29th Apr 2014 12:40
LONDON (Alliance News) - LiDCO PLC Tuesday expressed confidence for 2014 after it swung to a pretax profit for 2013, as revenue was boosted by strong growth from its UK business.
LiDCO produces cardiac monitoring equipment and disposables.
LiDCO posted a pretax profit of GBP217,000, swung from a pretax loss of GBP259,000 in the previous year, as revenue rose to GBP8.6 million from GBP7.2 million.
Revenues from LiDCO's own products rose to GBP6.9 million from GBP5.5 million, boosted by a strong performance in the UK as it launched its LiDCOrapid version 2 product, and NHS hospitals looked to fulfil local commissioning requirements.
The company increase its customer base for installed monitors to 303 from 276 in the previous year, with 120 installed in the UK.
In the US revenues declined to GBP857,000 from GBP1.1 million. The company bought back its installed base of surgery monitors from its US distribution partner in late 2012, and said that since then it had needed to re-establish its US sales force. It added two clinical specialists to the team.
LiDCO expects US sales of surgical disposables to grow "significantly" in 2014, it said.
In Japan revenue declined to GBP269,000 from GBP332,000, as the company saw a reduced level of monitor sales. It expects to see further progress with the Japanese business as its partners work to establish LiDCO in the country.
Gross profit margin declined slightly to 81% from 82%, due to a higher mix of low margin sales to distributors intended to encourage the adoption of non-invasive technology, and refresh the company's customer base for its older LiDCOplus monitor products.
LiDCO said that it expects 2014 to be "another strong year of growth," saying it believes its monitors have the potential of becoming a standard in hospitals for the monitoring of high risk patients.
Shares in LiDCO were trading up 0.5% at 23.38 pence Tuesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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