London-listedreported solid progress in a trading statement for the full year ended 31 January 2020, delivering in particular an “excellent” second half performance.
The provider of hemodynamic equipment attributed its strong recurring revenue base to its Software as a Service ("SaaS") High Usage Programme ("HUP") business model.
Product revenues were in line with management expectations for the period, increasing 19% to £7.4m compared to £6.2m in the previous year.
US product sales grew by 28% in the US to £1.8m and UK sales grew by 1%, whilst sales outside of the company's direct markets increased 60% to £2.0m from £1.3m.
As a result of product revenues outweighing the expected reduction in low margin third-party product sales, total revenues were up 3% to £7.6m, the statement detailed.
Shares in LiDCO Group were trading 11.58% higher at 5.3p during Thursday trading.
Broker finnCap said the company’s HUP offering was “gaining traction” with LiDCO having expanded its global contracted base by 57% with licence revenues now totalling £2.2m for the period.
"After a strong first half in FY20, the team succeeded in delivering an even better second half performance,” said Matt Sassone, Chief Executive Officer of LiDCO.
“Our differentiated SaaS business model continues to drive our growth with the number of HUP monitors installed globally increasing nearly 75% and this has contributed to our expansion in recurring revenues,” he added.
In a research note immediately following the release of the trading update, finnCap reiterated a value of 11p a share on LiDCO Group.
LiDCO intends to release audited results for the 2020 financial year on 21 April 2020.
Having made an underlying loss of £1.2mn in 2019, the group said it expects to report positive adjusted EBITDA for FY20 compared to finnCap’s forecasted £0.2m loss.
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