A continuously monitored system is considered, which is subject to accumulating deterioration modelled as a gamma process. The system fails when its degradation level exceeds a limit threshold. At failure, a delayed replacement is performed. To shorten the down period, a condition-based maintenance strategy is applied, with imperfect repair. Mimicking virtual age models used for recurrent events, imperfect repair actions are assumed to lower the system degradation through a first-order arithmetic reduction of age model. Under these assumptions, Markov renewal equations are obtained for several reliability indicators. Numerical examples illustrate the behaviour of the system.