LiDCO posts extensive trading update

14th Feb 2017 12:46

(ShareCast News) - Cardiovascular monitoring company LiDCO Group provided a trading update for the full year to 31 January on Tuesday, with product revenues in the period expected to be up 14% to £6.76m, with total revenues - including third party products - expected to be up by 8% to £8.21m.The AIM-traded firm said overall, it saw strong demand for monitors with 186 units being sold - up from 103 units - and continued growth of smartcards up 17% to 46,580 units.In the UK, LiDCO said it had a strong performance considering the restricted spending climate, with product revenues expected to be up 6% to £3.79m, reportedly consolidating its position as a market leader.The total number of monitors sold and placed was similar to the previous year at 67 units with the launch of the company's new monitor LiDCOunity enabling it to achieve a higher selling price with expected monitor revenues of £0.27m, up 13% compared to the prior year.Disposable units were up 5% to 34,450, and sales of third party products in the UK declined 11% to £1.45m due to intense pricing pressure."The company had a strong first half in the US driven by capital sales, as LiDCO won new customer business with revenues for the year expected to be up 8% to £1.15m," the board said in its statement."However, with an increasingly competitive environment, overall disposables sales declined largely due to a previously announced significant customer loss."The company said it was seeing high levels of hemodynamic monitoring technology adoption in the US, but the company had recognised the challenge of operating in a highly competitive environment with a small team."The funding announced in December 2016 has enabled LiDCO to start to resource the company adequately to generate further new customer sales and drive greater growth from this highly attractive market."Investment in sales resource in this market has commenced with the appointment of Shane Doorish as Head of North America, announced on 10 January."Overall revenues outside of the UK and US markets were expected to have grown 38% to £1.79m, as the company looked to continue its strategy of geographical expansion.Revenues in regions outside of its two direct markets were helped by strong sales in Japan, the Middle East and China with monitors up 82% to 120 units and disposables up 31% to 20,645 units.Additional sales and marketing resources will also be made available in these distribution markets in the new financial year. The company was cash generative and expected to make a small profit for the year before tax and share based payments, compared to 2016's loss of £343,000 before exceptional items.LiDCO raised £2.79m net of expenses in December by way of a placing and subscriptions to accelerate growth into the US market as well as growing sales through additional resource in its other key markets.Excluding the effect of the December fund raise, net cash inflow in the year was £0.52m, with the company confirming it was debt free and year-end cash balances were £4.90m, up from £1.59m at the start of the year."LiDCO continues to take the right steps forward in delivering the strategic plan I outlined when becoming CEO 18 months ago," said chief executive Matt Sassone."Having raised funding in December and building on this momentum, we are now entering a new phase of LiDCO's growth."The company said it intended to announce its final results to 31 January on 28 March.