Investment summary

The £1.5m raised by Deltex in April provides additional working capital given the 40% rise in NHS orders experienced in Q1. NHS hospitals are under significant NHS executive and financial pressure to adopt surgical fluid management by March 2013. This is likely to drive an acceleration in probe and monitor sales, particularly over autumn and winter. Q1 sales continued the 40% growth trend of late 2011. However, NHS trusts may hoard cash in H1 of their FY13 year.

Last updated on 23/04/2012

Industry outlook

NHS leaders are pushing hard to adopt cost-effective innovations. The NHS executive has stated it "will launch a national drive to get full implementation of ODM". Only CardioQ has been NICE evaluated with adequate evidence. NICE estimates CardioQ could save £1,062 per patient. The NHS will drive this by the big stick of a possible loss of 2.5% of quality target income in FY13; there may be some cash to help adoption in FY12. A US deal with Premier may help adoption.

Last updated on 23/04/2012