LiDCO Group Plc Trading update & Notice of results (5910N)

TIDMLID

RNS Number : 5910N

LiDCO Group Plc

10 August 2017

LiDCO Group Plc

("LiDCO" or the "Company")

Trading update & Notice of results

LiDCO (AIM: LID), the hemodynamic monitoring company, provides the following trading update for the six months ended 31 July 2017.

LiDCO product revenues in the half year were up 8% to GBP3.27m (2016: GBP3.03m) with total revenues (including third party products) up 4% to GBP3.94m (2016: GBP3.77m), in line with the Board's expectations. Net cash outflow during the period was GBP0.92m with cash at the period end of GBP3.98m (31 January 2017: GBP4.90m), the outflow reflecting the planned investment in sales and marketing resources.

In the USA, revenues were up 22% to GBP0.81m, with the growth being driven by a significant customer win involving the purchase of a number of monitors. The Company is looking to take share in this large and growing market by targeting the highest users of advanced hemodynamic monitoring. As announced separately today, LiDCO has signed its first customer for its recently launched High Use Programme (HUP) 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. These sales represent the first two significant customer conversions since LiDCO commenced its US expansion plans earlier this year.

In the UK, where the Company is the market leader and enjoys over 50% market share, LiDCO product revenues were up 14% to GBP1.96m. In this market, customer feedback for the recently launched LiDCOUnity v2 monitor has been very positive, with sales of GBP0.34m in July 2017, the month of its commercial release.

In Continental Europe, sales were down 44% to GBP0.20m, as the Company pro-actively sought to gain greater control of its distribution channels and has taken on a dedicated distributor manager towards the end of the period. The Company expects improved performance in the second half as its distributors move to more regular ordering patterns.

In the Rest of World, sales grew by 9% to GBP0.31m driven primarily by Japan, where the Company sees continued strengthening of its in-market sales as it migrates away from its exclusive distributor whose contract ended recently. Separately the Company has become aware that in-market sales by its Chinese distributor are being delayed due to the requirement to gain further regulatory approval in China of one of the accessories. The Company no longer anticipates a GBP0.5m order from its Chinese distributor in FY2017-18. LiDCO remains committed to the Chinese market and positive about future prospects in the country.

The Company intends to announce its interim results for the half year to 31 July 2017 on 10 October 2017.

Commenting, Matt Sassone, Chief Executive Officer of LiDCO, said: "LiDCO has achieved a number of strategic objectives in the first six months of this year. We have a new board, more than doubled our commercial presence in North America, signed our first High Usage Programme customer and gained approval for and launched a completely new monitor platform in multiple key markets. On top of this, we have completed the re-branding of the Company with new websites in the USA and globally. We have clearly seen the impact of our actions in our two direct markets and, as we seek further geographical expansion, we will continue to work with the right partners in the right markets to build our business in the rest of the world."

The information communicated in this announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No. 596/2014.

For further information, please contact:

 
 LiDCO Group Plc                                    www.lidco.com 
 Matt Sassone (CEO)                      Tel: [phone] 
 Jill McGregor (CFO) 
 
 finnCap                                 Tel: [phone] 
 Geoff Nash / Emily Watts (Corporate 
  Finance) 
 Stephen Norcross (Corporate 
  Broking) 
 
 Walbrook PR Ltd                            Tel: [phone] or 
                                             [e-mail] 
 Paul McManus                                  Mob: [phone] 
 Lianne Cawthorne                              Mob: [phone] 
 
 

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:

LiDCOunity: a hemodynamic monitor that combines the full suite of LiDCO technology (non-invasive, minimally invasive and calibrated technologies) into one platform. Designed to have the flexibility to adapt to a patient's changing acuity, the product enables clinicians to seamlessly transition between non-invasive, minimally invasive and calibrated hemodynamic monitoring.

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

The software incorporated into LiDCOrapid allows the LiDCOrapid monitor to co-display Medtronic's level of consciousness parameter ('BIS(TM') )* and add the convenience of CNSystem's continuous non-invasive blood pressure monitoring ('CNAP')**. This addresses a growing requirement for non-invasive monitoring solutions that are more comprehensive and can effectively replace multiple single parameter monitors.

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

*BIS(TM) and Bispectral Index are trademarks of Medtronic registered in the US and foreign countries.

**CNAP(TM) 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 headquarters are in London and its shares are traded on AIM.

This information is provided by RNS

The company news service from the London Stock Exchange

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August 10, 2017 02:02 ET (06:02 GMT)