5 Feb 2013 07:00
Press Release | 5 February 2013 |
LIDCO GROUP PLC
("LiDCO" or the "Company")
Trading Update
Notice of Preliminary Results
LiDCO Group Plc (AIM: LID), the cardiovascular monitoring company, is pleased to provide an update on trading for the year ended 31 January 2013, ahead of its Preliminary Results, which will be announced on Tuesday, 23 April 2013.
In our domestic UK market, sales continued to grow strongly, up by circa 30% with good growth in both surgical monitors and disposables. Total UK disposable unit sales increased circa 30% with 70% growth of surgical disposables.
In the US, sales were affected by the previously announced transition from distribution arrangements to direct sales in the second half, which disrupted sales for several months. However, LiDCO has now acquired the existing LiDCOrapid customer base from Covidien and has taken direct responsibility for the sales and distribution of all LiDCOrapid products in the US. The Board believes that after this initial switch-over period, the associated higher margin revenues from this customer base will enhance the sales and profitability of the Company. The Company is accordingly increasing its own US sales presence whilst continuing discussions with a number of potential partners in the US market.
The Board expects revenues for the full year of approximately £7.2 million (2011/12 £7.1million). LiDCO received no license fees during this financial year (2011/12: £540,000) therefore excluding license fees, revenues increased by approximately 9%. During the year overheads were tightly controlled and LiDCO product margins remained strong.
The Board had anticipated signing a new US distribution agreement with a license fee ahead of the year end, but as referred to above, discussions remain ongoing with a number of parties. The absence of this revenue, coupled with the investment in the US, will result in a small operating loss for the year, although the business remains EBITDA positive.
The Company continues to see significant interest in the enhanced LiDCOrapid v2 product range, especially in the UK. The NHS drive for adoption of fluid monitoring looks to be having a positive effect. The Board expects UK sales to continue to grow strongly.
Cash at the year end was £2.1 million with no overdraft (2011/12: £1.3 million net).
Dr Terry O'Brien, Chief Executive Officer of LiDCO, commented: "Last year LiDCO concluded its most significant product development for a number of years (LiDCOrapid v2 with Unity software), opened up the Japanese market and achieved further significant growth in its UK domestic market for surgical products.
"Sales excluding license fees advanced in the year by 9%. The NHS drive for adoption is potentially adding 40,000 new high risk surgical patients that require our monitoring. We therefore expect significant sales growth in 2013, driven by higher direct sales revenues in both the US and the UK, sales of our new and more widely applicable integrated non-invasive & depth of anesthesia product and a growing sales contribution from Japan."
An analyst presentation, given by Terry O'Brien, Chief Executive Officer, and Paul Clifford, Finance Director, will be held at 9.30am on Tuesday, 23 April 2013 at the offices of Abchurch Communications, 16th Floor, 125 Old Broad Street, London, EC2N 1AR.
- Ends -
For further information, please contact:
LiDCO Group Plc | |
Terry O'Brien (Chief Executive Officer) | Tel: +44 (0)20 7749 1500 |
Paul Clifford (Finance Director) | |
Theresa Wallis (Chairman) | www.lidco.com |
FinnCap | |
Geoff Nash / Henrik Persson Stephen Norcross (broking) | Tel: +44 (0)20 7600 1658 www.finncap.com |
Media enquiries:
Abchurch Communications | |
Adam Michael / Joanne Shears / Simone Elviss / Jamie Hooper | Tel: +44 (0) 20 7398 7719 |
Jamie.hooper@abchurch-group.com | www.abchurch-group.com |
About LiDCO Group Plc
LiDCO is a supplier of minimally invasive hemodynamic equipment to hospitals, 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 optimization protocols for high risk patients in both critical care units and in the operating theatre.
Increasingly clinical studies are showing that the optimization of patients' hemodynamic status in high risk patients produces better outcomes and reduced hospital stay. LiDCO's computer-based technology, developed 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:
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 anesthetists to get 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 |
LiDCOview: an easy-to-use graphical display of historical LiDCOplus and LiDCOrapid hemodynamic data. | |
LiDCO Unity Software: The software incorporated into LiDCOrapid v2 will allow the LiDCOrapid monitor to co-display Covidien's level of consciousness parameter and add the convenience of CNSystem's continuous non-invasive blood pressure monitoring. This will address a growing requirement for non-invasive monitoring solutions that are more comprehensive and can effectively replace multiple single parameter monitors. | |
All LiDCO monitors use single-patient disposables (sensors or smartcards) which provide an ongoing revenue stream.
LiDCO Distribution Network:
LiDCO's strategy is to sell directly to hospitals in the UK, and through a network of specialty critical care and anesthesia distributors in the rest of the world.
LiDCO's sales office is in Cambridge, its manufacturing facility and headquarters are in London and its shares are traded on AIM. For more information please see www.lidco.com