LiDCO Group Plc – Pre-Close Trading Update

LiDCO Group Plc – Pre-Close Trading Update

LiDCO (AIM: LID), the hemodynamic monitoring company, provides the following pre-close update in respect of its performance for the full year ended 31 January 2020 (“FY20”). 

 

LiDCO continues to make progress with developing a strong recurring revenue base through its Software as a Service (“SaaS”) High Usage Programme (“HUP”) business model and has achieved an excellent second half performance.

 

LiDCO product revenues for FY20 were up 19% to £7.4m (FY19: £6.2m), in line with management expectations.  The growth in LiDCO product revenues more than outweighed the expected reduction in low margin third-party product sales. As a result, total revenues (including third party products) were up by 3% to £7.6m (FY19: £7.3m). The increased proportion of higher margin LiDCO revenues led to an increase in overall gross margin.

 

The Company now has a global contracted base of 286 HUP monitors (FY19: 164), generating total annualised contracted licence revenues of £2.2m (FY19: £1.4m) an increase of 57%.

 

The 19% growth in FY20 LiDCO product sales reflects growth in all regions compared with the prior year.  LiDCO product sales grew by 28% in the USA to £1.8m (FY19: £1.4m), by 1% in the UK to £3.6m (FY19: £3.6m) and sales outside of the Company’s direct markets were up 60% to £2.0m (FY19: £1.3m). The significant growth outside the UK included £0.4m growth in China from the launch of the new monitor and, as a result sales outside the UK now represent just over half (FY19: 43%) of LiDCO product sales.

   

In the second half of the year there was a net cash inflow of £0.2m, compared with a net cash outflow in H1 of £0.5m. The balance sheet remains strong with cash balances at 31 January 2020 of £1.4m (2019: £1.7m) and the Company remains debt free.

 

The Board expects to report positive adjusted EBITDA1 for FY20 (FY19: -£1.2m). 

 

Commenting, Matt Sassone, Chief Executive Officer of LiDCO, said: “After a strong first half in FY20, the team succeeded in delivering an even better second half performance. Our differentiated SaaS business model continues to drive our growth with the number of HUP monitors installed globally increasing nearly 75% and this has contributed to our expansion in recurring revenues. I am also pleased with our international sales growth as we now have the majority of our LiDCO product sales outside the UK, where we retain our market share and leadership position. This excellent performance leads to the expectation that we will report positive adjusted EBITDA for FY20.”

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