StockMarketWire.com - Deltex Medical says it enters 2016 with growing traction in the US and other export markets driving overall momentum and reducing its exposure to the challenging UK market.

The group says sales in the year ended 31 December were broadly similar to the previous year at GBP6.4m (2014: GBP6.5m) with strong growth in US and other export markets offset by 21% fall in UK probe revenues and GBP0.3m fall in UK monitor revenues due to continuing NHS funding issues.

Other highlights:

- US probe revenues increased by 31% to GBP1.3m (23% increase on constant currency basis)

- US growth driven by addition of 11 new Platform Accounts taking year end total to 17 (2014: 6); 18th Platform Programme account announced separately today

- Number of probes sold in our International markets up 41%; revenues increased by 26% - lower than volume increase as a result of the strength of sterling

- Total monitor revenues down GBP0.5m (of which UK GBP0.3m with NHS Supply Chain order in 2014 not repeated)

- Cash position of GBP0.6 million at 31 December 2015

Chairman Nigel Keen said: "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. "In the USA in 2015 we increased the number of accounts on our Platform Programme from six to 17 and started to see the subsequent step-up in probe sales coming through in the latter part of the year. Several of these new accounts only signed up towards the end of 2015 with consequentially lower contributions to 2015 probe revenues than originally planned but are positioned to boost the growth trajectory for probe sales in 2016. We have today announced that we have added the 18th platform account and we are on track to reach our target of 30 platform accounts by mid 2016. "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."

Separately, the company announced that it has added a further new account to its platform programme in the US. The new hospital is the flagship hospital of a seven hospital system and is the third new platform programme account in the Company's Great Lakes sales territory since it was established in the first quarter of 2015. The hospital evaluated ODM in December 2015 and has decided to introduce it into its new colorectal enhanced recovery surgical programme which it plans to launch in April 2016.


At 9:57am: [LON:DEMG] Deltex Medical Group PLC share price was -0.75p at 4.88p



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