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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Lidco Group Plc | LSE:LID | London | Ordinary Share | GB0030546849 | ORD 0.5P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 11.75 | 11.50 | 12.00 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
From May 2019 to May 2024
TIDMLID
RNS Number : 1224T
LiDCO Group Plc
10 October 2017
LIDCO GROUP PLC
("LiDCO", "Group" or the "Company")
Half-year Report
Interim Results for the six months ended 31 July 2017
LiDCO (AIM: LID), the hemodynamic monitoring company, announces its unaudited Interim Results for the six months ended 31 July 2017.
Financial Highlights
-- LiDCO revenues (excluding 3(rd) party products) up 8% to GBP3.3m (H1 2016: GBP3.0m) -- Total revenues (including 3(rd) party products) up 4% to GBP3.9m (H1 2016: GBP3.8m) -- UK revenues (excluding 3(rd) party products) up 14% to GBP2.0m (H1 2016: GBP1.7m) -- US revenues up 19% to GBP0.8m (H1 2016: GBP0.7m)
-- EBITDA loss GBP0.6m (H1 2016: breakeven) following planned investment in sales and marketing
-- Loss per share 0.42p (H1 2016: loss per share 0.19p)
-- Net cash outflow of GBP0.9m (H1 2016: net cash inflow GBP0.5m). Cash balances at 31 July 2017 of GBP4.0m (31 January 2017: GBP4.9m) and debt free
-- Company has a strong balance sheet to support its growth strategy
Operational Highlights
-- New LiDCOunity v2 monitor - regulatory approvals achieved and new monitor launched in US & Europe in July
-- 105 monitors sold/placed in period (H1 2016: 92 monitors) -- High Usage Programme (HUP) launched in US in July -- More than doubled commercial presence in North America -- New global (lidco.com) and dedicated US (lidco.us) websites launched
-- Appointment of Peter Grant to the Board as Chairman and Jill McGregor as Chief Financial Officer
Post Period End
-- First US customer signed for the new High Usage Programme (HUP) business model, multi-year contract signed with one of the world's largest and most respected cancer hospitals
Commenting, Matt Sassone, Chief Executive Officer of LiDCO, said: "Following the fundraise in December 2016, we have been executing our commercial expansion plans and total revenues for the first six months of the year were in line with the Board's expectations. We have more than doubled our commercial presence in North America, signed our first High Usage customer and gained approval for and launched a completely new monitor platform in multiple key markets. We are encouraged by the progress made as we start to see the positive impact of our investments."
The information communicated in this announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No. 596/2014.
LiDCO Group Plc www.lidco.com Matt Sassone (CEO) Tel: +44 (0)20 7749 1500 Jill McGregor (CFO) finnCap Tel: +44 (0)20 7600 1658 Geoff Nash / Emily Watts (Corporate Finance) Stephen Norcross (Corporate Broking) Walbrook PR Ltd Tel: 020 7933 8780 or lidco@walbrookpr.com Paul McManus Mob: 07980 541 893 Lianne Cawthorne Mob: 07584 391 303
CHIEF EXECUTIVE OFFICER'S REVIEW
During the period LiDCO has been executing its commercial expansion plans following a successful fundraise at the end of last financial year. These results clearly demonstrate the impact of these actions in the two direct markets of the UK and US. Importantly post period end, the Company announced its first High Usage Programme (HUP) account in the US, achieving a crucial milestone in its strategy execution and the Board sees this as a springboard for accelerated growth in this market.
As previously outlined, LiDCO plans to invest an additional GBP1.9m this financial year to assist with the strategy of increasing market share in the US, developing other overseas markets and reinforcing its leadership position in the UK.
The US offers the greatest opportunity for LiDCO and remains the largest market for hemodynamic monitoring. Market access has previously been the greatest challenge. However, this has now been addressed with additional sales representation and clinical training resources which has more than doubled the US commercial presence during the period. Prior to these new resources having any material impact two significant customers were converted, demonstrating the strength of LiDCO's product offering.
In the UK, the Company invested further in its direct sales presence to increase its market leading position. Adding additional sales resources in the UK enables LiDCO to access underserved regions and drive greater growth from new and existing customers in its home market. Maintaining a growing platform in the UK underpins the Company's performance as it looks to expand geographically.
Outside of the UK and US a dedicated European distribution manager was appointed to focus on managing relationships with distributors in mainland Europe. LiDCO's strategy is to target specific markets globally where it believes it can achieve a market leading position by working through distribution partners.
The key achievement in the period was the launch of the new monitor platform, LiDCOunity v2, which has received very positive customer feedback. The Company believes that this new look monitor will help accelerate market share gain especially as it incorporates LiDCO's highly differentiated High Usage Programme. The Board believes that this new software licensing model will encourage higher patient use, increase technology adoption and provide greater visibility of future revenue.
Supporting the commercial investments, and as part of the additional GBP1.9m spend, the Company has delivered on a number of promotional activities. These include new global and US websites, brand awareness activities in the Company's target markets and, recently commenced, an extensive promotional campaign in the US.
Financial Results
Overall revenues were up 4% to GBP3.9m (H1 2016: GBP3.8m) with LiDCO revenues (excluding 3(rd) party products) up 8% to GBP3.3m (H1 2016: GBP3.0m).
Gross profit increased by 7% to GBP2.7m (H1 2016: GBP2.5m) and the gross profit percentage increased by 1.9% to 68.5% (H1 2016: 66.6%), driven by the strength of LiDCO's direct sales and increased average selling prices achieved in the UK.
Sales and Marketing costs increased 47% to GBP1.9m (H1 2016: GBP1.3m) due to the planned investment in additional headcount and marketing expenditure. Operational costs which include facilities, systems and logistics increased 5% to GBP0.6m (H1 2016: GBP0.6m). Administration expenses increased 16% to GBP0.8m (H1 2016: GBP0.7m). Product Development costs increased 34% to GBP0.4m (H1 2016: GBP0.3m) due to increased registration costs in rest of world markets. Total costs increased 29% to GBP3.7m (H1 2016: GBP2.9m) in line with expectations as the Group invested in the US and UK markets to increase its sales presence and accelerate growth in these important markets.
The EBITDA loss for the period was GBP0.6m (H1 2016: GBP0m). Total costs excluding depreciation and share based payments increased 32% to GBP3.3m (H1 2016: GBP2.5m).
Hot Features
Premium
Six months Six months Year
ended ended ended
31 July 31 July 31 January
2017 2016 2017
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
------------------ ----------- ----------- ------------
(Loss)/profit
from operations (1,015) (356) 98
Depreciation 406 355 722
------------------- ----------- ----------- ------------
EBITDA (609) (1) 820
------------------- ----------- ----------- ------------
Net cash outflow from operating activities was GBP0.4m (H1 2016: inflow GBP0.9m) mainly as a result of the investment in the US noted above. The Company continued to invest in product development launching the LiDCOunity v2 monitor in July with expenditure in the period being GBP0.4m (H1 2016: GBP0.3m). Total expenditure on investing was GBP0.5m (H1 2016: GBP0.4m). Net cash outflow for the first half was GBP0.9m (H1 2016: inflow GBP0.5m) which was in line with the Board's strategy, post the December 2016 fundraise to invest in greater commercial resources, primarily in the US market.
Sales Performance
In the UK, where the Company enjoys over 50% market share, its market leading position was strengthened with LiDCO product revenues up 14% to GBP2.0m. The first half performance was boosted by strong capital revenues, with the new LiDCOunity v2 monitor generating revenues of GBP0.3m in July, the first month of its commercial release. Feedback on the new monitor has been very positive and a number of monitor orders were received via the new sales channel opened during 2016 when LiDCO products were awarded a NHS Supply Chain Framework Agreement. Recurring revenues declined 4% to GBP1.6m due to the timing of customer orders and does not reflect a weakening in the underlying business. The Company expects a stronger second half with full year recurring revenues growing over the prior period as LiDCO continues to gain market share.
In the US, revenues were up 19% to GBP0.8m, with the growth being driven by a large customer win involving the purchase of a number of monitors. The Company is looking to take share in this sizeable and growing market by targeting the highest users of advanced hemodynamic monitoring. Significantly LiDCO has signed its first customer for the recently launched (July 2017) High Usage Programme business model. This multi-year contract commences in September and will start to contribute in the second half of the year with revenue being spread over the anticipated life of the agreement. When annualised this agreement represents a 35% uplift in LiDCO's annual recurring revenues in the United States.
ICU Medical (ICU) has recently announced that it has commenced shipment of Cogent monitors in the US. ICU has a non-exclusive royalty license agreement to use LiDCO's algorithm in their new Cogent hemodynamic monitor. ICU is a large US medical device manufacturer that has an existing invasive-catheter based cardiac output monitoring business which Cogent has been developed to complement. LiDCO expects to recognise revenues from both monitor and disposable revenues in this arrangement in the second half.
In Continental Europe revenues were down 44% to GBP0.2m with a number of distributors not placing their historical stocking orders at the end of the half. A dedicated distributor manager was recruited towards the end of the period for the region and the Company expects improved performance in the second half as its distributors move to more regular ordering patterns and partners see the impact of the new monitor platform in-market.
In the Rest of World markets revenues grew by 8% to GBP0.3m driven primarily by Japan, where the Company sees continued strengthening of its in-market sales. LiDCO is working with its distribution partners in the region to gain local registration approvals for its new monitor but the Company doesn't expect this to impact the second half.
As previously announced, in-market sales by the Company's Chinese distributor have been delayed due to the requirement to gain further regulatory approval in China for one of the accessories. LiDCO is supporting its distributor in seeking this regulatory approval and has agreed to extend the schedule of payment terms for existing business. As a result, LiDCO no longer anticipates any significant orders from its Chinese distributor in FY2017-18. Despite this LiDCO remains committed to the Chinese market, and the Board is positive about future prospects in the country and expects normalised sales in FY2018-19.
In the first six months, revenues of lower margin third party products had an anticipated decline to GBP0.7m (H1 2016: GBP0.7m) largely due to increased pricing pressure in the UK.
Further details of the Company's performance, in terms of revenues by key geographies, are given in the table below:
6 months to July 2017 6 months to July 2016
----------- ------------------------------------------ ----------------------------------------
Capital Recurring Other Total Capital Recurring Other Total
Revenues Revenues Sales Revenues
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
LiDCO
Revenues
UK 380 1,553 30 1,963 71 1,624 26 1,721
US 432 356 17 805 236 437 4 674
Europe 67 125 4 196 153 191 6 350
Rest of
World 82 221 2 305 60 217 3 283
----------- ---------- ---------- -------- -------- -------- ---------- -------- --------
961 2,255 53 3,269 520 2,469 39 3,028
----------- ---------- ---------- -------- -------- -------- ---------- -------- --------
3rd party
Revenues
UK - 673 - 673 - 746 - 746
----------- ---------- ---------- -------- -------- -------- ---------- -------- --------
Total
Revenues 961 2,928 53 3,942 520 3,215 39 3,774
----------- ---------- ---------- -------- -------- -------- ---------- -------- --------
Capital revenues include the sales of monitors and other equipment to customers. Recurring revenues include sales of smartcards, sensors, software licenses and service contracts. Japan revenues have now been included within Rest of World.
Strategic plans going forward
LiDCO's strategy is to build shareholder value through the commercialisation of LiDCO monitoring systems and associated high margin repeat revenues. Increasing the numbers of productive LiDCO-enabled monitors should ultimately increase the amount of repeat revenues generated by customers.
Geographical expansion is key to LiDCO's capacity to address the worldwide opportunity for sales of its technology. By enabling the Company to increase its investments in commercial operations, the fundraising in 2016 has provided the means to develop overseas markets, accelerate revenue growth and reinforce LiDCO's leadership position in the UK.
LiDCO aims to maintain its technology leadership and deliver further differentiation of LiDCO's offering. In the first six months, this has been reinforced by the launch of the new LiDCOunity V2 and High Usage Programme. By introducing this differentiated pricing model in target markets for customers with high annual usage, the Board believes that this will reduce the time taken to close business, encourage higher patient use, increase technology adoption, provide greater forward visibility of revenues and allow the Company to gain greater market share in key target markets.
Excellence in product design, manufacturing and sales and marketing are at the core of LiDCO's values. Patent protection is sought where possible for LiDCO products and their position is supported by a growing body of data showing their clinical and cost-effectiveness.
Outlook
Good progress has been made in executing the Company's commercial expansion strategy, which is expected to bring growth both in the short and medium term. Significantly LiDCO has now won its first US High Usage Programme reference customer, which combined with a more than doubling of LiDCO's commercial presence in the US, positions the Company to take further market share in the world's largest hemodynamic monitoring market.
The Board continues to expect sales growth for the full year to be similar to the growth shown in the first half with strong sales in the core UK and targeted US markets. With the new products and additional sales resources, the Board looks forward to the future with confidence.
Matt Sassone
Chief Executive Officer
10 October 2017
CONDENSED CONSOLIDATED COMPREHENSIVE INCOME STATEMENT
For the six months ended 31 July 2017
Six months Six months Year
ended ended ended
31 July 31 July 31 January
2017 2016 2017
Unaudited Unaudited Audited
Note GBP'000 GBP'000 GBP'000
----------------------- ----- ----------- ----------- ------------------
Revenue 3 3,942 3,774 8,212
Cost of sales (1,240) (1,259) (2,612)
----------------------- ----- ----------- ----------- ------------------
Gross profit 2,702 2,515 5,600
Sales and Marketing (1,915) (1,304) (2,483)
Operations (614) (584) (1,210)
Administration (811) (701) (1,228)
Product Development (377) (282) (581)
----------------------- ----- ----------- ----------- ------------------
Total costs (3,717) (2,871) (5,502)
----------------------- ----- ----------- ----------- ------------------
(Loss)/profit
from operations
before share
based payment
charge
Share based payment
charge
(971) (312) 57
(44) (44) 41
----------------------- ----- ----------- ----------- ------------------
(Loss)/profit
from operations (1,015) (356) 98
----------------------- ----- ----------- ----------- ------------------
Finance income 3 3 6
Finance expense - - (2)
----------------------- ----- ----------- ----------- ------------------
(Loss)/profit
before tax (1,012) (353) 102
Income tax (5) (10) 85
----------------------- ----- ----------- ----------- ------------------
Loss for the
year and total
comprehensive
(expense)/ income
attributable
to equity holders
of the parent (1,017) (363) 187
----------------------- ----- ----------- ----------- ------------------
(Loss)/earnings
per share (basic
and diluted) (0.42p) (0.19p) 0.09p
----------------------- ----- ----------- ----------- ------------------
CONDENSED CONSOLIDATED Balance Sheet
At 31 July 2017
31 July 31 July 31 January
2017 2016 2017
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
Non-current assets
Property, plant and equipment 876 920 809
Intangible assets 1,986 1,886 1,958
----------- ----------- -----------
2,862 2,806 2,767
----------- ----------- -----------
Current assets
Inventory 1,533 1,544 1,467
Trade and other receivables 2,855 2,073 2,684
Current tax - - 93
Cash and cash equivalents 3,983 2,085 4,901
----------- ----------- -----------
8,371 5,702 9,145
----------- ----------- -----------
Current liabilities
Trade and other payables (1,778) (1,334) (1,504)
Deferred income (112) (117) (92)
(1,890) (1,451) (1,596)
----------- ----------- -----------
Net current assets 6,481 4,251 7,549
----------- ----------- -----------
Total assets less current
liabilities 9,343 7,057 10,316
----------- ----------- -----------
Equity attributable to equity
holders of the parent
Share capital 1,221 971 1,221
Share premium 30,342 27,798 30,342
Merger reserve 8,513 8,513 8,513
Retained earnings (30,733) (30,225) (29,760)
----------- ----------- -----------
Total equity 9,343 7,057 10,316
----------- ----------- -----------
CONDENSED consolidated COMPREHENSIVE Cash flow Statement
For the six months ended 31 July 2017
Six months Six months Year
ended ended ended
31 July 31 July 31 January
2017 2016 2017
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
(Loss)/profit before
tax (1,012) (353) 102
Finance income (3) (3) (6)
Finance expense - - 2
Depreciation and amortisation
charges 406 355 722
Share based payments 44 44 (41)
(Increase)/decrease in
inventories (66) 395 472
(Increase)/decrease in
receivables (171) 407 (204)
Increase/(decrease) in
payables 269 (148) 21
Increase/(decrease) in
deferred income 20 1 (24)
Net tax received 93 158 161
----------- ----------- ------------
Net cash(outflow)/inflow
from operating activities (420) 856 1,205
Cash flows from investing
activities
Purchase of property,
plant & equipment (235) (130) (168)
Purchase of intangible
assets
Proceeds on the sale (266) (231) (521)
of equipment - - -
Finance income 3 3 6
----------- ----------- ------------
Net cash used in investing
activities (498) (358) (683)
Net cash (outflow)/inflow
before financing (918) 498 522
Cash flows from financing
activities
Finance expense - - (2)
Issue of ordinary share
capital (net of costs) - - 2,794
----------- ----------- ------------
Net cash inflow from
financing activities - - 2,792
Net (decrease)/increase
in cash and cash equivalents (918) 498 3,314
Opening cash and cash
equivalents 4,901 1,587 1,587
----------- ----------- ------------
Closing cash and cash
equivalents 3,983 2,085 4,901
=========== =========== ============
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
For the six months ended 31 July 2017
Share Share Merger Retained Total
capital premium reserve earnings equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
---------------------- --------- --------- --------- -------------- --------------
At 1 February
2016 971 27,798 8,513 (29,906) 7,376
Issue of share
capital (net
of costs) 250 2,544 - 2,794
Share based payment -
income - - - (41) (41)
Transactions
with owners 250 2,544 - (41) 2,753
---------------------- --------- --------- --------- -------------- --------------
Profit for the
year - - - 187 187
---------------------- --------- --------- --------- -------------- --------------
At 31 January
2017 1,221 30,342 8,513 (29,760) 10,316
Share based payment
expense - - - 44 44
---------------------- --------- --------- --------- -------------- --------------
Transactions
with owners - - - 44 44
---------------------- --------- --------- --------- -------------- --------------
Loss for the
half year - - - (1,017) (1,017)
---------------------- --------- --------- --------- -------------- --------------
At 31 July 2017 1,221 30,342 8,513 (30,733) 9,343
---------------------- --------- --------- --------- -------------- --------------
NOTES TO THE INTERIM STATEMENT
1. BASIS OF PREPRATION
The Group's interim report for the six months ended 31 July 2017 was authorised for issue by the directors on 10 October 2017. The consolidated interim financial information, which is unaudited, does not constitute statutory accounts within the meaning of Section 435 of the Companies Act 2006. Accordingly, this condensed report is to be read in conjunction with the Annual Report for the year ended 31 January 2017, which has been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union, and any public announcements made by the Group during the interim reporting period.
The statutory accounts for the year ended 31 January 2017 have been reported on by the Group's auditors, received an unqualified audit report and have been filed with the registrar of companies at Companies House. The unaudited condensed interim financial statements for the six months ended 31 July 2017 have been drawn up using accounting policies and presentation expected to be adopted in the Group's full financial statements for the year ending 31 January 2018, which are not expected to be significantly different to those set out in note 1 to the Group's audited financial statements for the year ended 31 January 2017.
After review of the Group's operations, the directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. Accordingly, the directors continue to adopt the going concern basis in preparing the unaudited condensed interim financial statements.
2. ACCOUNTING POLICIES
The interim financial information has been prepared on the basis of the recognition and measurement requirements of IFRS, which were the accounting policies used in the Report and Accounts for the Group for the year ended 31 January 2017. The accounting policies are unchanged from those used in the last annual accounts.
3. REVENUE AND SEGMENTAL INFORMATION
The Group has one segment - the supply of monitors, disposables and support services associated with the use of the LiDCO's cardiac monitoring equipment. Geographical and product type analysis is used by management to monitor sales activity and is presented below:
Turnover and result by geographical region
Six months Six months Year
ended ended ended
31 July 31 July 31 January
2017 2016 2017
Group revenue GBP'000 GBP'000 GBP'000
UK - LiDCO revenues 1,963 1,721 3,785
UK - third party products 673 746 1,449
US 805 674 1,183
Continental Europe 196 350 738
Rest of World 305 283 1057
------------------------------- ----------- ----------- ------------
Total Revenues 3,942 3,774 8,212
------------------------------- ----------- ----------- ------------
Result
UK - LiDCO revenues 895 811 2,015
UK - third party products 134 149 240
US (355) 1 11
Europe 21 126 304
Rest of World 112 155 609
------------------------------- ----------- ----------- ------------
Total 807 1,242 3,179
Unallocated costs (1,822) (1,598) (3,081)
(Loss)/profit from operations (1,015) (356) 98
------------------------------- ----------- ----------- ------------
Revenue by type
Capital revenues 961 520 1,249
Recurring revenues 2,255 2,469 5,419
Distributed third party
products 673 746 1,449
Other income 53 39 95
------------------------------- ----------- ----------- ------------
Total revenues 3,942 3,774 8,212
------------------------------- ----------- ----------- ------------
Capital revenues include the sales of monitors and other equipment to customers. Recurring revenues include sales of smartcards, sensors, software licenses and service contracts. Japan revenues have now been included within Rest of World.
The Group can identify trade receivables and trade payables relating to the geographical segments. As noted above, the Group has one segment and other assets and liabilities together with non-sales related overheads are not accounted for on a segment by segment basis. Accordingly, segment assets, liabilities and segment cash flows are not provided.
4. LOSS PER SHARE
The calculation of basic earnings per share is based on the earnings or loss attributable to ordinary shareholders divided by the weighted average number of shares in issue during the year. The calculation of the loss per share for the six months to 31 July 2017 is based on the loss for the period of GBP1,017,000 and the weighted average number of shares in issue during the period of 244,174,908. The calculation of diluted earnings per share is based on the calculation above adjusted to allow for the issue of shares on the assumed conversion of all dilutive options. Share options are regarded as dilutive when, and only when, their conversion to shares would decrease earnings or increase the loss per share.
5. DISTRIBUTION OF THE INTERIM STATEMENT
Copies of this statement will be available for collection free of charge from the Company's registered office at 16 Orsman Road, London N1 5QJ. An electronic version will be available from today on the Company's website, www.lidco.com.
The Company presentation will also be available from today on the LiDCO website www.lidco.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR UKUNRBWARRAA
(END) Dow Jones Newswires
October 10, 2017 02:00 ET (06:00 GMT)
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