Interim Results for the six months ended 31 July 2009

29 October 2009

LiDCO (AIM:LID), the cardiovascular monitoring company, today announces its interim results for the six months ended 31 July 2009.

Financial Highlights

• Revenue up 23% at £2.49 million (2008: £2.02 million); underlying income (excluding Med One revenue) up 38%
• Recurring revenue increased 41% to £1.63 million (2008:£1.16 million)
• Gross profit up 12% to £1.51 million; gross margin 61% (2008: 68%)
• Operating loss (based on 2008 foreign currency rates) down 11% to £964,000; actual operating loss £1.19 million (2008: £1.09 million)
• £3.02 million (net) of equity raised in the period
• Cash balance of £2.54 million. Borrowings reduced to £400,000
• Loss per share 0.74p (2008: 0.71p)
• USA sales up by 233% at £1.16 million (2008: £348,000), with a rise of 157% in recurring disposables income
• Product margins remain healthy: 50% on monitors and 89% on disposables

Operational Highlights

• Substantial progress with distributor arrangements in world's three biggest markets:
• US: Aspect Medical appointed for whole of the USA in July; reduces direct sales costs by £0.65 million per annum,
• Japan: Grant of Japanese sales and marketing license for the LiDCOrapid to Becton, Dickinson and Company in April
• Germany - Absolute Medical appointed as a distribution partner in March<
• Combined up-front license fees of US$1.5 million
• Sensors, Smartcard and fees-per-use volumes up 53% to 21,083 units (2008: 13,788 units)
• Monitors sold or placed in the period were up by 78% to 280 units (2008: 157 units)
• The installed monitor base is up by 19% in the period to 1,790 units
• Significant increase in level of recurring revenue - up in all territories - now represents 69% of product income
• Selected as sole technology for OPTIMISE - UK Government sponsored multi-centre surgical outcomes study
• Second generation LiDCOrapid v1.02 software launched

Post period highlight

• Covidien (NYSE: COV), a leading global healthcare products company, has entered into a definitive agreement to acquire Aspect Medical Systems, Inc.

Commenting on the results Terry O’Brien, Chief Executive, said:

“In the last six months LiDCO has entered into three significant partnerships giving us fuller access to the three largest markets in the world - United States, Japan and Germany. There is a growing demand worldwide for minimally invasive monitoring technology and the clinical community is showing an increasing recognition for the LiDCO brand. The Company is in a very strong position to take full advantage of this opportunity, we now have the right products and distribution partners to achieve significant growth. We continue to make progress on many fronts and LiDCO remains on track to deliver a maiden profit in the coming full year."

The Company presentation will be available from today on the LiDCO website (www.lidco.com).

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About LiDCO Group Plc

LiDCO is a supplier of minimally invasive hemodynamic monitoring equipment and disposables to hospitals. These products are used primarily for the management of hospital patients requiring critical care or at major cardiovascular risk. LiDCO's computer-based technology significantly reduces the complications (particularly infections) and costs associated with major surgery. The technology was invented in the Department of Applied Physiology based at St Thomas' Hospital, London. LiDCO is based in the UK and its shares are traded on AIM. For more information please see www.lidco.com.

The Company's manufacturing facility is in Hoxton, London, and its current products are:
* LiDCOplus is 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: our new cardiac output monitor designed specifically for use in the Operating Theatre for fluid and drug management at the point of care. The monitor features many clinical benefits. These enable acute-care physicians to get accurate and immediate feedback on the patient’s fluid and hemodynamic status - a key measure of overall well-being during and after surgery.  These benefits are:

* LiDCO single-patient-use disposables used in conjunction with the LiDCOplus and LiDCOrapid monitors.

* LiDCOview: an easy-to-use graphical display of historical LiDCOplus hemodynamic data. Both clinical researchers and routine users can view beat-to-beat hemodynamic data collected with the LiDCOplus.

LiDCO Distribution Network:

The Company sells direct to hospitals in the UK, and elsewhere through a worldwide network of speciality critical care and anesthesia distributors.