LID.L Regulatory News (LID)

LiDCO Group Plc

("LiDCO" or the "Company")

Pre-Close Trading Update

LiDCO (AIM: LID), the hemodynamic monitoring company, provides the following pre-close update in respect of its performance for the full year ended 31 January 2020 ("FY20").

LiDCO continues to make progress with developing a strong recurring revenue base through its Software as a Service ("SaaS") High Usage Programme ("HUP") business model and has achieved an excellent second half performance.

LiDCO product revenues for FY20 were up 19% to £7.4m (FY19: £6.2m), in line with management expectations. 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 by 3% to £7.6m (FY19: £7.3m). The increased proportion of higher margin LiDCO revenues led to an increase in overall gross margin.

The Company now has a global contracted base of 286 HUP monitors (FY19: 164), generating total annualised contracted licence revenues of £2.2m (FY19: £1.4m) an increase of 57%.

The 19% growth in FY20 LiDCO product sales reflects growth in all regions compared with the prior year. LiDCO product sales grew by 28% in the USA to £1.8m (FY19: £1.4m), by 1% in the UK to £3.6m (FY19: £3.6m) and sales outside of the Company's direct markets were up 60% to £2.0m (FY19: £1.3m). 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 represent just over half (FY19: 43%) of LiDCO product sales.

In the second half of the year there was a net cash inflow of £0.2m, compared with a net cash outflow in H1 of £0.5m. The balance sheet remains strong with cash balances at 31 January 2020 of £1.4m (2019: £1.7m) and the Company remains debt free.

The Board expects to report positive adjusted EBITDA1 for FY20 (FY19: -£1.2m).

Commenting, Matt Sassone, Chief Executive Officer of LiDCO, said: "After a strong first half in FY20, the team succeeded in delivering an even better second half performance. 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. I am also pleased with our international sales growth as we now have the majority of our LiDCO product sales outside the UK, where we retain our market share and leadership position. This excellent performance leads to the expectation that we will report positive adjusted EBITDA for FY20."

The Board intends to announce the Company's audited results for FY20 on 21 April 2020. 

1EBITDA before share-based payments

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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. 

Multiple independent 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.

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 are available in many markets under the Company's High Usage Programme, which allows unlimited use for an annual license fee. They are also available for purchase combined with the use of single-patient disposables (sensors or smartcards). These all provide recurring revenue streams.

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.

LiDCO's headquarters are in London and its shares are traded on AIM.