LiDCO Group Plc LID Interim Results

  LiDCO Group Plc (LID) - Interim Results

RNS Number : 2623P
LiDCO Group Plc
23 October 2012




Press Release 23 October 2012


                               LIDCO GROUP PLC

                          ("LiDCO" or the "Company")

            Interim Results for the six months ended 31 July 2012

LiDCO (AIM:LID),  the  hemodynamic  monitoring Company,  today  announces  its 
Interim Results for the six months ended 31 July 2012.

Financial Highlights

● Total revenue increased by 4% to £3.35m (2011: £3.21m)
● Product sales  (excluding  non-recurring license  fees)  were up  £0.5m,  an 
  increase of 20%
● Total revenue in the UK increased by 49% to £2.38m (2011: £1.60m) with LiDCO
  product revenue up 16%
● Gross profit margins excluding third party products up from 75% to 80%
● Operating loss £0.29m (2011: £0.24m)
● Gross cash balance of £1.00m
● Loss per share 0.18p (2011: 0.14p)

                            Operational Highlights

● 151  monitors  installed   in  the  period   (2011:  149)  with   LiDCOrapid 
  representing 75% of installed monitor base  which is 2,296 units on a  seven 
  year adjusted basis
● UK disposables unit sales up 15% overall with surgical disposables sales  up 
● LiDCOrapid and associated disposable kits received approval in Japan in  May 
  and reimbursement approval in July
● NHS  Technology  Adoption  Centre  issued  Intraoperative  Fluid  Management 
  Technologies ["IOFMT"] Adoption  Pack, which  aims to  guide the  successful 
  implementation of IOFMT across the NHS in England
● The project for monitor integration and parameter convergence is progressing
  well and LiDCOrapid v2 with  Unity Software is on  target for launch in  the 
  last quarter of 2012

Post Period End

● Nihon Kohden  appointed exclusive  distributor  for LiDCOrapid  monitor  and 
  associated disposable kits in Japan on 3 August 2012
● USA distribution arrangements amended

Commenting on the results Terry O'Brien, Chief Executive, said:"The Board is
pleased with  the  significant progress  that  has been  achieved  during  the 
period; the  Company  has  successfully  entered  the  Japanese  market,  made 
considerable improvements  to  its technology  and  continued to  drive  sales 
growth. We are confident that the NHS push for the adoption of advanced fluid
management in surgery is  likely to continue to  drive growth of our  domestic 
sales over the coming years.

"The Board believes that LiDCO's combination of innovative technology, growing
recognition of  the  clinical and  economic  benefits of  perioperative  fluid 
optimization, commercial partnerships  and the  potential to  build on  these, 
will drive the Company forward over the coming period."

The Company's  website has  today been  re-launched at and  the 
Interim Results presentation will be available from today on the site.

                                   - Ends -

For further information, please contact:

LiDCO Group Plc
Terry O'Brien (CEO)              Tel: +44 (0)20 7749 1500
Paul Clifford (Finance Director)
Theresa Wallis (Chairman)         

Geoff Nash / Henrik Persson Tel: +44 (0)20 7600 1658

Stephen Norcross (Broking)  

Media enquiries:

Adam Michael / Joanne Shears / Simone Elviss / Jamie Tel: +44 (0) 20 7398 7719



The first half of the year has  been a highly industrious and creative  period 
for the  Company with  sales  growth continuing,  our partnership  with  Nihon 
Kohden opening up a substantial new territory, and our considerable investment
in the new  LiDCOrapid v2  with Unity  software technology,  previewed at  two 
major international conferences this month. The LiDCOrapid v2 is now close  to 
registration  and  launch;  this  is   a  major  step  forward  in   parameter 
convergence, which LiDCO  has long-recognized as  central to meeting  clinical 
demands. All of  this has been  achieved while continuing  to keep  overheads 
firmly under control.

The Company is seeing the benefits of  our focus, over the last few years,  on 
sales into the high-risk surgery market.  During the period we have  achieved 
further growth in the  LiDCOrapid monitor installed  base with 146  LiDCOrapid 
monitors sold/placed in  the period. This  product now represents  75% of  our 
total  installed  base.  Recurring  disposable  income  from  sales  into  the 
installed base and third  party product distribution was  81% of our  income- 
this regular income flow helps to underpin and solidify our business.

In our  domestic market,  the size  of the  fluid and  hemodynamic  monitoring 
market continues  to  increase  strongly.  Our  intensive  care  and  surgical 
disposables unit  sales were  up  by 15%,  with surgical  disposables  growing 
strongly by 33%. We are  projecting that sales will  continue to grow as  the 
NHS intra-operative fluid management  adoption plan is  implemented and has  a 
positive impact on the number of patients treated. From April 2013,  hospitals 
will be financially incentivized to offer advanced fluid management to a  much 
larger number of patients. Fluid management will be prerequisite for hospitals
to be  able  to receive  quality  related  payments from  the  new  healthcare 
commissioners. Recently, we  have started  to see  an increase  in numbers  of 
sales enquiries as  more hospitals  start to get  ready to  satisfy these  new 
requirements. We  expect the  NHS  push for  the  adoption of  advanced  fluid 
management in surgery to continue to  drive growth of our domestic sales  over 
the next few years.

During the period Japan has been added as an accessible market. LiDCOrapid  is 
the second technology to  be reimbursed in  Japan for hemodynamic  monitoring. 
With our  two  well-established partners,  Argon  and Nihon  Kohden,  we  have 
excellent sales coverage into  the second biggest market  in the world.  Japan 
has all the  potential to become  a significant new  territory for LiDCO  over 

In terms of new  product development, the  Company is coming to  the end of  a 
major three-year project that  integrates additional parameters and  functions 
into the LiDCOrapid monitor.  This is the most  complex combined software  and 
hardware development project we have undertaken since the Company's flotation.
The goal was  to produce  a single  monitor that can  be used  in all  surgery 
patients to provide higher  level of monitoring that  is increasingly seen  by 
clinicians as essential. LiDCO  is committed to  this platform integration  to 
provide a multi-parameter  hemodynamic monitor that  will enable hospitals  to 
improve quality  of care  and save  costs  in a  patient population  that  can 
clearly benefit.  Commercially,  increased  function and  utility  will  drive 
increased use and recurring income flow from the monitor installed base.

The new LiDCOrapid v2 with Unity software allows the connection of two modules
that will co-display Covidien's level of consciousness measurement and add the
convenience of CNSystem's continuous  non-invasive blood pressure  technology. 
This  distinctive  product,  with  its  blend  of  hemodynamic  and  depth  of 
anesthesia monitoring,  will help  clinicians limit  and control  the fall  in 
blood pressure and flow seen during surgery that can result in oxygen debt and
complications. The  new  LiDCO  technology  will  be  usable  in  all  surgery 
patients, whether they have  an existing arterial  blood pressure catheter  or 
not. We  estimate that  this technology  could double  the number  of  surgery 
patients suitable for  fluid and hemodynamic  monitoring. The availability  of 
this additional functionality will increase high margin disposable use in both
the existing and future installed base of LiDCOrapid monitors. The addition of
non-invasive blood pressure monitoring could take the worldwide major  surgery 
market potential  to approximately  10.5 million  patients per  annum, with  a 
potential disposable revenue stream of US$1.72 billion per annum.

Revenue and trading

Revenues were up  by 4% to  £3.35 million (2011:  £3.21 million), including  a 
£577,000 increase in third  party product sales in  the UK. Excluding  license 
fees (2012:  nil; 2011:  £415,000,) revenue  was up  20%. Monitor  units  were 
similar (151 vs. 149) with growth  of LiDCOrapid sales (146 vs. 115).  Despite 
the overall similar number of monitor  unit sales, monitor revenues were  down 
16%, a  consequence of  a lower  sales contribution  from the  more  expensive 
intensive care - focused  LiDCOplus monitor. Disposable  revenues were up  6%, 
with LiDCOrapid  disposables  units up  to  12,380 units  (2011:  11,760)  and 
intensive care  disposables  down  850  units to  9,285.  The  launch  of  the 
LiDCOrapid  v2  with  Unity  software,   later  this  year,  is  expected   to 
significantly increase disposable use through both the existing UK  LiDCOrapid 
monitor base and new installed monitors.

Regionally, UK sales were up 49% with  increases seen in both LiDCO and  third 
party product sales. Monitor sales  and placements were predominantly for  the 
surgery product, the LiDCOrapid. Particularly  pleasing was the increase  seen 
in disposable units sales  with increases seen in  both surgery (33%) and  ICU 
disposable units (2%). Average disposable use rates are six to seven units per
monitor per month.

In Europe sales were slow as  economic headwinds prevail and distributors  are 
keeping lower inventory levels. We expect a stronger second half and growth in
the following year as the new LiDCOrapid v2 with Unity software has an  impact 
on disposable use rates in the installed base.

Although sales in the USA to our distributor were up 17%, disappointingly this
was below our expectations that were based on their forecast. Sales of our own
intensive care  product LiDCOplus  declined  as expected  as this  product  is 
currently without substantive sales representation  in the USA. There were  no 
license fees  in the  period, while  in  the prior  year we  received  upfront 
license fees of £290,000.

Our analysis of  the rate  of new customer  field trials  by our  distribution 
partner in the USA suggested that these  were below the level we would  expect 
from a fully engaged sales force  and insufficient to achieve the  contractual 
minimum order quantities. September 2012 marked the end of the third year with
our partner for exclusive distribution of the LiDCOrapid in the USA.

These circumstances prompted the Board  to review our arrangements.  Following 
the review we concluded that there should be some changes to our  relationship 
as we could not foresee a  significant improvement in their sales activity  to 
the necessary levels. Accordingly we  agreed new amended contract terms  which 
are now non-exclusive in nature with no prescribed minimums. This means  that 
LiDCO can now sell directly and appoint additional non exclusive  distribution 
partners. We  have also  agreed terms  that allow  us to  access the  existing 
LiDCOrapid customer base in the USA.  We believe that the USA opportunity  for 
both our existing and new  products will be more  likely to be fully  achieved 
with additional  sales  presence.  We have  already  appointed  an  additional 
technology partner, ICU  Medical for  both the  USA and  worldwide market.  We 
expect this arrangement with  ICU Medical to  bring royalty payments  starting 
later next year. In  addition we are  progressing commercial discussions  with 
other major corporate partners for sales into the USA.

Following reimbursement  approval  in  Japan  in  July  field  sales  activity 
commenced. We are encouraged by  the immediate commencement of customer  field 
trials by our  commercial partners.  Feedback has  been positive  and a  sales 
pipeline is developing. We are seeing an appropriate level of sales  activity, 
which we will continue to review and encourage. While early days the basis  of 
a solid relationship is forming that we  believe will lead to success in  this 

Business Review - Summary Table

                                    6 months 6 months to  Increase/  Increase/

                                  to 31 July     31 July (decrease) (decrease)

                                        2012        2011                     %
Sales by type (£'000)
- Monitors                               648         774      (126)      (16%)
- Sensors, Smartcards and other
recurring revenue                      1,829       1,732         97         6%
- - Third party products             871         294        577       196%
- License Fees and Other Income            0         415      (415)
Product  income  [includes  third 
party products]                        3,348       2,800        548        20%
Total Income (+ license fees)          3,348       3,215        133         4%
Sales by Units                                                            

Monitors sold/placed                     151         149          2         1%
Sensor, Smartcard and Fee per Use                                         
                                      21,845      22,267      (422)       (2%)
7  Year  Installed  Base  (period 
end)                                   2,296       2,059        237        12%

Regional sales performance summary


● Total revenue up 49% to £2,377,000 (2011: £1,595,000)
● Monitor revenue down 14% to £238,000 (2011: £277,000)
● Sensor, Smartcard  and  fee  for  use sales  of  £1,267,000  up  24%  (2011: 
● Third party product sales £871,000 (2011: £294,000)


● Distribution product revenues up 17% £424,000 (2011: £364,000)
● No license fees (2011: fee of £290,000)
● Monitor units up to 65 from 58
● LiDCOplus product revenues down to £104,000 (2011: £182,000)

Continental Europe

● Total revenue down by 40% to £265,000 (2011: £442,000)
● Monitor sales revenue of £43,000 down 72% (2011: £153,000)
● Sensor/Smartcard sales down 23% to £222,000 (2011: £289,000)

Rest of World & License Fee Income

● Product revenues down £39,000 to £178,000 (2011: £217,000)
● Monitor revenues up £40,000, disposables down £79,000 to £20,000
● Disposable units down from 1,915 to 385 (effect of stocking orders in  prior 
● No license fees (2011: £125,000)
● Japanese regulatory and reimbursement approval- Nihon Kohden appointed


Turnover in the period increased by 4% to £3.35 million (2011: £3.21  million) 
including sales of third party products of £871,000 (2011: £294,000).

During the period a total  of 151 monitors (2011:  149 monitors) were sold  or 
placed comprising five  LiDCOplus monitors and  146 LiDCOrapid monitors  which 
included five placed monitors. Monitor sales  to our USA distributor were  up 
18% on the comparative period to 65 units. The seven year installed base  grew 
in the  period by  107 monitors  to 2,296  monitors comprising  570  LiDCOplus 
monitors and 1,726 LiDCOrapid monitors. Although disposable unit sales overall
were down slightly at 21,845 units  (2011: 22,267 units), our domestic  market 
showed an overall increase of 15% including33% in surgical disposables.

The overall  gross profit  fell by  £99,000 to  £2.16 million.  A  significant 
contributor to this fall was an absence of license fee revenues compared  with 
£415,000 in the comparative period. This was offset by negligible MedOne  cost 
of sales  compared with  £204,000 in  the comparative  period. With  almost  a 
threefold increase in low margin third party product sales, the overall  gross 
margin fell from  70% to 65%.  Excluding the  effects of license  fees in  the 
prior period, LiDCO product margins are largely stable at 80% (2011: 82%).

Total overheads fell by £55,000 to £2.45  million, the result of a write  back 
of £123,000 of share  based payment charges offset  by inflation level  salary 
increases across  most departments.  This  level of  overheads should  not  be 
significantly different in the  second half. The  operating loss increased  by 
£44,000 to £289,000. As  a result of  a three year loan  taken out in  January 
2012, the Company incurred net interest  costs of £23,000 resulting in a  loss 
after tax of £321,000 (2011: £241,000).

The net cash outflow  before financing activities in  the period was  £544,000 
(2011: £390,000) compared with a loss after tax of £321,000 (2011:  £242,000). 
As noted  in the  results for  the year  to 31  January 2012,  expenditure  on 
intangible assets  increased  significantly  as a  result  of  the  continuous 
non-invasive blood pressure  module and Unity  software development.  External 
expenditure on this development in the  period was £290,000 and similar  costs 
are expected in  the second half  up to completion  by the year  end. As  also 
noted in the results to 31 January 2012, larger than normal forward orders  of 
monitors had to be placed  in order to mitigate against  the effect of end  of 
life notices  issued by  the  manufacturers on  some monitor  components.  Our 
software is written specifically to  work with the existing hardware  platform 
allowing back integration into the installed base. It was therefore considered
necessary to ensure that  the Company has an  unchanged hardware platform  for 
the next few years.  Monitor inventories increased in  the period by  £422,000 
and will now  continue to increase  during the second  half of this  financial 
year by up to a  further £300,000, as a  result of reduced sales  particularly 
into the USA. These  above normal inventories will  only start to be  absorbed 
into normal trading in the following year and will continue to have a negative
effect on short term cash flow.

Cash balances at 31  July 2012 amounted to  £1.0 million (2011: £1.1m).  Cash 
balances net of the overdraft facility were £731,000 (2011: £1.0m).


The Company's  flexible  platform monitor  approach  allowing  multi-parameter 
convergence into the LiDCO monitor  installed base will drive further  monitor 
sales and  increased disposable  product  use in  our domestic  and  expanding 
distribution market.

As in prior years,  we expect a  higher level of revenues  in the second  half 
although there is some  uncertainty in respect of  the USA where the  existing 
distribution arrangements  are  changing  as  noted above  and  where  we  now 
anticipate  license  fee  income  from  new  distribution  arrangements.  With 
increasing levels  of adoption  of monitoring  of high-risk  surgery  patients 
worldwide, and  particularly within  the  NHS in  England, the  Board  remains 
confident of further progress  as we continue to  penetrate the growing  fluid 
and hemodynamic monitoring market.

Terry O'Brien

Chief Executive Officer

22 October 2012


For the six months ended 31 July 2012

                                              Six Months Six Months       Year

                                                   ended      ended      ended

                                                 31 July    31 July 31 January

                                                    2012       2011       2012

                                               Unaudited  Unaudited    Audited

                                         Note      £'000      £'000      £'000
Revenue                                     3      3,348      3,215      7,122
Cost of sales                                    (1,187)      (955)    (2,372)
Gross profit                                       2,161      2,260      4,750
Administrative expenses                          (2,450)    (2,505)    (4,799)
Loss from operations                               (289)      (245)       (49)
Finance income                                         1          3          4
Finance expense                                     (24)          -          -
Loss before tax                                    (312)      (242)       (45)
Income Tax                                           (9)          1         60
Loss for the year and total                        (321)      (241)         15
comprehensive income attributable to
equity holders of the parent
Loss per share (basic and diluted) (p)           (0.18p)    (0.14p)      0.01p


At 31 July 2012

                                                  31 July   31 July 31 January

                                                     2012      2011       2012

                                                Unaudited Unaudited    Audited

                                                    £'000     £'000      £'000
Non-current assets
Property, plant and equipment                       1,042       540      1,055
Intangible assets                                   1,066       727        775
                                                    2,108     1,267      1,830
Current assets
Inventory                                           1,771     1,259      1,349
Trade and other receivables                         1,981     1,997      2,367
Current tax                                             -         -         60
Cash and cash equivalents                           1,001     1,122      1,553
                                                    4,753     4,378      5,329
Current liabilities
Trade and other payables                          (1,391)   (1,066)    (1,210)
Deferred income                                     (273)     (130)      (266)
Borrowings                                          (447)     (111)      (388)
                                                  (2,111)   (1,307)    (1,864)
Net current assets                                  2,642     3,071      3,465
Total assets less current liabilities               4,750     4,338      5,295
Long term liabilities
Finance lease liabilities                           (266)         -      (346)
Deferred income                                     (254)         -      (317)
                                                    (520)         -      (663)
                                                    4,230     4,338      4,632
Equity attributable to equity holders of the
Share Capital                                         873       872        871
Share premium                                      25,414    25,393     25,403
Merger reserve                                      8,513     8,513      8,513
Retained earnings                                (30,570)  (30,440)   (30,155)
Total equity                                        4,230     4,338      4,632

CONDENSED consolidated COMPREHENSIVE Cash flow Statement

For the six months ended 31 July 2012

                                              Six Months Six Months       Year

                                                   ended      ended      ended

                                                 31 July    31 July 31 January

                                                    2012       2011       2012

                                               Unaudited  Unaudited    Audited

                                                   £'000      £'000      £'000
Loss before tax                                    (312)      (242)       (45)
Net finance costs/income                              24        (3)        (4)
Depreciation and amortisation charges                408        331        658
Share based payments                                (94)        (3)         26
(Increase)/decrease in inventories                 (422)      (212)      (302)
Decrease/(increase) in receivables                   446      (391)      (760)
Increase/(decrease) in payables                      180        290        443
Increase/(decrease) in deferred income              (55)         56         34
Net tax (paid)/received                              (8)        111        109
Net cash inflow/(outflow) from operating             167       (63)        159
Cash flows from investing activities
Purchase of property, plant & equipment            (165)      (134)      (292)
Purchase of intangible assets                      (522)      (196)      (453)
Interest received/(paid)                            (24)          3          4
Net cash used in investing activities              (711)      (327)      (741)
Net cash outflow before financing                  (544)      (390)      (582)
Cash flows from financing activities
Repayment of Finance lease                          (79)        (5)       (10)
Issue of ordinary share capital                       13          2         11
Cash inflow from sale and leaseback agreement          -          -        518
Net cash (outflow)/inflow from financing           (66)        (3)        519
Net decrease in cash and cash equivalents          (610)      (393)       (63)
Opening cash and cash equivalents                  1,341      1,404      1,404
Closing cash and cash equivalents                    731      1,011      1,341
Cash at bank                                       1,001      1,122      1,553
Overdraft                                          (270)      (111)      (212)
Closing cash and cash equivalents                    731      1,011      1,341


For the six months ended 31 July 2012

                              Share   Share  Merger Retained  Total

                            capital premium reserve earnings equity

                              £'000   £'000   £'000    £'000  £'000
At 1 February 2011              870  25,393   8,513 (30,196)  4,580 
Issue of share capital            1      10       -        -     11 
Share based payment expense       -       -       -       26     26 
Transactions with owners          1      10       -       26     37 
Profit for the year               -       -       -       15     15 
At 31 January 2012              871  25,403   8,513 (30,155)  4,632 
Issue of share capital            2      11       -        -     13 
Share based payment expense       -       -       -     (94)   (94) 
Transactions with owners          2      11       -     (94)   (81) 
Loss for the half year            -       -       -    (321)  (321) 
At 31 July 2012                 873  25,414   8,513 (30,570)  4,230 



The Group's  interim  report  for the  six  months  ended 31  July  2012  were 
authorised for issue  by the directors  on 22 October  2012. The  consolidated 
interim  financial  information,  which  is  unaudited,  does  not  constitute 
statutory accounts within  the meaning  of Section  435 of  the Companies  Act 
2006. Accordingly, this condensed report is to be read in conjunction with the
Annual Report for the year ended 31  January 2012, which has been prepared  in 
accordance with International Financial Reporting Standards (IFRS) as  adopted 
by the European Union, and any  public announcements made by the Group  during 
the interim reporting period.

The statutory accounts for the year  ended 31 January 2012 have been  reported 
on by the Group's auditors, received an unqualified audit report and have been
filed with  the  registrar of  companies  at Companies  House.  The  unaudited 
condensed interim financial statements for the  six months ended 31 July  2012 
have been drawn up using accounting  policies and presentation expected to  be 
adopted in  the Group's  full  financial statements  for  the year  ending  31 
January 2013, which are  not expected to be  significantly different to  those 
set out in note  1 to the  Group's audited financial  statements for the  year 
ended 31 January 2012.

The interim report has  not been audited  but it has  been reviewed under  the 
International Standard  on Review  Engagements (UK  and Ireland)  2410 of  the 
Auditing Practices Board.

After review  of  the Group's  operations,  the directors  have  a  reasonable 
expectation that the Group has  adequate resources to continue in  operational 
existence for the foreseeable future.  Accordingly, the directors continue  to 
adopt the going  concern basis  in preparing the  unaudited condensed  interim 
financial statements.


The interim  financial information  has  been prepared  on  the basis  of  the 
recognition and measurement  requirements of IFRS,  which were the  accounting 
policies used in the Report and Accounts  for the Group for the year ended  31 
January 2012. The  accounting policies are  unchanged from those  used in  the 
last annual accounts.


The Group  has one  key segment  -  the supply  of monitors,  disposables  and 
support services associated  with the  use of the  LiDCO's cardiac  monitoring 
equipment.  In  addition  the  Group  distributes  complementary  third  party 
products. Geographical  and product  type analysis  is used  by management  to 
monitor sales activity and is presented below:

Turnover and result by geographical region

                              Six Months Six Months       Year

                                   ended      ended      ended

                                 31 July    31 July 31 January

                                    2012       2011       2012

Group Revenue                      £'000      £'000      £'000
UK                                 2,377      1,595      3,701

USA                                  528        836      1,788
Europe                               265        442        853
Rest of World                        178        342        780
                                   3,348      3,215      7,122
UK                                   667        105        842
USA                                  248        364        947

Europe                               104        236        492
Rest of World                         50        187        485
Total                              1,069        892      2,766

Unallocated Costs                (1,358)    (1,137)    (2,815)
Loss from operations               (289)      (245)       (49)
Revenue by type
Monitor sales                        648        774      1,563
Consumables sales                  1,829      1,732      3,813

Third party product                  871        294      1,206
License fees and other income          -        415        540
                                   3,348      3,215      7,122

The payments to Med  One relating to consumables  and included within cost  of 
sales amounted to £3,000 (2011: £204,000) during the period.

The Group can identify  trade receivables and trade  payables relating to  the 
geographical segments. As  noted above, the  Group has one  segment and  other 
assets and  liabilities together  with  non sales  related overheads  are  not 
accounted for  on a  segment by  segment basis.  Accordingly, segment  assets, 
liabilities and segment cash flows are not provided.


The calculation of the loss  per share for the six  months to 31 July 2012  is 
based on the loss for the period  of £321,000 and the weighted average  number 
of shares in issue during the period of 174,274,375.


Copies of this statement will be available for collection free of charge  from 
the Company's  registered  office  at  16  Orsman  Road,  London  N1  5QJ.  An 
electronic version will be available on the Company's website,


                 Independent review report to LiDCO Group Plc


We have been engaged by the Company to review the financial information in the
half-yearly financial  report for  the six  months ended  31 July  2012  which 
comprises the condensed consolidated comprehensive income statement, condensed
consolidated balance  sheet,  condensed  consolidated  comprehensive  cashflow 
statement, condensed consolidated statement of changes in shareholders' equity
and notes. We  have read the  other information contained  in the half  yearly 
financial report which comprises only the Chief Executive Officer's Review and
considered  whether  it  contains  any  apparent  misstatements  or   material 
inconsistencies with  the  information  in  the  condensed  set  of  financial 

This report  is  made  solely  to the  Company  in  accordance  with  guidance 
contained in  ISRE  (UK  and  Ireland)  2410,  'Review  of  Interim  Financial 
Information performed by the  Independent Auditor of  the Entity'. Our  review 
work has been undertaken so that we  might state to the Company those  matters 
we are required to state to them in a review report and for no other  purpose. 
To  the  fullest  extent  permitted  by  law,  we  do  not  accept  or  assume 
responsibility to anyone other than the Company, for our review work, for this
report, or for the conclusion we have formed.

Directors' responsibilities

The half-yearly  financial  report is  the  responsibility of,  and  has  been 
approved by, the directors. The AIM rules of the London Stock Exchange require
that the  accounting  policies  and  presentation  applied  to  the  financial 
information in  the half-yearly  financial report  are consistent  with  those 
which will be adopted in the  annual accounts having regard to the  accounting 
standards applicable for such accounts.

As disclosed  in note  1, the  annual financial  statements of  the group  are 
prepared in  accordance with  IFRSs  as adopted  by  the European  Union.  The 
financial information in the half-yearly financial report has been prepared in
accordance with the basis of preparation in note 1.

Our responsibility

Our responsibility is to express to the Company a conclusion on the  financial 
information in the half-yearly financial report based on our review.

Scope of review

We conducted our review  in accordance with  International Standard on  Review 
Engagements (UK and  Ireland) 2410, 'Review  of Interim Financial  Information 
Performed by the  Independent Auditor of  the Entity' issued  by the  Auditing 
Practices Board for use in the  United Kingdom. A review of interim  financial 
information consists of making enquiries, primarily of persons responsible for
financial and accounting  matters, and  applying analytical  and other  review 
procedures. A review is substantially less in scope than an audit conducted in
accordance with  International  Standards on  Auditing  (UK and  Ireland)  and 
consequently does not enable us to obtain assurance that we would become aware
of all significant matters that might be identified in an audit.  Accordingly, 
we do not express an audit opinion.


Based on our  review, nothing  has come  to our  attention that  causes us  to 
believe that  the condensed  set of  financial statements  in the  half-yearly 
financial report for the six months ended 31 July 2012 is not prepared, in all
material respects, in  accordance with  the basis of  accounting described  in 
Note 1.

Grant Thornton UK LLP



22 October 2012

The  maintenance  and  integrity  of  the  LiDCO  Group  Plc  website  is  the 
responsibility  of  the  directors:  the  interim  review  does  not   involve 
consideration of  these  matters  and, accordingly,  the  Company's  reporting 
accountants accept no responsibility for any changes that may have occurred to
the interim report since it was initially presented on the website.

Legislation in the United Kingdom governing the preparation and  dissemination 
of the interim report differ from legislation in other jurisdictions.

                                   - Ends -

                     This information is provided by RNS
           The company news service from the London Stock Exchange


IR MTBFTMBJTBPT -0- Oct/23/2012 06:00 GMT
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