LID.L Regulatory News (LID)

1 June 2020

LiDCO Group Plc

("LiDCO" or the "Company")

AGM Statement

LiDCO (AIM: LID), the hemodynamic monitoring company, will hold its Annual General Meeting on Monday 1 June 2020 at 10.00 am. As previously communicated, and in line with Government guidelines, only the Chairman of the meeting and one other person will attend the AGM, thus fulfilling the requirement of the Company's Articles of Association. Ahead of that meeting, the Company provides the following update on trading in the current financial year.

As previously announced on 5 May, LiDCO benefited from a significant uplift in demand for its hemodynamic monitors in Q1 due to COVID-19, with sales of £4.4m for the three months ended 30 April 2020, up 179% on the same period in the prior year and significantly exceeding the £3.5m of sales achieved in H1 last year. 

These exceptional conditions appear to have abated somewhat in the earlier part of Q2. There are, however, tentative expectations that elective surgeries will return to usual levels in the coming months and initial signs that the Company's key markets are beginning to return to more normal conditions. As a result of these factors, we have observed overall sales orders in May that are consistent with the level seen last year. The Board continues to expect that the base of recurring revenues, from its High Usage Programme (HUP) and consumables, which together represented 75% of total sales last year, should continue to generate revenue in the remainder of the year in line with the levels achieved in the latter part of FY20. Although it is early in the year and the pace and extent of a return to normality remains unclear, the exceptionally high sales in Q1 and the persistent recurring revenue being observed mean that the Company is in a healthy position to deliver against management expectations set at the start of the year.

Since the Group's last announcement, LiDCO has made further progress in its geographical expansion in Latin America, receiving regulatory approval for its latest monitor in Brazil. This follows the recent approval in Colombia and the first sales in-market via its new distributor in Chile.

As at 28 May 2020, the Company had cash of £3.2m (as at 31 January 2020: £1.4m) and the Board remains confident that LiDCO is well placed for when the markets return to normal.

Matt Sassone, Chief Executive Officer, commented:

"The LiDCO team admirably met the challenge of a substantial surge in orders in Q1, thereby doing our part to help hospitals deliver effective fluid management for patients affected by COVID-19.

"The exceptionally high sales in Q1 have substantially increased the installed base of systems which also enhances our expected revenue potential in the coming years. In addition, the Company's cash reserves have improved and we remain in a strong position to continue to invest in building our recurring revenue base as markets return to normal."

This announcement contains inside information as defined in Article 7 of the Market Abuse Regulation No. 596/2014 ("MAR").

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About LiDCO Group Plc (www.lidco.com)

LiDCO is a supplier of non-invasive and minimally invasive hemodynamic equipment to hospitals used to monitor the amount of blood flowing around the body and ensure that vital organs are adequately oxygenated. LiDCO's products facilitate the application of hemodynamic optimisation protocols for high risk patients in both critical care units and in the operating theatre. 

Increasingly clinical studies have shown that the optimisation of patients' hemodynamic status in high risk patients produces better outcomes and reduced hospital stay. LiDCO's computer-based technology, developed originally at St Thomas' Hospital in London, has been shown to significantly reduce morbidity and complications, length of stay and overall costs associated with major surgery.

In critical care, LiDCO's products have various in-built guided clinical protocols such as an end expiratory occlusion test (EEOT) and a tidal volume challenge (TVC), as a means to assess a patient's fluid status. These methods have been referenced by key opinion leaders as an important part of the treatment pathway for ventilated patients with the Covid-19 coronavirus in critical care. 

Key Products:

LiDCOunity: a hemodynamic monitor that combines the full suite of LiDCO technology (non-invasive, minimally invasive and calibrated technologies) into one platform. Designed to have the flexibility to adapt to a patient's changing acuity, the product enables clinicians to seamlessly transition between non-invasive, minimally invasive and calibrated hemodynamic monitoring.

LiDCOplus: a computer-based platform monitor used in the Intensive Care Unit for real-time continuous display of hemodynamic parameters including cardiac output, oxygen delivery and fluid-volume responsiveness (PPV% and SVV%).

LiDCOrapid: a cardiac output monitor designed specifically for use in the operating theatre for fluid and drug management. The monitor enables anaesthetists to receive accurate and immediate feedback on the patient's fluid and hemodynamic status - a key measure of overall well-being before, during and after surgery. The LiDCOrapid provides:

· early and rapid warning of hemodynamic change to aid choice of therapeutic route: fluid or drug

· quantification of hemodynamic response guidance on effective delivery of fluids to ensure the right amount at the right time

The software incorporated into LiDCOrapid allows the LiDCOrapid monitor to co-display Medtronic's level of consciousness parameter ('BISTM')* and add the convenience of CNSystem's continuous non-invasive blood pressure monitoring ('CNAP')**. This addresses a growing requirement for non-invasive monitoring solutions that are more comprehensive and can effectively replace multiple single parameter monitors. 

LiDCOview: an easy-to-use graphical display of historical LiDCOplus and LiDCOrapid hemodynamic data.

*BISTM and Bispectral Index are trademarks of Medtronic registered in the US and foreign countries.

**CNAPTM is a trademark of CNSystems Medizintechnik AG.

LiDCO monitors use single-patient disposables (sensors or smartcards) which provide an ongoing revenue stream.

LiDCO Distribution Network:

LiDCO sells directly to hospitals in the UK and USA and through a network of specialty critical care and anaesthesia distributors in the rest of the world.