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Medical technology & services

Deltex Medical sees revenue growth as “improving trends” continue

"The improved trends seen in the second half of 2016 have continued into the first half of 2017 and driven a return to growth in group revenues,” said Deltex Medical chairman, Nigel Keen.

Deltex Medical Group plc (LON:DEMG) reported that revenue for the half year ended June 30 grew 7% to £2.9mln, boosted as the “improving trends” seen last year continued into the present year.

In an update ahead of its interim results, the company noted that revenues from the United States rose by 35% - specifically, probe revenues grew by 20% during the period, as it added four additional major accounts and got approvals for two more.

It also highlighted that it has seen benefits of previous investments starting to come through, resulting in operating improvements - notably, it said there have been £30,000 of cost savings per month in manufacturing, and new products emerged.

Deltex ended the period with £200,000 of cash, though the company separately announced is bringing in some £550,000 of new capital, placing new shares at a price of 3.375p. The company said the injection would be applied to working capital.

"The improved trends seen in the second half of 2016 have continued into the first half of 2017 and driven a return to growth in group revenues,” said Nigel Keen, Deltex Medical.

“Both the level and rate of cash consumption in the first half of 2017 were substantially reduced from the first half of 2016.

“We enter the traditionally stronger second half with underlying growth in all our key export markets, a more stable UK position, higher probe margins and lower costs.”

Keen added the company has made “substantial progress” in its evolution into a multiple technology business, now that it has three advanced haemodynamic monitoring technologies on one platform.

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