Deltex Medical Regulatory News (DEMG)

27 April 2020 - Deltex Medical Group plc (AIM: DEMG), the global leader in oesophageal Doppler monitoring, today announces its results for the year ended 31 December 2019.

Deltex Medical Group plc

("Deltex Medical" or the "Group")

Results for the year ended 31 December 2019

HIGHLIGHTS

Financial

§ the Group posted an operating profit (excluding exceptional items) of £90,000 (2018: loss £943,000) - an improvement of £1 million

§ positive adjusted EBITDA of £0.4 million (2018: loss £0.7 million)

§ revenues £4.3 million (2018: £5.0 million), reflecting a focus on profitable business, lower sales & marketing spend and cessation of a third-party distribution agreement

§ overheads (before exceptional costs) decreased by £1.3 million to £3.2 million (2018: £4.5 million)

§ sales & marketing spend decreased by 44% to £1.2 million (2018: £2.2 million), reflecting significantly smaller sales teams in the USA and UK

§ cash and cash equivalents at 31 December 2019 of £0.9 million (2018: £0.6 million)

COVID-19

§ demand increasing for Deltex Medical TrueVue Doppler systems in intensive care units in the UK and USA as a result of the COVID-19 pandemic

§ reduced demand in Q1 for the Group's Doppler probes from operating rooms - due to cancellation of elective surgery in anticipation of COVID-19; although increased demand associated with "catch-up" expected later in the year

Business

§ 2019 was a year of restructuring and refocusing Deltex Medical

§ benefits of the new strategy - with a substantially lower cost base - clear from the financial results

§ 22 randomised controlled trials which show the benefit of measuring aortic blood flow (via TrueVue Doppler) to optimise the clinical management of patients represent an extremely valuable asset for the Group

§ work ongoing to extend and augment the technologies on the Group's TrueVue haemodynamic monitoring platform supported by a UK Innovate Smart Award

Commenting on the results, Nigel Keen, Chairman of Deltex Medical, said:

"I am pleased to see the Group generate a profit before exceptional costs at the operating level."

"The benefits of the restructuring and refocusing work, combined with the new strategy, are clear and give the Group a sound base to grow through and after the effects of the COVID-19 pandemic."

"Although the COVID-19 pandemic is horrifying, it is notable that UK and US intensive care units are beginning to order Deltex Medical's specialist haemodynamic monitoring technology to help clinicians select the optimal treatment regime for the ventilated COVID-19 patients."

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 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.

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 presented, as enhanced haemodynamic management is adopted into routine clinical practice around the world. The Group aims to provide clinicians with a single platform - a 'haemodynamic workstation' - 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.

Deltex Medical and COVID-19

Deltex Medical: COVID-19 and the hospital Intensive Care Unit ("ICU") setting

At the moment there is no approved drug or vaccine to treat COVID-19 patients. As a result, intensivists have limited therapeutic options available for the very sick COVID-19 patients who have been admitted to an ICU. A recently published research paper (Cunningham et al. "Treatment of COVID-19: old tricks for new challenges" Critical Care (2020) 24:91) stated that:

"the management of patients mainly focuses on the provision of supportive care, e.g., oxygenation, ventilation, and fluid management." [Emphasis added]

UK ICUs

Since the start of the COVID-19 pandemic in the United Kingdom, Deltex Medical has seen an increase in demand for its TrueVue Doppler technology from NHS ICUs in order to help optimise the treatment of severely ill COVID-19 patients.

Given the rapidly evolving situation, it is currently not possible to quantify the financial implications of this increase in demand from NHS ICUs, as it is unclear how long the COVID-19 pandemic will last or the number of severely sick patients who will be affected. A number of NHS hospitals which have previously used the Group's TrueVue Doppler technology in their ICUs are placing orders as a result of the clinical challenges of treating COVID-19 patients in an ICU.

US ICUs

Deltex Medical has a small sales force in the USA which focuses on sales of its TrueVue Doppler technology principally into hospital operating rooms ("ORs"). However, the Group has recently started to see demand for its TrueVue Doppler technology from hospitals in the USA for use in the ICUs.

As a result of COVID-19 there could be strong demand for haemodynamic monitoring in US ICUs and there is likely to be an overall lack of capacity from existing suppliers to satisfy this potential demand for haemodynamic monitoring technology. In order to satisfy this potential demand, Deltex Medical is preparing for a significant increase in demand from the US ICU market. As in the UK, it is difficult to predict the financial implications for the Group of such increased demand from US ICUs as a result of COVID-19.

Rest of world ICUs

Deltex Medical sells its TrueVue range of haemodynamic monitoring to the rest of the world via a network of international distributors. Such sales are lower margin and the Group does not have direct access to, or communication with, the end-user customer. The Group works closely with its international distributors to support their sales and marketing efforts; however, at the moment the Group is focusing its primary sales activities on direct sales into the key UK and US healthcare markets. Nevertheless, activity is being seen in sales to ICUs in a number of international markets served by our distributors.

Deltex Medical: COVID-19 and elective surgery

In the first quarter of 2020, Deltex Medical has seen a decline in monitor and probe orders for use in elective surgery from UK and US hospitals and from its international distributors. This is as a result of the cancellation of elective surgical procedures with the corresponding decline in demand for the Group's Doppler probes in the OR which has been caused by the need to keep hospital facilities and resources available for COVID-19 patients.

Once the COVID-19 pandemic has subsided the Group believes that there will be significant demand from patients and their physicians to catch up with the postponed elective procedures to prevent them from developing into emergencies. This is expected to result in a pronounced uptick in demand in the future for TrueVue Doppler probes from the Group's existing OR-based customers. Preliminary feedback from some of the overseas markets which experienced the COVID-19 pandemic earlier than the UK, indicates that elective surgery is beginning to restart in those countries.

Conclusion

Deltex Medical promotes the benefits of its unique Doppler-based haemodynamic monitoring technology, backed by a substantial body of high quality scientific evidence, to anaesthetists in the OR and intensivists in the ICU. It currently appears that the COVID-19 pandemic is providing a powerful external stimulus to drive higher adoption rates of the Group's TrueVue Doppler technology in ICUs around the world.

At the moment it is too early to determine what proportion of the reduction in OR-related revenues experienced at the beginning of the year will be caught up later in the year. Nor is it possible to assess how large demand will be this year for TrueVue Doppler (and other modalities on its TrueVue haemodynamic monitoring system) in the ICU setting. However, it is already clear that there is increased demand for the Group's TrueVue Doppler in the ICU setting.

As part of our management response to the pandemic, we have taken proactive steps to minimise expenditure and our cost base. This includes the cessation of all discretionary expenditure and a hiring freeze. (We have, to date, not furloughed any employees as they are busy serving, directly or indirectly, our customers, save for two members of staff for medical reasons.) As a consequence, we have been able to make significant savings which has further enhanced our ability to generate cash even at lower activity levels.

The Group had cash on hand at 31 December 2019 of £0.9 million. It is following closely the availability and structure of COVID-19 related Government-sponsored sources of finance, although it currently has no need to access such funding sources.

Chairman's Statement

Financial results

Since its foundation as a technologically driven start-up, Deltex Medical has invested in the development of the TrueVue System to provide clinicians with the ability to monitor their patients' haemodynamic condition throughout their journey through the healthcare system. To validate the safety benefits, improvements in patient outcomes and the financial savings for the healthcare system, we have invested heavily in supporting multiple randomised clinical trials ("RCTs"). There have now been in excess of 22 RCTs published which show the benefits of measuring aortic blood flow to optimise the clinical management of patients. This scientific evidence base derived using our technology is a unique asset associated with Deltex Medical's technology and a key differentiator for the Group.

2019 marked a significant milestone in Deltex Medical's long history as the Group operated profitably, posting an operating profit (excluding exceptional items) of £90,000.

Throughout the year we implemented the Group's new strategy of reducing overhead costs to target positive EBITDA and focusing selling activities on high-usage accounts, or accounts where the Group's TrueVue Doppler technology is already well established. Although COVID-19 is expected to have a significant effect, 2020 will be the first full year of trading of the re-baselined business under the new strategy.

The success of the strategy can be seen in the Group's results with adjusted EBITDA (Earnings before interest, depreciation and amortisation, share-based payments and non-executive directors' fees, as well as any exceptional costs) increasing to £0.4 million, up by £1.1 million from a loss of £0.7 million in 2018. The gross margin was also higher at 77% (2018: 71%). This is also reflected in the operating profit before exceptional items of £90,000 in contrast to a loss of £943,000 in 2018. The 2019 exceptional costs relate principally to payments in lieu of notice and compensation for loss of office to a former Director.

Overheads (before exceptional costs) declined by 29% (£1.2 million) to £3.2 million (2018: £4.5 million), included in which sales and marketing expenses were reduced by 44% to £1.3 million (2018: £2.2 million), reflecting significantly smaller sales teams in the USA and UK.

Reflecting the implementation of the new strategy, revenues for the year declined by 14% to £4.3 million (2018: £5.0 million). The decline in revenue was primarily as a result of:

(i) focusing on the most profitable business and not pursuing market share at all costs;

(ii) the termination of a distribution agreement relating to the sale of lower margin third-party goods in the UK;

(iii) a substantial reduction in expenditure in sales and marketing, especially in the USA; and

(iv) reduced levels of activity from the Group's French distributor as a result of some isolated commercial issues.

Cash on hand at 31 December, 2019 was £0.9 million (2018: £0.6 million) and net assets were £2.7 million (2018: £ 2.4 million).

Market positioning and proposition to clinicians

There is a large body of scientific evidence comprising RCTs which shows that the use of appropriate haemodynamic monitoring technology to assist the management of medium- and high-risk anesthetised surgical patients significantly improves patient outcomes and reduces the incidence rates of avoidable complications such as acute kidney injuries ("AKIs") and surgical site infections ("SSIs"). The 2018 Fedora study went further, showing that there were both clinical and financial benefits associated with the haemodynamic monitoring of low-risk surgical patients, and not just the medium- and high-risk patients assessed in earlier RCTs. Substantially all of the evidence supporting the use of haemodynamic monitoring described in these RCTs was generated using the Group's TrueVue Doppler technology.

Deltex Medical provides clinicians with a suite of haemodynamic monitoring technologies via its TrueVue platform led by its flagship TrueVue Doppler technology. The Doppler technology provides extremely accurate, real-time data on the haemodynamic status of patients which enables clinicians to optimise the clinical status of anaesthetised patients during surgery safely and rapidly.

Supported by the findings of RCTs, the Group's selling proposition to intensivists and anaesthetists is that TrueVue Doppler haemodynamic monitoring results in better outcomes for surgical and critical care patients with lower associated costs.

The Group plans to extend the utility and broaden the applicability of the haemodynamic monitoring technologies on its TrueVue platform via a number of targeted product development initiatives, many of which are part-funded by competitively-won grants.

We promote the use of Deltex Medical's TrueVue Doppler technology over lower-accuracy and clinically unproven alternatives to decision-makers in hospitals around the world. We also focus on the long-term profitability of the Group thereby providing us with the financial resources to grow the business.

Employees

The Group employs a significant number of talented individuals across a range of disciplines in the UK and overseas, who work to make Deltex Medical successful. On behalf of the Board I would like to thank all the Group's employees for their dedication and hard work during 2019 - and their resilience so far this year in the face of the COVID-19 pandemic.

Prospects

There are a number of underlying trends which are helping Deltex Medical's business, including:

§ an ageing population worldwide with more complex health issues;

§ a wider acceptance by clinicians of the need for haemodynamic monitoring;

§ an increasing focus on patient safety, including the reduction of avoidable complications;

§ the increasing reluctance of insurers to reimburse hospitals for the costs of avoidable complications, such as AKIs;

§ pressure on hospitals, especially in the USA, to reduce the cost of in-patient treatment; and

§ following the COVID-19 outbreak, an increasing focus on infectious diseases and pandemic preparedness.

The Board believes that Deltex Medical is well positioned to benefit from these trends which are seen in many healthcare markets around the world.

Over recent months the Group has seen a slowdown in elective surgical procedures in hospitals throughout the world as a result of measures taken to combat COVID-19. This has resulted in a decline in TrueVue Doppler probe usage. In contrast to the reduction in elective surgery in hospitals, sales of monitors and probes for critical care use to hospitals in countries fighting the COVID-19 virus have sharply increased, offsetting the decline from elective surgical procedures. It is too early to assess the quantum or timing of these effects on the Group's trading in 2020, in part as the Group trades through third party distributors in many of these countries. Further information on COVID-19 is set out in the section above entitled "Deltex Medical and COVID-19".

The Group's cost base is substantially lower. The sales and marketing activities are significantly more targeted. There is a strong emphasis on writing profitable business, as opposed to pursuing market share at any cost. The foundations are in place for the Group to target profitable revenue growth from this new platform with more focused commercial activities.

Nigel Keen

Chairman

April 2020

Business Review

Why clinicians choose TrueVue Doppler

It is widely accepted that, given the published scientific evidence, anaesthetised patients undergoing surgery should have their haemodynamic status closely monitored. If such patients are not monitored carefully with a device providing real-time, accurate haemodynamic information, then physicians are unable to administer optimally appropriate fluids and drugs. This can result in severe adverse outcomes and give rise to extended hospital stays as well as substantially higher attributable healthcare costs.

Haemodynamic monitoring is not just indicated for anaesthetised surgical patients but should also be used on other patients, including those severely unwell patients admitted to ICUs and Accident & Emergency units for trauma patients.

Multiple RCTs have demonstrated that a TrueVue Doppler haemodynamic monitoring protocol, which combines targeted fluid and pharmacological interventions, can improve patient outcomes significantly, including substantially lowering the risk of complications such as SSIs and AKIs.

Deltex Medical's TrueVue Doppler technology is acknowledged to be the "gold standard" for the monitoring of real-time bloodflow. Its Doppler technology is strongly differentiated from competing haemodynamic monitoring technologies, which are not supported by an equivalent evidence base, and which tend to rely on measuring blood pressure or deriving bloodflow from algorithms. Such information is, at best, imprecise and, at worst, misleading.

The precision and generation of real-time data from the TrueVue Doppler technology, along with the unrivalled evidence base supporting its use on patients with different risk profiles, lies at the heart of Deltex Medical's technology proposition to its customers.

New product development

The Group's new product development strategy is to optimise further the TrueVue Doppler technology as well as to improve and augment the other haemodynamic monitoring technologies available on Deltex Medical's TrueVue haemodynamic monitoring platform.

Over the last year the Group has been successful with a number of UK grant applications to help fund the development and extension of its technology. In October the Group announced that its principal subsidiary, Deltex Medical Limited ("DML"), had been awarded an Innovate UK Smart Award with eligible project costs of £0.5 million, of which 70% are eligible for reimbursement. Innovate Smart Award is a UK government sponsored research and development programme and we will use the grant to develop the next generation of our monitor. During 2019 DML was awarded five grants with total project costs worth £0.63 million, with £0.45 million eligible for reimbursement.

The award of these grants has allowed us to accelerate the investment in these new products which are expected to be completed over the next two years. Deltex Medical will continue to apply for grants during 2020 to assist with the funding of the development of its product range.

Changes in the international regulatory regime for medical device manufacturers

The Group operates in a number of highly regulated environments. The Group has a robust Quality Management System which was audited in October 2019 under the new Medical Device Single Audit Program ("MDSAP"). MDSAP comprises a single regulatory audit of a medical device manufacturer's quality management system to ensure that it satisfies the requirements of multiple regulatory jurisdictions. Following the MDSAP audit the Group's systems are now fully certified for product sales in the EU, USA, Canada and Australia until February 2023. The Group also welcomes the added requirements for proving competitive equivalence in the Medical Device Regulations ("MDR 2017"). The MDR 2017 specifically prohibits competitors claiming technical and clinical equivalence to products such as the Group's TrueVue Doppler monitor and probes without access to the detailed technical documentation needed to demonstrate equivalence. The guidance goes on to state "equivalence might be difficult or impossible in case of limited access to the technical documentation of the devices". The substantial body of evidence supporting the use of Deltex Medical's TrueVue Doppler system means that these changes to international regulations should be positive for the Group.

Update on the implementation of the new strategy

In 2019 we took a number of important steps to implement the new strategy which we had adopted in the second half of 2018. These included identifying further cost reductions, negotiating the termination of a distribution agreement for third party goods in the UK and increasing our commercial focus to ensure that the business opportunities we targeted, particularly in the USA, would be successful and profitable.

The next stage of the implementation of the strategy is focused around targeting profitable revenue growth from the new, reconfigured and leaner platform which we developed during 2019. This will, of course, be subject to the as yet unknown effect of COVID-19.

Three principal divisions: the USA, the UK and International

The sales and marketing activities of the Group are managed in three divisions: the USA, the UK and International.

United States

The USA remains the most important market for the Group's technologies. The addressable market is substantial and growing. Sales prices for medical device equipment and consumables in the USA are higher than in other territories. The patient safety advocacy groups are growing in influence. The 'payers', such as the private and public insurers, are ratcheting-up pressure to reduce the incidence of complications for patients as such payers are increasingly refusing to pay for SSIs and AKIs which they deem avoidable. The US Government has announced measures to encourage US hospitals to reduce the cost of healthcare, and this includes the costs associated with extended length-of-stay. The cost of healthcare has widely been reported as being one of the key issues in the upcoming US presidential election.

Given the opportunities and size of the US healthcare market, Deltex Medical continues to work on a number of initiatives to increase its US revenues and market share. For example, in July the Group announced that it had signed an innovative technology contract with Vizient, Inc., the largest membership-driven healthcare performance improvement company in the USA. This deal with Vizient helps to give our products greater visibility and credibility to US hospitals.

The principal challenge in the USA remains how to grow the revenue base significantly whilst controlling the associated sales and marketing overhead costs.

United Kingdom

The NHS remains extremely price sensitive and historically disinclined to spend money on technology to reduce future costs. It remains unclear whether if there are higher levels of future funding for the NHS this will substantially enhance our business. Based on previous experience our plans do not anticipate significantly higher revenues from the NHS; however, the COVID-19 crisis may change our market position in the UK.

Sales to the NHS also remains highly competitive, with other haemodynamic monitoring companies trying to increase their market share in the UK, albeit without high precision Doppler-based technology with its substantial associated scientific evidence base.

The majority of the research & development work associated with the TrueVue Doppler platform took place in the UK and as a result Deltex Medical retains close relationships with academic 'Key Opinion Leaders' in the UK. These relationships remain important for the Group's ongoing product development programmes aimed at expanding and extending the haemodynamic monitoring technologies on the TrueVue platform.

Although the UK remains an important market, the Group's principal plans for revenue growth by its own direct sales teams are focussed on the US market.

International

Deltex Medical sells its TrueVue Doppler technology into approximately 40 other countries via a network of distributors.

During the year we continued to increase the number of distributors selling the Group's technology and we expect this division to grow in 2020. Recently signed distribution agreements covering Asia and South America are expected to help increase our International revenues this year.

Our French distributor continued to face a number of commercial challenges during 2019 which resulted in them ordering significantly less product from us in the year. Although these issues appear to have been resolved, the adverse effect of COVID-19 on elective surgery in France, as with other territories, has held back sales to France so far this year.

Conclusion

After approximately 18 months of restructuring and refocusing the Group, we believe that we now have a stable and appropriately funded platform from which we can target profitable growth from a new, lower baseline of activities. However, the COVID-19 pandemic will inevitably impact the Group's trading in the short-term, both in a positive and a negative way as has been described above, and it is currently too early to assess the quantum or timing of these effects on the Group's trading in 2020.

Andy Mears

Chief ExecutiveApril 2020

Consolidated statement of comprehensive income

For the year ended 31 December 2019

Consolidated balance sheet

As at 31 December 2019

*Prior year figures have been restated to adjust the dilapidation provision. Please see Note 4.

Consolidated statement of changes in equity for the year ended 31 December 2019

Consolidated statement of changes in equity for the year ended 31 December 2018

.

Consolidated statement of cash flows

 for the year ended 31 December 2019

1. Nature of the financial information

This Results Summary containing condensed financial information for the year ended 31 December 2019 should be read in conjunction with the Deltex Medical Group Plc's Annual Report & Accounts 2019 which were in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union (EU), with interpretations issued by the International Financial Reporting Interpretations Committee (IFRS IC) and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS. 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 2018 have been filed with the Registrar of Companies and those for the year ended 31 December 2019 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 98(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) and note 7 (Events after the balance sheet date). 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 42 to 44 of the Group's Annual Report & Accounts 2019.

Going concern

The directors have reviewed detailed budgets and cash flow forecasts until 30 June 2021.  This review indicates that the Group is expected to continue trading as a going concern based on increasing net cash inflows from sales over expenditure of the Group. The directors recognise that, whilst the short-term impact of COVID-19 has resulted in an increase in demand in parts of the business, demand over the coming year 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 

The Group's revenue disaggregated between the sale of goods and the provision of services is set out below. All revenues are recognised at a point in time; maintenance income is recognised over time.

The following table provides information about trade receivables and contract liabilities from contracts with customers. There were no contract assets at either 31 December 2019 or 31 December 2018.

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 2019:

4. Dilapidation provision 

Under the terms of the operating leases over land and buildings, predominantly in the UK, the Group has an obligation to return the property in a specified condition at the end of the lease. As the unexpired lease term is more than one year, the provision has been classified as a non-current liability. It is expected that the provision will be utilised within the next 10 years. The directors have reviewed the accounting for the dilapidation provision during the year, and as a result have made a prior year adjustment to discount the dilapidation provision and unwind the discounting on an annual basis.

5. Dividends

The directors cannot recommend payment of a dividend (2018:nil).

6. Basic and diluted loss per share

The loss per share calculation is based on the loss of £161,000 and the weighted average number of shares in issue of 509,679,881. For 2018, the loss per share calculation is based on the loss of £1,270,000 and the weighted average number of shares in issue of 471,460,901. While the Group is loss-making, the diluted loss per share and the loss per share are the same.

7. Events after the balance sheet date 

The impact of COVID-19 on the Group's trading in 2020 is likely to be significant. Deltex Medical has seen a slow-down in elective surgical procedures in hospitals throughout the world as a consequence of measures taken to combat COVID-19 which has resulted in a decline in TrueVue Doppler probe usage. Conversely, sales of monitors and probes for critical care use to hospitals in countries fighting the COVID-19 virus have sharply increased. It is too early to assess the quantum or timing of these effects on the Group's trading in 2020. The issue is examined in greater depth in the section at the beginning of this Results Summary entitled "Deltex Medical and COVID-19".