Corporate Highlights

• Sensor and fee for use unit sales increased by 91% to 19,623 over the previous year (10,260) - fourth year in a row of disposable sales growth over 90%


• Planned transition from capital sales well advanced with disposable revenue (recurring sales) now 66% of product sales - up from 20% in 2002 and 33% in 2003


• An independent clinical study shows £4,000 cost savings per patient, potentially worth £500m per annum to the UK's NHS


• The installed base of PulseCO/LiDCOplus monitors increased by 30% to 770 at the end of the period (2003:591)


• Contract signed with Philips Medical Systems and launch of the LiDCOplus v3.0 software - creates a communications link between LiDCO's monitoring system and Philips' patient monitors


• A placing of £3.7m (net) of new shares was completed in June 2004, providing capital to support the new US, European distributor programmes and additional R&D

Sales Expansion

• Distributors - five appointed in the US with appointments in Germany and Austria, further increasing global sales reach


• Further product approvals - lithium chloride drug registration achieved in: Austria, Italy, Sweden, Norway, Ireland, Bulgaria and Denmark (see separate press release issued today)
• Sales growth of 35% in our priority markets (excluding the Far East) at £2.3m (2003: £1.7m): USA up 24%, UK up 32%, Europe up 55%


• Worldwide uptake of LiDCO's technology with 46% of installed monitors in the US, 35% in Europe and 19% in ROW
• Continual growth of disposable sales expected in 2005 from additional monitor placements into the recently expanded distribution territories

Financial Highlights

• Total revenues of £2.5m /constant currency £2.6m (2003: £2.7m)


• Pre-tax operating loss steady at £4.2m (2003: £4.1m)


• Loss per share down at 4.34p from 5.34p


• Administration expenses were held at £6.0m (2003: £6.1m)


• Cash outflow before financing £3.8m (2003: £3.4m)

Dr Terry O’Brien, Chief Executive of LiDCO, stated:“We have a compelling product coupled with clear outcome data that shows that use of the product produces a significant reduction in post surgical complications and hospital costs. We are looking forward to an acceleration of sales during 2005 through our considerably expanded global distributor network.”

General Notes about LiDCO Plc

LiDCO is a UK-based AIM-traded developer, manufacturer and leading supplier of minimally invasive, computer-based hemodynamic monitoring equipment and disposables used primarily for the management of critical care and cardiovascular risk hospital patients. Use of LiDCO’s technology has been shown to significantly reduce 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 where the Company maintains a research base.

The Company’s manufacturing facility is in Hoxton, London and its current products are:

LiDCOplus and PulseCO monitors: computer-based platforms for displaying a range of real-time, continuous hemodynamic parameters including cardiac output, oxygen delivery and fluid volume;

LiDCO disposables: accurately determine cardiac output in a minimally-invasive manner.

Distribution Network: The Company has achieved registration of its products in 13 markets in Europe, the USA and Japan.  It sells direct to the NHS in the UK, and through a worldwide network of specialty critical care distributors.

Background to the recently published clinical trial: Better than standard care - (EGDT) improves outcome in high risk surgery patients:

The results of a major trial at St George’s Hospital, London using LiDCO’s minimally invasive monitoring technology were presented during the 25th International Symposium on Intensive Care and Emergency Medicine in Brussels (21st to 25th March). The results have revealed the following:

Savings in the cost of treating patients amounting to an average of £4,000 per patient.  Extrapolated nationally, this would equate to a saving of £500 million per annum for the NHS

The monetary saving (£248,000) - resulted from 640 hospital days saved for 62 patients, an average of more than 10 bed days per patient

The savings in cost and time were associated with a significant reduction in medical complications (particularly infections – which were halved) through the use of LiDCO’s minimally invasive technology to improve tissue oxygen levels following surgery.

For many patients standard surgical and post operative care is adequate. However, there is a group of patients at higher risk of surgical morbidity (tissue damage) and mortality (death). The risk is related to the patient’s preoperative fitness level and, in particular, how their cardiovascular (heart and circulation) and respiratory (oxygenation) reserves respond to the stress of surgery. Low reserves/levels of fitness translate into a higher risk of complications. A number of studies have shown that the use of early goal-directed therapy (EGDT) to achieve and maintain adequate tissue oxygenation in such patients can result in a reduction in complications, a better clinical outcome and commensurately lower hospital costs.

Why is EGDT not available to all high risk surgery patients?

Adoption of EGDT in general surgery patients has been inhibited by the invasive and complex nature of more traditional monitoring equipment which is catheter based (the catheter has to be inserted into the heart).  The risk of infection and tissue damage coupled to the resource/cost implications of using such complex catheter based technologies has slowed the application of such advanced cardiovascular care to a wide patient population.

Post surgical EGDT is an ideal application for the minimally invasive LiDCOplus monitor:

LiDCO’s technology is less invasive as it does not require the insertion of additional catheters into the heart.  It   can be used in conscious or unconscious patients, and is designed to be quick and easy to set up. The monitor can be used by both doctors and nurses to measure and display beat to beat trends in blood flow and oxygen delivery to the body. Using this technology the maintenance of a target oxygenation level and/or the ‘early’ and rapid pay back of any oxygen debt incurred during surgery can be both achieved and, importantly, documented.  The LiDCOplus monitor screen software has been specifically designed to be  highly visible at a distance for routine monitoring once the patient is stabilized, whilst also  providing more detailed feedback when the clinician or nurse is  administering the intravenous fluids and powerful drugs that are used to increase blood flow and oxygen delivery.

Summary of the advantages of the LiDCOplus technology in the treatment of high risk surgery patients:

No additional staff are needed to set and achieve oxygen delivery targets

The technology can be used by a nurse and does not require a specialist clinician

It can be set up quickly and easily

The monitor is specially designed to be make precise critical measurements easy to read and interpret, enabling swift corrective action to be taken when needed

The technology enables an audit trail of medical data to be recorded and passed to the hospital’s patient information system via the Philips Open VueLink Interface protocol or LiDCO’s non proprietary ether net connection

Significantly less invasive with commensurately lower infection rate reduced risk of tissue damage and less trauma for the patient than with older catheter based technologies