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Statement re Shareholder letter
DXS INTERNATIONAL PLC
Letter to Shareholders
The Board of DXS International plc (the “Company”), the NEX quoted clinical decision support developer and supplier of clinical decision support systems is pleased to confirm that it has written to shareholders in the following terms:
We have recently announced our financial results for the year ended 30 April 2018 however I would like to give you some further background to the bare bones of the figures and our progress in certain critical areas of our development.
DXS is proud to announce that two of its key new products have finally gone live in August 2018. Initial customer response is good.
For a number of years we have been reporting on the investment being made in new DXS products. In particular we have referred to two solutions that can potentially realise significant improved outcomes to patient wellbeing, saving GP practices time and money and reducing NHS spend. We are excited to announce that finally after a substantial investment into these solutions of more than £1.5 million these two products are live. The pilot has been funded via a tender awarded in November 2017.
In summary, Phase 1 of DXS’s new solution deals with the management of Hypertension. With 25% of the UK adult population diagnosed with Hypertension and another 17% undiagnosed, this presents the NHS with a ticking timebomb. Uncontrolled Hypertension is one of the major causes of heart attacks and strokes and a significant contributor towards dementia, kidney disease and heart failure.
The DXS solutions comprise clinician and patient facing modules. The patient facing module provides the patient with the DXS MyVytalCare app which facilitates remote updates to his / her personal health record on the GP system. This app records the patients daily blood pressure and communicates this to the GP and also provides constant interactive communication with the patient. When a patient is formally diagnosed as hypertensive, the clinician facing module enables nurses to prescribe in compliance with the correct guidelines.
Correct management of hypertension can reduce the need for patients being admitted to hospital for strokes and heart attacks and could potentially save the NHS over £1 billion p.a. Additionally, by moving the responsibility for managing hypertensive patients from GPs to Nurses, this will save an average 4-5 GP practice almost 1,000 GP manhours p.a. Considering that the NHS are currently short of approximately 6,000 GPs this potentially provides a solution in finding GP time across 10,000 UK practices.
Although the revenue for the year 2017-2018 was broadly in line with 2017, the profit, after writing off £445,000 of prior year’s R&D expenditure, was £148,821. Nevertheless, the company invested over £1 million into R&D. As stated above we believe this has been worthwhile as we are receiving extremely positive endorsement and, with the first pilots now live, are gearing up for an aggressive growth period over the next 3-4 years.
Although we have not invested any resource abroad, the new products are drawing interest from further afield. However in the immediate term our focus remains the UK.
GPSoC2, the nationally funded framework where DXS is accredited, ends in 2019. DXS anticipates beginning the tendering process for GPSoC3 in October 2018. The NHS are committed to ensuring that GPSoC3 is more flexible with pricing and suppliers being able to modularise their product offerings. It is our intention to add the new DXS solutions described above to the GPSoC3 catalogue ensuring that they too will be centrally funded.
Our traditional offering, DXS Point of Care, is being enhanced with new features and functionality and we believe this too will give us a competitive edge and solid growth over the next 3-year period.
Clearly, to maximise the exploitation of the favourable reaction to these exciting and revolutionary products that we have spent 7 years developing, will require some additional resources. These will mainly be people such as sales, clinical, deployment, training and support. While we have successfully built the hypertension module, we need to expedite the development of further long term illness management programmes such as AF, Diabetes, Lipids and others. We believe we can up-scale quickly and ideally have these complete within 12 months.
The positive reaction to our current product offerings vindicates the considerable investment in development and now is the time for aggressive sales and marketing to demonstrate growth in shareholder value.
We trust that you have been finding our communications valuable and invite you to please send us your up-to-date email address and telephone number so that we may develop our shareholder communication programme.
I take this opportunity to once again thank the DXS staff for their positive and pro-active contribution to the business. The company is well poised to exploit its significant developments and we look forward to one of the most exciting periods ahead.
The Directors of DXS International plc accept responsibility for this announcement
|David Immelman (Chief Executive)|
DXS International plc
City & Merchant
|0207 101 7676|
|Level 17, Dashwood House|
69 Old Broad Street,
Note to Editors:
DXS International presents up to date treatment guidelines and recommendations, from Clinical Commissioning Groups and other trusted NHS sources, to doctors, nurses and pharmacists in their workflow and during the patient consultation. This effective clinical decision support ultimately translates to improved healthcare outcomes delivered more cost effectively which should significantly contribute towards the NHS achieving its projected efficiency savings.