LID.L Share News (LID)

(Sharecast News) - Hemodynamic monitoring outfit Lidco saw recurring revenues soar in its last trading year after the group made continued progress with its high usage programme (HUP) business model in the first 18 months since its launch.Lidco said its HUP offering saw revenues more than double to £1.5m per year as contracts shot up from the 96 it had inked at the end of its last financial year to 191 as of 31 January.On the other hand, product revenues slumped 10% to £6.19m as the group's attempts to transition larger UK customers to its SaaS business model deferred revenue from the current financial yearThird party sales also fell 19% to £1.13m after Lidco terminated its distribution contract with Argon during the year.However, Lidco noted that although total revenues were "marginally below market expectations", the group said the effect on its bottom line would be mitigated by a "favourable LiDCO product mix generating higher gross margins and overheads."Chief executive Matt Sassone said: "Whilst the transition to the HUP business model has a short-term effect of deferring sales, we are encouraged by the progress made having built a recurring revenue base of over £1.5m in just 18 months from the launch of the HUP business model."The fundamentals of our business remain strong and we believe that this is reiterated by our new customer wins this financial year. With continued focus on LiDCO's HUP model, we are well-placed to grow the business in line with our objectives over the short to medium term."As of 1030 GMT, Lidco shares were up 1.15% to 4.40p.