14th Feb 2017 09:11
LONDON (Alliance News) - Cardiovascular monitoring firm LiDCO Group PLC on Tuesday said sales rose in 2016 to facilitate an 8% rise in annual revenue, with product revenue rising at a higher rate of 14%.
LiDCO said product revenue for the year to the end of January is expected to amount to GBP6.8 million versus the GBP6 million generated in the previous year, with total revenue to rise to GBP8.2 million from GBP7.6 million.
A total of 186 monitor units were sold in the year compared to 103 last year following stronger demand, while sales of smartcards rose 17% to 46,580 units from 39,975 units.
In the UK, LiDCO said it delivered a "strong performance considering the restricted spending climate". UK product revenue for the year is expected to be up 6.0% to GBP3.8 million from GBP3.6 million, which it said represents the consolidation of its position as market leader.
In the US, revenue is expected to be 8.0% higher at GBP1.2 million. However, LiDCO said, with an increasingly competitive environment, overall disposables sales declined largely due to a previously announced significant customer loss.
"The company is seeing high levels of hemodynamic monitoring technology adoption in the US but the company has recognised the challenge of operating in a highly competitive environment with a small team. The funding announced in December 2016 has enabled LiDCO to start to resource the company adequately to generate further new customer sales and drive greater growth from this highly attractive market," said LiDCO.
Overall revenue outside of the US and UK are expected to have grown 38% year-on-year to GBP1.8 million from GBP1.3 million, a result of the company's ambitions to expand to new regions.
"Revenues in regions outside of its two direct markets were helped by strong sales in Japan, the Middle East and China with monitors up 82% to 120 units [versus] 66 units, and disposables up 31% to 20,645 units [versus] 15,700 units. Additional sales and marketing resources will also be made available in these distribution markets in the new financial year," said LiDCO.
LiDCO said it expects to report a "small profit" before tax for the year compared to the GBP343,000 loss before exceptional items in the previous year. Cash at the end of January stood at GBP4.9 million with zero debt.
LiDCO shares were up 0.4% to 6.40 pence per share on Tuesday.
By Joshua Warner; [email protected]; @JoshAlliance
Copyright 2017 Alliance News Limited. All Rights Reserved.
Related Shares:
LID.L