(Sharecast News) - Haemodynamic monitoring company Lidco updated the market on its just-ended financial year on Thursday, reporting that it continued to make progress with developing a strong recurring revenue base through its software-as-a-service (SaaS) high usage programme (HUP) model, and had achieved an "excellent" second half performance.
The AIM-traded firm said its product revenues for the 12 months ended 31 January were up 19% to ?7.4m, which was in line with management expectations.
It said the growth in Lidco product revenues "more than outweighed" the expected reduction in low margin third-party product sales.
As a result, total revenues, including third party products, were up 3% at ?7.6m, with the board explaining that the increased proportion of higher-margin Lidco revenues led to an increase in overall gross margin.
The company said it now had a global contracted base of 286 HUP monitors, up from 164 at the end of the 2019 financial year, generating total annualised contracted licence revenues of ?2.2m, which was an increase of 57%.
It said the 19% growth in 2020 financial year Lidco product sales reflected growth in all regions compared with the prior year.
Lidco product sales grew 28% in the United States to ?1.8m, 1% in the UK to ?3.6m, and sales outside of the firm's direct markets were up 60% to ?2.0m.
The directors said the "significant" growth outside the UK included ?0.4m growth in China from the launch of the new monitor, and as a result, sales outside the UK now represented "just over half" of Lidco product sales, up from 43% a year ago.
In the second half of the year there was a net cash inflow of ?0.2m, compared with a net cash outflow of ?0.5m in the first half.
The company said its balance sheet remained "strong", with cash balances as at 31 January totalling ?1.4m, down from ?1.7m, while the firm remained debt free.
Its board said it was expecting to report positive adjusted EBITDA for the 2020 financial year, compared to an EBITDA loss of ?1.2m in the 2019 financial year.
"After a strong first half in the 2020 financial year, the team succeeded in delivering an even better second half performance," said chief executive officer Matt Sassone.
"Our differentiated SaaS business model continues to drive our growth with the number of HUP monitors installed globally increasing nearly 75% and this has contributed to our expansion in recurring revenues."
Sassone said he was also pleased with the company's international sales growth, as it now had the majority of its Lidco product sales outside the UK, where it retained its market share and leadership position.
"This excellent performance leads to the expectation that we will report positive adjusted EBITDA for the 2020 financial year."
Lidco said it would announce its audited results for the year ended 31 January on 21 April.
At 1447 GMT, shares in Lidco were up 11.26% at 5.28p.
21 Apr 2016 09:22