LONDON (Alliance News) - LiDCO Group PLC said Thursday it expects its full year pretax profit to meet market expectations, at a level similar to the GBP217,000 it posted in the previous year.
It expects to post revenues of GBP8.37 million for the year to end-January, compared to GBP8.6 million a year before. LiDCO said that despite the reduction in revenues from an "exceptionally strong performance" in the previous year, it has maintained its profitability by improving gross margins and controlling overheads.
The cardiovascular monitoring equipment firm said it made "good progress" during the year, increasing the number of its monitors in the market, growing sales of its high margin surgery disposable products, and repaying its loans so it is now debt free.
It said it has increased its market share of surgery disposables in the UK which leaves it well positioned for growth in 2015.
Sales of its LiDCO products were down to GBP6.6 million from GBP6.9 million, but sales of surgery disposables were up to GBP3.2 million from GBP3.1 million. The company said its performance in Japan continued to be disappointing, and its reviewing its exclusive distribution arrangements in the region.
UK sales fell to GBP3.95 million from GBP4.4 million, hit by hospitals moving to holding lower levels of disposable inventories. In the previous year the National Health Service had provided incentives for hospitals to buy hemodynamic monitors, and these incentives did not recur.
Chief Executive Officer Terry O'Brien said the company has begun interviewing a short list of candidates to find his successor, ahead of his planned retirement in September.
Shares in LiDCO are trading up 8.8% at 5.85 pence Thursday morning.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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