £'000 £'000Analysis of turnover by destinationDirect MarketsUnited Kingdom 567 127 24 718United States of America 133 - - 133Distributor MarketsRest of Europe 172 75 2 249Far East and Latin America 22 11 - 33 ---- ----- ---- ---- 894 213 26 1,133 ======= ======== ======= ====== Audited Full Year to 31 December 2004 Probes Monitors Other Total £'000 £'000 £'000 £'000Analysis of turnover by destinationDirect MarketsUnited Kingdom 1,254 169 53 1,476United States of America 273 10 1 284Distributor MarketsRest of Europe 390 277 2 669Far East and Latin America 32 32 1 65 ----- --- ---- -- 1,949 488 57 2,494 ======== ======= ======= ====== 3. Loss per share The loss per share calculation for the six months to 30 June 2005 is based onthe loss for the period of £1,095,000 and weighted number of shares in issue of69,522,388 million. The loss per share calculation for the year to 31 December2004 is based on the loss for the financial year of £2,754,000 and weightedaverage number of shares in issue of 63.4 million. The loss per sharecalculation for the six month period ended 30 June 2004 was based upon the lossfor the period of £2,100,000 and weighted average number of shares in issue of61.7 million. The Group had no dilutive potential ordinary shares in either period, whichwould serve to increase the loss per ordinary share. Therefore there is nodifference between the loss per ordinary share and the diluted loss per ordinaryshare. 4. Reconciliation of movements in shareholders' funds Unaudited Unaudited Audited Half year to Half year to Full year to 30 June 30 June 31 December 2004 2005 2004 £'000 £'000 £'000Opening shareholders' funds 1,994 2,750 2,750Increase in share capital during the period 2 - 78Premium on shares issued, net of costs 19 - 1,801Loss for the financial period (1,095) (2,100) (2,754)UITF 17 charge associated with share options - - 124Exchange difference taken to reserves 6 2 (5) --- --- ---Closing shareholders' funds 926 652 1,994 ======== ======== ======== 5. Called-up share capital 1 pence ordinary shares £'00069,702,922 1p ordinary shares 697 ======= During the period the Company issued 126,811 1p ordinary shares pursuant to theexercise of options. The Company also issued a further 98,518 1p ordinary sharesto non-executive directors in respect of fees due to them. 6. Reconciliation of operating loss to net cash outflow from operatingactivities Unaudited Unaudited Audited Half year to Half year to Full year to 30 June 30 June 31 December 2005 2004 2004 £'000 £'000 £'000 Operating loss (1,114) (2,106) (2,787)Depreciation on tangible fixed assets 36 41 79(Increase)/decrease in stocks 199 (29) (186)Decrease/(increase) in debtors 32 1,049 1,015Increase/(decrease) in creditors 28 262 (242)Costs associated with share option scheme - - 124Foreign exchange differences (4) 3 (26)Increase in provisions 2 - 35 --- --- ---Net cash outflow from operating activities (821) (780) (1,988) ======= ======= ======= 7. Reconciliation of movement in net cash 1 January Cash flow Exchange movement 30 June 2005 2005 £'000 £'000 £'000 £'000Net cashCash at bank and in hand 1,207 (742) 3 468Other borrowings (105) (78) - (183)Finance leases (14) 3 - (11) --- --- --- --- 1,088 (817) 3 274 ======= ======= ======= ======= 8. Distribution of announcement Copies of this announcement are being sent to all shareholders and will beavailable for collection free of charge from the Company's registered office atTerminus Road, Chichester, West Sussex, PO19 8TX. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Deltex Medical