LID.L Regulatory News (LID)

LiDCO Group Plc

("LiDCO" or the "Company")

Trading update and notice of results

LiDCO Group Plc (AIM: LID), the cardiovascular monitoring company, provides the following trading update for the half year ended 31 July 2015.

Total revenues in the first half are expected to be similar to the comparative period last year whilst we continue to grow our installed base. Total surgical disposable revenues were up 2% in the period and cash at the end of the period was £1.4m (31 January 2015: £1.5m).

As indicated previously, in the UK we continue to experience some de-stocking of disposables in the NHS which has affected both our surgical and ICU products. Despite the challenging domestic market, we continue to grow our installed base of surgical monitors and see an expansion of their use in different surgical applications. Our UK surgical disposable units were down 1% compared with the same period last year for the reason mentioned above. Overall first half revenues in the UK are expected to be similar to the comparative period last year.

In the US we have been involved in a competitive evaluation with a large hospital group and negotiations are progressing well. If this should be successful it is expected to have a material effect on our presence in the US. Disposables sales were flat on the comparative period and we experienced a decline in capital sales resulting in overall revenues being down 16%. Outside of our two direct markets, we continue to evaluate the opportunities in Japan where we have experienced no sales in the first half but have seen strong demand from our distributors in the Middle East and Scandinavia.

Our partner ICU Medical Inc. to whom we have granted a royalty license has announced that they have submitted a 510(k) with the US FDA for their new hemodynamic monitor (Cogent) that incorporates our technology. This is expected to produce an attractive royalty stream once Cogent is launched.

LiDCO remains on track with our new LiDCO v3 Unity product and expects to obtain registration later this year. In the first half we also launched our battery powered monitor stand which provides our customers with portable continuous hemodynamic monitoring across the clinical pathway.

Despite difficult conditions in our most established market we have achieved revenues similar to those of last year. As always our results will be second half weighted and we expect a profitable second half with significant revenue growth over the first half. Results for the year as a whole are expected to be broadly breakeven, before the exceptional costs relating to replacing the CEO. 

The Company will announce its interim results to 31 July 2015 on 13 October 2015.

Commenting, Matt Sassone, Chief Executive Officer of LiDCO, said: "This is a year of transition as I take over from the former CEO, Terry O'Brien. We continue to see a number of positive clinical studies reinforcing the use of our products to improve high risk surgery outcomes and increased demand being driven as a result of national audits of high risk surgical outcomes. The opportunities in the US are very encouraging. In the second half we will start to execute on the strategic and tactical plans to drive greater growth. I look forward to advising our investors about these at the forthcoming interims."

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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 are showing that the optimisation 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 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

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

LiDCO Unity Software: software incorporated into LiDCOrapid v2 that allows the LiDCOrapid monitor to co-display Covidien's level of consciousness parameter ('BISTM')* and add the convenience of CNSystem's continuous non-invasive blood pressure monitoring ('CNAP')**. This will address a growing requirement for non-invasive monitoring solutions that are more comprehensive and can effectively replace multiple single parameter monitors. 

*BISTM and Bispectral Index are trademarks of Covidien LP 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.

LiDCO's marketing office is in Cambridge, its manufacturing facility and headquarters are in London and its shares are traded on AIM.