Deltex Medical Regulatory News (DEMG)

25 Jul 2006 07:00

Deltex Medical Group PLC25 July 2006 Deltex Medical Group plc Pre-close update on the six months ended 30 June 2006 25 July 2006 Deltex Medical Group plc ('Deltex Medical' or the 'Company'), theAIM listed haemodynamic monitoring company, today announces an update onprogress in the six months ended 30 June 2006. During the first half of 2006 the Company made significant further progresstowards its goal of establishing the use of its CardioQTM system as a standardof care in the monitoring and management of patients undergoing major surgeryand in intensive care. As a result, sales for the period were in excess of £1.5million, compared to £1.4 million in the corresponding period in 2005. In the Company's largest market, the UK, sales continued to grow steadily, withgrowth in each of probe sales, monitor sales and maintenance revenue. June wasthe twentieth consecutive month when UK probe sales were higher than in thecorresponding month the year before. March was a record month for probe salesand June the second highest ever. The heightened level of interest in the CardioQ in the USA is yet to have asignificant impact on sales, however revenues were ahead of the correspondingperiod as a result of early signs of increases in probe volumes from several ofthe key accounts which the Company's small US sales team is actively supporting. In 2005 the Company restructured its commercial relationships with itsdistributors in the Far East and Latin America and sales in the first half ofthe year have also shown continued progress. The Company has embarked on asimilar process with its main distributor partners in Europe. As a result allthe Company's major distributors have moved on to schedules of regular monthlyorders for probes rather than occasional stocking orders. This gives theCompany greater visibility of future orders, which assists improvements inproduction and stock control. It has involved the Company supporting stockreduction programmes by a number of its distributors leading to sales in Europebeing lower than in the first half of 2005. Cash consumption has been in line with the Company's plans and the Directorsbelieve that the Company has sufficient cash resources to achieve profitability. Nigel Keen, Deltex Medical's Chairman, commented: "The progress we have made in each of the UK, US and Far East and Latin Americanmarkets together with the changes we have implemented in Europe mean that we gointo the second half of the year with increasing momentum in all of our areas ofactivity." For further information, please contact:- Deltex Medical Group plc 01243 774 837Nigel Keen, Chairman nigel.keen@deltexmedical.comAndy Hill, Chief Executive andy.hill@deltexmedical.comEwan Phillips, Finance Director ewan.phillips@deltexmedical.com Financial DynamicsDavid Yates david.Yates@fd.com 0207 831 3113John Gilbert john.gilbert@fd.com Notes for Editors Deltex Medical manufactures and markets the CardioQ monitor, which usesdisposable ultra-sound probes inserted into the oesophagus to determine theamount of blood being pumped around the body - 'circulating blood volume'.Reduced circulating blood volume is known as hypovolaemia, which leads toinsufficient oxygen being delivered to the organs. This causes medicalcomplications including peripheral and major organ failure which can lead todeath. Hypovolaemia, which is akin to severe dehydration, affects virtuallyevery patient having surgery because of the combined effects of pre-operativestarvation, the impact of the anaesthetic agents and trauma from the surgeryitself. Using fluids and drugs, guided by the CardioQ, to optimise the amountof circulating blood significantly reduces post-operative complications allowingpatients to make a faster, more complete recovery and return home earlier. The CardioQ incorporates the Company's proprietary software and a smalldiameter, easy-to-use, minimally invasive, disposable oesophageal probe that isused for transmitting and receiving an ultra-sound signal. By using thistechnology, the CardioQ provides clinicians with the ability to haemodynamicallyoptimise critically ill patients and those undergoing routine moderate to majorsurgery through the controlled administration of fluid and drugs. Haemodynamicoptimisation has been scientifically proven to improve the speed and quality ofpatient recovery and reduce hospital stay. There are already over 1,250 CardioQs currently in use in hospitals worldwideand distribution arrangements are in place in over 30 countries. In addition,there are currently more than 90 clinical publications on the use of the CardioQwhich have repeatedly:- • validated the results of the Monitor against known standards for measuring cardiac output, demonstrating that the technology works • proved that the CardioQ works in a wide range of surgical procedures • demonstrated that the Company's technology provides significant health and economic benefits by helping to reduce post-operative complications and length of hospital stays by an average of 30 to 40 per cent for a wide range of patients. This information is provided by RNS The company news service from the London Stock Exchange