TIDMDEMG
RNS Number : 2302W
Deltex Medical Group PLC
22 April 2021
22 April 2021 - Deltex Medical Group plc (AIM: DEMG), the global
leader in oesophageal Doppler monitoring, today announces its
results for the year ended 31 December 2020.
Deltex Medical Group plc ("Deltex Medical" or the "Group")
Results for the year ended 31 December 2020
HIGHLIGHTS
COVID-19
-- COVID-19 significantly adversely affected our principal
market, elective surgery, during the year...
-- ... but we decided to use the impetus from COVID-19 to bring
forward a number of changes to the business, including:
Ø targeting intensive care units ("ICUs") - where the technology
was originally developed;
Ø accelerating our product development programmes; and
Ø identifying further cost reductions and efficiencies
-- these COVID-19-associated changes leave the business with a
substantially stronger platform from which to grow in the future
once the pandemic has subsided
Financial
-- revenues: GBP2.4 million (2019: GBP4.3 million)
-- 16% reduction in overhead costs (excluding exceptionals) to
GBP2.7 million (2019: GBP3.2 million)
-- adjusted EBITDA: GBP(0.2) million (2019: GBP0.4 million)
-- loss (before exceptional items) for the year: GBP(0.6)
million (2019: GBP(0.1) million)
-- loss for the year: GBP(0.8) million (2019: GBP(0.2)
million)
-- cash at hand (31 December, 2020): GBP0.9 million (2019:
GBP0.9 million)
Business
-- significant opportunity for Deltex Medical arising from the
pressure on international healthcare systems to tackle the backlog
of elective surgical procedures - where TrueVue Doppler has been
shown to help reduce patient length of hospital stay
-- elective surgery volumes are starting to climb in the UK and
overseas
-- we have established a more significant ICU market in the UK
as a result of COVID-19
-- next generation monitor to be released in Q4 2021 - with good
revenue potential for new monitor sales and from the replacement of
existing units
-- emerging opportunity around the use of TrueVue Doppler data
to create curated data sets to improve patient care
-- positive market dynamics associated with recent consolidation
in the haemodynamic monitoring sector led by major healthcare
companies
-- increasingly robust regulatory environment requiring
manufacturers of medical devices to submit efficacy data generated
by their own products, as opposed to citing third parties' data,
which enhances the value of the Group's strong proprietary evidence
base
Board
-- David Moorhouse, currently Group Finance Director, has
informed the Board that he wishes to retire from the Board at the
AGM on 27 May 2021
-- Natalie Wettler, currently the Group Financial Controller,
will, subject to standard regulatory process, be promoted to Group
Finance Director from the AGM
Nigel Keen, Chairman of Deltex Medical, said:
"Like for so many businesses, COVID-19 represented a large shock
with some short-term adverse consequences for the Group. However,
it is clear that Deltex Medical has used the impetus of COVID-19 to
make changes that leave the business significantly better
positioned for the future"
"We are encouraged by the prospects that we believe will arise
for Deltex Medical as a result of recent consolidation in the
sector as well as the need to clear the backlog associated with
elective surgery that exists around the world."
"We are also excited by the success of the new product
development programmes that have been driven hard during lock
down."
"We are looking forward to seeing the business starting to grow
robustly once the pandemic abates."
For further information, please contact:
Deltex Medical Group plc 01243 774 837
Nigel Keen, Chairman investorinfo@Deltexmedical.com
Andy Mears, Chief Executive
David Moorhouse, Group Finance Director
Arden Partners plc 020 7614 5900
Paul Shackleton info@arden-partners.com
Ben Cryer
Joint Broker
Turner Pope Investments (TPI) Ltd 0203 657 0050
Andy Thacker info@turnerpope.com
Zoe Alexander
This announcement contains Inside Information as defined under
the Market Abuse Regulation (EU) No. 596/2014.
Notes for Editors
Deltex Medical manufactures and markets haemodynamic monitoring
technologies which are primarily used in critical care and general
surgical procedures. Deltex Medical's proprietary oesophageal
Doppler monitoring ("ODM") (TrueVue Doppler) measures blood flow
velocity in the central circulation in real time. Minimally
invasive, easy to set-up and quick to focus, the technology
generates a low-frequency ultrasound signal which is highly
sensitive to changes in blood flow and measures such changes in
'real time'. Deltex Medical is the only company in the enhanced
haemodynamic monitoring space to have built a robust and credible
evidence base demonstrating both the clinical and economic benefits
of its core technology: TrueVue Doppler. This technology has been
proven in a wide range of clinical trials to reduce complications
suffered by patients after surgery and consequently can save
hospitals money.
Deltex Medical's TrueVue System on the CardioQ-ODM+ monitor
platform now provides clinicians with two further advanced
haemodynamic monitoring technologies. TrueVue Impedance is an
entirely non-invasive monitoring technology which transmits low
magnitude, high frequency electrical signals through the thorax and
measures the changes to this signal when the heart pumps blood.
TrueVue PressureWave uses the peripheral blood pressure signal
analysis to give doctors information on changes in the circulation
and is particularly suited to monitoring lower risk or
haemodynamically stable patients. The next generation TrueVue
monitor is set for release in Q4 2021.
Group goal
Haemodynamic management is now becoming widely accepted as a
vital part of the anaesthesia protocols for surgical patients, as
well as treating ventilated intensive care patients, including
ventilated COVID-19 patients. Consequently, the Group's focus is on
maximising value from the opportunities associated with: the CV-19
pandemic; the elective surgery backlog; and the higher profile of
haemodynamic monitoring which has arisen from the recent
consolidation in the sector. The Group aims to provide clinicians
with a modern, next generation, single 'haemodynamic workstation'
platform which offers them a range of technologies from simple to
sophisticated to be deployed according to the patient's clinical
condition as well as the skill and expertise of the user. Doing
this will enable the Group to partner with healthcare providers to
support modern haemodynamic management across the whole
hospital.
The Group is currently in the implementation phase of achieving
this goal in a number of territories worldwide, operating directly
in the UK and the USA, and via agreements with approximately 40
distributors overseas.
Chairman's statement
"Navigating haemodynamics - see what we see"
Introduction
The COVID-19 ("CV-19") pandemic changed the way that many
companies conducted their businesses in 2020, and Deltex Medical
was no exception. Our principal activity is to provide TrueVue
haemodynamic monitoring to clinicians for use in elective surgery;
but operating theatres were effectively closed throughout the world
for most of the year which resulted in little or no use of our
probes. However, our TrueVue technology was originally developed
for use in UK Intensive Care Units ("ICUs") and so we were able to
redirect our resources to support hospitals and doctors who
switched their focus to care for severely ill CV-19 patients in
ICUs.
As soon as the scale of the CV-19 challenge became clear, we
looked for opportunities to minimise damage and to create benefit
from the unexpected disruption to the business. We immediately
focussed on supporting our ICU customers; we consolidated and
improved our marketing and on-line training resources; and we drove
our product development programmes, both by moving to complete our
new next generation monitor platform for launch later in 2021, and
also by enhancing our signal acquisition technologies to make the
TrueVue technology easier to use. These enhancements will allow us
to address a much wider patient population, and broader market,
than before.
A major strength of the TrueVue system is its safety and
reliability. This is in large part due to the attention to detail
provided by our experienced and highly trained workforce. It was
clear that we needed to ensure that we looked after the safety and
wellbeing of our employees to allow us to continue to service all
our markets throughout the world during the pandemic, albeit at
substantially lower levels than before. We have done this by
maximising our use of US and UK governmental salary support schemes
("Salary Support Schemes") and obtaining governmental research and
development ("R&D") grants to support our employees to the
extent possible. We are pleased to report that as a result of this
we did not need to make any of our employees redundant during the
pandemic, thereby retaining the capability to ramp up our business
as our markets recover.
As we move through the second quarter of 2021, the world is a
different place. The global vaccine programmes are bringing a
return to a new normality in which our business should flourish as
healthcare systems significantly increase capacity to treat
patients who have had their scheduled surgery postponed during
2020.
Interest in our markets is strengthening, as is evidenced by the
acquisition of several of our competitors by major global medical
device companies. Against this backdrop our next generation monitor
launch will provide the platform to support our clinical advocates
in helping the healthcare systems around the world to recover and
start to deal with clinical backlogs. Our new easier-to-use
technologies will expand the range of patients who will benefit
from the haemodynamic information delivered by the TrueVue
system.
Financial results
Group revenues for the year ended 31 December, 2020 were GBP2.4
million (2019: GBP4.3 million). The 44% year-on-year reduction
reflects the near-complete closure of the global elective surgery
market and the running down of stock levels by our
distributors.
Gross margin was also adversely affected by the reduction in
manufacturing volumes, reducing to a reported 68% (2019: 77%). We
believe that this decline in reported gross margin will be
transient and anticipate that as unit volumes increase, then the
gross margin will recover to the higher levels seen
historically.
Total overheads, excluding exceptional costs, declined
significantly to GBP2.7 million (2019: GBP3.2 million),
representing a 16% year-on-year reduction.
In the year the total value of the Salary Support Schemes was
GBP0.4 million (2019: zero).
Adjusted EBITDA for the year (comprising earnings before
interest, tax, depreciation and amortisation, share-based payments,
non-executive directors' fees, as well as any exceptional items)
was GBP(0.2) million (2019: GBP0.4 million).
Operating loss for the year was GBP(0.6) million (2019: GBP(0.0)
million).
Exceptional items of GBP0.2 million (2019: GBP0.1 million)
relate to the (non-cash) write off of previously capitalised
R&D programmes which the Group has decided not to take forward.
Given the acceleration and expansion of the R&D work in 2020,
we decided to assess the existing portfolio of the Group's
capitalised development programmes in a broader sense this year,
and have concluded that the adjustment reflected by the above
exceptional item is appropriate.
Loss for the year was GBP(0.8) million (2019: GBP(0.2)
million).
We focus carefully on the stewardship of our cash resources.
Cash at hand at 31 December 2020 was GBP0.9 million (2019: GBP0.9
million).
Commercial activities
In March 2020, we were encouraged by a significant upturn in
demand from UK ICUs for our TrueVue Doppler technology to treat the
initial surge of CV-19 ventilated ICU patients. The TrueVue Doppler
technology had originally been developed in a London ICU. It was
good to see this initial increase in ICU-related demand at the
beginning of the pandemic, although this increase was not large
enough to counteract the effect of cessation of elective surgery
globally and as the year progressed use in ICUs reduced as fewer
patients were in need of ventilation.
To respond to the constraints of remote working we invested in
and improved our portfolio of digital training resources. This will
help to counterbalance the restrictions imposed on salespeople or
technical experts entering hospitals.
The substantial challenge faced by UK hospitals in respect of
reducing the backlog associated with delayed elective surgical
procedures has been recognised by the Government and additional
funding has been announced to help NHS hospitals work through this
backlog. Given the importance of the elective surgery market to
Deltex Medical's commercial activities, investment or additional
resources designed to accelerate elective surgery is expected to
benefit the Group.
Our TrueVue Doppler technology has been demonstrated to reduce
hospital length of stay in a significant number of published
randomised clinical trials. We believe that surgical departments
will increasingly take into account these data as hospitals explore
new ways to reduce the elective surgery backlog as quickly as
possible.
We anticipate that one of the long-lasting outcomes of the CV-19
pandemic, and the potential for future variant-associated smaller
outbreaks, will be a focus on investigating new ways of increasing
patient throughput as well as reducing risk in a hospital setting.
The TrueVue system is well positioned to help hospitals meet these
requirements.
Notwithstanding the pandemic, we continued to drive forward a
number of development programmes during the year. On the back of
ongoing R&D programmes, some of which were supported by
competitively-awarded UK Government-funded research grants, we have
made good progress on broadening the applicability of our
technology in the healthcare setting. As part of this work, we now
plan to launch our new next generation monitor in the second half
of this year.
The greater focus on the haemodynamic condition of patients
undergoing surgery and in ICUs presents new opportunities for the
TrueVue technology. The very precise real-time haemodynamic
beat-to-beat data generated by the TrueVue system can be used to
design patient-specific algorithms which will allow clinicians to
be able to predict earlier patient outcomes, thereby optimising
patient care.
Employees
I would like, on behalf of the Board, to thank our highly
trained and dedicated workforce who are based in the UK, Spain and
the USA, and who have been extremely flexible and responsive to
customers' needs during the worst months of the pandemic. Our
employees always worked hard to satisfy demand for our products
from hospitals which were treating high volumes of CV-19
patients.
Board changes
There have recently been a number of changes to the Board.
David Moorhouse rejoined Deltex Medical in October 2019, having
previously been Group Finance Director from 1996 to 2001. David has
recently informed us that he wishes to retire at the forthcoming
AGM.
We are pleased to be announcing today, subject to routine
regulatory process, the promotion of Natalie Wettler to the role of
Group Finance Director with effect from the AGM. Natalie held a
number of senior roles in the Group's finance department between
2011 and 2016. We were delighted when she agreed to rejoin the
Group in January 2020 as the Group Financial Controller.
Sir Duncan Nichol retired from the Board at the end of 2020. Sir
Duncan had previously been Chief Executive of the NHS from 1989 to
1994. The Group benefited from his immense experience, wisdom and
extensive network of healthcare-related contacts. I would like to
thank him for his contributions over the years and we wish him well
for his retirement.
Tim Irish joined the Board on 20 January 2021. Tim had
previously been on the Board of Deltex Medical between May 2014 and
March 2015. He resigned as a Director on 31 March 2015 when he was
appointed to the Board of NICE, the National Institute for Health
and Care Excellence. We are delighted that he has rejoined the
Board and we look forward to working with him. Tim has some 35
years of experience working in the life sciences and healthcare
sectors.
Current trading and prospects
We have seen recent consolidation in our markets with several of
our competitors having been acquired by larger global medical
device companies. We believe this shows that the market for
haemodynamic monitoring is evolving rapidly.
Currently, our sales activity levels remain comparatively
subdued, as CV-19 continues to affect adversely the number of
elective surgical procedures being undertaken. Moreover, many of
our international distributors are reporting that their core
customers are experiencing a 'third wave', and that consequently
there are very low levels of elective surgery taking place. We
anticipate that sales in the first half of 2021 will reflect the
continuing CV-19 prevalence in many of our key markets.
In the second half of the year, based on discussions with our
customers and distributors, we anticipate that there will be a
significant increase in the Group's activity levels, particularly
in NHS and US hospitals, as there are a number of initiatives being
put in place to increase the volume of elective procedures
undertaken whilst at the same time minimising in-patient stay. The
lower costs, shorter length-of-stay and improved outcomes that have
been demonstrated by our TrueVue Doppler technology will
significantly help hospitals achieve greater surgical in-patient
throughput.
This increased level of activity provides a strong backdrop for
the launch of our new next generation monitor in the second half of
2021. The new monitor will also incorporate new technological
developments which have been completed during lock-down which
enhance the ease of use of the TrueVue system and expand the range
of patients who can benefit from the use of the system.
As a result of these positive factors, the Board believes that
the Group is well positioned for growth as the year progresses.
Nigel Keen
Chairman
BUSINESS REVIEW
COVID-19 - how the Group reacted to the unexpected
disruption
As highlighted in the Chairman's Statement, the CV-19 pandemic
caused our principal market, elective surgery, to effectively close
around the globe for much of 2020. The effective cessation in
elective surgical procedures forced us to review rapidly how best
to react and drive the business forward, given such a challenging
commercial environment. Set out below is a summary of the key
actions we implemented, which included:
-- driving, as much as possible, our technology into the key ICU
markets at the beginning of the pandemic as: (i) clinicians were
still working out the optimal treatment regime for CV-19 patients
and we were convinced that TrueVue Doppler-derived data would be
helpful to establish optimised treatment protocols; (ii) before the
ICUs became completely full we believed that there would be a
window of opportunity to engage with intensivists; and (iii) we
anticipated that once the pandemic took hold then intensivists
would no longer have the time or "bandwidth" to discuss with our
clinical educators how best to use the TrueVue Doppler to assist in
the treatment of CV-19 patients;
-- making sure that we were able to support our customers, both
face-to face and virtually, who continued to use the Group's
technology during the pandemic in both the ICU and operating
room;
-- evaluating how best to cope with the new challenge associated
with hospitals effectively closing their doors to salespeople,
which we anticipate may well carry on for some time. As part of our
response to this challenge, we have significantly increased our
investment in digital training and marketing resources;
-- accelerating and expanding our product development
programmes. As part of our strategic decision to accelerate a
number of product development initiatives, we applied for, and were
awarded, an additional Innovation Continuity Grant by Innovate UK
worth approximately GBP0.2 million;
-- making the strategic decision early-on that we would not make
any redundancies across the company to ensure that we retained our
highly trained and flexible teams for when elective surgery
resumes; and
-- maximising the contribution from Salary Support Schemes which
collectively amounted to GBP352,000 in the year.
We were able to implement these steps whilst still retaining a
substantial level of cash at hand on the balance sheet (GBP0.9
million at 31 December 2020).
Next generation product development - good progress and
expansion of applicability
We have made good progress on the development of the next
generation monitor, the TrueVue System, which we plan to launch
towards the end of the second half of 2021. This next generation
monitoring platform will provide users with more detailed and
precise information about the key characteristics of a patient's
haemodynamics (blood flow and blood pressure) as well as enabling
such data to be readily downloaded for further analysis. In
addition, the TrueVue System will incorporate battery power, making
it much more mobile and hence a clinically more useful device with
broader applications.
Last year we were awarded a series of R&D grants. One of
these enabled us to commission some collaborative research work
with the UK's National Physics Laboratory ("NPL"). Although we have
our own in-house experts, we believed that our core ultrasound
technology would benefit from an independent review by world-class
physicists. The feedback that we received from NPL has been
extremely constructive in terms of improving our existing device;
but also in the development of a new non-invasive Doppler device we
are planning to release on the next generation monitoring platform.
This new ultrasound device has broader utility and can be used in a
number of different clinical areas that we currently do not
service. These include Accident & Emergency departments, where
we anticipate it acting as a sophisticated triage tool, through to
looking at the haemodynamic status of conscious, un-sedated
patients in a general ward setting or in the ICU.
We are expanding the specification for our next generation
monitor to include this new non-invasive Doppler-based device. We
are also in the process of determining, in parallel with finalising
the design for the new monitor, the optimal specification for this
non-invasive technology as well as establishing how it could best
be used by clinicians to optimise the patient pathway in the wider
hospital setting.
One challenge we face at the moment with the development of this
technology is that most UK clinicians have been focussed on
treating CV-19 patients, and it has been practically very difficult
to carry out the clinical evaluations and receive user feedback
which form an important part of our product development
process.
Curated data sets - new trend seen among large MedTech
groups
We are seeing a new trend, which is being led by some of the
large MedTech groups, which relates to capturing raw haemodynamic
data with a view to using such data to create and guide patient
treatment protocols. Such 'curated data sets' comprise data linked
to the patient's haemodynamic status which can subsequently be used
as a reference for constructing predictive models of future
clinical events. Using artificial intelligence, these curated data
sets can be used to create cloud-based haemodynamic algorithms
which would further improve the quality of patient care. The
TrueVue System is the only haemodynamic monitoring device able to
generate haemodynamic data with the requisite precision to allow
such protocols to be created.
Increasing value associated with Deltex Medical's unique
evidence base
Deltex Medical has invested considerable resources in compiling
an unrivalled evidence base comprising 24 Randomised Clinical
Trials (RCTs). The 24(th) RCT has just been published [1] .
Collectively these RCTs demonstrate that, among other things, the
use of Deltex Medical's TrueVue Doppler results in
significantly:
-- better outcomes for patients;
-- reduced patient hospital length-of-stay; and
-- lower costs for healthcare providers.
As healthcare systems together with governmental and private
(e.g. insurers) payers focus on evidence-based interventions, then
the value of Deltex Medical's evidence base will become
increasingly apparent.
Regulatory
There is a general trend towards more onerous regulatory
requirements associated with medical devices in healthcare markets
around the world, including the transition from the Medical Device
Directive (MDD) to the Medical Device Regulation (MDR).
These changes mean that there is an increasing need for
manufacturers of medical devices to cite efficacy data generated by
their own products in regulatory submissions, as opposed to using
third party data collected from other sources. As a result, we
believe that the inherent value associated with the Group's
evidence base will continue to climb.
There is still uncertainty from a regulatory perspective about
the consequences for our business following the UK leaving the EU.
Some parts of the new regulatory regime in the UK are already clear
with, for example, the establishment of the new UK Conformity
Assessed (UKCA) mark which has been established to replace the CE
mark here in the UK. (The CE mark will still be required on Deltex
Medical equipment sold into the EU.) Deltex Medical's Regulatory
Affairs group is used to servicing the needs of a wide range of
different national and international regulatory environments and so
is well set up to handle any changes required. For example, in 2019
we moved our Notified Body which regulates our application of CE
marks to Deltex Medical products from the UK to the Netherlands, in
order to be ready for the regulatory changes which inevitably would
arise following the United Kingdom's exit from the EU.
Three principal divisions: UK, USA and International
The commercial activities of the Group are managed in three
divisions: UK, USA and International. These three divisions were
all significantly held-back by the CV-19 pandemic during 2020.
We sell directly into the UK and the USA via a team of sales
people and clinical educators. In the short term both of these
teams face customer access challenges as hospitals have sought to
exclude, or at the very least severely restrict, access to
non-hospital personnel to hospitals. To counteract this, we have
improved the breadth and scope of our on-line, digital training
materials for clinicians, as well as appropriate supporting
materials for a hospital's finance teams and purchasing
departments.
We principally sell into overseas territories, other than the
USA, by a network of some 40 distributors which typically sell a
complementary bundle of MedTech equipment and consumables into the
healthcare market in each of their territories. These distributors
are able to give us real-time feedback on the status of, or
developments within, each of their markets. All of them have
reported a cessation of elective surgery as well as the
announcement of various initiatives designed to enable a rapid
catch-up of elective surgical procedures once the pandemic has
abated.
Whilst the distributor network we have in place currently works
effectively, we may need to expand our international footprint as
our next generation products come on stream, particularly as we
anticipate a broader utility and applicability for these
products.
Increasing consolidation in the haemodynamic sector
The recent acquisition of several of the Group's competitors by
major healthcare groups is likely to result in increased investment
in the haemodynamic market which, in turn, should result in this
market segment becoming larger. Historically the majority of the
Group's competitors were small to medium-sized companies; however,
most of these companies have now been acquired by larger, global
medical device organisations. The resulting anticipated greater
investment in marketing and clinical education is likely to drive
broader adoption of haemodynamic monitoring across the
international healthcare markets.
Conclusion
Irrespective of how quickly global vaccination programmes bring
CV-19 under control, it is clear that there is a substantial
backlog of elective surgery which needs to be addressed across the
world. It is also clear that there is substantial pressure, from a
number of sources including political, clinician-led and
patient-safety advocacy groups, to reduce this backlog rapidly.
This broad-based pressure to reduce the elective surgery backlog
will be a key positive driver for our business.
The product development work that we accelerated during the last
year resulting in the near completion of our new next generation
TrueVue System will be transformative for the Group as it provides
the products we can use to take advantage of the increasing
addressable market for haemodynamic monitoring stimulated by the
recent consolidation in the sector.
We are looking forward to the second half of this year when we
expect our principal markets to reopen. We will then be able to
re-assemble our team of highly trained employees at our
headquarters in the UK and together drive back up Group revenues
and increased cash generation.
"Navigating haemodynamics - see what we see"
Andy Mears
Chief Executive
Consolidated statement of comprehensive income
For the year ended 31 December 2020
2020 2019
GBP'000 GBP'000
-------------------------------------------- --------- ---------
Revenue 2,398 4,256
Cost of sales (757) (974)
--------------------------------------------- --------- ---------
Gross profit 1,641 3,282
Administrative expenses (1,472) (1,515)
Sales and distribution expenses (964) (1,220)
Research and Development, Quality
and Regulatory (246) (446)
Impairment reversal/(loss) on trade
receivables 11 (11)
Exceptional costs (232) (137)
Total costs (2,903) (3,329)
--------------------------------------------- --------- ---------
Other operating income 469 -
-------------------------------------------- --------- ---------
Other gain 171 13
Operating loss (622) (34)
Operating (loss)/profit before exceptional
costs and other gain (561) 90
Finance costs (172) (176)
--------------------------------------------- --------- ---------
Loss before taxation (794) (210)
Tax credit on loss 9 51
--------------------------------------------- --------- ---------
Loss for the year (785) (159)
--------------------------------------------- --------- ---------
Other comprehensive expense
Items that may be reclassified to
profit or loss:
Net translation differences on overseas
subsidiaries (6) (8)
--------------------------------------------- --------- ---------
Other comprehensive expense for the
year, net of tax (6) (8)
--------------------------------------------- --------- ---------
Total comprehensive loss for the
year (791) (167)
--------------------------------------------- --------- ---------
Total comprehensive loss for the
year attributable to:
Owners of the Parent (804) (169)
Non-controlling interests 13 2
--------------------------------------------- --------- ---------
(791) (167)
-------------------------------------------- --------- ---------
Loss per share - basic and diluted (0.15p) (0.03p)
--------------------------------------------- --------- ---------
Consolidated balance sheet
As at 31 December 2020
2020 2019
GBP'000 GBP'000
------------------------------------ ---------- ---------
Assets
Non-current assets
Property, plant and equipment 305 395
Intangible assets 2,554 2,651
Financial assets at amortised cost 153 157
Total non-current assets 3,012 3,203
Current assets
Inventories 895 915
Trade receivables 576 1,062
Financial assets at amortised cost 15 214
Other current assets 122 113
Current income tax recoverable 61 80
Cash and cash equivalents 853 908
------------------------------------- ---------- ---------
Total current assets 2,522 3,292
------------------------------------- ---------- ---------
Total assets 5,534 6,495
Liabilities
Current liabilities
Borrowings (159) (188)
Trade and other payables (1,416) (2,198)
Total current liabilities (1,575) (2,386)
------------------------------------- ---------- ---------
Non-current liabilities
Borrowings (993) (1,072)
Trade and other payables (274) (320)
Provisions (51) (62)
------------------------------------- ---------- ---------
Total non-current liabilities (1,318) (1,454)
------------------------------------- ---------- ---------
Total liabilities (2,893) (3,840)
------------------------------------- ---------- ---------
Net assets 2,641 2,655
------------------------------------- ---------- ---------
Equity
Share capital 5,773 5,249
Share premium 33,444 33,230
Capital redemption reserve 17,476 17,476
Other reserve 505 439
Translation reserve 135 141
Convertible loan note reserve 82 82
Accumulated losses (54,648) (53,823)
------------------------------------- ---------- ---------
Equity attributable to owners of
the Parent 2,767 2,794
Non-controlling interests (126) (139)
------------------------------------- ---------- ---------
Total equity 2,641 2,655
------------------------------------- ---------- ---------
Consolidated statement of changes in equity for the year ended
31 December 2020
Capital Convertible Non-controlling
Share Share redemption Other loan note Translation Accumulated interest
capital premium reserve reserve reserve reserve losses Total Total
equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
---------------- -------- -------- ----------- -------- ------------ ------------ ------------ -------- ---------------- --------
Balance at 1
January 2020 5,249 33,230 17,476 439 82 141 (53,823) 2,794 (139) 2,655
Comprehensive
income
Loss for the
period - - - - - - (798) (798) 13 (785)
Other
comprehensive
income for the
period - - - - - (6) - (6) - (6)
---------------- -------- -------- ----------- -------- ------------ ------------ ------------ -------- ---------------- --------
Total
comprehensive
income for
year - - - - - (6) (798) (804) 13 (791)
Transactions
with owners
of the Group
Shares issued
during the
year 524 217 - - - - - 741 - 741
Issue expenses - (3) - - - - - (3) - (3)
Equity-settled
share-based
payment - - - 39 - - - 39 - 39
Transfers - - - 27 - - (27) - - -
Balance at
31 December
2020 5,773 33,444 17,476 505 82 135 (54,648) 2,767 (126) 2,641
---------------- -------- -------- ----------- -------- ------------ ------------ ------------ -------- ---------------- --------
Consolidated statement of changes in equity for the year ended
31 December 2019
Capital Convertible Non-controlling
Share Share redemption Other loan note Translation Accumulated interest
capital premium reserve reserve reserve reserve losses Total Total
equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
---------------- -------- -------- ----------- -------- ------------ ------------ ------------ -------- ---------------- --------
Balance at 1
January 2019,
as restated 4,927 33,230 17,476 953 82 149 (54,293) 2,524 (141) 2,383
Comprehensive
income
Loss for the
period - - - - - - (161) (161) 2 (159)
Other
comprehensive
income for the
period - - - - - (8) - (8) - (8)
---------------- -------- -------- ----------- -------- ------------ ------------ ------------ -------- ---------------- --------
Total
comprehensive
income for
year - - - - - (8) (161) (169) 2 (167)
Transactions
with owners
of the Group
Equity-settled
share-based
payment - - - 117 - - - 117 117
Transfers - - - (631) - - 631 - - -
Share options
exercised 322 - - - - - - 322 - 322
---------------- -------- -------- ----------- -------- ------------ ------------ ------------ -------- ---------------- --------
Balance at 31
December 2019 5,249 33,230 17,476 439 82 141 (53,823) 2,794 (139) 2,655
---------------- -------- -------- ----------- -------- ------------ ------------ ------------ -------- ---------------- --------
.
Consolidated statement of cash flows
for the year ended 31 December 2020
2020 2019
GBP'000 GBP'000
-------------------------------------------- --------- ---------
Cash flows from operating activities
Loss before taxation (794) (210)
Adjustments for:
Net finance costs 172 176
Depreciation of property, plant and
equipment 103 149
Profit on disposal of loan monitors - (36)
Amortisation of intangible assets 40 84
Write off of research and development 222 -
projects not taken forward
Modification gain on convertible loan (119) -
note
Share-based payment expense 39 117
Other tax income (52) -
Effect of exchange rate fluctuations (6) (2)
(395) (278)
Decrease/(increase) in inventories 13 (235)
Decrease in trade and other receivables 680 427
(Decrease)/increase in trade and other
payables (303) 212
(Decrease)/increase in provisions (11) 6
--------------------------------------------- --------- ---------
Net cash generated (used in) / from
operations (16) 688
Interest paid (132) (139)
Income taxes received 80 60
--------------------------------------------- --------- ---------
Net cash generated (used in) / from
operating activities (68) 609
Cash flows from investing activities
Purchase of property, plant and equipment (6) (10)
Proceeds from the sale of loan monitors - 59
Capitalised development expenditure
(net of grants) (165) (250)
Net cash used in investing activities (171) (201)
Cash flows from / (used in) financing
activities
Issue of ordinary share capital 253 322
Expenses in connection with share issue (3) -
Net movement in invoice discount facility (23) (356)
Principal lease payments (37) (33)
--------------------------------------------- --------- ---------
Net cash generated from / (used in)
financing activities 190 (67)
--------------------------------------------- --------- ---------
Net (decrease)/increase in cash and
cash equivalents (49) 341
Cash and cash equivalents at beginning
of the period 908 580
Exchange loss on cash and cash equivalents (6) (13)
--------------------------------------------- --------- ---------
Cash and cash equivalents at end of
the period 853 908
--------------------------------------------- --------- ---------
1. Nature of the financial information
This Results Summary containing condensed financial information
for the year ended 31 December 2020 should be read in conjunction
with the Deltex Medical Group Plc's Annual Report & Accounts
2020 which were in accordance with International Accounting
Standards in conformity with the requirements of the Companies Act
2006. The consolidated financial statements have been prepared
under the historical cost convention and on a going concern
basis.
Financial information contained in this document does not
constitute statutory accounts within the meaning of section 434 of
the Companies Act 2006 ('the Act'). The statutory accounts for the
year ended 31 December 2019 have been filed with the Registrar of
Companies and those for the year ended 31 December 2020 will be
filed with the Registrar of Companies following the Annual General
Meeting. The report of the independent auditor on those statutory
accounts was unqualified and did not contain a statement under
section 498(2) or (3) of the Act. The report drew attention by way
of emphasis to the matters set out below in note 2 (Accounting
policies - going concern). The auditor's opinion was not modified
in respect of these matters.
2. Accounting policies
The Group's principal accounting policies can be found on pages
43 to 45 of the Group's Annual Report & Accounts 2020.
Going concern
The directors have reviewed detailed budgets and cash flow
forecasts until 30 June 2022. This review indicates that the Group
is expected to continue trading as a going concern based on
projected net cash flows derived from sales of the Group. The
directors recognise that COVID-19 continues to have an impact on
the demand for its products and the continued impact of COVID-19 is
by its nature uncertain.
Notwithstanding the uncertainties over the impact for the Group
that COVID-19 causes, the directors consider that they have
reasonable grounds to believe that the Group will have adequate
resources to continue in operational existence for the foreseeable
future and it is therefore appropriate to prepare the financial
statements on the going concern basis.
3. Revenue
For the year ended 31 December 2020
Direct markets Indirect markets
Probes Monitors Third Other Probes Monitors Other Total
Party
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
----------------- -------- --------- -------- -------- -------- --------- -------- --------
UK 652 102 - 83 - - - 837
USA 858 16 - 26 - - - 900
France - - - - 170 - 10 180
Scandinavia - - - - 95 - 2 97
South Korea - - - - 159 - 1 160
Portugal - - - - 86 - - 86
Other countries 15 32 - - 78 11 2 138
----------------- -------- --------- -------- -------- -------- --------- -------- --------
1,525 150 - 109 588 11 15 2,398
----------------- -------- --------- -------- -------- -------- --------- -------- --------
For the year ended 31 December 2019
Direct markets Indirect markets
Probes Monitors Third Other Probes Monitors Other Total
Party
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------- -------- --------- -------- -------- -------- --------- -------- --------
UK 902 49 293 107 - - - 1,351
USA 1,443 45 - 42 - - - 1,530
France - - - - 289 9 6 304
Scandinavia - - - - 83 - 1 84
South Korea - - - - 277 10 3 290
Peru - - - - 258 - 3 261
Other
countries 29 - - - 251 148 8 436
------------- -------- --------- -------- -------- -------- --------- -------- --------
2,374 94 293 149 1,158 167 21 4,256
------------- -------- --------- -------- -------- -------- --------- -------- --------
The Group's revenue disaggregated between the sale of goods and
the provision of services is set out below. All revenues from the
sale of goods are recognised at a point in time; maintenance income
is recognised over time.
2020 2019
GBP'000 GBP'000
-------------------- -------- --------
Sale of goods 2,338 4,176
Maintenance income 60 80
2,398 4,256
-------------------- -------- --------
The following table provides information about trade receivables
and contract liabilities from contracts with customers. There were
no contract assets at either 31 December 2020 or 31 December
2019.
31 December 31 December
2020 2019
GBP'000 GBP'000
------------------------------------------- ------------ ------------
Trade receivables which are in 'Trade and
other receivables' 576 1,062
Contract liabilities (58) (53)
------------------------------------------- ------------ ------------
The following aggregated amounts of transaction prices relate to
the performance obligations from existing contracts that are
unsatisfied or partially unsatisfied as at 31 December 2020:
2021 2022 2023 Total
GBP'000 GBP'000 GBP'000 GBP'000
------------------------------------- ------------ ------------ ------------ --------
Revenue expected to be
recognised 54 1 3 58
------------------------------------- ------------ ------------ ------------ --------
Revenue recognised in 2020 which was included in contract liabilities
at 31 December 2019 amounted to GBP46,000. Revenue recognised
in 2019 included in contract liabilities at 31 December 2018 amounted
to GBP131,000.
4. Dividends
The directors cannot recommend payment of a dividend
(2019:nil).
5. Basic and diluted loss per share
The loss per share calculation is based on the loss of
GBP798,000 and the weighted average number of shares in issue of
526,448,659. For 2019, the loss per share calculation is based on
the loss of GBP161,000 and the weighted average number of shares in
issue of 509,679,881. While the Group is loss-making, the diluted
loss per share and the loss per share are the same.
[1] Halawa N et al., Respiratory and Hemodynamic effects of
prophylactic alveolar recruitment during liver transplant: a RCT,
Journal of Experimental and Clinical Transplantation, March
2021
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
FR UAVBRABUSUAR
(END) Dow Jones Newswires
April 22, 2021 02:00 ET (06:00 GMT)
Deltex Medical (LSE:DEMG)
Gráfica de Acción Histórica
De Mar 2024 a Abr 2024
Deltex Medical (LSE:DEMG)
Gráfica de Acción Histórica
De Abr 2023 a Abr 2024