StockMarketWire.com - Deltex Medical Group - a global leader in oesophageal Doppler monitoring - reports strong growth in US and other export markets in the first half but the UK market remains weak.

The group also announced that it has won its first important competitive tender in Canada. The tender, which the company originally expected to be awarded in the second half of 2014, is expected to generate revenues in the second half of 2015 and to enable the Company to establish its first reference account in Canada. The first monitor order under the tender has been received. The tender is initially for three years and covers a number of hospital systems across a single province.

The group says its US expansion plans are on track with US surgical probe revenues up 28% at £0.6m; 11 platform accounts, an increase from six in January and satisfactory order pipeline progress and expansion; ten evaluations completed with three additional under way and 11 more under discussion.

International surgical probe revenues up 19% at £0.6m with strongest growth in France and Peru. Monitor revenues £0.2m behind unusually strong 2014 but on plan.

But it says the UK market remains weak as NHS financial problems continue. UK revenues of £1.4m were down 13%: reduction in surgical probe revenues of 25% offset by early sales of new products. New product launches and marketing campaigns anticipated to impact positively sales in H2 2015. Cost reductions implemented in January 2015 to maximise UK cash generation. Group sales in statutory reporting format are expected to be approximately £2.7m (2014: £3.0m). Cash available at 30 June was £1.3m.

Chairman Nigel Keen said: "In the first half Deltex has made good progress with building a strong base of users from which to roll-out our products nationally in the USA. To support our sales worldwide we have, enhanced and broadened our product range and are additionally strengthening our digital educational and marketing programmes.

"We expect the financial returns from these successes to show through more strongly in the second half reducing the impact of the NHS on our business. In the second half of the year we expect increasing traction of the use of ODM in US hospitals and we will start to roll-out a series of new products to enhance our offering to clinicians."




At 8:56am: [LON:DEMG] Deltex Medical Group PLC share price was +0.01p at 6.13p



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