The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the UK Market Abuse Regulation

7 July 2022

Deltex Medical Group plc

("Deltex Medical" or the "Group")

Half year trading update

Deltex Medical Group plc (AIM: DEMG), the global leader in oesophageal Doppler monitoring, today publishes an update on trading for the half-year ended 30 June 2022 ("H1 2022").

Revenues for the six months ended 30 June 2022 increased approximately 9% to £1.2 million unaudited (2021: £1.1 million).

Activity levels in the USA and UK during H1 2022 continued to be adversely impacted by Covid-19, with restricted access into hospitals' operating rooms and shortages of clinical staff causing disruption to elective surgery volumes. However, within our International division (which excludes the USA) we saw further revenue growth, as many of the health systems our distributors sell into continue to ease their Covid-19 restrictions.

The Board's expectation for the second half of 2022 is that the number of elective procedures in the UK and USA will increase and access into hospitals will improve for our teams of clinical educators and sales experts. This, along with the anticipated European launch of our next generation TrueVue monitor, which includes a novel non-invasive modality, later this year is expected to drive higher revenues.

Cash at hand on 30 June 2022 was £0.6 million (30 June 2021: £0.6 million).  

Nigel Keen, Chairman of Deltex Medical, said:

"Given the subdued state of the Group's core elective surgery markets, combined with ongoing challenges associated with Deltex Medical's clinical educators gaining access to key accounts, we are pleased to see a return to growth in the first half."

"It is encouraging to see our international division continue to grow strongly and we expect growth to return in the UK and USA markets as Covid-related restrictions continue to ease."

"We are looking forward to the European release of the next generation TrueVue monitor, which we are aiming to launch later this year and expect to generate immediate capital replacement revenues from our distribution partners and enable better access to hospitals as clinicians evaluate this new technology."

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Notes for Editors

Deltex Medical's technology

Deltex Medical's TrueVue System uses proprietary haemodynamic monitoring technology to assist clinicians to improve outcomes for patients as well as increase throughput and capacity for hospitals.

Deltex Medical has invested over the long term to build a unique body of peer-reviewed, published evidence from a substantial number of trials carried out around the world. These studies demonstrate statistically significant improvements in clinical outcomes providing benefits both to patients and to the hospital systems by increasing patient throughput and expanding hospital capacity.

The Group's flagship, world-leading, ultrasound-based oesophageal Doppler monitoring ("ODM") is supported by 24 randomised control trials conducted on anaesthetised patients. As a result, the primary application for ODM is focussed on guiding therapy for patients undergoing elective surgery.

During 2021, Deltex Medical's engineers and scientists carried out successful research in conjunction with the UK's National Physical Laboratory ("NPL"), which has enabled the Group's 'gold standard' ODM technology to be extended and developed so that it can be used completely non-invasively.  This will significantly expand the application of Deltex Medical's technology to non-sedated patients. This new technological enhancement, which will be available on the new next generation monitor, will substantially increase the addressable market for the Group's haemodynamic monitoring technologies and is complementary to the long-established ODM evidence base.

Our new non-invasive technology has potential applications for use in a number of healthcare settings, including:

·    Accident & Emergency for the rapid triage of patients, including the detection and diagnosis of sepsis, an important capability for patients presenting with COVID-19 symptoms;

·    In general wards to help facilitate a real-time, data-driven treatment regime for patients whose condition might deteriorate rapidly; and

·    In critical care units to allow regular monitoring of patients post-surgery who are no longer sedated or intubated.

One of the key opportunities for the Group in 2022 is positioning this new, non-invasive technology for use throughout the hospital. Our haemodynamic monitoring technologies provide clinicians with beat-to-beat real-time information on a patient's circulating blood volume and heart function. This information is critical to enable clinicians to optimise both fluid and drug delivery to patients.

Our business model is to drive the recurring revenues associated with the sale of single-use disposable ODM probes which are used in the TrueVue System and to complement these revenues with a new incremental revenue stream to be derived from our new non-invasive technology.

Both the existing single-use ODM probe and the new, non-invasive device connect to the same, next generation monitor which is due for launch in 2022.  Monitors are sold or, due to hospitals' often protracted procurement times for capital items, loaned in order to encourage faster adoption of our technology.

Deltex Medical's customers

The principal users of our products are currently anaesthetists working in a hospital's operating theatre and intensivists working in ICUs. This customer profile will change as our new non-invasive technology is adopted by the market. In the UK we sell directly to the NHS. In the USA we sell directly to more than 30 major hospitals that appreciate the value of our evidence-based approach to haemodynamic management. We also sell through distributors in more than 40 countries in the European Union, Asia and the Americas.

Deltex Medical's objective

            To see the adoption of our next generation TrueVue System, comprising both minimally invasive and non-invasive technologies, as the standard of care in haemodynamic monitoring for all patients from new-born to adult, awake or anaesthetised, across all hospital settings globally.

For further information please go to www.deltexmedical.com