TIDMLID
RNS Number : 8874W
LiDCO Group Plc
24 August 2020
LiDCO Group Plc
("LiDCO" or the "Company")
Trading update
Record first half performance with LiDCO product revenue up by
83%
LiDCO (AIM: LID), the hemodynamic monitoring company , provides
the following pre-close trading update for the six months ended 31
July 2020 ("H1"), ahead of its interim results which are expected
to be announced on 13 October 2020.
LiDCO continues to support healthcare providers to improve
patient outcomes while reducing the cost of care, and in H1
successfully responded to exceptional demand related to the
COVID-19 pandemic to achieve a record first half performance.
International experts treating COVID-19 patients have concluded
that hemodynamic optimisation plays a major role in the management
of the complex interaction of respiratory and cardiovascular
factors. LiDCO provides a market leading solution, via either the
arterial line or non-invasively, to support the diagnostic and
therapy-guiding functional hemodynamic tests as recommended by
COVID-19 frontline experts and global guidelines.
In H1, total revenues (including third party products) increased
by 75% to GBP6.2m (2019: GBP3.5m) with LiDCO product revenues up
83% to GBP6.1m (2019: GBP3.3m). This exceptionally strong sales
growth was due to increased demand for advanced hemodynamic
monitors as healthcare providers expanded critical care services to
deal with the COVID-19 pandemic, primarily in the UK where LiDCO is
market leader.
As a result of the strong top line growth, LiDCO achieved net
positive cash inflow of GBP1.8m in H1 (2019: GBP0.5m net outflow).
The Company had GBP3.1m of cash as at 31 July 2020 and has no
borrowings. Given the strong cash inflow in H1, the Board decided
not to continue to take advantage of the UK Government's option to
defer VAT payments and brought these payments up to date by 31 July
2020.
As widely reported, there has been a significant postponement in
the number of elective surgery procedures during the pandemic. Over
the last three years, the Company's key commercial strategy has
been to sign up customers for its Software as a Service (SaaS) HUP
business model, in which customers pay an annual license fee that
is independent of the number of patients treated. HUP customers
continue to benefit from this model by not having to pay any extra
costs to redeploy LiDCO haemodynamic monitors from use in elective
surgeries to providing critical care to COVID-19 patients. In
parallel, the Company continues to benefit from the predictable,
contracted HUP revenue stream, as well as additional demand from
customers taking out new HUP contracts. In the period, HUP revenues
increased by 83% to GBP1.5m (2019: GBP0.8m). Where customers
remained on the pay per patient model, the postponement of elective
surgeries led to a reduction in consumable sales by around one
fifth compared to H1 2019, but the additional HUP revenues more
than offset this reduction. Total LiDCO product recurring revenue
in H1 was up 12% to GBP2.8m (2019: GBP2.5m).
Geographically, LiDCO product sales grew by 157% in H1 in the UK
to GBP4.1m (2019: GBP1.6m). UK hospitals invested in growing their
critical care provision by acquiring new monitors to meet
anticipated needs. Distribution markets also grew, by 41% to
GBP1.2m (2019: GBP0.8m), with the greatest demand coming from Asia.
In the USA, hospitals were focussed on preparing for or dealing
with COVID-19, which suppressed capital sales and the finalisation
of a number of potential new HUP contracts, although recurring
revenues grew slightly compared with the first half of last year.
This increase was driven by the carry-through from strong growth in
HUP contracts during the prior year, which offset declines in per
patient disposables due to the reduced number of elective surgeries
in H1.
Around the globe, the Group is actively supporting healthcare
providers managing many different stages of the COVID-19 pandemic,
including those preparing for a second wave. In the USA, the
world's largest healthcare market, elective surgeries started to
recommence during Q2 and LiDCO's commercial personnel were able to
resume visits to some customers. Further local lockdowns have,
however, limited efforts to close the pipeline of new HUP
opportunities, which are now targeted to close in H2.
During H1, the Company sold 230 monitors compared with 111 units
in H1 2019. A number of these monitors were sold with HUP licences,
and, as of the 31 July 2020, the global installed base of HUP
monitors with annual licences was 327 units (31 July 2019: 216
units).
Commenting, Matt Sassone, Chief Executive Officer of LiDCO,
said: "I am incredibly proud of how the entire team has been able
to respond quickly to the needs of our customers during these
challenging times and ensure that LiDCO plays its part in
supporting hospitals in treating COVID-19. The strong start in H1
combined with the forward visibility of HUP revenues and enlarged
installed base, gives the Board significant confidence as we look
forward."
To find out more information about the use of hemodynamic
monitoring in managing COVID-19 sources please use the following
links:
- Key Opinion Leader webinar
https://esicm-tv.org/webinar7_live_27-haemodynamic-management-in-covid-19-patients.html?fbclid=IwAR0NbnD5vH5zM_wsKvtP4j31KQwtKKfIOuEHLjXZtx_t7WMCV9zmIE0y9O4
- Key Opinion Leader webinar
https://esicm-tv.org/webinar11_live_32-haemodynamic-management-of-covid-19-septic-shock.html
- NICE guidelines
https://www.bmj.com/content/369/bmj.m1963
- Surviving Sepsis Campaign: guidelines on the management of
critically ill adults with Coronavirus Disease 2019 (COVID-19)
https://link.springer.com/article/10.1007/s00134-020-06022-5
For further information, please contact:
LiDCO Group Plc www.lidco.com
Matt Sassone (CEO) Tel: +44 (0)20 7749 1500
Tim Hall (CFO)
N+1 Singer Tel: +44 (0)20 7496 3172
Aubrey Powell / George Tzimas (Corporate
Finance)
Tom Salvesen (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
advanced 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.
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