LID.L Share News (LID)

LONDON (Alliance News) - LiDCO Group PLC Tuesday said it expects of profitable second half, with results for its full year at broadly breakeven before exceptional costs related to replacing its chief executive officer, as it reported a widened pretax loss for its first half.

The cardiovascular monitoring company also said separately that it has been awarded a five-year purchasing deal with US-based MedAssets Inc, a healthcare performance improvement company.

For the half year to end-July the company reported a pretax loss of GBP689,000, widened from a pretax loss of GBP230,000 a year before, as revenue slipped slightly to GBP3.6 million from GBP3.7 million, mostly as a result of lower monitor revenues due to weak sales in the US and Europe.

LiDCO said that its results will be weighted to the second half. It does not expect to see contributions from ICU Medical or sales in Japan of its non-invasive product as it awaits registration and reimbursement, respectively. The agreement with MedAssets is expected to have a small impact in its current financial year, but "larger opportunities" will be realised in the following year.

"This is a year of transition and whilst the results of the first six months were below internal expectations, I am encouraged by the outlook for the business," said newly appointed Chief Executive Officer Matt Sassone in a statement. Sassone took over as chief executive from Terry O'Brien in mid-August.

"We are focused on realising the strategic levers to drive greater sales growth and I am pleased to announce that we have successfully concluded negotiations with a large US hospital care provider and will now commence the rollout of LiDCO products in the 38 hospitals covered by this agreement," Sassone added, referring to the MedAssets deal.

Shares in LiDCO were up 11% at 10.50 pence Tuesday morning.

By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews

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