28 Nov 2006 07:00
For immediate release 28 November 2006 LiDCO Group Plc ("LiDCO" or "the Company") Trading Statement.
LiDCO, the UK based, AIM - quoted cardiovascular monitoring company, announces that since its interim results which were announced on 18 October, it is now possible to give a clearer picture of the year-end level of sales based on latest expected timings of customers' and distributors' capital equipment orders. The Board now believes that the Company will achieve sales in the year ended 31 January 2007 within the range ‚£3.4m to ‚£3.8m.
The majority of the sales shortfall against our expectations relates to the US market. As reported at the half year, sales and evaluations by US customers of our products are being delayed and prolonged by aggressive competitor sales activities. This has had the effect of delaying the completion of new equipment sales and temporarily suppressing disposable sales in existing major accounts. In October we had hoped that the effects of our competitors' actions would not depress sales in the second half. The Board are disappointed that this has not been the case.
Although sales of disposables have been interrupted, we have not lost any major customer account. Where new customer evaluations between LiDCO and our major US competitor have occurred, we have won and expect to continue to win the business. We have a technically superior and well validated minimally invasive monitoring product. Although capital sales from the USA are likely to continue to be lumpy and difficult to predict precisely, we remain optimistic about our US business. Accordingly, we have recently increased our direct sales resource there by 30%.
In the UK, our home market, we have performed in line with our expectations. In the UK we expect the full year sales growth to be around 30%, a similar level to that achieved in the first half of the year. We are now a leading supplier in the UK with around 35% of Hospital Intensive Care Units (85 units) using our LiDCOplus monitors.
Cash balances remain steady at ‚£1.8m to the end of October compared to ‚£2m at the end of July.
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For more information please contact:
LiDCO Group Plc Tel: +44 (0)20 7749 1500 Terry O'Brien - Chief Executive Hugh McGarel-Groves - Finance Director
Buchanan Communications Tel: +44 (0)20 7466 5000 Tim Anderson, James Strong Notes for EditorsAbout LiDCO Group Plc
LiDCO is a UK-based AIM-traded developer, manufacturer and leading supplier of minimally invasive, computer-based hemodynamic monitoring equipment and disposables used primarily for the management of critical care and cardiovascular risk hospital patients. Use of LiDCO's technology has been shown to significantly reduce the complications (particularly infections) and costs associated with major surgery. The technology was invented in the Department of Applied Physiology based at St Thomas' Hospital, London.
The Company's manufacturing facility is in Hoxton, London, UK and its current products are:
¢â‚¬¢ LiDCOplus and PulseCO monitors: computer-based platforms for displaying a range of real-time, continuous hemodynamic parameters including cardiac output, oxygen delivery and fluid volume;
¢â‚¬¢ LiDCO disposables: used in conjunction with the LiDCOplus Monitor to accurately determine cardiac output in a minimally-invasive manner.
Distribution Network:
The Company has now achieved registration of its products in 14 markets in Europe, the USA, Brazil and Japan. It sells direct in the UK and USA, and elsewhere through a worldwide network of specialty critical care distributors.
LIDCO GROUP PLC