LiDCO (AIM: LID), the hemodynamic monitoring company, announces its audited Final Results for the year ended 31 January 2020 (“FY20”). The Group has achieved strong year-on-year growth in sales of LiDCO products with the development of a strong recurring revenue base through its Software as a Service (“SaaS”) High Usage Programme (“HUP”) business model.
Financial highlights
· LiDCO product revenue (excluding third-party products) up 19% to £7.36m (FY19: £6.19m)
· Total revenue increased by 3% to £7.55m (FY19: £7.32m)
· HUP revenues of £1.9m up 101% (FY19: £0.9m)
· Gross margin increased to 65.2% (FY19 restated1: 58.7%) due to larger proportion of high-margin LiDCO product revenues
· Adjusted EBITDA2 improved by £1.20m to positive £0.04m (FY19: loss £1.16m). H2 positive adjusted EBITDA2 of £0.23m (H2 FY19: EBITDA loss of £0.34)
· Adjusted loss before tax2 of £1.12m (FY19: loss £1.99m)
· Loss and total comprehensive expense for the year of £1.03m (FY19: £1.94m)
· Loss per share of 0.42p (FY19: 0.80p)
· Net cash outflow before financing of £0.15m (FY19: £1.51m). Net cash inflow in H2 of £0.17m (H2 FY19: outflow of £0.34m)
· Debt free with cash at year-end of £1.36m (FY19: £1.72m)
1 restated for re-classification of certain labour and overhead costs (see note 1 to the financial statements)
2 adjusted for share-based payments
Operational highlights
· As at 31 January 2020, global contracted base of 286 HUP monitors (FY19: 164), generating total annualised contracted license revenues of £2.2m (FY19: £1.4m) an increase of 57%
· In FY20 annualised license revenues represented 30% of the Group’s total revenues (FY19: 23%). An estimated further 9% (FY19: 9%) of revenues were also underpinned by contractual agreements
· Exports increased 44% to £3.8m (FY19: £2.6m)
· In FY20, sales outside the UK represented just over half (FY19: 43%) of LiDCO product sales
· Regulatory approval and successful launch of latest monitor in China
· New exclusive distributors signed in Poland, Saudi Arabia, Chile, Argentina, Mexico & Venezuela
· US Distribution agreement with Xavant
· Strengthened Board with the appointment of Tim Hall as CFO in March 2019 and of James Wetrich as Non-executive Director in August 2019
Post year end
· Significant increased demand as a result of COVID-19 with 195 monitors sold to date, predominantly to the UK market, compared with 219 monitors sold in the whole of FY20
· Board expects that sales in the three months ending 30 April 2020 will significantly exceed total sales of £3.5m achieved in H1 FY20
· Registration for latest monitor received in Colombia
· Leases signed for new administration office and manufacturing facility, as well as contract to outsource cleanroom activities.
Matt Sassone, Chief Executive Officer, commented: “The recently closed financial year was one of strong growth, during which we continued to build our installed base of monitors and associated recurring revenues.
“I am incredibly proud of how the team has responded to the COVID-19 outbreak. Their determination to help those affected and support the frontline healthcare workers has been outstanding.
“The biggest threat from COVID-19 is the danger of severe respiratory illness resulting in admission to intensive care. We have seen around the world that in those acute cases where patients do not respond quickly to ventilatory treatment in intensive care, many develop sepsis which can lead to multiple organ failure and ultimately death.
“Although no clinical studies have been conducted involving patients with COVID-19, clinical studies have demonstrated that the use of LiDCO’s technology in the treatment of sepsis significantly improves outcomes and reduces mortality1.
“Given the response to the COVID-19 pandemic, we have seen a significant uplift in sales to the UK, Europe and China as intensivists aim to give the best possible care to affected patients. This comes after a strong year of growth in FY20, when we continued to build our base of recurring revenues.”
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