TIDMLID
RNS Number : 3464D
LiDCO Group Plc
09 October 2018
LIDCO GROUP PLC
("LiDCO", "Group" or the "Company")
Half-year Report
Interim Results for the six months ended 31 July 2018
LiDCO (AIM: LID), the hemodynamic monitoring company, announces
its unaudited Interim Results for the six months ended 31 July
2018.
Financial Highlights
-- LiDCO recurring revenues (excluding 3(rd) party products) up
12% to GBP2.5m (H1 2017: GBP2.3m)
-- Total revenues (including 3(rd) party products) down 8% to GBP3.6m (H1 2017: GBP3.9m)
-- EBITDA loss GBP0.9m (H1 2017: loss GBP0.6m) as investment in sales and marketing continues
-- Loss per share 0.52p (H1 2017: loss per share 0.42p)
-- Net cash outflow of GBP1.2m (H1 2017: net cash outflow
GBP0.9m) partly due to one-off inventory investments
-- Company has a strong balance sheet to support its growth
strategy with cash balances at 31 July 2018 of GBP2.1m (31 January
2018: GBP3.2m), debt free and expects to be cash flow positive in
the second half
Operational Highlights
-- Continued transition to 'Software as a Service' ('SaaS') model
-- Continued HUP success in US. At 31 July 2018, six US
customers for HUP with the 74 HUP monitors in the US generating
annualised recurring revenues of $0.8m and a substantial pipeline
of advanced opportunities
-- Exclusive UK distribution agreement with Maicuff Technology
Ltd ("Maicuff") to distribute non-invasive blood pressure
disposable products in the UK
-- 132 monitors sold/placed in period (H1 2017: 151 monitors)
-- Supporting significant UK clinical study assessing fluid
optimisation in emergency laparotomy
Post Period End
-- A further three US customers signed to High Usage Programme
(HUP) business model, to date the Company now has nine US customers
for HUP with the 92 HUP monitors in the US generating annualised
recurring revenues of $1.1m
-- Previously announced termination of Merit Medical
distribution contract in UK implemented at the end of September
2018
-- Exclusive three-year UK distribution announced with Shenzhen
Antmed Co., Ltd ("ANTMED") to take full distribution
responsibilities for ANTMED's extensive range of Blood Pressure
transducer products in the UK
Commenting, Matt Sassone, Chief Executive Officer of LiDCO,
said: "Our focus remains on transitioning the business to a
'Software as a Service' business model. Customer feedback,
especially in the US, to this differentiated approach to pricing is
very positive. To date we have been able to take over $1m market
share in the US and have established an exciting sales pipeline
which continues to grow.
"I have personally visited a number of key prospects in the US
over the past weeks and I am confident that our proposition
resonates with customers, albeit the sales cycle is longer than
originally anticipated. In the second half of the year we expect to
benefit further as we convert more of our US pipeline together with
a higher level of capital sales in the UK and contributions from
new third party distribution agreements."
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)
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
CHIEF EXECUTIVE OFFICER'S REVIEW
It is now just over a year since the Group boosted investment in
sales and marketing resources, launched its new monitor and
introduced its differentiated High Usage Programme (HUP) offering
with a strategic shift to a 'Software as a Service' model. Although
the sales cycle has been longer than originally anticipated, the
Board remains confident in this strategy.
The Board identified that the US offers the greatest opportunity
for LiDCO, being the largest market for hemodynamic monitoring, and
a substantial investment has been made in additional sales and
clinical support resource with a view to taking share in this
market with the HUP. US customer feedback to HUP has been very
encouraging. Customers are attracted to HUP by the costs being
fixed, there being no variable disposable costs and the opportunity
to monitor additional patients without additional costs. This,
combined with the possibility to save money versus their current
supplier, has enabled us to gain traction in winning new customers
and building a substantial pipeline of opportunities. To date the
Company estimates that it has managed to convert approximately 1%
of the current US market to HUP. The opportunity in the US remains
very substantial.
The Company's expanded commercial team in the US has developed a
strong foundation for HUP, with key customers that have already
converted to HUP including 4 of the top 20 (ranked by US News)
hospitals in the US. This also includes the number one cancer care
hospital in the US.
During this US launch phase, LiDCO has developed its sales
processes with the expansion of the commercial team and is adapting
to a longer sales cycle as the organisation progresses agreements
through hospital administrations. Gaining a number of prestigious
customers has given LiDCO and its HUP offering greater credibility.
Many of these converted customers to LiDCO's HUP have been willing
to act as reference accounts for prospective customers and as the
number of users grow, the Company expects the conversion process to
accelerate.
Outside of the US, the Company continues to offer the HUP
selectively, and in the first half gained further success in
Denmark and Switzerland. In the UK, the Group's largest customers'
experience with HUP is very positive and the Company is in
discussion with a number of NHS Trusts about converting to the
programme.
As announced earlier in the year, after seven years of LiDCO
distributing Argon Medical Devices, the new owners of the business,
Merit Medical, decided to terminate the distribution contract,
which ended on 30 September 2018. LiDCO has looked to take
advantage of its sales reach in the UK and is pleased that it has
been able to sign exclusive distribution agreements with Maicuff
and ANTMED, with a number of other opportunities still in
discussion. These additional product lines complement the Group's
approach in the UK and in time the Board expects that, with their
higher margins, they will collectively exceed the financial
contribution generated by the Argon distribution.
Symbiotic to the development of the HUP programme was the launch
of the new monitor platform. Feedback from users continues to be
positive and the Company has spent the first half of the year
developing its latest user improvements which it expects to launch
at the upcoming American Society of Anesthesia meeting in October.
After a successful launch last year and the Company's decision to
place monitors free of charge as part of the HUP offering, capital
sales were, as expected lower in the first six months than in the
comparative period last year.
Gaining Chinese registration of the new monitor platform remains
a key objective for the Company to resume growth in this important
market. The project is nearing the end of the testing phase ahead
of its final Chinese FDA submission and approval is anticipated in
early 2019.
Financial Results
Overall revenues were down 8% to GBP3.6m (H1 2017: GBP3.9m) with
LiDCO recurring revenues (excluding 3(rd) party products) up 11% to
GBP2.5m (H1 2017: GBP2.3m).
The reduction on revenues had an impact on gross profit which
reduced by 11% to GBP2.4m (H1 2017: GBP2.7m). The gross profit
percentage was 65.7% (H1 2017: 68.5%)
Sales and Marketing costs increased 6% to GBP2.0m (H1 2017:
GBP1.9m) due to the investments in headcount made during the
previous year being in place from the start of the year and weaker
Sterling exchange rates, partially offset by a reduction in
marketing expenditure as one-off costs in 2017 did not need to be
repeated. Operational costs, which include facilities, systems and
logistics, reduced 12% to GBP0.5m (H1 2017: GBP0.6m) due to a
reallocation of resources. Administration expenses reduced 18% to
GBP0.6m (H1 2017: GBP0.8m). Product Development remained in line
with the prior period at GBP0.4m (H1 2017: GBP0.4m). Total costs
reduced 2% to GBP3.6m (H1 2017: GBP3.7m) in line with expectations
as the Group focussed its investment on resources to fund
geographical expansion.
The EBITDA loss for the period was GBP0.9m (H1 2017: GBP0.6m).
Total costs excluding depreciation and share based payments reduced
2% to GBP3.2m (H1 2017: GBP3.3m).
Six months Six months Year
ended ended ended
31 July 31 July 31 January
2018 2017 2018
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
---------------------- ----------- ----------- ------------
Loss from operations (1,275) (1,015) (2,221)
Depreciation 391 406 862
----------- -----------
EBITDA (884) (609) (1,359)
----------------------- ----------- ----------- ------------
Net cash outflow from operating activities was GBP0.6m (H1 2017:
outflow GBP0.4m). In total working capital was an inflow of GBP0.4m
(H1: GBP0m) which was offset by an outflow of deferred income
GBP0.3m (H1: GBP0m). There was a cash outflow related to an
increase in inventories GBP0.8m (H1 2017: GBP0m) which is explained
further below and an inflow from a reduction in receivables of
GBP1.0m (H1 2017: outflow GBP0.2m). LiDCO continued to invest in
product development in line with its aim of maintaining its
technology leadership and total expenditure capitalised in the
period remained in line with the previous period at GBP0.3m (H1
2017: GBP0.3m). Total expenditure on investing, which included the
purchase of monitors placed on long term loan to hospitals, was
GBP0.6m (H1 2017: GBP0.5m). Net cash outflow for the first half was
GBP1.2m (H1 2017: outflow GBP0.9m).
During the period, inventory increased from GBP1.4m at 31
January 2018 to GBP2.1m (H1 2017: GBP1.5m) which was due to a
number of factors. There has been a change of supplier in one of
the LiDCOplus consumables which resulted in a significant purchase
of product to cover the transition period, a requirement from a
different supplier to make larger batches of another LiDCOplus
consumable due to the move to a new facility and anticipated
deliveries for capital sales being delayed into the second half of
the year.
Sales Performance
In the UK, where the Company enjoys a market leading position,
the Company had stable recurring revenues at GBP1.6m (H1 2017:
GBP1.6m). Total revenues were down 9% to GBP2.4m (H1 2017: GBP2.6m)
due to weaker than prior year capital sales. Last year GBP0.3m of
new monitor platform sales were generated in July 2017, the first
month of its commercial release. Capital sales are traditionally
uneven and the Company expects a stronger second half of capital
sales in the UK.
In the first half, the Company won a significant new account, a
1,000 bed NHS hospital with over 100 critical care beds. This
customer has taken 14 systems on placement and this should have a
modest impact on full year revenues with the potential that this
may convert to the HUP model within a year.
Total sales in the UK were also impacted by the expected decline
in third party sales as the end of the contract with Merit Medical
approached. In the first six months, revenues of these lower margin
third party products declined to GBP0.6m (H1 2017: GBP0.7m). In the
second half, the UK commercial team will focus on launching the
recently signed new distribution product ranges which carry higher
margins than the Merit Medical consumables. It is expected that
with time these will replace the contribution made by the Merit
distribution.
In the US, LiDCO continues to transition to the 'Software as a
Service' operating model, and at time of writing had grown its
installed base of HUP monitors to 92 units generating annualised
recurring revenues of $1.1m. To date LiDCO has converted 21% of
customers in the pipeline that have evaluated the technology,
whilst a remaining 70% are still active. For a fixed fee, payable
in advance, LiDCO places its latest monitors free of charge with
the customer and using its unique no disposable model grants the
customer unlimited usage. As a result of this shift away from its
legacy approach of selling monitors and per patient disposables,
capital sales declined 95% to GBP0.02m (2017: GBP0.4m) whilst
recurring revenues were up 61% to GBP0.6m (H1 2017: GBP0.4m), with
the growth being driven by customer wins involving the SaaS HUP
business model.
In Continental Europe, sales were up 20% to GBP0.2m (H1 2017:
GBP0.2m). In the first half, the Company, working through its
third-party partners, had a noteworthy tender win in Finland and
had further success in Denmark with the HUP model.
In the Rest of World, sales grew by 36% to GBP0.4m (H1 2017:
GBP0.3m). Sales to Japan continue to grow as the Company benefits
from having a focused distribution partner in Merit Medical Japan
in this large established hemodynamic market. Elsewhere, LiDCO
continues to expand its reach with new distributor sales to South
Korea and Vietnam.
Further details of the Company's performance, in terms of
revenues by key geographies, are given in the table below:
6 months to July 2018 6 months to July 2017
Capital Recurring Other Total Capital Recurring Other Total
Revenues Revenues Revenues Revenues
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
LiDCO Revenues
UK 163 1,564 31 1,758 380 1,553 30 1,963
US 22 579 4 605 432 356 17 805
Europe 93 136 7 236 67 125 4 196
Rest of
World 179 236 2 417 82 221 2 305
---------------- ---------- ---------- -------- -------- ---------- ---------- -------- --------
457 2,515 44 3,016 961 2,255 53 3,269
---------------- ---------- ---------- -------- -------- ---------- ---------- -------- --------
3rd Party
Revenues
UK - 627 - 627 - 673 - 673
---------------- ---------- ---------- -------- -------- ---------- ---------- -------- --------
Total Sales 457 3,142 44 3,643 961 2,928 53 3,942
---------------- ---------- ---------- -------- -------- ---------- ---------- -------- --------
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
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 December 2016 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. This has been
reinforced by the launch of the new monitor platform and High Usage
Programme. The Board believes that introducing this differentiated
pricing model in target markets for customers with high annual
usage allows the Company to gain greater market share and provide
greater forward visibility of revenues.
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.
Brexit
The Board continue to follow progress in Brexit negotiations,
and has plans in place in case the UK exits the European Union (EU)
in March 2019 without completing an appropriate withdrawal
agreement. These are being implemented as necessary to limit the
risk of Brexit having an adverse impact on the Company.
Default arrangements under World Trade Organisation rules
generally levy no tariffs on medical products, however the Company
is making arrangements to move some inventory into Europe to
mitigate any potential supply disruption.
In the event that it becomes necessary, LiDCO has been assured
by its UK notified body that arrangements are in place to rapidly
re-register all current CE marks to a domicile within the EU for
regulatory purposes, and the Company has plans to relocate its
Lithium Chloride registration from the UK Medicines and Healthcare
products Regulatory Agency (MHRA) to another EU regulatory
agency.
The Company believes that Brexit will have no material impact of
staffing and talent retention.
The Board remains hopeful that this situation will be avoided
and that, as a minimum, trade with EU entities will be unaffected
for the duration of a transitional period.
Corporate governance
During the first half year the Board decided to adopt the Quoted
Companies Alliance's (QCA) Corporate Governance Code for small and
mid-size quoted companies and the appropriate disclosures were
published on the Company's website on 6 September 2018.
Outlook
LiDCO continues to make good progress with its High Usage
Programme in the US and, having established a foundation of
prestigious accounts, the Company is well positioned to take
further market share in the world's largest hemodynamic monitoring
market. There is a substantial pipeline of advanced opportunities
for new HUP accounts, though the sales cycle has continued to be
longer than originally anticipated, and it remains difficult to
predict when they will be signed and the upfront payments received.
Nevertheless, the Board expects to see further benefits as this
pipeline matures in the US. In addition, the Board anticipates a
higher level of capital sales in the UK and contributions from
signing new third party distribution agreements.
As a result, it is expected that the second half will continue
to build on the established recurring revenue base. Overall the
Board expects significant LiDCO sales growth when compared with the
second half of last year and the second half to be cash flow
positive given the annual renewal of our HUP contracts. With
overheads remaining flat on the prior year, the Board expects to
benefit from the operational gearing in the business.
Matt Sassone
Chief Executive Officer
9 October 2018
CONDENSED CONSOLIDATED COMPREHENSIVE INCOME STATEMENT
For the six months ended 31 July 2018
Six months Six months Year
ended ended ended
31 July 31 July 31 January
2018 2017 2018
Unaudited Unaudited Audited
Note GBP'000 GBP'000 GBP'000
-------------------------- ----- ----------- ----------- -----------------------
Revenue 4 3,643 3,942 8,267
Cost of sales (1,251) (1,240) (2,999)
-------------------------- ----- ----------- ----------- -----------------------
Gross profit 2,392 2,702 5,268
Sales and marketing (2,038) (1,915) (4,039)
Operations (542) (614) (1,188)
Administration (626) (767) (1,601)
Product development (396) (377) (552)
-------------------------- ----- ----------- ----------- -----------------------
Total costs (3,602) (3,673) (7,380)
-------------------------- ----- ----------- ----------- -----------------------
Loss from operations
before share based
payment charge
(1,210) (971) (2,112)
Share based payment
charge (65) (44) (109)
-------------------------- ----- ----------- ----------- -----------------------
Loss from operations (1,275) (1,015) (2,221)
-------------------------- ----- ----------- ----------- -----------------------
Finance income 1 3 3
Finance expense - - -
-------------------------- ----- ----------- ----------- -----------------------
Loss before tax (1,274) (1,012) (2,218)
Income tax 9 (5) 125
-------------------------- ----- ----------- ----------- -----------------------
Loss for the year
and total comprehensive
expense attributable
to equity holders
of the parent (1,265) (1,017) (2,093)
-------------------------- ----- ----------- ----------- -----------------------
Loss per share (basic
and diluted) (0.52p) (0.42p) (0.86)
-------------------------- ----- ----------- ----------- -----------------------
CONDENSED CONSOLIDATED Balance Sheet
At 31 July 2018
31 July 31 July 31 January
2018 2017 2018
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
Non-current assets
Property, plant and equipment 1,018 876 912
Intangible assets 2,011 1,986 1,950
------------- ----------- -----------
3,029 2,862 2,862
------------- ----------- -----------
Current assets
Inventory 2,118 1,533 1,354
Trade and other receivables 2,218 2,855 3,373
Cash and cash equivalents 2,056 3,983 3,227
------------- ----------- -----------
6,392 8,371 7,954
------------- ----------- -----------
Current liabilities
Trade and other payables (1,918) (1,778) (1,816)
Deferred income (371) (112) (668)
(2,289) (1,890) (2,484)
------------- ----------- -----------
Net current assets 4,103 6,481 5,470
------------- ----------- -----------
Total assets less current liabilities 7,132 9,343 8,332
------------- ----------- -----------
Equity attributable to equity holders
of the parent
Share capital 1,221 1,221 1,221
Share premium 30,342 30,342 30,342
Merger reserve 8,513 8,513 8,513
Retained earnings (32,944) (30,733) (31,744)
------------- ----------- -----------
Total equity 7,132 9,343 8,332
------------- ----------- -----------
CONDENSED consolidated COMPREHENSIVE Cash flow Statement
For the six months ended 31 July 2018
Six months Six months Year
ended ended ended
31 July 31 July 31 January
2018 2017 2018
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
Loss before tax (1,274) (1,012) (2,218)
Finance income (1) (3) (3)
Depreciation and amortisation
charges 391 406 862
Share based payments 65 44 109
(Increase)/decrease in inventories (764) (66) 113
Decrease/(increase) in receivables 1,038 (171) (562)
Increase in payables 102 269 312
(Decrease)/increase in deferred
income (297) 20 576
Net tax received 126 93 91
----------- ----------- ------------
Net cash outflow from operating
activities (614) (420) (720)
Cash flows from investing activities
Purchase of property, plant
& equipment (238) (235) (480)
Purchase of intangible assets (320) (266) (477)
Proceeds on the sale of equipment - - -
Finance income 1 3 3
----------- ----------- ------------
Net cash used in investing activities (557) (498) (954)
Net cash outflow before financing (1,171) (918) (1,674)
Cash flows from financing activities
Finance expense - - -
Issue of ordinary share capital - - -
(net of costs)
----------- ----------- ------------
Net cash inflow from financing - - -
activities
Net decrease in cash and cash
equivalents (1,171) (918) (1,674)
Opening cash and cash equivalents 3,227 4,901 4,901
----------- ----------- ------------
Closing cash and cash equivalents 2,056 3,983 3,227
=========== =========== ============
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS'
EQUITY
For the six months ended 31 July 2018
Share Share Merger Retained Total
capital premium reserve earnings equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
----------------------- --------- --------- --------- -------------- -------------
At 1 February 2017 1,221 30,342 8,513 (29,760) 10,316
Share based payment
expense - - - 109 109
Transactions with
owners - - - 109 109
----------------------- --------- --------- --------- -------------- -------------
Loss for the year - - - (2,093) (2,093)
----------------------- --------- --------- --------- -------------- -------------
At 31 January 2018 1,221 30,342 8,513 (31,744) 8,332
Share based payment
expense - - - 65 65
----------------------- --------- --------- --------- -------------- -------------
Transactions with
owners - - - 65 65
----------------------- --------- --------- --------- -------------- -------------
Loss for the half
year - - - (1,265) (1,265)
----------------------- --------- --------- --------- -------------- -------------
At 31 July 2018 1,221 30,342 8,513 (32,944) 7,132
----------------------- --------- --------- --------- -------------- -------------
NOTES TO THE INTERIM STATEMENT
1. BASIS OF PREPRATION
The Group's interim report for the six months ended 31 July 2018
was authorised for issue by the directors on 9 October 2018. 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 2018, 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 2018 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 2018 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 2019, which are those set out in note 1 to the Group's
audited financial statements for the year ended 31 January 2018
together with the new accounting policies that have been applied
from 1 February 2018 included in note 3.
Having reviewed the Group's operations and forecasts, 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 2018. The accounting policies
are those used in the last annual accounts and include the new
accounting policies that have been applied from 1 February 2018
3. CHANGES IN ACCOUNTING POLICIES
The new policies that have been applied from 1 February 2018 are
IFRS 9 Financial Instruments and IFRS 15 Revenue from Contracts
With Customers. The impact on adoption on the Group's financial
statements is explained below.
IFRS 9 Financial Instruments substantially changes the
classification and measurement of financial instruments. The new
standard requires impairments to be based on a forward-looking
model, changes the approach to hedging financial exposures and
related documentation, changes the recognition of certain fair
value changes and amends disclosure requirements.
The impairment of financial assets, including trade and lease
receivables will be assessed using an expected credit loss model
rather the current incurred loss model. There is no significant
impact to the Group's provision for doubtful debts or impairments
from this change. The Group does not have any hedge accounting.
IFRS 15 Revenue from contracts with customers amends revenue
recognition requirements and establishes principles for reporting
information about the nature, amount, timing and uncertainty of
revenue and cash flows arising from contracts with customers. The
standard replaces IAS 18 Revenue and related interpretations.
The Group's capital sales and sale of goods are derived from
products where control transfers to customers and performance
obligation are satisfied at the time of shipment to or receipt of
the products by the customer. IFRS 15 does not significantly change
the timing or amount of revenue recognised under these
arrangements.
The Group's software license agreements are assessed on a case
by case basis, taking into account the terms of the contract, the
fair value and the estimated residual life of the product to
ascertain if the contract contains a lease. IFRS 15 does not
significantly change the timing or amount of revenue recognised
under these arrangements.
The Group's license fee agreements consist of royalty income
from the out-licensing of intellectual property which is recognised
as earned when it is probable that the economic benefit associated
with the transaction will flow to the Group and the amount of
revenue can be reliably measured. IFRS 15 does not significantly
change the timing or amount of revenue recognised under these
arrangements.
4. 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
2018 2017 2018
Group revenue GBP'000 GBP'000 GBP'000
UK - LiDCO products 1,758 1,963 4,142
UK - third party products 627 673 1,402
US 605 805 1,357
Continental Europe 236 196 504
Rest of World 417 305 862
-------------------------------------- ----------- ----------- ------------
3,643 3,942 8,267
-------------------------------------- ----------- ----------- ------------
Result
UK - LiDCO products 643 895 1,769
UK - third party products 125 134 230
US (736) (355) (1,169)
Europe (7) 21 88
Rest of World 130 112 276
-------------------------------------- ----------- ----------- ------------
Total 155 807 1,194
Unallocated costs (1,430) (1,822) (3,415)
Loss from operations (1,275) (1,015) (2,221)
-------------------------------------- ----------- ----------- ------------
Revenue by type
Capital revenues 457 961 1,873
Recurring revenues 2,515 2,255 4,893
Distributed third party disposables 627 673 1,402
-------------------------------------- ----------- ----------- ------------
Total product revenue 3,599 3,889 8,168
-------------------------------------- ----------- ----------- ------------
Other income 44 53 99
-------------------------------------- ----------- ----------- ------------
Total revenues 3,643 3,942 8,267
-------------------------------------- ----------- ----------- ------------
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.
5. LOSS PER SHARE
The calculation of the loss per share for the six months to 31
July 2018 is based on the loss for the period of GBP1,265,000 and
the weighted average number of shares in issue during the period of
244,174,908.
6. 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 on the
Company's website, www.lidco.com.
The Company presentation will be available from today on the
LiDCO website www.lidco.com.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
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IR UWABRWKARRAA
(END) Dow Jones Newswires
October 09, 2018 02:01 ET (06:01 GMT)
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