Deltex Medical TICKER: DEMG     EXCHANGE: L

Deltex is a UK medical technology company, marketing a proprietary, minimally invasive real-time haemodynamic monitoring system (CardioQ-ODM) which uses Doppler (ultrasound) technology. It is utilised in operating theatres, intensive care units (ICUs) and Accident & Emergency (A&E) departments and provide individualised Doppler Guided Fluid Management allowing for the early assessment and early intervention on the patient's haemodynamic status. CardioQ-ODM measures the blood flow velocity in the descending aorta, through the insertion of a flexible disposable probe in the patient's oesophagus via either the mouth or the nose. CardioQ-ODM is part of an Enhanced Recovery multi-disciplinary programme embracing the three key stages of surgery: prepreoperative, perioperative for the overall improvement of the quality of care by getting better sooner and reduce the length of stay and benefiting the healthcare budgets.


New technologies, reducing cash consumption
Published: Sep 18 2017

Deltex Medical is a UK based manufacturer of minimally invasive haemodynamic monitor technologies: ODM is the only technology to measure continuously blood flow in the central circulation in real time, enabling clinicians to respond quickly to changes in flow and to optimise patient care. 
Headline performance at the H1’17 results illustrated total revenue growth of 7% from £2.7m to £2.9m continuing from H2’16 the export-led return to growth. As flagged, performance in RoW territories was affected by ordering patterns, with order flow £0.1m lower than during the last period. Cost savings in probe tip assembly contributed to an increase in gross margin from 64% to 76%, and to a narrowing loss from £1.7m in H1’16 to £1m in H1’17.
US revenues increased nicely by £0.3m from £0.9m to £1.2m, up 35% (or 20% at CER) including sales of single use ODM probes which grew 21% from £0.8m to £1.0m. Total sales to distributor markets fell 9% to £0.7m with RoW distributor ordering patterns a factor – Far East and Latin America probe sales fell 47%. In direct markets, UK revenues appear to be bottoming, falling 3% from £1m with probe sales down 12% to £662,000.
The launch in May of High-Definition Impedance Cardiography (HD-ICG) technology on CardioQODM+ platform gives the Company three leading advanced haemodynamic monitoring technologies on one platform. This allows a broader range of clinical settings to be addressed in hospitals by clinicians, whilst providing additional revenue streams to Deltex.
We leave our revenue forecasts largely unchanged, making minor adjustments that take our 2017 adjusted loss before tax to £1.77m (from £1.83m) and from £0.44m to £0.33m in 2018. After some minor adjustments to working capital measures, our end of 2017 gross cash estimate is now £540,000  (up from £350,000). 
Our updated valuation of Deltex Medical Group, using a 10% WACC – rolling forwards and including the newly issued shares, plus adjusting forecasts as described – rises to £31.8m, up from £30m previously. That is equivalent to 10.2p per share.
Deltex Medical Webinar September 2017
Published: Sep 18 2017

Ewan Phillips, CEO of Deltex Medical, runs through the firm's results for the last financial half. 
Flowing in the right direction
Published: Jul 31 2017

Deltex Medical (DEMG) is a UK based manufacturer of minimally invasive haemodynamic monitoring technology: ODM is the only technology to measure continuously blood flow in the central circulation in real time, enabling clinicians to respond quickly to changes in flow and to optimise patient care. 
The recent H1’17 trading statement supports our view that DEMG has reached a turning point after a challenging period in UK. Total sales increased 7% to £2.9m. Analysing regional sales of single use probes associated with the CardioQ-ODM monitoring system: US revenues grew 35% from £0.9m, of which probe revenues were up more than 20% to c £1m. 
International sales were a weaker factor, 9% lower from £0.8m, although we note that this fall was linked to the timing of orders for Far Eastern and Latin American distributors which typically are confirmed in December.
Overall, we think that DEMG is well positioned to move forward, with a stronger base of US platform accounts providing margin expansion potential. With cost efficiencies in place, the period end cash position stood at £0.2m and then post period end the £0.55m placing of 16.3m shares in July provides a lean cash runway to end 2017. 
With much of the uncertainty that has tainted DEMG’s prospects linked to historic UK commercial weakness, the outlook for the Group has now shifted towards rapid revenue growth,  as our forecasts show. Our DCF valuation of DEMG remains at £30m, equivalent to 9.6p per share.
An improving picture, a sharper focus
Published: May 04 2017

Deltex Medical is a UK based manufacturer of minimally invasive haemodynamic monitor technologies: ODM is the only technology to measure continuously blood flow in the central circulation in real time, enabling clinicians to respond quickly to changes in flow and to optimise patient care. The key revenue stream is from global sales of consumables notably probes, with key markets being US and UK.
FY16 group revenues of £6.3m, marginally lower than the £6.4m total in FY15 however, with sustained momentum from US probe sales, up 40% to £1.9m in FY16, offsetting UK weakness. Gross margin improvement up to 68% from 63% was driven by the higher proportion of US sales and by manufacturing efficiencies. Looking ahead, the improving picture is based on sharper focus on the highest contributing US accounts, potential stabilisation of UK revenues and with further margin improvements in view.
The 40% rise in US probe revenues (25% at CER) to £1.9m, was driven by the concerted focus on ‘platform accounts’ in the region, marginally outperforming all other regions for the first time in FY16. The Q117 50% US growth demonstrates that this momentum continues, helped by redeployment of sales team efforts to support high growth potential accounts, (c 80% of FY16 revenue was derived from ten of the thirty platform accounts). 
UK probe sales remained weak with H1 and H2'16 falling 36% and 16% respectively, while FY16 sales ended 26% lower at £1.9m on a 29% drop in unit volume, owing to sustained NHS cutbacks on variable costs. However, the downward trend appears to be slowing, with UK Q117 sales down 10% helped by the availability of new evidence from two clinical trials and the launch of easier to focus ‘TruVue’ probes. 
We reinstate our financial forecasts and looking ahead, as DEMG continues to drive US sales and with UK showing signs of stability, we estimate overall sales growth up 17.5% to £7.4m in FY17 and of 21.2% to £9m in FY18. Further cost savings on manufacturing processes contribute to our estimate of narrowing operating loss, to £1.4m in FY17 and £0.4m in FY18. 
The Q1’17 run rate suggests continuing improvement in the financial profile and our DCF valuation for Deltex is £30m, equivalent to 10p/share.
NB there is an Investor Open Day tomorrow, Friday 5 May, at their Chichester Facility. To attend please contact: [email protected]
Resetting the trend, probe sales positive
Published: Jan 18 2017

FY16 group revenues reached £6.3m in FY16 vs £6.2m (ex-research barter sales of £0.2m) marginally lower than the £6.4m total in FY15. KPI probe sales reached £5.4m (£5.2m) with sustained momentum from US revenues, up 40% to £1.9m in FY16, counterbalancing UK weakness. Looking ahead, with two new platform accounts added post year end, DEMG has reached a milestone of 30 US platform accounts, which could see higher margin US sales outperform other geographies for the first time in 2017. 
By contrast, as flagged, UK sales declined 26% vs FY15 to £1.9m as a result of attrition and the lack of advanced haemodynamic management within the NHS. Meanwhile, revenues from international sales grew 20% to £1.7m led by France, Scandinavia, Peru and Korea, illustrating the potential in these most ODM-receptive markets. 
The overall picture is of higher margin US sales on track to lead revenues from FY17. This, coupled with cost-cutting initiatives including in-house probe assembly leading to c £30,000 net savings/month, suggest margin expansion towards historical 70% levels is in sight. DEMG‘s end 2016 cash position of £0.6m, net of an £0.5m fund raise in July, provides short term funding. Pressure on sales has led to downgrades and a volatile 12-month share price performance. The current EV sales multiple of 2x implies expectations of further downgrades, although the current run rate in the US suggests DEMG could have reversed the overall financial downward trend. We will reinstate forecasts at the FY16 results due to be reported in the week of 20 March.
View the Results Webinar
Published: Sep 16 2016

You can now hear Ewan Phillips, CEO, present the interim results for the six months ended 30 June 2016 for Deltex Medical and answer investor questions.
To view simply click on the video below.
American beauty : strategy on track
Published: Sep 08 2016

Deltex Medical manufactures and markets haemodynamic monitoring technologies: ODM is the only technology to measure continuously blood flow in the central circulation in real time. Randomised, controlled trials using Doppler have demonstrated that early fluid management intervention will reduce post-operative complications, reduce intensive care admissions, and reduce the length of hospital stay.
Interim results showed strong progress in the key US market. For the first time probe sales in the US, at £848k, exceeded those in the UK. That represents 39% growth in the region compared to H1 2015. Sales post-period were reported as growing at an even higher rate, giving a run rate nearing 1200 probes per month. Furthermore, signing up marquee platform accounts continues apace: in H1 the total number rose from 17 to 24 substantial hospitals, and has further risen to 27 at the time of writing.
In the UK there was little surprise that UK probe sales fell 36% from H1 2015 to £752k, albeit the company did state that performance subsequently improved in July and August (declines of c. 10%). Deltex has restructured its UK sales to best leverage the unique clinical merits of their ODM product and new TruFlow probes were launched in May to a positive reception.
Medical trials continue to be very supportive of Deltex efficacy: Spanish results in June were excellent, highlighting the significant clinical and economic benefits from ODM usage, and a similarly positive outcome came from UK trials (St Thomas Hospital) which compared ODM to competitor technology.
We are encouraged by overall momentum and expect further good news in the US (sales and platform wins) but deem it wise to see whether the slightly better summer performance in the UK is extended before changing forecasts. Therefore we also retain our fair value target of at least 8p / share. 
NB Deltex  CEO, Ewan Phillips, will host a webinar for investors at 1pm, Thursday 15th Sept. Click here to register


Strategy USA: it's showtime!
Published: Jul 25 2016

Deltex markets minimally invasive and real time Doppler (ultrasound) cardiac function monitoring systems used for both surgery and critical care in hospitals worldwide.
FY2015 results highlighted satisfactory progress through a year affected by divergent market trends. The UK haemodynamic monitoring market declined again, with little turnaround prospects in sight; significantly, the US and International markets demonstrated good growth and a strong future potential.  
Most encouragingly, US revenues increased 41% to £1.5m in FY2015. The growth trajectory continued to improve, with probe revenues hitting £1.3m, +33% (+23% local currency). Currently, DEMG has 24 platform accounts, adding 7 so far in 2016. ODM adoption rates in the US continue to out-perform other markets. 
Although UK business prospects remain uncertain, aggressive efforts to reduce costs starting to pay off. Cash costs were reduced £100k per month from Q1, helping support US expansion plans. 
On valuation, EV/Sales ratios and our DCF analysis support a fair value in excess of 8 pence/share.
USA offers enhanced prospects
Published: Mar 20 2015

Deltex Medical (DEMG) markets minimally invasive and real time Doppler (ultrasound) cardiac function monitoring systems used for both surgery and critical care in hospitals worldwide.
2014 saw DEMG's US activities bring the best news: underlying 20% probe revenue growth of 14% in £, with a total of six US dedicated trainer accounts in seven territories. In 2015, rising US interest in ODM (Oesophageal Doppler monitoring) and its impact on fluid management and enhanced recovery means that DEMG should capitalise on a growing number of territory and account initiatives to expand probe use by 30% (target of 20 dedicated trainer accounts by year-end), with further very rapid growth (potentially 60% probe growth) possible in 2016.
Now that ODM has an established and growing international user base, DEMG is looking for opportunities to bring complementary technologies onto its evolving 'workstation' platform though strategic co-operations. These could accelerate revenue and profit growth forecasts in the medium term.
EV/Sales ratios and our DCF analysis continue to support a fair value of >10p / share. 
USA opportunity is the main mission
Published: Jan 20 2015

Deltex Medical Group plc (Deltex) markets minimally invasive and real time Doppler (ultrasound) cardiac function monitoring systems used for both surgery and critical care in hospitals worldwide.
A temporary decline in UK surgical probe revenue (-20%), due to an NHS funding crisis and hospital de-stocking, has led to a UK model change. 
Deltex has reduced headcount and moved to emphasise digital sales platforms and supporting KOL activities to help broaden ODM awareness and increase use. This is expected to take out ~£1m in annual costs in the UK and continue to help support US and International expansion activities.
US probe revenue growth rose 14% with two additional sales territories onstream in H2 2014 and futher probe growth forecast for 2015 and 2016. 
EV/Sales ratios and our DCF analysis suggest a fair value per share of >10p / share.
Go West! USA promising, but UK tough
Published: Oct 05 2014

Deltex's strategy is to manage its leading UK market position, profitable distribution business and cash flow to support additional market development opportunities - notably in the US
The UK situation looks like short-term pain. More positively, US surgical probe sales grew 20% in local currency terms, supported by the company's dedicated trainer accounts (DTAs); new accounts have been opened with two extra sales territories active from September. 
EV/Sales ratios and our DCF analysis suggest a fair value of >18p / share.
All set for the Premier League
Published: Mar 19 2014

Deltex markets minimally invasive and real time Doppler (ultrasound) cardiac function monitoring systems used for both surgery and critical care in hospitals worldwide.
Proforma 2013 results highlighted a reduced loss before non cash costs and US market development investment.
Overall, probe revenues rose 20% to £6.3m, driven by a 24% increase in surgical probes to £5.5m (UK +26%, France +37%). US probes grew 13%, with potential new account evaluations and a reduction in surgical volumes from US healthcare reform slowing growth.
Building a multi-tier US platform across academic, local hospital and national provider networks should initiate a more significant medium-to-long term sales growth trajectory.
Looking forward, both EV /sales ratios and DCF analysis support a 24p/share fair value for the shares, versus current 13p level.
Strong Year for surgical probe growth - particularly in the UK
Published: Jan 08 2014

DEMG released its pre-close update for YE 31 Dec 2013 and highlighted strong surgical probe growth in its UK and international markets. Surgical probe sales increased >£1m to £5.5m versus our estimate of £5.47m.  In our opinion DEMG has enjoyed a strong sales development through 2013 and should be set to deliver more in 2014, supported by the recent US approval of CardioQ-ODM+. DEMG has confirmed a cash position of £1.5m at YE, better than our estimate of £1.02m. 
Improving Probe Prospects
Published: Sep 26 2013

Deltex markets minimally invasive and real time Doppler (ultrasound) cardiac function monitoring systems used both in surgery and critical care in hospitals worldwide.
H1 results were presented with a focus on key performance indicators - probes, margins and results (all before non-cash costs and the investment in its Premier collaboration). Total probe sales at £2.65m were 9% higher,  margin contracted slightly but left an 8% improvement in gross profit. 
Pull-through of probes is being driven by an enlarging monitor base, by setting up dedicated trainer accounts (UK, US), and in-market direct selling initiatives revolving around new standard clinical guidelines and positive reimbursement steps. 
We retain a positive view with minor revisions to forecasts. In the near term, revenue progress is likely to be dictated by progressive implementation of clinical guidelines and surgical probe growth in the UK and European markets, whilst a US approval should initiate a more significant medium-to-long term sales growth trajectory through focused probe sales.
EV/sales ratios and DCF analysis both support 24p/share fair value versus 17.6p currently.
Maintaining key product flow
Published: Jul 15 2013

Deltex's pre-close update describes an overall encouraging market progression for surgical probe sales, and particularly in the UK, US and France. Although revenues were lower at £2.9m (£3.2m), Q2 growth of >30% in the UK is indication that NHS implementation for Oesophageal Doppler Monitoring (ODM) adoption is strong and should be extended. Monitor sales declined by £0.5m (though H1 2012 sales were particularly strong); the UK installed base increased by 66 to 681. US surgical probe growth was 17%; a US launch for CardioQ-ODM+ is expected in H2 2013, and the Premier collaboration should help accelerate growth through delivering an enhanced flow of high-margin probes.
We retain a positive view on Deltex, with forecasts maintained. In the short-to-medium term, revenue progress is likely to be dictated by progressive implementation of clinical guidelines and surgical probe growth in the UK and European markets, whilst a US approval should initiate a more significant medium-to-long term sales growth trajectory through focused probe sales.
Over here, and over there
Published: Apr 23 2013

Deltex assemble and market minimally invasive and real time Doppler (ultrasound) cardiac function monitoring systems used both in surgery and in critical care in hospitals worldwide. 
Recently in America the US the CMS granted a unique reimbursement code for Deltex' ODM system: this should prove a major stimulant for physicians in a vast market to adopt the product. 
The UK is still Deltex' largest and most developed market, so it was pleasing to see the much awaited NHS announcement regarding minimum requirements for the first implementation phase of Intra-operative Fluid Management. 
The 2012 results disappointed at the net level, but sales did return to growth, up 7.5% to £6.8m. Post-period, Deltex has raised a further £2.4m (net) by placing 13.2m ordinary shares and proceeds will be used to fund the Premier project in America, and for general working capital purposes. 
We regard 24p / share as achievable in the short term, and expect to revise both projections and valuation as the Company progresses with executing its strategy.
Building blocks for growth
Published: Jan 08 2013

On the back of increasing customer awareness Deltex' sales have shown improved growth, up by c.8% to £6.8m, and future prospects remain strong both at home and internationally.
The first phase of the Intraoperative Fluid Management (IOFM) roll-out across NHS hospitals in England will come into force in February 2013, linked to the CQUIN incentivising payment for the period April 2013/14. Details of the IOFM came too late in 2012 to make any contribution to the top line, but should give a boost to 2013 numbers.
As previously, our approach to forecasts is cautious pending news on future orders in the UK, but we are happy to retain our fair value of 29p / share.
Steady progress at half-year
Published: Sep 26 2012

Good progress has been made in almost all the markets where Deltex is directly present or via distributors in the last six months.
We await news on the implementation plan from the NHS for adoption of fluid management technologies. This is expected to set out clear targets for adoption with a meaningful withdrawal of 2.5% of a PCT's revenue for the year if targets are not met. A great deal of investor expectation is based on adoption acceleration in the UK as the NHS implementation plan takes shape. 
The introduction of CardioQ-ODM+ also provides an opportunity to provide continuous care from the operating theatre to the Intensive Care Unit. 
Our forecasts now reflect the increase on operating costs reported and we await further news on orders in the UK and elsewhere. Pending those developments we are happy to retain our fair value of 29p share.
Past, present and future
Published: Mar 21 2012

Deltex assemble and market minimally invasive and real time Doppler (ultrasound) cardiac functions monitoring systems used in hospitals worldwide and supported by a wealth of clinical and economic evidence
In the last year the Company received the support of numerous NHS agencies involved in effecting the implementation of technologies that improve patient outcomes, are cost effective, and evidence-based
Deltex is moving away from being one product company and a new monitor has just been launched which combines two methods of fluid management in a single monitor
Ongoing news flow is expected throughout 2012, as is a return to double digit growth with the UK market leading the way; pending order visibility we retain our fair value of 29p / share versus current 24p level
More key endorsements
Published: Dec 07 2011

Deltex assembles and market minimally invasive and real time Doppler (ultrasound) cardiac functions monitoring system used in hospitals worldwide and supported by a wealth of clinical and economic evidence.
The recent news flow from both sides of the Atlantic further reinforces the case for an acceleration in the adoption rate of CardioQ-ODM:
In the UK yesterday's announcement by the NHS Chief Executive is critical and highlights the need to adopt fluid management during surgery:  CardioQ-ODM is NICE recommended. 
Also the clinical news flow coming from the US appears to be very encouraging. Notably, doctors from highly-regarded Duke University Hospital in North Carolina presented their findings at the American Society of Anaesthesiologists, Chicago in mid-October. 
We retain our fair value target at 30p/ share with forecasts that are as yet unchanged, but clearly de-risked by these developments. 
Still on track
Published: Sep 22 2011

Deltex assembles and market a minimally invasive and real-time Doppler (ultrasound), monitoring system for cardiac functions: CardioQ-ODM.

In its first half revenue growth was 2.3%, with a very strong UK performance (+29%).

Our revised fair value target is 29.8p, and we look for news of further sales to drive share price momentum in the coming months.

Balancing act in H1 2011
Published: Jul 20 2011

We believe that the shortfall suffered in H1 due to the protracted instability in the Middle East, which left revenue growth flat at £3m (H1 2009: £2.9m), will be recovered in the second half of the year.

We still expect Deltex to reach profitability in 2012 although top-line growth in the first half was a little lower than expected.

We retain our fair value target of 32p / share on the back of unchanged forecasts. 

NICE to see you...
Published: Apr 04 2011

The publication of the final recommendation by the National Institute for Health and Clinical Excellence (NICE) for CardioQ-ODM to be used in 'patients having major or high-risk surgery or other surgical patients for whom invasive cardiovascular monitoring would be considered ' represents a hugely important milestone for Deltex in the UK and undoubtedly will stimulate the further up-take of the device in other territories.

NICE's recommendation allows us to review forecasts and move them higher for the short term: 2013 PBT now £1.2m (from £1.0m) and EPS 0.9p (0.8p). We also include 2014 forecasts which show the huge potential with profits expected to more than double

Short term upgrades mean this target now rises to 32p / share with the expectation of it rising further as we get more visibility as to scale and timing of CardioQ deployment in the UK.

Back to double-digit growth
Published: Mar 08 2011

Results for 2010 showed a pleasing combination of a return to double digit growth (11.3%) and reduced costs. This allowed the Company to become operating cash positive for the first time in H2. Significant operational achievements made during last year are going to play an important role in driving top line growth in the coming years, both in the UK and abroad. We still expect Deltex to reach profitability in 2012. Given little change to the medium term outlook, we are happy to retain our long-held fair value target of 29p / share.
Moving ahead with confidence
Published: Jan 13 2011

Today's announcement show pre-close results are in line with expectations with sales returning to double digit growth and cash positive in the second half. The flagship CardioQ-ODM product is now being used at home and abroad; positioning the Company for significant top line growth and improved net results.
Proof of the pudding
Published: Nov 08 2010

Product improvements and IP, stable cost base, cash break-even and the much awaited response from NICE are the key operational factors making 2010 a very important year for future performance expectations and the attainment of Deltex' strategic objectives.  At the recent Analyst Day we were able to see some of the product improvements introduced in recent months and hear from one of the early adopters of Cardio-ODM.  Our forecasts remain unchanged, with break even foreseen in 2011, but it is clearly encouraging to hear practitioner support and we retain our fair value target for the shares of 29p.
A good diagnosis
Published: Sep 23 2010

A combination of significantly improved top line growth and a considerable decrease in operating losses have contributed to a -42% reduction in the net loss for the year. There is increasing clarity on the benefits of a wider implementation of CardioQ-ODMs and a strong endorsement from the NHS Technology Adoption Centre (NTAC). NICE will be making a recommendation on CardioQ-ODM and their draft guidance is expected to be published for public consultation in the coming weeks, with a definite recommendation expected in early 2011. This will be a strong recommendation for its adoption by UK hospitals, and we will update forecasts once there is greater clarity.
Beating the headwinds
Published: Mar 26 2010

 Cardiac function monitoring systems

 Sales in 2009 up 8%, despite economic slowdown

 NHS recognition on 'How to, why to Guide'

 Fair value seen at 29p, versus current 12p level
NHS breakthrough
Published: Jan 15 2010

NHS now includes their CardioQ device on its 'How and Why to' guide

trading update reports improvement in Q4 sales

fair value / share remains 29p, well ahead of current levels

Published: Sep 11 2009

Steady sales progress despite economic headwinds

Benefits in margins and cash use show improved efficiency

Longer term product positioning justifies significantly higher value

Progress in 2008
Published: Mar 11 2009

26% sales growth and repeat orders reaching 77% total sales

Additional funding won in 2008 and thereafter

Profits seen in 2010 and 39p / share retained fair value

Progress in line with expectations
Published: Sep 23 2008

Sales up in all territories

Manufacturing capacity expanded

Profitability in line for 2010
Continuing to hit key milestones
Published: Apr 14 2008

Wide reimbursement granted for CardioQ in the US

CardioQ now standard for colorectal surgery at UCL and Guys and St. Thomas'

11 Spanish hospitals reviewing CardioQ, results expected H2

Fair value 39p per share vs current price 19.5p
Still moving forward
Published: Jan 23 2008

Sales significantly up in all territories

CardioQ received broad US reimbursement coverage

Growing recognition for reducing costs and improving surgery outcomes
US reimbursement granted
Published: Jul 23 2007

Reimbursement granted for CardioQ in the US

Coverage is broad and of unprecedented scale

Probe consumption increased significantly in US

Deltex's forecasts upgraded; fair value now 39p a share vs current 29p

Deltex; Oesophageal Doppler Monitoring recommended for reimbursement coverage in US
Published: Feb 28 2007

Since the beginning of this year Deltex Medical has posted a continuous stream of positive news.  This  was further evidenced  yesterday with an announcement that the CMS (The Centers for Medicare and Medicaid Services) in the US is reconsidering the national coverage status of CardioQ. 

Deltex Medical; positive pre-close trading update
Published: Jan 16 2007

  • Evidence of growing demand in the UK and US
  • ED forecasts unchanged
  • Fair value 26p vs current 17.5p


Deltex Medical; steady progress
Published: Oct 25 2006

  • Direct sales are up by 20%
  • Recurring probe sales now 84% of total revenue
  • Successful acquisition and integration of TECO
  • Fair value 26p vs current price 18.5p
Deltex Medical; innovative technology positioned to target huge market
Published: Apr 26 2006

  • CardioQ seen as priority device by NHS
  • Three quarters of revenues recurring
  • Cash should last through to profitability
  • Fair value 26.6p vs current 21p

Foreign buyers gorging on UK stocks

Document can be downloaded here: UK plc ‘going for a song’

Being a shareholder in a company that receives a juicy takeover offer is a marvellous feeling. Something that many fortunate investors have experienced over the past 3 years. Thanks to a spate of M&A bids by deep pocketed overseas buyers – partly triggered by the June 2016 Brexit result, which sent the £ tumbling and adversely affected the FTSE.

Consequently today, given this trend is unlikely to end anytime soon, we’ve highlighted 30 possible acquisition ideas in the attached research paper. Spilt equally between large and smallcap stocks – covering a broad selection of industries.

What’s more we believe most of these businesses are underpinned by strong fundamentals and substantial upside in the event of predatory interest.

According to Factset Mergerstat/BVR, the average bid premium paid for such deals between 2004-14 was 30% – with the figure trending upwards since the global financial crisis.

Happy investing. Published 27th August 2019