Annual report
2002
www.lidco.com
LiDCO Group Plc
Annual report and financial statements
for the year ended 31 December 2002
LiDCO Group Plc
UK Office:
16 Orsman Road
London N1 5QJ
Tel: +44 (0)20 7749 1500
Fax: +44 (0)20 7749 1501
USA Distribution Office:
Wren Medical Systems
905 Lakeside Drive
Gurnee, IL 60031
Tel: 847 625 0600
Fax: 847 625 0981
Sales and Marketing:
Flowers Building
Granta Park
Cambridge CB1 6GU
Tel: +44 (0)1223 893 081
Fax: +44 (0)1223 890 187
LiDCO Group Plc Annual report and ﬁnancial statements for the year ended 31 December 2002 LiDCO researches, develops, manufactures 
and markets innovative medical devices.
Our products primarily serve critical care and 
cardiovascular risk hospital patients who require
real-time cardiovascular monitoring.
1 Highlights
2 Group at a Glance
4 Chairman’s Review
5 Chief Executive’s Review
8 Board of Directors
9 Directors and Advisors
10 Corporate Governance Report
12 Remuneration Report
14 Directors’ Report
16 Independent Auditors’ Report to the
Members of LiDCO Group Plc
17 Consolidated Profit and Loss Account
18 Balance Sheets
19 Consolidated Cash Flow Statement
20 Reconciliation of Movement in 
Consolidated Shareholders’ Funds
21 Notes to the Accounts
Advisors 
Auditors Deloitte & Touche
Chartered Accountants
Stonecutter Court
1 Stonecutter Street
London EC4A 4TR
Stockbrokers Teather &
Greenwood
Beaufort House
15 St. Botolph Street
London EC3A 7QR
Stockbrokers Nomura
International plc
Nomura House
1 St Martins-le-Grand
London EC11 4NP
Bankers NatWest Bank PLC
PO Box 35
10 Southwark Street
London SE1 1TT
Registrars Capita IRG
34 Beckenham Road
Beckenham
Kent BR3 4TU
Solicitors Herbert Smith
Exchange House
Primrose Street 
London EC2A 2HS
Company Number
2659005
Registered Office 
16 Orsman Road
London N1 5QJ
Company Website
www.lidco.com Highlights
page 1 LiDCO Annual report and financial statements for the year ended 31 December 2002
Turnover increased by 81% to £2.04m (2001 – £1.13m);
Strong clinical acceptance of the technology demonstrated 
by sensor usage trebling compared with 2001;
Commercial validation of the business model evidenced by 
300 PulseCO and LiDCO Systems sold during 2002 (2001 – 128 units);
Lithium chloride injectate approved in principle for use in six
European countries in January 2003, enabling commercialisation
of the LiDCOplus system across Europe in 2003;
LiDCOplus system approved by US Food and Drug Administration
in January 2003; and
Discussions have commenced with potential US distribution
partners to maximise access to the US market.
Turnover
£millions
01 1.13
02 2.04
Monitor sales
Units
01 128
02 300
Sensor sales
Units
01 1420
02 5220 LiDCO’s strategy is to apply a multi-disciplinary
combination of physiological expertise, materials
technology, computing technology and software 
to monitor and display the relationship between
linked physiological variables.
The LiDCOplus monitor displays a range 
of real-time continuous hemodynamic
parameters, including cardiac output,
oxygen delivery and fluid volume status.
What is driving market growth:
• Increasing numbers of elderly people living longer
• Demand for less invasive products offering better care
• Patient knowledge due to the internet and media
The Group has developed a minimally
invasive product, disposables and
monitoring equipment which improve
the standard of care, reduce the
incidence of adverse events and 
reduce costs.
Our market
today...
Our products offer:
• Real-time, beat-to-beat cardiac
monitoring
• Minimally invasive technology,
reducing the risk to the patient
• Easy-to-use technology to assist
clinical staff
Group at a Glance
page 2 LiDCO Annual report and financial statements for the year ended 31 December 2002
The LiDCOplus monitor
The LiDCOplus combines the measurement and monitoring
features of LiDCO (lithium dilution cardiac output measurement)
and PulseCO (real-time cardiovascular monitoring), significantly
enhancing ease of use and saving space around the patient. Our customers are hospitals for critical care 
and cardiovascular patients who require real-time,
minimally invasive cardiac monitoring.
The chart screen on the LiDCOplus monitor
shows the relationship between pressure, flow
and resistance in an integral bar chart display.
Complex data can be easily interpreted and
the necessary patient-corrective actions 
taken quickly.
The LiDCOplus monitor provides a variety 
of different modes of displaying data.
The monitor shows all information clearly, to
provide easy-to-read feedback to clinical staff.
...and the future
Lithium chloride solution
The LiDCO sensor is activated by a small dose of lithium chloride,
injected via a central venous catheter.The resulting arterial lithium
concentration-time curve is recorded by withdrawing blood past
the lithium sensor.
page 3 LiDCO Annual report and financial statements for the year ended 31 December 2002
The LiDCO sensor
LiDCO has developed a proprietary lithium sensor using lithium
indicator dilution to calculate cardiac output.This is used to
calibrate the LiDCOplus monitor. Safe and extremely accurate,
this method is simple to perform, taking less than five minutes 
for the entire procedure. This is my first Statement since being appointed Non-Executive
Chairman in December of 2002. In fact, it is only the Company’s
second set of annual results since its admission to the London
Stock Exchange’s Alternative Investment Market (‘AIM’) in 
July 2001.
LiDCO raised funds from the public market in order to commence
the commercialisation of its minimally invasive sensor and PC 
based monitoring technology. I was therefore excited to join the
Company at the end of its first full year of sales activity in both the
USA and the UK. In reviewing its 2002 performance I am aware
that this was a challenging period for the Company.
The challenge was to establish a new technology in a market
sector that requires change but where standards are necessarily 
of the highest order.This meant that in parallel to the sales effort
the Company had to transition its operations successfully to a
fully commercial basis with the capacity to become the supplier
of choice for the minimally invasive monitoring of risk surgery
and intensive care patients. Specific achievements to this end
included clinically validating the technology, increasing revenues
while maintaining pricing and gross margins, establishing and
assessing the marketing strategy for the USA and the UK,
automating and significantly increasing sensor manufacturing
capacity and positioning the Company to expand sales in 
2003 through registration of the Company’s in vivo diagnostic
(lithium chloride) in additional major European markets.
Towards the end of the year, the Board decided that the best 
way of maximising access to the US, our largest market, would 
be through a distribution agreement with a partner and that
given the progress made by the Company during 2002, this 
could be achieved on commercially attractive terms.To this 
end the Company has begun early discussions with potential 
US distribution partners.We remain confident of 
our prospects in 2003.
Theresa Wallis
Chairman 
25 March 2003
Chairman’s Review
page 4 LiDCO Annual report and financial statements for the year ended 31 December 2002 I am pleased to report that during 2002 the foundations for the
commercial phase of the business were clearly established.As we
enter our second full year of sales we are confident that we have
both the product and the organisational infrastructure to access the
substantial market opportunity outlined in our flotation prospectus.
The challenges for 2003 are to roll out sales in Europe and grow
and accelerate closures of our sales pipeline in the USA.
Financial review 
Turnover increased to £2,042,000.Whilst this was lower than
original market expectations, it was 81% above the previous year
(2001 – £1,130,000), generating a gross profit of £1,263,000
(2001 – £832,000) and representing a gross margin of 62% 
(2001 – 74%), in line with the Company’s expectations.
As 2002 was the first full year of sales, administration expenses rose
to reflect higher sales and marketing costs.Administration expenses
were in line with expectations at £7,038,000 (2001 – £3,999,000).
The pre and post tax loss was £5,496,000 (2001 – £2,803,000) 
and the basic loss per share is calculated at 7.72p (2001 – 5.70p).
At the year end, net assets amounted to £8.4m, including net
current assets of £6.9m.The year end net cash balance was
£4.0m (2001 – £11.4m).The Group’s programme of investment
in working capital and production facilities is now complete,
so that the cash burn in 2003 is expected to fall significantly.
Trading review
Unit sales of monitors doubled whilst those of single use sensors
trebled. 74% of turnover related to monitors and 19% to sensors,
with 7% relating to licence fee income. 83% of the monitors 
(2001 – 98%) were sold on a capital sale basis.The average monthly
usage rate of sensors per monitor was six, which is very encouraging.
Monitor sales consisted of 211 PulseCO units and 89 LiDCO
units. In 2003, all sales are expected to be of the improved
LiDCOplus unit, which combines the software of the two
previous monitors into a single, easy-to-use unit based on 
the PulseCO monitor.
USA
During 2002 sales to US customers were made through our
direct sales force of 12 people.Turnover increased to £1,009,000
(2001 – £632,000), with 92% of monitors sold on a capital basis.
By the end of 2002, 40 hospitals had purchased the technology.
Included in these customers are a number of influential regional
referral centers including: MD Anderson (Houston), Beaumont
(Detroit), Crawford Long (Atlanta), University of Chicago and
Northwestern Memorial (Chicago). In order to expand their use 
of our minimally invasive monitoring six US customers have
already reordered monitors during 2002. Of particular note is
Sarasota Hospital (Tampa, Florida) which has fully equipped its
cardiovascular theatres and intensive care department through 
the purchase of 19 monitors.
Overall clinical acceptance of the technology has been excellent 
as evidenced by the high percentage of requests for sales proposals
resulting from hospitals’ clinical evaluation of the products.While
progress to the clinical sign off stage has been rapid, closure of sales
has proved to be significantly slower than expected, due mainly 
to cost containment by the hospital administration and consequent
lengthening of the capital cycle, an industry-wide phenomenon.
It is, however, encouraging that follow-on purchases of monitors
have experienced a shorter capital cycle time at seven months.
Despite this tough commercial environment, prices for both the
monitor and sensor products have been very robust and according
to the Company’s expectations.
Chief Executive’s Review
page 5 LiDCO Annual report and financial statements for the year ended 31 December 2002
Investment in facilities During 2002 LiDCO invested £0.8m in new
production facilities at its factory in London, including construction
of a second clean room and additional automation equipment,
to satisfy expected demand. The US is the most important market and represents approximately
60% of our potential worldwide sales. Experience of our first full
year of direct sales in this market shows that the desire to change 
to our minimally invasive monitoring technology is substantially as
expected. However, the most challenging aspects regarding access to
this market are the hospital capital cycle and the physical size of the
opportunity, with around 14,000 potential customers within 3,500
hospitals. In the last quarter of 2002, following a review of US sales
strategy, the Company decided that the high level of interest in the
product and the margins being achieved in early sales meant that
seeking a major US corporate sales partner had now become 
a commercially attractive route to accessing the market and
announced its intention to start seeking a suitable partner.
UK
As with the USA we have just concluded our first full year of direct
sales co-ordinated from our Granta Park (Cambridge) office. Given
the severe shortage of funds available for capital expenditure in 
the UK NHS the sales strategy was to mostly provide monitors 
without charge and sell the sensors and associated disposables
mainly by means of a compensatory up charge.Turnover increased
to £300,000 (2001 – £113,000) – with 35% of monitors placed 
on a capital basis. Use of disposables has been very encouraging 
at 11 per monitor. By the end of 2002, 25 hospitals had adopted
our technology. Our sales force numbering six people is considered 
by the Company to be appropriate to penetrate this market fully.
Continental Europe
In anticipation of final approvals of lithium chloride, distributors
were appointed in Holland, Italy, Spain, Belgium and the Czech
Republic. Sales therefore predominantly reflected stocking orders
and subsequent clinical trials in major reference centers.Turnover
increased to £441,000 (2001 – £114,000). Discussions are currently
underway to establish a distributor for Germany and Austria.
During 2002 the European sales pipeline grew significantly with
224 product demonstrations made, all of which resulted in a
request for a field trial. 184 field trials were initiated and 143
were completed. Of the 176 sales proposals made 54 resulted 
in sales closures in the year, 114 sales proposals are still in process
with eight sales proposals not proceeding due to lack of hospital
budget funding.
Far East and Japan
Sales in the Far East and Japan totalled £292,000 (2001 – £271,000).
Approval of the PulseCO system for sale in Japan is expected towards
the end of 2003. Sales throughout the Far East and Japan are made
through distributors appointed by the Company.
Clinical validation
The Company continues to support an active program of clinical
validation of the accuracy of its products in cardiac/major surgery,
intensive care, trauma and heart failure markets (see the Company
website: www.lidco.com for full publication details.) 2002 was
another successful year with studies concluding positively at: Duke
University (N. Carolina) – intensive care, University of Chicago
(Illinois) – surgical study, Hammamatsu University (Japan) – efficacy
in pathological lung oedema, Southampton University Hospital –
heart failure and ‘off-pump’ cardiac surgery.
Product applications
The Company actively assists customers to conduct trials of novel
applications of its technology .Applications currently undergoing 
trials or further development include peri-operative optimisation,
congestive heart failure and paediatrics, all large or expanding markets.
Regulatory affairs 
In 2003, regulatory approval for the LiDCO System lithium
chloride in vivo diagnostic has been received in principle in 
the following EU territories:Austria, Belgium, Germany, Italy,
LiDCO has made significant progress 
towards each of the benchmarks set 
out in the flotation prospectus.
Chief Executive’s Review continued
page 6 LiDCO Annual report and financial statements for the year ended 31 December 2002
Case Study// Sarasota Hospital / Florida has equipped each of 
its intensive care beds with a PulseCO monitor. “The PulseCO has
proven very beneficial to our patient care.The PulseCO’s immediate,
real-time display of hemodynamic status during difficult periods 
of patient management and while directing therapies, is a great
improvement in monitoring technology.The PulseCO also allows 
us to better manage additional patients who don’t have central 
lines in place.The PulseCO actually reduces our direct costs, a real
rarity for new technologies.”
Head of Cardiac Anesthesia, Sarasota Hospital the Netherlands and Spain.This brings the number of territories
in which the Company has approval to sell its products to 12.
In addition, approval applications are in progress for: Iran, Korea
and Taiwan and further applications will be made during 2003.
New products
On 9 January 2003, approval was received from the FDA (Food 
and Drug Administration of the USA) for the sale of the LiDCOplus
Hemodynamic Monitor in the USA.The LiDCOplus Monitor
combines the measurement and monitoring features of the
Company’s existing products: the LiDCO (lithium dilution cardiac
output measurement) and PulseCO Systems (real-time cardiovascular
monitor), thus saving premium space around the patient’s bed 
and significantly enhancing ease of use.
Research and development
The Company is actively developing additional features and
applications for its products.There are currently two principal
areas of development:
Monitoring of Patient Fluid Status 
This is one of the key unfulfilled measurements required in
critical care patients.The commercial implication of improving
the performance of the LiDCOplus in this arena is that we 
could greatly increase the numbers of patients for whom the
technology is suitable.The Company’s ambition is to have a
LiDCOplus at the bedside for all acute care patients with arterial
monitoring who require fluid management.The customer
requires a more visual way of detecting occult low blood volume
status and the amount of fluid required to restore the patient.
We are currently recording ‘fluid loading’ episodes in patients
undergoing optimisation for high risk surgery.This data will be
used to model the user interface and assess clinician and nursing
response to the novel interfaces.
Capillary Venous Pressure Measurement
This is a software algorithm which uses the arterial pressure
waveform to indicate the average pressure at the venous end 
of the tissue capillary.This would have potential application 
in fluid volume management (see above).The patent for this
measurement has been filed and is progressing to the worldwide
PCT application stage.The accuracy to which the measurement
can be made and the utility of the measurement is under
investigation.
Prospects 
The foundations to support continued growth were put in place
during 2002. 2003 will see an increasing focus by the Company
on sales in its expanded group of territories. Sales in the US are
expected to continue to be subject to a slow capital cycle. In
order to access the full market potential of the product in the 
US and accelerate the closure of pipeline accounts the Company
is in early discussions with potential US distribution partners.
Given the progress made during 2002 and the fact that the
Company has succeeded in establishing a high level of interest 
in a high margin product that is supported by a low cost
manufacturing base we believe that it is in a strong position 
to attract a suitable distribution partner.We hope to be able 
to announce on these matters further during the year.
Investment will continue in the core technology to develop
further enhancements to our sensor technology, physiological
waveform monitoring software and user interfaces.
Terry O’Brien
Chief Executive Officer
25 March 2003
page 7 LiDCO Annual report and financial statements for the year ended 31 December 2002
Case Study// St. George’s Hospital / London “We bought this new
technology, LiDCO, which allows us to monitor cardiac output from
which we can calculate oxygen delivery. We can get this answer
very quickly, within about 15 minutes, and this may be very
important in determining the outcome of the patient. More than
that, it can be set up by the nurses independently of the doctor 
and also allows us to continuously monitor these variables of
cardiac output delivery. We believe it has considerable potential 
in allowing us to monitor these patients for as long as we require.”
Director of Intensive Care Unit, St. George’s Hospital
World market for cardiovascular
monitoring equipment
£ 1.65bn Board of Directors
page 8 LiDCO Annual report and financial statements for the year ended 31 December 2002
01
03
05
07
02
04
06 01 Dr Terence O’Brien Chief Executive Officer 
Dr O’Brien co-founded the Group in 1991. Prior to that, he
held senior positions with biomedical companies including
Sandoz SA, Pharmacia AB, Meadox Medical Inc, Novamedix Ltd,
Enzymatix Ltd and Surgicraft Ltd. Dr O’Brien was Associate
Commercial Director at Enzymatix, which subsequently listed
on the London Stock Exchange as ChiroScience Plc.
02 Dr David Band Scientific Director 
Dr Band co-founded the Group in 1991 and is the co-inventor
of the LiDCO System. He was seconded to the Company full-
time in 1992 from St Thomas’ Hospital and is a specialist in the
ﬁeld of respiratory physiology, electrochemistry and ion-selective
electrodes. He has degrees in both medicine and surgery, and is 
a Reader in Applied Physiology in the Division of Physiology,
GKT School of Biomedical Sciences, St Thomas’ campus.
Dr Band retired from King’s College in August 2001 and became 
a full-time employee of the Group. He accepted an appointment 
as an Honorary reader in the Division of Physiology, GKT 
School of Biomedical Sciences with effect from October 2001.
03 Theresa Wallis Chairman 
Ms Wallis is a Principal Executive of ANGLE T echnology Limited
and a Non-Executive Director of T&G AIM VCT plc. She worked
for the London Stock Exchange for 13 years, where from 1995 she
was Chief Operating Officer of the Alternative Investment Market
(AIM), having managed the market's development and launch in
1994-1995. She is currently a member of the London Stock
Exchange's AIM Advisory Group and the Quoted Companies
Alliance’s Markets and Regulation Committee.
04 Richard Mills Finance Director
Mr Mills joined the Group in April 2001. He is a qualiﬁed
chartered accountant with 20 years’ experience in the medical
diagnostics industry, with Corning Limited, Ciba Corning
Diagnostics Limited, Chiron Diagnostics Limited and Bayer AG.
He has considerable experience of assisting organisations through
periods of growth and transition and establishing the ﬁnancial and
other systems required to successfully manage this.
05 John Barry Sales and Marketing Director 
Mr Barry joined the Group in February 2001. He entered the
medical industry working for Baxter Healthcare Inc. In 1997 he
was appointed Director of marketing for critical care in Europe
and in 1999, when Baxter Healthcare sold Edwards Lifesciences
Corporation, Mr Barry was appointed Director of marketing for
the cardiac surgery business of Edwards Lifesciences Corporation
in Europe, the Middle East and Africa.
06 Bert Wiegman Non-Executive Director 
Mr Wiegman is a partner in Langholm Capital LLP and has 
over 25 years experience in the private equity industry. He is
Chairman of T&G AIM VCT Plc.
07 Roger Bird Company Secretary 
Mr Bird is the Financial Controller of the Group and became
Company Secretary in December 2002. He is a qualified
chartered accountant and spent six years at Deloitte & Touche,
latterly as an audit manager. Prior to this, Mr Bird worked as 
a university lecturer in industrial economics.
Scientiﬁc Advisory Panel 
Professor Solomon Aronson
Professor, Department of Anaesthesia & Critical Care, University of
Chicago, specializing in major surgery and intensive care medicine
Dr William Peruzzi
Associate Professor of Anaesthiology, Northwestern University
Medical School & Director of Respiratory Care, Northwestern
Memorial Hospital, specializing in Neurosurgical intensive care
Dr Max Jonas
Consultant Anaesthetist, Southampton University Hospital, in
medical intensive care
Dr Christopher Wolff
Honorary Clinical Pharmacologist, St. Bartholomew’s Hospital,
in Applied Physiology
page 9 LiDCO Annual report and financial statements for the year ended 31 December 2002
Directors Companies that have shares traded on the Alternative Investment Market (AIM) of the London Stock Exchange are not required 
to comply with the disclosures of the Combined Code. However, the Board is committed to maintaining the highest standards of
Corporate Governance.
The Board of Directors
There are four Executive and two Non-Executive Directors at the date of this report.The Board normally meets 12 times a year, with
additional special meetings as required.
Both of the Non-Executive Directors bring independent judgement to bear on issues considered by the Board. Mr Wiegman served 
as the Senior Independent Director throughout the year.
All Directors have access to the services and advice of the Company Secretary who is responsible for ensuring compliance with the
relevant procedures, rules and regulations.All Directors are able to take independent advice in the furtherance of their duties, if necessary.
All new Directors are required to resign and seek re-election at the first Annual General Meeting following their appointment.All
Directors are required to seek re-election at intervals of no more than three years. Executive Directors have service contracts
containing a notice period of one year. Non-Executive Directors do not have service contracts with the Company.
Committees of the Board
Audit committee
The members of the committee are Ms Wallis and Mr Wiegman.The external auditors also attend meetings.The committee considers
financial reporting, corporate governance and internal controls. It also reviews the scope and results of the external audit and the
independence and objectivity of the auditors. It meets at least twice a year and reviews the interim and annual accounts before they
are submitted to the Board.
Remuneration committee
The members of the committee are Ms Wallis and Mr Wiegman.The committee reviews and sets the remuneration of the Executive
Directors. It also agrees a policy for the salaries and bonuses of all staff. It advises on share schemes and the granting of share options.
The decisions of the committee are formally ratified by the Board.
Details of Directors’ remuneration are shown in note 3 to the accounts.
Nominations committee
The members of the committee are Ms Wallis and Mr Wiegman.The committee considers, at the request of the Board, candidates for
new appointments to the Board and advises on all matters relating to Board appointments.
Relations with shareholders
The Company seeks to maintain and enhance good relations with its shareholders.The Company’s interim and annual reports are
supplemented by regular published updates to investors on technical and commercial progress.The Chief Executive and Finance Director
maintain regular contact with major shareholders through a programme of meetings in connection with these published updates.
All investors have access to up-to-date information on the Company via its website, www.lidco.com which also provides contact
details for investor relations enquiries.All shareholders are invited to make use of the Company’s Annual General Meeting to raise 
any questions regarding the management of the Company.
Corporate Governance Report Year ended 31 December 2002
page 10 LiDCO Annual report and financial statements for the year ended 31 December 2002 Accountability and audit
Going concern
On the basis of current financial projections, the Directors have a reasonable expectation that the Company has adequate resources 
to continue in operational existence for the forseeable future. For this reason, they continue to adopt the going concern basis in
preparing the accounts.
Internal control
The key procedures designed to provide an effective system of internal control are described below:
• Control environment
The Company’s control environment is the responsibility of the Directors and individual managers at all levels.The Board has
implemented an organizational structure with clearly-defined responsibilities and lines of accountability.
• Information systems and controls
Detailed budgets and forecasts are prepared annually and progress against expectations is reviewed monthly by the Board.
Underpinning these budgets is a system of internal financial control, based on authorization procedures and tiers of authority.
As a medical device company, LiDCO also has a system of regulatory controls, to ensure compliance with all requirements of 
the Medicines Control Agency, the US Food & Drug Agency and other regulatory bodies.
• Monitoring of effectiveness
The composition of the Board and the senior management team provides a suitable range of knowledge and experience to enable
adequate risk monitoring.The Company’s information systems provide detailed, regular variance reports which are reviewed and
acted upon by the Board.The external auditors report separately to the Board on the Company’s accounting and internal controls
as part of their normal audit work.
Statement of compliance
During the course of 2002 there were two areas of non-compliance with the Code, both of which were addressed before the year end:
• A 3.1: For most of 2002, the Board consisted of five Executive Directors and two Non-Executive Directors.This position was
remedied on 20 December 2002 with the appointment of Ms Wallis as Non-Executive Chairman, following which the Board
consists of four Executive and two Non-Executive Directors.
• B 2.2: Mr Alexander originally chaired the Remuneration and Audit Committees of the Board. Following Mr Alexander’s
resignation from these committees on 20 September 2002, the committees consisted solely of Non-Executive Directors and were
chaired by Mr Wiegman.
page 11 LiDCO Annual report and financial statements for the year ended 31 December 2002
Corporate Governance Report continued Year ended 31 December 2002 Policy on remuneration
The Remuneration Committee recommends Directors’ remuneration and remuneration policies for all staff. Remuneration levels 
are set in order to attract high calibre recruits and to retain and motivate those Directors and employees once they have joined the
Company.This is achieved by a combination of base salary, bonuses and share options, which are offered both to Executive Directors
and to employees at all levels.
The fees paid to Non-Executive Directors are determined by the Board.
Remuneration committee
The members of the committee are Ms Wallis and Mr Wiegman.The committee is assisted by the Company Secretary. Mr Alexander
and Mr Levensohn both served on the committee during 2002.
Service contracts
All four of the Executive Directors have service contracts with the Company dated 29 June 2001.The contracts are not set for a
specific term, but include a rolling 12-month notice period. In addition, all Directors retire by rotation at the Company’s Annual
General Meeting and, where appropriate, offer themselves for re-election.
Non-Executive Directors have letters of appointment dated 20 December 2002 in the case of Ms Wallis and 2 July 2001 in the case 
of Mr Wiegman.These letters are issued in place of service contracts. In keeping with best practice, these appointments are terminable
without notice by either party.
Remuneration package
All four Executive Directors receive a base salary and allowance in lieu of benefits, as shown in the table below as Salaries and fees.
Non-Executive Directors’ fees are also shown below.
The four Executive Directors are members of the Company’s Senior Management Bonus Scheme. Under the terms of the scheme, the
Remuneration Committee assesses the Directors’ individual performances at the end of the financial year, judged against pre-determined
benchmarks. In 2002 the criteria for awarding bonuses were based on sales performance, profit before tax and the Company’s share
price, with a portion being awarded at the committee’s discretion. In 2003 the criteria are related to sales performance and the
Company’s cash position. Bonuses are capped at 100% of base salary. Non-Executive Directors are not eligible for bonuses.
No pension contributions were payable by the Group (2001 – £nil).
Directors’ emoluments
Directors’ emoluments are shown in note 3 to the accounts, as audited information.
Directors’ shareholdings
31 December 1 January 
2002 2002
Directors No. No.
D M Band 
[1]
7,060,832 9,089,613
T K O’Brien 9,711,682 9,061,682
T A W allis (Non-Executive) 
[2]
––
R J Mills 500,000 –
J G Barry 167,142 7,142
A E B Wiegman (Non-Executive) 239,285 64,285
17,678,941 18,222,722
[1] During the year, Dr Band transferred a portion of his shareholding to members of his family.
[2] Ms Wallis purchased 85,000 shares in January 2003.
The Directors have no interests in the shares of the Company’s subsidiary undertakings.
Remuneration Report Year ended 31 December 2002
page 12 LiDCO Annual report and financial statements for the year ended 31 December 2002 Directors’ share options
Number of options Date from
1 January Granted Exercised 31 December Exercise which Expiry
Directors 2002 2002 price exercisable date
D M Band 637,500 –– 637,500 140p 5/7/04 5/7/14
– 750,000 – 750,000 13p 15/12/05 15/12/15
T K O’Brien 637,500 –– 637,500 140p 5/7/04 5/7/14
– 750,000 – 750,000 13p 15/12/05 15/12/15
R J Mills 212,500 –– 212,500 140p 5/7/04 5/7/14
106,250 –– 106,250 0.5p see below see below
– 75,000 – 75,000 116p 16/1/05 16/1/15
– 750,000 – 750,000 13p 15/12/05 15/12/15
J G Barry 637,500 –– 637,500 140p 5/7/04 5/7/14
318,750 –– 318,750 0.5p see below see below
– 100,000 – 100,000 116p 16/1/05 16/1/15
– 750,000 – 750,000 13p 15/12/05 15/12/15
2,550,000 3,175,000 – 5,725,000
Mr Mills’ options priced at 0.5p vest in three equal tranches on 1 April 2002, 1 April 2003 and 1 April 2004. Mr Barry’s options priced at 0.5p
vest in three equal tranches on 1 January 2002, 1 January 2003 and 1 January 2004. Each tranche remains exercisable for a period of ten years.
The exercise of Directors’ options priced at 13p, 116p and 140p is subject to share price-related performance criteria being met.
The options priced at 116p and 140p become exercisable in full when the Company’s share price rises above 176p and 213p, respectively.
The options priced at 13p vest in three equal tranches, when the Company’s share price reaches 50p, 100p and 150p, respectively.
The options priced at 0.5p do not have performance criteria attached.All options vest after three years, subject to the above conditions,
save only in the case of a successful takeover of the Company, in which event all options vest unconditionally at that point.
Shareholder return
The Company’s shares have been traded on the Alternative Investment Market of the London Stock Exchange since 5 July 2001, prior to
which they were not publicly traded.A graph of the Company’s share price since that date is shown below, using the FTSE T echmark
MediScience Index as a comparator, which the Directors consider to be the most suitable benchmark index.
Approved by the Board of Directors on 25 March 2003
and signed on behalf of the Board
Roger Bird
Secretary
page 13 LiDCO Annual report and financial statements for the year ended 31 December 2002
Remuneration Report continued Year ended 31 December 2002
Aug Sep Oct Nov Dec Jan  Feb Mar Apr May Jun Jul Aug Sep Oct Nov     Dec
2001 2002
RelPer
GBp
1.2
1.15
1.1
1.05
1
0.95
0.9
0.85
0.8
0.75
0.7
0.65
0.6
0.55
0.5
0.45
0.4
0.35
0.3
0.25
0.2 The Directors present their annual report and the audited financial statements for the year ended 31 December 2002.
Activities
The principal activity of the Group was the development, manufacture and sale of cardiac monitoring equipment. Sales of the LiDCO
and PulseCO Systems commenced in the USA in July 2001 and in the UK in September 2001. Sales in the USA are handled via
LiDCO’s US branch.
Results and future prospects
The Group’s turnover for the year was £2,042,000 (2001 – £1,130,000), following the successful launch of the LiDCO and PulseCO
systems in the US in July 2001 and in the UK in September 2001.The Group made a consolidated loss after taxation during 2002 
of £5,496,000 (2001 – £2,803,000).The Directors do not recommend the payment of a dividend (2001 – £nil).
At 31 December 2002 the Group held £4.0m of cash (2001 – £11.4m), which provides the Group with adequate funding for its
business plan.The Board remains confident of achieving its commercial goals in 2003.
The Company’s share price at 31 December 2002 was 14p. During the year the share price ranged between 5p and 118p.
Research and development
The Group continued to develop the PulseCO system during the year, as set out in the Chief Executive’s Review. Expenditure 
on research and development amounted to £89,000 in the year (2001 – £161,000) in addition to product development costs of
£208,000 (2001 – £393,000) which are capitalised on the balance sheet and amortized.
Euro
The implications of European Monetary Union (EMU) for the firm have been considered.The necessary changes have been made to
our systems and procedures to accommodate the new currency.The cost of these changes is not significant.
Directors and their interests
The Directors who served during the year are shown below.The Directors’ beneficial interests in the ordinary shares of the Company
at 31 December 2002 and 1 January 2002 are shown on page 12.
Directors Appointed Resigned
D M Band ––
T K O’Brien ––
T A Wallis (Non-Executive) 20 December 2002 –
T W Alexander – 19 December 2002
R J Mills ––
J G Barry ––
P N Levensohn (Non-Executive) – 27 November 2002
A E B Wiegman (Non-Executive) ––
Significant shareholdings
In addition to the Directors, the following shareholders had beneficial interests in more than 3% of the Company’s share capital at 
31 December 2002:
Beneficial holding
Name Number of shares %
R M Greenshields 4,192,407 5.9
R A F Linton 4,005,555 5.6
Merlin Biosciences Fund LP 3,128,000 4.4
J Kratochvil 3,120,278 4.4
King’s College London 3,020,278 4.2
P A Brewer 2,472,401 3.5
page 14 LiDCO Annual report and financial statements for the year ended 31 December 2002
Directors’ Report Year ended 31 December 2002 Supplier payment policy
The Companies Act 1985, as amended, requires the Group to make a statement of its policy and practice on the payment of creditors.
It is and will continue to be the policy of the Group to negotiate with suppliers so as to obtain the best available terms taking account
of quality, delivery, price and period of settlement and, having agreed those terms, to abide by them.
The total amount of the Group’s trade creditors falling due within the period ended 31 December 2002 represents 90 days’ worth
(2001 – 119 days’ worth) as a proportion of the total amount invoiced by suppliers during the year.
Donations
The Group made charitable contributions during the year of £nil (2001 – £1,000). No political donations were made during the year
(2001 – £nil).
Statement of Directors’ Responsibilities
United Kingdom company law requires the Directors to prepare financial statements for each financial year which give a true and fair
view of the state of affairs of the Company and the Group as at the end of the financial year and of the profit or loss of the Group for
that period. In preparing those financial statements, the Directors are required to:
• select suitable accounting policies and then apply them consistently;
• make judgements and estimates that are reasonable and prudent;
• state whether applicable accounting standards have been followed; and
• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business.
The Directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial
position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 1985.They are
also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of
fraud and other irregularities.
Going Concern
After making enquiries and performing analysis, the Directors have formed a judgement, at the time of approving the financial statements,
that there is a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future.
On the basis of the anticipated levels of sales, costs and cash flow, the Directors have satisfied themselves that the current level of cash 
in the business is sufficient for the period until the Company's operations become cash generative.
For these reasons, the Directors continue to adopt the going concern basis in preparing the financial statements.
Auditors
Deloitte & Touche has expressed their willingness to continue in office as auditors and a resolution to reappoint them will be
proposed at the forthcoming Annual General Meeting.
Deloitte & Touche has informed the Directors that it is intending to transfer its business to a limited liability partnership incorporated
under the Limited Liability Partnerships Act 2000, to be known as Deloitte & Touche LLP . It is the current intention of the Directors
to use the Company's statutory power to give consent to the appointment of Deloitte & Touche being treated as extending to 
Deloitte & Touche LLP at the appropriate time.
Approved by the Board of Directors on 25 March 2003
and signed on behalf of the Board
Roger Bird
Secretary
page 15 LiDCO Annual report and financial statements for the year ended 31 December 2002
Directors’ Report continued Year ended 31 December 2002 We have audited the financial statements of LiDCO Group Plc for the year ended 31 December 2002 which comprise the consolidated
profit and loss account, the balance sheets, consolidated cash flow statement, reconciliation of movement in consolidated shareholders’
funds and related notes 1 to 23.These financial statements have been prepared under the accounting policies set out therein.
This report is made solely to the Company's members, as a body, in accordance with section 235 of the Companies Act 1985. Our audit
work has been undertaken so that we might state to the Company’s members those matters we are required to state to them in an
auditors’ report and for no other purpose.T o the fullest extent permitted by law, we do not accept or assume responsibility to anyone
other than the Company and the Company’s members as a body, for our audit work, for this report, or for the opinions we have
formed.
Respective responsibilities of Directors and auditors
As described in the statement of Directors’ responsibilities, the Company’s Directors are responsible for the preparation of the financial
statements in accordance with applicable United Kingdom law and accounting standards. Our responsibility is to audit the financial
statements in accordance with relevant United Kingdom legal and regulatory requirements and auditing standards.
We report to you our opinion as to whether the financial statements give a true and fair view and are properly prepared in accordance
with the Companies Act 1985.We also report if, in our opinion, the Directors’ Report is not consistent with the financial statements,
if the Company has not kept proper accounting records, if we have not received all the information and explanations we require for
our audit, or if information specified by law regarding Directors’ remuneration and transactions with the Company is not disclosed.
We read the Directors’ Report for the above year and consider the implications for our report if we become aware of any apparent
misstatements.
Basis of opinion
We conducted our audit in accordance with United Kingdom auditing standards issued by the Auditing Practices Board.An audit
includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the financial statements. It also includes 
an assessment of the significant estimates and judgements made by the Directors in the preparation of the financial statements, and 
of whether the accounting policies are appropriate to the Company's circumstances, consistently applied and adequately disclosed.
We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order 
to provide us with sufficient evidence to give reasonable assurance that the financial statements are free from material misstatement,
whether caused by fraud or other irregularity or error. In forming our opinion we also evaluated the overall adequacy of the
presentation of information in the financial statements.
Opinion
In our opinion the financial statements give a true and fair view of the state of affairs of the Company and the Group at 
31 December 2002 and of the loss of the Group for the year then ended and have been properly prepared in accordance with 
the Companies Act 1985.
DELOITTE & TOUCHE
Chartered Accountants and
Registered Auditors
25 March 2003
Independent Auditors' Report to the Members of LiDCO Group Plc Year ended 31 December 2002
page 16 LiDCO Annual report and financial statements for the year ended 31 December 2002 2002 2002 2001 2001
Note £’000 £’000 £’000 £’000
Turnover 1,2 2,042 1,130
Cost of sales (779) (298)
Gross profit 1,263 832
Administration expenses – other (7,038) (3,897)
Administration expenses – exceptional items 4 – (102)
(7,038) (3,999)
Operating loss 5 (5,775) (3,167)
Interest receivable and similar income 279 364
Loss on Ordinary Activities before Tax (5,496) (2,803)
Tax on loss on ordinary activities 6 – –
Loss on Ordinary Activities after Tax (5,496) (2,803)
Loss per share (basic) (p) 16 7.72 5.70
Loss per share (diluted) (p) 16 7.27 5.54
All amounts derive from continuing operations.
There are no recognised gains or losses for the current or preceding years other than as stated above.
page 17 LiDCO Annual report and financial statements for the year ended 31 December 2002
Consolidated Profit and Loss Account Year ended 31 December 2002 The Group The Company
2002 2001 2002 2001
Note £’000 £’000 £’000 £’000
Fixed Assests
Intangible fixed assets 7 565 567 – –
Tangible fixed assets 8 1,234 183 – –
Investments 9 42 258 107 323
1,841 1,008 107 323
Current Assets
Stocks 10 2,292 1,973 – –
Debtors 11 1,367 1,196 9,333 1,552
Cash at bank and in hand 3,974 11,365 3,522 10,823
7,633 14,534 12,855 12,375
Creditors: amounts falling due within one year 12 (741) (1,194) (168) –
Net Current Assets 6,892 13,340 12,687 12,375
Total Assets less Current Liabilities 8,733 14,348 12,794 12,698
Creditors: amounts falling due after more than one year 13 (333) (525) – –
Net Assets 8,400 13,823 12,794 12,698
Capital and Reserves
Called up share capital 15 356 354 356 354
Share premium 21 12,430 12,359 12,430 12,359
Merger reserve 21 8,513 8,513 – –
Profit and loss account 21 (12,899) (7,403) 8 (15)
Equity Shareholders’ Funds 8,400 13,823 12,794 12,698
These financial statements were approved by the Board of Directors on 25 March 2003.
Signed on behalf of the Board of Directors
Richard Mills
Director
Balance Sheets As at 31 December 2002
page 18 LiDCO Annual report and financial statements for the year ended 31 December 2002 2002 2001
Note £’000 £’000
Net cash outflow from operating activities 17 (6,356) (4,935)
Returns on investment and servicing of finance 18 279 364
Capital expenditure and financial investment 18 (1,387) (925)
Cash outflow before financing (7,464) (5,496)
Financing 18 73 12,493
(Decrease)/increase in cash in the year (7,391) 6,997
Reconciliation of net cash flow to movement in net funds
2002 2001
Note £’000 £’000
Movement in cash in the period 19 (7,391) 6,997
Net funds at 1 January 19 11,365 4,368
Net funds at 31 December 19 3,974 11,365
page 19 LiDCO Annual report and financial statements for the year ended 31 December 2002
Consolidated Cash Flow Statement As at 31 December 2002 page 20 LiDCO Annual report and financial statements for the year ended 31 December 2002
2002 2001
£’000 £’000
Loss for the financial year (5,496) (2,803)
Issue of shares 73 12,492
Net addition to shareholders’ funds (5,423) 9,689
Opening shareholders’ funds 13,823 4,134
Closing shareholders’ funds 8,400 13,823
Reconciliation of Movement in Consolidated Shareholders’ Funds Year ended 31 December 2002 1. Accounting Policies
The financial statements are prepared in accordance with applicable United Kingdom accounting standards.The particular accounting
policies adopted are described below.
Advantage has been taken of the exemption under s230 of the Companies Act 1985 not to disclose the profit and loss account of the
Company.The loss of the Company for the year is shown in note 21.
Accounting convention
The financial statements are prepared under the historical cost convention.
Basis of consolidation
The consolidated accounts incorporate the financial statements of the Company and all its subsidiaries.
Merger accounting
Admission to the Alternative Investment Market of the London Stock Exchange (“AIM”) occurred on 5 July 2001.The restructuring 
of the Group agreed by the shareholders in February 2001, under which the minority holdings in LiDCO Limited would be bought 
out in exchange for shares in LiDCO Group, was conditional upon admission and is therefore deemed to have occurred on 5 July 2001.
The Directors consider that the relative rights of the shareholders have in substance remained unchanged during the re-organization.
Merger accounting has therefore been adopted as the accounting treatment for the re-organization. Under this method, results are
reported as if the acquiring companies have been combined since incorporation. No purchased goodwill is created in the transaction 
and the assets and liabilities of LiDCO Limited are not adjusted to reflect their market value.The comparative figures have been restated.
Turnover
Turnover represents amounts receivable from product sales and income from licence agreements granted. Dependent upon the terms
of each licence agreement, income from licence agreements is recognized on a straight line basis, commencing from the date of receipt
of cash over the period of the licence, subject to a maximum of ten years.
Investments
Investments in subsidiary undertakings are stated at cost less provision for impairment.
Foreign exchange
Transactions denominated in foreign currencies are translated into sterling at the rates ruling at the dates of the transactions.
Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are translated at the rates prevailing at 
that date.These translation differences are dealt with in the profit and loss account.
Deferred taxation
Deferred taxation is provided in full on timing differences arising from the different treatment of items for accounting and taxation
purposes, which are expected to reverse in the future without replacement, calculated at the rates at which it is expected that tax will arise.
Intangible fixed assets
Intangible fixed assets represent software development costs and clinical trials on the LiDCO and PulseCO systems.These have been
capitalized and are amortized in equal annual amounts over three years.
page 21 LiDCO Annual report and financial statements for the year ended 31 December 2002
Notes to the Accounts Year ended 31 December 2002 1. Accounting Policies (continued)
Tangible fixed assets
Depreciation is provided on a straight line basis over the estimated useful economic lives of the assets.The annual rates of depreciation
are as follows:
Leasehold improvements Over the length of the lease
Plant and machinery 20% per annum
Fixtures and fittings 20% per annum
Computer equipment 33% per annum
Stocks
Stocks are stated at the lower of cost and net realisable value.
Leases
Operating lease rentals are charged to the profit and loss account on a straight line basis.
Capital instruments
Capital instruments are accounted for and classified as equity or non-equity share capital, equity or non-equity minority interests and
debt according to their form.There is no premium payable on redemption of non-equity minority interests.
2. Turnover
2002 2001
£’000 £’000
Turnover by class of business
Licence agreements 140 140
Product sales 1,902 990
2,042 1,130
Turnover by destination
United States 1,009 632
Far East 292 271
United Kingdom 300 113
Other European countries 441 114
2,042 1,130
All turnover, operating profit and net assets originated within the United Kingdom.
3. Information regarding Directors and Employees
2002 2001
The Group £’000 £’000
Average number of persons employed (including Executive Directors)
Production 11 9
Sales 24 14
Administration 8 9
43 32
Staff costs £’000 £’000
Wages and salaries 3,239 2,149
Social security costs 306 189
3,545 2,338
Notes to the Accounts continued Year ended 31 December 2002
page 22 LiDCO Annual report and financial statements for the year ended 31 December 2002 3. Information regarding Directors and Employees (continued)
Directors’ emoluments
2002 2002 2002 2002 2002 2001
Compensation
Salary for loss 
and fees Benefits of office Bonus Total T otal
Directors £’000 £’000 £’000 £’000 £’000 £’000
D M Band 113 –– – 113 124
R A F Linton 
[1]
– – ––– 2
T K O’Brien 189 –– – 189 237
T A W allis 
[2]
1 –– – 1 –
T W Alexander
[3]
170 12 163 – 345 144
R J Mills 101 –– 18 119 70
J G Barry 170 –– 21 191 102
P N Levensohn 18 –– – 18 10
A E B Wiegman 20 –– – 20 10
782 12 163 39 996 699
[1] Dr Linton resigned as a Director on 10 January 2001.
[2] Ms Wallis’ fees are payable to ANGLE T echnology Limited.
[3] Mr Alexander’s service contract entitled him to receive 12 months’ salary and benefits upon the termination of his contract.
Mr Alexander did not receive any bonus payment in respect of 2002, nor as part of the termination agreement.
4. Exceptional Items
Professional fees of £nil (2001 – £102,000) in respect of work performed by advisers on the restructuring of the Group prior to the
flotation were expensed. Direct costs of the flotation were debited against the share premium account.
5. Operating Loss
Operating loss is stated after charging:
2002 2001
The Group £’000 £’000
Auditors’ remuneration
Group audit fees 35 25
Company audit fees 5 5
Non-audit services 51 –
Loss on shares in Employee Share Ownership Trust 223 108
Research and development 89 161
Rentals under operating leases
Hire of plant and machinery 58 26
Other 251 135
Depreciation – owned assets 121 31
Amortization 210 76
Auditors’ remuneration of non-audit fees in respect of professional services on the Group’s flotation of £nil (2001 – £369,000) have
been charged directly to the share premium account.
6. Tax on Loss on Ordinary Activities
No tax was payable in 2001 or 2002 due to the existence of brought forward tax losses.
page 23 LiDCO Annual report and financial statements for the year ended 31 December 2002
Notes to the Accounts continued Year ended 31 December 2002 7. Intangible Fixed Assets
Clinical Software 
trials development T otal
The Group £’000 £’000 £’000
Cost:
At 1 January 2002 35 608 643
Additions during the year 39 169 208
At 31 December 2002 74 777 851
Accumulated depreciation:
At 1 January 2002 – 76 76
Charge for the year 15 195 210
At 31 December 2002 15 271 286
Net book value:
At 31 December 2002 59 506 565
At 31 December 2001 35 532 567
8. Tangible Fixed Assets 
Leasehold Plant and Fixtures and Computer
improvements machinery fittings equipment Total
The Group £’000 £’000 £’000 £’000 £’000
Cost: –
At 1 January 2002 193 112 96 401
Additions during the year 534 266 75 299 1,174
Disposals –– – (2) (2)
At 31 December 2002 534 459 187 393 1,573
Accumulated depreciation:
At 1 January 2002 – 141 40 37 218
Charge for the year 14 31 18 58 121
At 31 December 2002 14 172 58 95 339
Net book value:
At 31 December 2002 520 287 129 298 1,234
At 31 December 2002 – 52 72 59 183
Computer
equipment 
The Company £’000
Cost:
At 1 January and 31 December 2002 2
Accumulated depreciation:
At 1 January and 31 December 2002 2
Net book value:
At 31 December 2002 and 2001 –
page 24 LiDCO Annual report and financial statements for the year ended 31 December 2002
Notes to the Accounts continued Year ended 31 December 2002 9. Investments
Shares in 
subsidiary Other 
undertakings investments T otal
£’000 £’000 £’000
The Group
At 1 January 2002 – 258 258
Additions – 77
Gain/(loss) in the year – (223) (223)
At 31 December 2002 – 42 42
The Company
At 1 January 2002 65 258 323
Additions – 77
Gain/(loss) in the year – (223) (223)
At 31 December 2002 65 42 107
The Company’s beneficial interest in subsidiary undertakings consists of:
Country of Beneficial Nature of 
registration holding business
LiDCO Limited England and Wales 100% Surgical instruments and appliances
CAS Limited England and Wales 100% Dormant
PulseCO Limited England and Wales 100% Dormant
Other investments consist of 302,118 (2001 – 262,118) ordinary shares in LiDCO Group Plc held by the Company’s Employee Share
Ownership Trust.The Trust is maintained to offset future National Insurance costs upon the exercise of share options.
10. Stocks
2002 2001
The Group £’000 £’000
Raw materials and consumables 90 59
Finished goods 2,202 1,914
2,292 1,973
11. Debtors
The Group The Company
2002 2001 2002 2001
£’000 £’000 £’000 £’000
Trade debtors 1,055 707 – –
Amounts owed by Group undertakings – – 9,327 1,552
Other debtors 246 407 6 –
Prepayments and accrued income 66 82 – –
1,367 1,196 9,333 1,552
page 25 LiDCO Annual report and financial statements for the year ended 31 December 2002
Notes to the Accounts continued Year ended 31 December 2002 12. Creditors: Amounts falling due within one year
The Group The Company
2002 2001 2002 2001
£’000 £’000 £’000 £’000
Trade creditors 192 617 – –
Other creditors 123 2 168 –
Accruals and deferred income 426 575 – –
741 1,194 168 –
13. Creditors: Amounts falling due after more than one year
The Group The Company
2002 2001 2002 2001
£’000 £’000 £’000 £’000
Deferred income 333 525 – –
14. Deferred Taxation
No deferred taxation was provided at 31 December 2002 (2001 – none).The amounts of deferred taxation unprovided were:
The Group The Company
2002 2001 2002 2001
Unprovided Unprovided Unprovided Unprovided
£’000 £’000 £’000 £’000
Capital allowances 248 184 ––
Other (3,773) (2,235) (1) (1)
(3,525) (2,051) (1) (1)
15. Called up Share Capital
2002 2001 2002 2001
The Group and the Company No. No. £’000 £’000
Authorized shares of 0.5p each 100,000,000 100,000,000 500 500
Called up, issued and fully paid 71,294,311 70,844,561 356 354
16. Loss per Share
Loss per share is calculated by dividing the loss attributable to ordinary shareholders by the weighted average number of ordinary
shares during the year. Share options are regarded as dilutive if the exercise price was below the market price at 31 December.
The Group 2002 2001
Loss for the financial year (£’000) 5,496 2,803
Weighted average number of ordinary shares (’000) 71,147 49,162
Effect of dilutive share options (’000) 4,469 1,472
Adjusted weighted average number of ordinary shares (’000) 75,616 50,634
Loss per share – basic (p) 7.72 5.70
Loss per share – diluted (p) 7.27 5.54
page 26 LiDCO Annual report and financial statements for the year ended 31 December 2002
Notes to the Accounts continued Year ended 31 December 2002 17. Net Cash Outflow from Operating Activities
2002 2001
The Group £’000 £’000
Operating loss (5,775) (3,167)
Depreciation and amortization charges 331 107
Decrease in the value of investments 223 108
Increase in stocks (319) (1,455)
Increase in debtors (171) (1,155)
(Decrease)/increase in creditors (645) 627
Net cash outflow from operating activities (6,356) (4,935)
18. Analysis of Cash Flows for Headings Netted in the Cash Flow Statement
2002 2001
The Group £’000 £’000
Returns on investment and servicing of finance
Interest received 279 364
Capital expenditure and financial investment
Payments to acquire intangible fixed assets (208) (393)
Payments to acquire tangible fixed assets (1,172) (165)
Investing activities (7) (367)
(1,387) (925)
Financing
Issue of ordinary share capital 73 12,493
19. Analysis of Net Funds
2001 Cash flow 2002
The Group £’000 £’000 £’000
Cash in hand and at bank 11,365 (7,391) 3,974
20. Financial Instruments
The Group did not trade in financial instruments in 2001 or 2002.
20 (a)  Maturity Profile of Financial Liabilities 
The Group did not have any financial liabilities in 2001 or 2002.
20 (b)  Interest Rate Profile
Floating rate Fixed rate
financial assets financial assets Total
The Group £’000 £’000 £’000
At 31 December 2002
Sterling 3,584 – 3,584
US$ 390 – 390
Gross financial assets 3,974 – 3,974
At 31 December 2001
Sterling 10,989 200 11,189
US$ 176 – 176
Gross financial assets 11,165 200 11,365
page 27 LiDCO Annual report and financial statements for the year ended 31 December 2002
Notes to the Accounts continued Year ended 31 December 2002 20 (c)  Fair Values of Financial Assets and Liabilities
There was no difference between the fair value and the book value of financial assets and liabilities.
20 (d)  Hedging
During 2002 forward exchange contracts were taken out to maximize the sterling value of net dollar revenue for the year.
These contracts were closed out during the year.The Group did not hedge its financial transactions in 2001.
20 (e)  Currency Profile
Sterling is the main functional currency of the Group.The following analysis of net monetary assets and liabilities shows the Group’s
currency exposures.The amounts shown represent the transactional (or non-structural) exposures that give rise to the net currency
gains and losses recognised in the profit and loss account. Such exposures comprise the monetary assets and monetary liabilities of 
the Group that are not denominated in sterling.
2002 2001
The Group US$’000 US$’000
Sterling 628 255
21. Movements on Reserves
Share premium Merger Profit & loss 
account reserve account T otal
£’000 £’000 £’000 £’000
The Group
Balance at 1 January 2002 12,359 8,513 (7,403) 13,469
Issue of share capital 71 –– 71
Loss for the financial year –– (5,496) (5,496)
Balance at 31 December 2002 12,430 8,513 (12,899) 8,044
The Company
Balance at 1 January 2002 12,359 – (15) 12,344
Issue of share capital 71 –– 71
Profit for the financial year –– 23 23
Balance at 31 December 2002 12,430 – 8 12,438
22. Operating Lease Commitments
The Group was committed to making the following payments under operating leases during the year:
2002 2001 2002 2001
Land and Land and
buildings buildings Other Other
The Group £’000 £’000 £’000 £’000
Leases which expire
Within one year 13 13 – –
Within two to five years 201 201 58 58
After more than five years 55 37 – –
269 251 58 58
23. Related Party Transaction
Mr P Levensohn served as a Non-Executive Director of LiDCO Group Plc and LiDCO Limited until his resignation on 27 November 2002.
Mr Levensohn also serves as President and Chief Executive Officer of Levensohn Capital Management LLC, a registered investment adviser
which manages a group of investment partnerships which invest in public and private technology companies. One of the clients of this
partnership is Star Bay Partners LP , which held 2,114,800 ordinary shares in LiDCO Group Plc at 31 December 2002 (2001 – 2,114,800).
page 28 LiDCO Annual report and financial statements for the year ended 31 December 2002
Notes to the Accounts continued Year ended 31 December 2002 LiDCO researches, develops, manufactures 
and markets innovative medical devices.
Our products primarily serve critical care and 
cardiovascular risk hospital patients who require
real-time cardiovascular monitoring.
1 Highlights
2 Group at a Glance
4 Chairman’s Review
5 Chief Executive’s Review
8 Board of Directors
9 Directors and Advisors
10 Corporate Governance Report
12 Remuneration Report
14 Directors’ Report
16 Independent Auditors’ Report to the
Members of LiDCO Group Plc
17 Consolidated Profit and Loss Account
18 Balance Sheets
19 Consolidated Cash Flow Statement
20 Reconciliation of Movement in 
Consolidated Shareholders’ Funds
21 Notes to the Accounts
Advisors 
Auditors Deloitte & Touche
Chartered Accountants
Stonecutter Court
1 Stonecutter Street
London EC4A 4TR
Stockbrokers Teather &
Greenwood
Beaufort House
15 St. Botolph Street
London EC3A 7QR
Stockbrokers Nomura
International plc
Nomura House
1 St Martins-le-Grand
London EC11 4NP
Bankers NatWest Bank PLC
PO Box 35
10 Southwark Street
London SE1 1TT
Registrars Capita IRG
34 Beckenham Road
Beckenham
Kent BR3 4TU
Solicitors Herbert Smith
Exchange House
Primrose Street 
London EC2A 2HS
Company Number
2659005
Registered Office 
16 Orsman Road
London N1 5QJ
Company Website
www.lidco.com Annual report
2002
www.lidco.com
LiDCO Group Plc
Annual report and financial statements
for the year ended 31 December 2002
LiDCO Group Plc
UK Office:
16 Orsman Road
London N1 5QJ
Tel: +44 (0)20 7749 1500
Fax: +44 (0)20 7749 1501
USA Distribution Office:
Wren Medical Systems
905 Lakeside Drive
Gurnee, IL 60031
Tel: 847 625 0600
Fax: 847 625 0981
Sales and Marketing:
Flowers Building
Granta Park
Cambridge CB1 6GU
Tel: +44 (0)1223 893 081
Fax: +44 (0)1223 890 187
LiDCO Group Plc Annual report and ﬁnancial statements for the year ended 31 December 2002