LID.L Regulatory News (LID)

22 Aug 2006 07:00

For Immediate Release 22 August 2006 LIDCO GROUP PLC ("LiDCO" or the "Company") Trading Update LiDCO Group plc (AIM: LID), the cardiovascular monitoring company, todayannounces a trading update for the six months ended 31 July 2006 ahead of itsinterim results which the Company will present on Tuesday 17 October.The Company has achieved sales of ‚£1.62 million, an overall increase of 3%compared to the same period last year and an increase of 15% in sales from itsmajor territory of the UK.Revenues generated from the Company's disposable product sales were promisingwith an overall increase of 11% to ‚£0.94 million. Sales in the UK increased 8%,in the USA by 2% and in the other more recently established territories of theEC and ROW by 38% and 117% respectively.Management anticipate that sales in the second half of the year will be strongdue to the revenue generation from existing pipeline accounts that were delayedthrough a later than usual UK NHS capital budget spend and more protractedcompetitive evaluations in other territories, particularly in the US. The Boardare strengthening the LiDCO sales teams both in the USA and the UK during thesecond half of the year. The increase in these direct sales costs, as well asthe intended additional R&D expenditure which was highlighted at the time ofthe fund raising earlier this year, will have an impact on the Group'sprofitability for the full year. The non-cash cost of accounting for shareoptions required for the first time under FRS 20 will also have an effect.The Company's management remains confident that the market's sales expectationsfor the full year, representing year-on-year growth of 40%, will be achieved.The Company's cash position remains strong, following the fundraising in May2006 and the balance sheet at 31 July 2006 shows a cash balance ofapproximately ‚£2 million and an undrawn borrowing facility of ‚£1million.Commenting on this announcement, Terry O'Brien, Chief Executive of LiDCO, said:"LiDCO has contended with both a delayed NHS budget spend and an increasinglycompetitive environment in the first six months of 2006/7. Nevertheless weachieved sales growth overall and good progress particularly in the disposableproducts and new territories. We expect second half sales to be much strongerand indeed saw evidence for this in June and July with deferred capital salesstarting to emerge from the sales pipeline in the UK and also the US. I ampleased to report that we are winning evaluations over the competition in alarge majority of accounts trialling our technology. Both we and a number ofour distributors, are encouraged by the sales results to date and are thereforerecruiting more sales staff to further accelerate revenue receipts." ---Ends--- For further information please contact:LiDCO Group Plc Tel: +44 (0)20 7749 1500 Terry O'Brien (CEO) Hugh McGarel-Groves (FD) Financial PR: Buchanan Communications Tel: +44 (0)20 7466 5000 Tim Anderson, James Strong Notes for editorsAbout LiDCO Group PlcLiDCO is a UK-based AIM-traded developer, manufacturer and leading supplier ofminimally invasive, computer-based hemodynamic monitoring equipment anddisposables used primarily for the management of critical care andcardiovascular risk hospital patients. Use of LiDCO's technology has been shownto significantly reduce the complications (particularly infections) and costsassociated with major surgery. The technology was invented in the Departmentof Applied Physiology based at St Thomas' Hospital, London.The Company's manufacturing facility is in London N1, UK and its currentproducts are:LiDCOplus and PulseCO monitors: computer-based platforms for displaying a rangeof real-time, continuous hemodynamic parameters including cardiac output,oxygen delivery and fluid volume;LiDCO disposables: used in conjunction with the LiDCOplus Monitor to accuratelydetermine cardiac output in a minimally-invasive manner.Distribution Network:The Company has now achieved registration of its products in 14 markets inEurope, together with the USA, Brazil and Japan. It sells direct in the USAand UK, and elsewhere through a worldwide network of specialty critical caredistributors.ENDLIDCO GROUP PLC