LiDCO cash-flow positive as losses come down in first half

Surgical blood monitoring group LiDCO said it expected to be cash generative and profitable in the full year after slashing losses in the first half. Chief Executive Officer Terry O'Brien said the company had seen significant sales growth in the UK and export markets in the six months to end-July and had received US regulatory clearance for its new LiDCOrapid v2 product since then.Total revenues were up 27% to £4.2m, with sales of the company's own products and excluding those of third-parties up by an even faster 36% to £3.4m.UK own-product sales were up most rapidly, by 48%, although sales fell slightly in the US.However, US sales moved from previous third-party arrangements to direct sales, which resulted in revenues dipping from £0.5m to £0.4m but margins improving from 75% to 94%.While overall gross profit increased by a quarter to £2.8m costs increased by 18% to £2.90m, and losses before tax and share-based payments were shaved from £406,000 to £70,000.Said O'Brien: "We expect this momentum to continue in the second half, particularly now that the LiDCOrapid v2, with both non-invasive and depth of anesthesia options, is available for sale in the EU and USA. "We remain confident about delivering cash generation and profits for the full year."There was a net cash inflow during the period of £232,000 and period-end cash stood at £2.3m, up from £2.1m at the end of January. Shares in LiDCO were up 1.7% to 15p at 09:01 on Tuesday.OH