Healthcare equipment specialist Deltex Medical (DEMG) has been trying to gain traction for its cardiac monitoring machines after a slowdown in UK health spending hit sales. Management is now trying to boost the recurring sales of surgical probes - the disposable element of its monitoring equipment. That has prompted a change in how the company's accounts are presented; to show probe sales as a pro forma indicator of performance.
Deltex's main market is in the UK where NHS Trusts are gearing up to install its monitors after they were accepted as an important innovation back in 2011. The slow progress reflects NHS bureaucracy, although, despite this, probe sales to UK hospitals rose 14 per cent in the period to £1.35m. That's slightly ahead of the 11 per cent increase to 681 in the installed base of cardiac monitors. When other types of monitor are included, the total installed base now stands at over 1,000. The US market is the next target for Deltex and it currently has an access agreement with US company, Premier, to begin marketing its CardioQ monitoring machine in hospitals. Approval for newer versions of the machine is pending with the Food & Drug Administration.
Broker Arden Partners expects a full-year pre-tax loss of £1.9m, giving a loss per share of 1.2p (from a loss of £2.2m and loss per share of 1.4p in 2012).
DELTEX MEDICAL (DEMG) | ||||
|---|---|---|---|---|
| ORD PRICE: | 16.3p | MARKET VALUE: | £26.9m | |
| TOUCH: | 16-16.5p | 12-MONTH HIGH: | 27p | LOW: 13p |
| DIVIDEND YIELD: | nil | PE RATIO: | na | |
| NET ASSET VALUE: | 2p* | NET DEBT: | 20% | |
| Half-year to 30 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2012 | 3.21 | -1.27 | -0.80 | nil |
| 2013 | 2.91 | -1.44 | -0.90 | nil |
| % change | -9 | - | - | - |
Ex-div:- Payment:- *Includes intangible assets of £1.23m, or 0.7p a share | ||||
