LiDCO Group Plc

("LiDCO" or the "Company")

Trading update and notice of results

LiDCO Group Plc (AIM: LID), the cardiovascular monitoring company, provides the following trading update for the year ended 31 January 2015.

Over the year LiDCO has made good progress. The Company has increased the number of monitors in the market, grown its sales of high margin surgery disposables, increased its gross margin, maintained profitability and is now debt free. The Company has increased its market share of surgery disposables in the UK and is well positioned for growth in 2015.

The Company expects to record revenues of £8.27m for the full year and pre-tax profits (adjusted for share based payments) to be broadly in line with market expectations, being at a similar level to the year ended 31 January 2014. Despite a reduction in revenues from an exceptionally strong 2014 performance, the Company has maintained profitability through improved gross margins and tight control of overheads.

During the year the Company repaid £175,000 of loans to become debt free, as well as paying the final instalment of £112,000 relating to the buy-back of the US customer base and inventory from LiDCO's former distributor in the US. A high level of sales falling towards the end of the year saw trade debtors increase by £0.7m, impacting year end cash. Cash balances at the year end were £1.5m (2014: £2.37m) and the business remains well funded. The Company expects to generate cash during the current financial year.

Whilst LiDCO product sales (excluding third party products) were down slightly at £6.63m (2014: £6.87m), overall sales of high margin surgical disposables increased by 5% to £3.23m (2014: £3.08m). International sales were up 8.5% to £2.67m (2014: £2.46m), including a significant uplift of 29% in the US and 76% in ROW (excluding Japan). The performance in Japan continues to be disappointing and the Company is reviewing its exclusive distribution arrangements whilst making good progress in registering the non-invasive product.

Sales in the UK market (excluding third party products) were £3.95m (2014: £4.40m). As previously reported, UK sales were in part affected by hospitals moving to holding lower levels of disposable inventories. In the prior year the NHS provided incentives for hospitals to purchase hemodynamic monitors, these incentives were not available this year which reduced monitor revenues. Notwithstanding changes in procurement, unit sales of surgical disposables in the UK increased by 4% to 24,410 units (2014: 23,570 units). 73 surgical monitors were installed in the UK during the year, compared with the very strong performance last year when 120 surgery monitors were installed. This now takes the total number of installed LiDCOrapid monitors in the UK to 418. Encouragingly, the Company has seen UK revenue from surgery disposables grow by 5% to £1.88m (2014: £1.79m), which when measured against reported reductions in disposable revenue in the UK market, indicates that LiDCO has been able to increase its domestic market share.

Commenting, Terry O'Brien, Chief Executive Officer of LiDCO, said:

"I am delighted that we have increased our UK market share through extending our footprint of surgical monitors and growing our surgical disposable sales. I am pleased we have maintained our profitability while achieving our stated objective of being debt free by the year end. With our leading edge products and ability to generate cash from operating activities we are ideally placed to benefit from the growing interest in adopting advanced fluid management technology.

"Regarding our search for a suitable replacement following my planned retirement in September this year, we have been very pleased with the progress made so far and have begun interviewing a short list of candidates. We will provide a further update in due course."

The Company will announce its preliminary results for the year ended 31 January 2015 in the week commencing 30 March 2015.

For further information, please contact:

LiDCO Group Plc

www.lidco.com

Terry O'Brien (CEO)

Tel: +44 (0)20 7749 1500

Paul Clifford (Finance Director)

finnCap

Tel: +44 (0)20 7600 1658

Geoff Nash / James Thompson (Corporate Finance)

Stephen Norcross (Corporate Broking)

Walbrook PR Ltd

Tel: 020 7933 8780 or lidco@walbrookpr.com

Paul McManus

Mob: 07980 541 893

Lianne Cawthorne

Mob: 07584 391 303



About LiDCO Group Plc (www.lidco.com)

LiDCO is a supplier of non-invasive and minimally invasive hemodynamic equipment to hospitals used to monitor the amount of blood flowing around the body and ensure that vital organs are adequately oxygenated. LiDCO's products facilitate the application of hemodynamic optimisation protocols for high risk patients in both critical care units and in the operating theatre.

Increasingly clinical studies are showing that the optimisation of patients' hemodynamic status in high risk patients produces better outcomes and reduced hospital stay.  LiDCO's computer-based technology, developed at St Thomas' Hospital in London, has been shown to significantly reduce morbidity and complications, length of stay and overall costs associated with major surgery.

Key Products:

LiDCOplus : a computer-based platform monitor used in the Intensive Care Unit for real-time continuous display of hemodynamic parameters including cardiac output, oxygen delivery and fluid-volume responsiveness (PPV% and SVV%).

LiDCOrapid : a cardiac output monitor designed specifically for use in the operating theatre for fluid and drug management. The monitor enables anaesthetists to receive accurate and immediate feedback on the patient's fluid and hemodynamic status - a key measure of overall well-being before, during and after surgery.  The LiDCOrapid provides:

·    early and rapid warning of hemodynamic change to aid choice of therapeutic route: fluid or drug

·    quantification of hemodynamic response

·    guidance on effective delivery of fluids to ensure the right amount at the right time

LiDCOview : an easy-to-use graphical display of historical LiDCOplus and LiDCOrapid hemodynamic data.

LiDCO Unity Software: software incorporated into LiDCOrapid v2 that allows the LiDCOrapid monitor to co-display Covidien's level of consciousness parameter ('BISTM')*and add the convenience of CNSystem's continuous non-invasive blood pressure monitoring ('CNAP')**. This will address a growing requirement for non-invasive monitoring solutions that are more comprehensive and can effectively replace multiple single parameter monitors.

*BIS TM and Bispectral Index are trademarks of Covidien LP registered in the US and foreign countries.

**CNAPTM is a trademark of CNSystems Medizintechnik AG.

LiDCO monitors use single-patient disposables (sensors or smartcards) which provide an ongoing revenue stream. 

LiDCO Distribution Network :

LiDCO sells directly to hospitals in the UK and USA and through a network of specialty critical care and anaesthesia distributors in the rest of the world.

LiDCO's marketing office is in Cambridge, its manufacturing facility and headquarters are in London and its shares are traded on AIM.


This information is provided by RNS
The company news service from the London Stock Exchange
ENDMSCUAVNRVNAUAAR
distributed by