StockMarketWire.com - Deltex Medical Group, the global leader in oesophageal Doppler monitoring, expects first half group sales in statutory reporting format to be flat at approximately £2.7m (2015: £2.7m).

The group says its US expansion plans are on track but the UK NHS market remains weak.

International probe revenues are up 11% at £0.7m with total revenue growth of 18%.

Highlights - US expansion plans on track

* US probe revenues up c.40% at £0.9m

* Good hospital pipeline progress and expansion: 24 platform accounts, up from 17 in January; 8 evaluations completed with 24 additional under way

- International probe revenues up 11% at £0.7m with total revenue growth of 18%

* Continued growth in traction in focus markets including France, Scandinavia and Peru

* Promising progress in other markets with strong growth from South Korea

* Excellent results from Spanish Government sponsored multi-centre randomised trial of ODM with national enhanced recovery guidelines published favouring ODM

- UK NHS market remains weak

* UK probe revenues of £0.8m down 36%: total UK revenues decreased by 30%

* New, easier to use, probes launched in May together with new marketing programmes

* Introduction of additional products in UK planned for H2 2016

Chairman Nigel Keen said: "2016 is a transitional year for Deltex. Our primary objective is to get the business past the operating cash break-even point and we have made important progress in the first half of the year.

"Probe revenues from the USA, our main focus market, have overtaken UK probe revenues and we have made substantial progress towards achieving our US platform targets. Overall, exports have increased substantially since we started our US expansion programme and now comprise about two-thirds of Group revenues.

"We expect the momentum established in the USA and other export markets to continue, with good potential for improvement in the disappointing UK performance to convert this into a strong recovery. In addition, we expect to see positive impacts coming through from cost reductions previously announced, margin improvement and the introduction of new products."








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