TIDMLID
RNS Number : 5507J
LiDCO Group Plc
20 August 2019
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
2019.
LiDCO product revenues in the half year were up 10% compared
with H1 last year to GBP3.33m (2018: GBP3.02m), slightly above the
Board's expectations. The strong year on year sales growth in H1
was notwithstanding the continuing transition of more of the
largest UK customers to the Group's Software as a Service ("SaaS")
High Usage Programme ("HUP") business model, which has the effect
of deferring revenue recognition.
HUP revenues in H1 grew 119% to GBP0.80m (2018: GBP0.37m)
contributing to the overall performance of the business in the
period. To date the Company now has 243 HUP monitors (31 January
2019: 164) placed in the market that will generate annualised
revenues of GBP2.1m.
US revenues were up 47% (42% on a constant currency basis) to
GBP0.90m (2018: GBP0.61m), with the growth being driven by the
continued success of the HUP offering enabling the Company to take
share in this large and growing market by targeting high volume
users of advanced hemodynamic monitoring.
In the UK, LiDCO product revenues declined by 8% to GBP1.61m
(2018: GBP1.76m) due to the timing of certain large orders and the
Company's decision to transition another four of its largest
customers to the HUP business model. The impact of these two
factors is estimated to have reduced H1 revenue by GBP0.2m. The
strategy, to actively convert UK customers to the SaaS business
model, has a transitional impact on revenues as these customers
typically de-stock inventory ahead of transitioning to HUP. Overall
the Company believes that it is maintaining its leading share of
the UK hemodynamic monitoring market.
Outside of the Group's two direct markets, sales to distributors
grew by 27% to GBP0.83m (2018: GBP0.65m). The recently announced
regulatory approvals of the latest hemodynamic LiDCOrapid(v3)
monitor in both China and South Korea, and the appointment of a
master distributor in Latin America, are expected to contribute to
further growth in the second half of the year.
Total revenues (including third party products) were down 4% to
GBP3.51m (2018: GBP3.64m) as a result of the previously announced
termination of the Argon Critical Care distribution contract which
contributed GBP0.63m in H1 2018 but just GBP0.16m in H1 2019.
Adjusting for all third party revenue, including the effect of this
terminated contract, gives the underlying growth of 10% for LiDCO
products as stated above.
Net cash outflow in H1 was down 57% to GBP0.53m (2018:
GBP1.22m). This figure is before the receipt of an expected R&D
tax credit of GBP0.19m (2018: GBP0.13m), normally received in H1
but deferred into H2 this year. The Company had GBP1.19m of cash as
at 31 July 2019 and remains debt free. As set out in the Annual
Report and Accounts for 2018/19, the Board believes that LiDCO
retains the appropriate strength in its balance sheet to deliver
its strategic objective of creating a profitable business with good
forward visibility from cash-generative, recurring SaaS revenue
streams.
The Company intends to announce its interim results on 15
October 2019.
Commenting, Matt Sassone, Chief Executive Officer of LiDCO,
said: "It's been a good start to the year that has enabled us to
transition more UK customers to HUP. In the US we are continuing to
gain success from a comparatively small sales presence, which
demonstrates the potential of the HUP business model. With HUP
gathering more momentum, we are focussed on achieving a strong
second half performance as the business moves progressively towards
breakeven."
For further information, please contact:
LiDCO Group Plc www.lidco.com
Matt Sassone (CEO) Tel: +44 (0)20 7749 1500
Tim Hall (CFO)
finnCap Tel: +44 (0)20 7600 1658
Geoff Nash / Hannah Boros (Corporate
Finance)
Andrew Burdis (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
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 news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
TSTPLMRTMBBBBBL
(END) Dow Jones Newswires
August 20, 2019 02:00 ET (06:00 GMT)
Lidco (LSE:LID)
Historical Stock Chart
From Apr 2024 to May 2024
Lidco (LSE:LID)
Historical Stock Chart
From May 2023 to May 2024