Nice update23 Dec 2022 09:40
Deltex Medical Group plc (AIM: DEMG), the global leader in oesophageal Doppler monitoring, is pleased to announce that its year-to-date revenues are ahead of the Group's full year 2021 revenue figures. In addition, the Group has a large advanced opportunity in the pipeline which if successful, could provide a further boost to revenue in the short term.
The Group has made good progress towards completing its innovative, next generation TrueVue monitor (the "New Monitor"). The Group's original intention had been to ship the New Monitor and subsequently invoice customers this year. However, regulatory approvals needed before the New Monitor can be launched onto the market will take several more weeks to be completed, including further testing. This delay has been caused by headwinds associated with strains in global supply chains that delayed the start of the approval process, including the completion of the testing for regulatory compliance.
During 2022 Deltex Medical has shown the New Monitor to a number of customers with a view to them purchasing the New Monitor. The Group is pleased to report that interest has been strong, and the Group has already won a tender in respect of the New Monitor at a price point significantly higher than price levels typically achieved for the current monitor. Deltex Medical expects strong demand from its distributors and end-users in relation to replacing legacy monitors, once the New Monitor has been released for sale.
The business has been tightly managed and therefore operating costs are lower than originally anticipated. However, in order to help fund the increased cash requirements associated with the unexpected delay in the launch of the New Monitor, Mr. Nigel Keen, the Company's largest shareholder and Chairman, has agreed to provide further cash support to Deltex Medical, on arm's length commercial terms.
Accordingly, the Board has entered into an agreement with Imperialise Limited, a company controlled by Mr. Nigel Keen, for a loan of £0.25 million by way of extension to the existing £0.5 million standby loan facility that was put in place and announced by the Company on 20 September 2021 and is now fully drawn down. The interest rate on the facility remains at 8% per annum, and it is unsecured. The £0.75 million standby loan facility is repayable in full on or before 31 December 2023.
Sign In
Follow the stocks
