2011/12
LiDCO Group Plc Annual Report & Accounts for the year ended 31 January 2012 LiDCO Annual Report
2011/12
LiDCO manufactures minimally invasive 
hemodynamic monitoring equipment and 
disposables. Our products are the result of  
a multi-disciplinary developmental approach 
that transforms complex physiological data into 
useable and effective information.
Early intervention to avoid potentially 
dangerous and life threatening events has been 
proven to reduce complications and length of 
hospital stay in high risk surgery patients.
01 Highlights
02 Products and development pathway
04 Evidence, awareness and drivers of adoption
05 Translational skills and education
06 Chairman’s statement
08 Chief Executive Officer’s statement
14 Board of Directors and Company Secretary
15 Clinical Advisory Group
16 Corporate Governance report
18 Corporate social responsibility statement
20 Directors’ remuneration report
24 Directors’ report
28 Independent auditor’s report (Group)
29 Consolidated comprehensive income statement
30 Consolidated balance sheet
31 Consolidated cash flow statement
32 Consolidated statement of changes in shareholders’ equity
33 Notes to the financial statements
49 Independent auditor’s report (Company)
50 Company balance sheet
51 Notes to the financial statements
53 Company information
53 Advisers to the Company
LiDCO Group Plc
www.lidco.com 1
LiDCO Annual Report
2011/12
Financial highlights
Operational highlights
Total revenue increased by 14% to £7.12m (2010/11: £6.24m)
Disposables revenues up 36% to £5.02m representing 70% of total revenues 
Gross profit up 13% to £4.75m (2010: £4.22m). Significant margin improvement on LiDCO 
products to 76% (2010/11: 68%)
 Operating loss reduced by 90% to £49,000 (2010/11: £0.50m)
Maiden profit after tax of £15,000 and EBITDA of £0.61m
 Cash balance of £1.55m (2010/11: £1.40m)
 Earnings per share of 0.01p (2010/11: loss per share 0.22p)
 364 monitors installed in the period (2010/11: 524) with the installed base up 9% to 2,189 units 
(rolling 7 year basis). LiDCOrapid represents 72% of the installed monitor base 
 UK revenues including Argon up 57% to £3.70m (sensors up 5%, LiDCOrapid smart cards up 47%) 
 NHS drive in England for full adoption of intra-operative hemodynamic monitoring
 Japanese registration and supply and UK distribution agreements signed with Argon Medical  
in the year
 Agreement signed with ICU Medical in July 2011 appointing LiDCO as UK distributor for  
ICU products and providing worldwide access to certain LiDCO IPR
 Licensing agreement for continuous non-invasive blood pressure technology signed with 
CNSystems Medizintechnik AG in January 2012
Multi-parameter monitor project combining depth of anesthesia and non-invasive blood pressure 
progressing well 
 European patent for the LiDCOrapid graphical user interface accepted for grant
Revenue
£million
2007
2008
2008
2009
2009
2010
2010
2011
2011
2012
£4.05
£4.53
£5.37
£6.24
£7.12
Net cash outflow before financing
£million
2007
2008
2008
2009
2009
2010
2010
2011
2011
2012
£1.70
£1.80
£1.00
£0.40
£0.60
Loss from operations
£million
2007
2008
2008
2009
2009
2010
2010
2011
2011
2012
£2.00
£1.80
£1.50
£0.50
£0.05 2
LiDCO Annual Report
2011/12
Products and development pathway
•  5.31 million high-risk surgery 
patients worldwide per annum
•  Potential market value  
US$860 million per annum
LiDCOrapid
Arterial line high-risk surgery
• Calibrated approach
•  Suitable for treatment  
of sicker patients
•  Management of shock –  
low blood pressure
•  Market size estimated at  
US$400 million per annum
LiDCOplus
Intensive care
LiDCO has an active development programme of incremental product 
enhancement and evolution, improving ease of use and enabling 
convergence and integration of multiple monitoring parameters. 3
LiDCO Annual Report
2011/12
•  Full perioperative utility
•  Combined depth of anesthesia 
and hemodynamic monitoring 
plus non-invasive blood pressure 
monitoring (NIBP)
•  Potentially doubles the number  
of major surgery patients
•  Market value could reach  
US$1.720 billion per annum
LiDCOrapid ‘multi-parameter’
Enhanced surgery offering
Enhanced
 monitoring 
 of high and moderate risk surgical  
 patients will be offered by the LiDCOrapid 
 ‘multi-parameter’ monitor, with a potential  
 market value of US$1.720 billion a year. 4
LiDCO Annual Report
2011/12
Evidence, awareness and drivers of adoption
Published in December 2011, the NHS 
Improvement and Efficiency Directorate’s 
‘Innovation, Health and Wealth’ report 
stated that innovation was central to the 
future of the NHS. Citing a range of 
innovations that can improve patient 
outcomes and save money, the report 
emphasised the need to nurture and 
promote adoption of new techniques  
and technologies. 
As part of the UK Department of Health’s 
Quality, Innovation, Productivity and 
Prevention (QIPP) programme, certain 
treatment pathways are encouraged. Fluid 
management is an element of the treatment 
pathway known as Early Recovery After 
Surgery (ERAS), which is recommended for 
patients undergoing surgical procedures. 
ERAS has been proven to reduce length  
of stay in hospital, as well as post-operative 
complications in high risk surgical patients. 
The NHS report highlighted the fact that 
advanced fluid management monitoring 
can significantly reduce mortality rates for 
elective procedures. Adoption of such 
technologies would improve the quality  
of care for 800,000 patients in the UK each 
year and generate potential net savings to 
the NHS of some £400m annually. Currently 
fewer than ten per cent of patients benefit 
from such technologies. 
In identifying a number of high impact 
innovations, the report announced the 
launch of a national drive to get full 
implementation of advanced fluid 
management monitoring technology into 
practice across the NHS. Compliance with 
the recommendations on high impact 
innovations will become a pre-qualification 
requirement for Commission for Quality 
and Innovation (CQUIN) payments, with  
a requirement to ‘comply or explain’ .
1
  Pearse R, Dawson D, Fawcett J, Rhodes A, 
Grounds RM, Bennett ED (2005) Early 
goal-directed therapy after major surgery 
reduces complications and duration of 
hospital stay. A randomised, controlled trial. 
Crit Care 9 (6) 687-693
2
  Lobo S et al., (2011) Restrictive strategy  
of intraoperative fluid maintenance during 
optimization of oxygen delivery decreases 
major complications after high risk surgery. 
Critical Care vol 15:R226 doi: 10.1186/cc10466
A considerable body of evidence 
has been accumulated in support  
of routine hemodynamic 
monitoring of high-risk surgery 
patients. Over time, the practice 
looks set to become an integral  
part of delivering effective care  
to the majority of these patients, 
with the relatively low upfront 
costs of the equipment outweighed 
by benefits to both patient and 
hospital. Our technology has been 
shown to reduce length of stay by 
up to an average of 12 days
1
 and 
complications by 67%
2
 in high risk 
surgery patients. 
£400m
potential 
net savings annually  
to the NHS 5
LiDCO Annual Report
2011/12
Translational skills and education
To book your place please visit www.mvue-events.co.uk/lidco.htm where all the details can be found.
Study Day
Cardiac Output Monitoring
AreyouanRCNmember? Don’t forget to claim your discount when booking! Simply enter
LiRCN in the promotion code box, and then your RCN membership number in the relevant box.
Competency based, practical sessions with
realistic simulations
9 hours study time to include in your personal
development plan (PDP)
DISCOUNT
Special discounted rates for RCN members
Contributes to Knowledge and Skills Framework
competencies (HWB 5, 6, 7 & G1, 2, 7)
UK wide regional study days
IntegralcomponentwithinEnhancedSurgical
Recovery(ERAS)andfluidoptimisationprogrammes
www.lidco.com
LiDCO,theleaderinminimallyinvasivecardiacoutputtechnologies
ispleasedtoinviteyoutotheonlyRoyalCollegeofNursingaccredited
studydayforCardiacOutputMonitoring.
This one day course has been specifically designed to give our delegates
the practical skills and interpretive knowledge underpinned by up-to-date
theory and research to successfully utilise our monitor in the care setting.
Nurses will have the practical skills, confidence and knowledge to use the
equipment along with the tools necessary to facilitate their colleagues’
development. Upon successful completion, delegates will receive an RCN
certificate and knowledge pack to take back to their units where they can
be a great resource for the rest of the team.
Welookforwardtoseeingyousoon!
Dr Phil Newman (left) consultant anaesthetist  
at St George’s Hospital, presenting at LiDCO’s 
Hemodynamic Monitoring Workshop. Delegates 
attend our RCN accredited Study Day (above)  
at the University Hospital of Wales, Cardiff.
LiDCO is committed to supporting its 
hospital customers. Two years ago we 
established a hemodynamic workshop  
in collaboration with the doctors at 
St George’s Hospital in London, teaching 
hemodynamic optimization techniques  
to senior physicians. The past year saw  
an increase in the number of workshops 
held, with a total of nine study days at  
St George’s, attended by over 70 clinicians 
from hospitals around the UK and abroad. 
The course is accredited by the UK’s Royal 
College of Anaesthetists for continuing 
medical education points. 
With advanced hemodynamic 
monitoring set to become a key 
element in the effective care of high 
and moderate risk patients, high 
quality education and training for 
clinical staff is essential.
We also hold accreditation from the Royal 
College of Nursing (RCN) for its LiDCOplus 
monitor competency-based study day. 
During 2011/12 we also conducted 27 
study days for the RCN, with over 300 
attendees including critical care nurses and 
junior doctors. Underpinned by up-to-date 
theory and research, the delegates acquire 
the practical skills and interpretative 
knowledge to successfully use the monitors 
in the critical care environment. 6
LiDCO Annual Report
2011/12
Chairman’s statement
Products
LiDCO produces the LiDCOplus for critical 
care use and, since 2008, the LiDCOrapid  
for use in surgery. Each of these comprises 
monitors and disposables used for the 
measurement of hemodynamic parameters 
and their display in a manner designed to 
facilitate clinical treatment. 
During the year LiDCO’s intellectual 
property position was strengthened as  
we continued with our programme of 
product improvement and innovation. 
Furthermore, LiDCO’s product offering  
in the UK was expanded by a range of 
complementary specialty critical care 
products, which we began distributing  
for our partner Argon Medical. 
Looking ahead, we see the convergence  
of multiple parameters onto a single 
monitor as an increasingly important 
means of enabling hospitals to save costs, 
whilst improving quality of care. During the 
year a focus of our development activities 
was therefore to refine the software 
architecture of our products in order to 
enable a variety of parameters, whether 
measured using LiDCO or third party 
sensors, to be integrated for display on  
a single monitor, and to enable specific 
elements of our proprietary monitoring 
software to be licenced to partners. 
Access
We continued to work closely with 
Covidien, our US distribution partner for the 
LiDCOrapid and were encouraged by the 
commitment they showed to our products 
and developing the market for them. 
Four new partnership deals were signed 
during the year, including partners in Japan 
and the US, two of the world’s largest 
markets. Historically LiDCO’s products have 
been supplied through a combination of 
direct sales and a network of distributors. 
More recently we have been looking  
to intellectual property licensing 
collaborations as supplementary channels 
to market and our first software licensing 
contract was signed in July 2011. 
The year ended with LiDCO 
achieving break-even for the 
first time and an EBITDA of over 
£500,000. Revenues increased 
by 14%, reflecting the continued 
growing adoption of our 
technology, interest from licensing 
partners and sales of third party 
products. The year was marked by 
strong progress towards achieving 
a network of partnerships aimed at 
extending our global market reach, 
enhancing our product offering and 
leveraging the Company’s assets 
and sales infrastructure. We closed 
the year with cash of £1.55 million, 
which included debt of £500,000  
to finance costs associated with  
one of these licensing deals.
Theresa Wallis
Chairman 7
LiDCO Annual Report
2011/12
Evidence and Awareness
The recognition of the clinical and 
economic benefits of using minimally 
invasive hemodynamic monitoring  
has continued to grow. In the UK, the 
Department of Health’s drive for Quality, 
Innovation, Productivity and Prevention 
(QIPP) underpins the growing interest  
in the use of fluid optimisation during 
surgery. This has significant implications  
for LiDCO as our products can be used  
for the management of fluid and oxygen 
delivery in critical care and high risk  
surgery patients. 
We were again well represented at 
conferences and tradeshows around the 
world during the year and our simulator-
based training programmes continued  
to be popular with doctors and nurses. 
Prospects
Independent research shows that cardiac 
output monitoring is the fastest growing 
sector within the European monitoring 
market. With the UK government taking 
steps to include fluid management into 
routine practice for high risk surgery, we 
believe the progress made by the Company 
last year in terms of sales, market access  
in the US and Japan and product 
development, leaves us in a strong position 
to take advantage of the opportunities that 
are open to us. 
We will continue to work on collaborations 
aimed at driving both the use of 
disposables in our own and third parties’ 
installed bases of monitors, and developing 
a single multi-parameter monitor.  
This coming year we expect to see the 
development of our first completely 
non-invasive hemodynamic monitoring 
product, which could provide access  
to a disposable revenue stream of 
approximately US$1.720 billion. 
I would like to thank our shareholders  
for their continued support, my fellow 
directors and the staff at LiDCO for their 
hard work and our Clinical Advisory Group 
for their valuable insights and feedback. 
Professor David Bennett, a member of  
our Clinical Advisory Group since 2005,  
passed away in February this year and we 
will very much miss him; both as a friend  
of LiDCO and a wise contributor to our 
Advisory Group.
Theresa Wallis
Chairman
23 April 2012 8
LiDCO Annual Report
2011/12
Chief Executive Officer’s statement
Overview
The combination of marginally increasing 
administration expenses (by 2%), 
improvements to product margins and 
revenue growth of 14% resulted in a 
maiden profit after tax of £15,000. The 
majority of our revenue (70%) now comes 
from a growing recurring disposable 
income stream. This was an excellent 
performance given the background of 
another year of very mixed economic 
conditions in some of the markets where 
our products are sold. 
During the past year we signed significant 
distribution and licensing agreements  
with Argon, ICU Medical and CNSystems 
Medizintechnik. These are all important 
commercial collaborations, aimed at 
increasing disposable income flow while 
significantly improving our major market 
reach. The retrofit nature of our non-
invasive blood pressure option should 
significantly increase disposable income  
in both our existing and future LiDCOrapid 
monitor installed base. 
The evidence for making hemodynamic 
monitoring of high-risk surgery patients 
routine is compelling. In our domestic 
market we are starting to see a strong  
push emerge from the National Health 
Service (NHS) for country-wide adoption.  
In December 2011 the NHS Improvement 
and Efficiency Directorate published its 
report Innovation, Health and Wealth.  
This report sets out actions to drive towards 
full adoption of advanced fluid and 
hemodynamic monitoring of surgery 
patients. We expect that this project will 
start from May 2012, and that hospitals will 
be encouraged to monitor more patients 
with a mixture of payment incentives 
coupled with the requirement to comply or 
explain. Ultimately, as detailed in the report 
of December 2011, this could result in the 
monitoring of an additional 750,000 
patients per annum and a saving to the 
NHS of £400 million a year. We expect other 
countries to adopt similar approaches. 
Advanced hemodynamic monitoring looks 
set to become an integral part of delivering 
effective care to the majority of high and 
moderate risk surgical patients. 
The economic background and 
emerging drivers of adoption
As a substantial part of the world’s 
economy continues to attempt to recover 
from the global economic crisis, healthcare 
expenditure growth can no longer be 
automatically assumed. Increasingly, 
budgetary constraints will rouse demands 
for healthcare efficiency savings. In the  
UK, NHS hospitals are expected to  
deliver efficiency savings in the region of  
£15 billion over the three years to March 
2014. Despite economic headwinds, the 
cost of treating an ageing population in the 
‘developed’ world ensures that there will 
continue to be a growing demand for 
medical devices as part of treatments that 
are evidence-based and proven to be cost 
effective. Around 250 million major surgical 
procedures are performed worldwide 
annually, resulting in about 12.5 million 
patients with surgical complications (Pearse 
et al., 2011). The traditional methods of 
monitoring fluid, blood volume and oxygen 
delivery are notoriously inefficient and fail 
to accurately predict those patients who 
need, and will respond to, fluid therapy.  
In marked contrast, treatment guided  
by advanced hemodynamic monitoring 
has been shown to better maintain fluid 
volumes and ensure adequate blood flow 
and tissue viability. Use of these parameters 
has significantly reduced operative 
complications (Lobo et al., 2011). Advanced 
hemodynamic monitors greatly assist with 
therapeutic decision-making and more 
With sales growing, a maiden profit 
after tax, corporate partnerships 
expanded and mainstream 
adoption planned for the NHS  
in England, last year was our most 
productive since joining AIM. 
Dr Terence O’Brien
Chief Executive Officer 9
LiDCO Annual Report
2011/12
accurately guide appropriate fluid and  
drug interventions. Through their use, 
anesthetists and surgeons can provide 
greater consistency of care for the higher 
risk surgery patients. 
Worldwide sales for the new generation  
of minimally invasive hemodynamic 
monitors and disposables have grown  
to a substantial level already worth circa 
US$200 million per annum. In the UK, 
programmes are active in encouraging 
adoption and providing tariff payment 
enhancements; systematic adoption of 
hemodynamic monitoring is just starting  
to happen on a much larger scale. There  
is a growing realisation that the major 
surgery hemodynamic monitoring market 
is capable of reaching a recurring revenue 
business of approximately US$860 million 
per annum (Pearse et al., 2006). If a totally 
non-invasive monitor were available, the 
number of eligible patients and associated 
revenues could more than double. 
LiDCO’s route to the  
worldwide market
Smaller technology companies have to find 
an efficient and economic way to access 
the global market. It is almost impossible, 
both financially and logistically, for the 
Company to sell directly to the USA and 
Japanese markets. Recognising this market 
access challenge, LiDCO has chosen to 
export via third parties. This means that  
we sell through independent distributors  
in the smaller territories and through 
bigger medical device corporations in  
the major markets. 
Registration of the LiDCOrapid monitor  
and disposables commenced in 2011  
and the registration review is well 
advanced entering its final stage. Our best 
estimate is that this will conclude within 
the next few months. We have appointed 
Argon Medical Devices (‘Argon’) as our 
partner in this important territory and  
have signed heads of agreement with an 
additional major monitor sales organization 
in order to fully access the Japanese 
market, which is the second biggest  
market for hemodynamic monitoring in the 
world. Minimally invasive hemodynamic 
monitoring is becoming well established  
in Japan and the Board believes that the 
Japanese hemodynamic monitoring 
high-risk surgery market has a potential 
market value of US$285 million per annum.
Excellent performance 
  in a year of mixed economic conditions across our markets
Our relationship with Argon brings 
additional benefits to both parties. In March 
2011 we were appointed by Argon as the 
exclusive distributor for certain of their 
critical care disposable products in the UK. 
We started selling these products in June 
2011. Sales have grown well and now 
provide an additional regular monthly 
disposable income and profit contribution. 
LiDCO has a substantial and effective sales 
and distribution presence in the UK 
hospital market that can be further 
leveraged in this way. 
In the USA we continue to work closely 
with the Respiratory and Monitoring 
division of our US distribution partner 
Covidien. Considerable efforts are being 
made by Covidien to promote LiDCOrapid 
products through sales activities, sponsored 
workshops and satellite symposia. Covidien 
has achieved its monitor sales minimums  
in the first two years of our collaboration. 
We are working closely with them and their 
US customers to further develop the US 
market for surgical hemodynamic 
monitoring. We have a licence from 
Covidien to include their depth of 
anesthesia parameter into our monitor.  
The progressive engagement of Covidien’s 
large sales force, coupled with our  
closer collaboration through parameter 
integration, should help foster the 
relationship and help drive sales over  
the next few years.  10
LiDCO Annual Report
2011/12
Chief Executive Officer’s statement continued
Revenue and trading
Revenues were up by 14% to £7.12 million 
(2010/11: £ 6.24 million), with particularly 
good growth seen in disposable income 
£5.02 million (2010/11: £3.68 million). The 
seven year adjusted installed monitor base 
rose to 2,189 units (610 LiDCOplus; 1,579 
LiDCOrapid) up by a net 188 (9%) units in the 
year. LiDCOrapid monitors have become the 
majority (72%) of our installed base just over 
three and a half years since launch. Although 
the installed base grew the number of 
monitors sold was less than in the prior year 
(364 vs. 524). The majority of this shortfall 
reflected lower monitor sales to Covidien  
(185 vs. 300) – the consequence of the 
unfavourable phasing of orders across the 
period. LiDCOrapid disposable sales in the US 
were similarly affected by the order phasing. 
We have now agreed regular quarterly 
shipments of monitors and disposables that 
will even out variances for comparisons made 
across periods. Sales to Europe were steady 
with overall growth being held back by lower 
sales to some southern European territories. 
LiDCO disposable income outside of the  
USA of £2.89 million was up 17% and was 
predominantly driven by LiDCOrapid  
smart card sales which were overall up a very 
commendable 107% to 17,750 units. Looking 
ahead we expect sales in the UK, Middle East, 
USA (Covidien), Japan and northern and 
eastern Europe to progress during 2012, 
particularly for the LiDCOrapid business. 
During the year the Company entered into 
an agreement to distribute Argon’s critical 
care product lines in the UK. Handling 
Argon’s and later ICU Medical’s product 
sales in the UK allows us to offer a more 
comprehensive offering to customers. Sales 
over the eight months of Argon’s products 
were £1.21 million and, although at a lower 
margin than our own products, provided 
income that helped offset the effect on 
profitability and cash flow of the order 
phasing differences seen during the period 
with Covidien. Argon sales are projected  
to increase significantly in 2012/13,  
as we will be reporting a full year’s revenue 
augmented with organic sales growth. 
Markets
UK 
Overall sales revenue growth was 57%  
to £3.7 million (2010/11: £2.36 million). 
Argon distribution revenue was £1.2 million 
(2010/11: nil). Monitor sales/placements  
in the period were higher at 66 units with 
monitor revenue of £471,000 (2010/11: 61 
units; £500,000). LiDCO disposable  
revenue was £2,024,000 up 12% (2010/11: 
£1,800,000). Sensor (12,310 units) and  
smart card (8,735 units) were up 5% and 
47% respectively, the latter reflecting strong 
growth in the high-risk surgery market 
segment of our business. Revenue from 
LiDCO disposables grew to 81% of total 
LiDCO product revenues (2010/11: 76%). 
The push by the NHS in England for full 
adoption of hemodynamic monitoring in 
surgery should help with more systematic 
use and wider adoption. We expect to be 
able to offer customers our new software 
with depth of anesthesia and the non-
invasive blood pressure module towards 
the end of 2012 in the UK. Given the push 
for adoption of intraoperative fluid and 
hemodynamic management and widening 
of the patient populations suitable for our 
products, the Board expects revenues to 
grow well in our domestic market during 
2012. In particular we are expecting good 
sales growth of our LiDCOrapid and Argon 
distribution businesses. 
USA
Sales to the USA of £1,788,000 were  
down by 24% (2010/11: £2,359,000). This 
was principally due to timing/phasing 
differences of bulk orders to Covidien  
(for both monitors and disposables)  
which affected comparisons across the two 
periods. In the prior year we had five bulk 
orders, compared with only three in the last 
reporting period. Monitor sales were down 
from £748,000 to £575,000 with disposables 
down to £923,000 (2010/11: £1,207,000). 
Revenues were also affected, but to a lesser 
extent by reduced sales of disposables  
in the older LiDCOplus sensor intensive  
care accounts where a number of  
these accounts have transitioned to  
the LiDCOrapid monitor instead. Sales to 
Covidien are predicted to grow this year 
following the move to more regularly 
spaced bulk order shipments.
Total UK revenues
up  
57% 11
LiDCO Annual Report
2011/12
Regional sales performance summary
UK
•  Total revenue up 57% to £3,701,000 (2010/11: £2,356,000)
• Monitor units sold: 66 with monitor revenue of £471,000 (2010/11: 61 units; £500,000) 
• Sensor and smart card revenue £2,024,000 up 12% (2010/11: £1,800,000)
• Sensor (12,310) and smart card (8,735) unit sales up 5% and 47% respectively
• Third party disposable sales £1,206,000 (2010/11: nil)
• Other income nil (2010/11: £55,000)
• LiDCO disposables as a percentage of LiDCO product sales: 81% (2010/11: 76%)
USA 
• Total revenue down 24% to £1,788,000 (2010/11: £2,359,000) 
• Revenue fall predominantly due to unequal phasing of Covidien bulk orders
• Monitor revenue down 23% to £575,000 (2010/11: £748,000)
• Sensor, smart card and fee for use sales down 24% to £923,000 (2010/11: £1,207,000)
• Licence fee income of £290,000 (2010/11: £404,000)
Continental Europe 
•  Total revenue steady at £853,000 (2010/11: £859,000)
• Monitor sales units 60 with revenue of £279,000 (2010/11: 75 units; £320,000)
• Sensor/smart card sales revenue £574,000 (2010/11: £539,000)
• Sensors/smart card units 9,445 vs. 7,230 up 31%, sensors up 4%, smart card up 83%
Rest of World and Licence Fee Income
•  Total revenue up 17% to £780,000 (2010/11: £664,000)
• Monitor sales units 50 vs. 83, with revenue down £240,000 (2010/11: £385,000)
• Sensor/smart card sales revenue up by 115% to £290,000 (2010/11: £135,000)
• Sensors/smart card units 5,700 vs. 1,435 up 297%, sensors down 7%, smart card up 2021%
• Licence fee income of £250,000 (2010/11: £144,000)
Business review – summary table
 Year to Year to Increase/ Increase/
 31 Jan 2012 31 Jan 2011 (decrease) (decrease) %
Revenue by type (£’000)    
– Monitors 1,565 1,953 (388) (20%)
– LiDCO disposables 3,811 3,681 130 4%
– Third party disposables 1,206 0 1,206
– Licence fees 540 603 (63) (10%)
– Total revenues 7,122 6,237 885 14%
Monitors (Units)  364 524 (160) (31%)
Sold 353 515 (162) 
Placed 11 9 2 
Sensor, smart card and  
Fee per use sales (units) 50,595 47,938 2,657 6%
Monitor base (7 year net) 2,189 2,001 188 9%
Continental Europe
Total revenue in Continental Europe was 
steady at £853,000 (2010/11: £859,000). 
Monitor sales revenue was £279,000 
(2010/11: £320,000) and disposables sales 
were up by 6% to £574,000 (2010/11: 
£539,000). Strong growth in sales of 
LiDCOrapid disposables was seen with units 
up by 83% to 4,455 units. Sales prospects  
in Europe remain quite challenging in the 
southern territories. In the countries where 
economies are stronger and we have 
successful distributors we expect to see 
continued progress. 
Rest of World
Total revenues we up 17%. In June 2011 the 
Company signed an agreement in Japan 
with Argon Medical Devices, as previously 
noted above. Outside of Japan, we have 
made good progress in both the Middle 
East and Brazilian markets. 12
LiDCO Annual Report
2011/12
Chief Executive Officer’s statement continued
Margins achieved on LiDCOplus sensors 
remained steady at 86% and LiDCOrapid 
smart cards increased marginally to 94% 
(2010/11: 93%).
Unit sales of LiDCOrapid smart cards rose 
by 9% overall. Excluding the US where 
there were reduced sales caused by the 
phasing of orders, smart card unit sales 
increased by 107%. In the UK, total 
disposable unit sales increased by 20% with 
smart cards increasing by 47%. In the UK 
where we have detailed usage information, 
the average use rate remained steady at  
4.7 uses per monitor per month but with 
use in some hospitals as high as 20 uses  
per monitor per month.
Total overheads increased by £85,000 (2%) 
compared with the previous year.
Taxation
Although the Company continues to 
benefit from research and development  
tax credits the receipt of these in cash  
is reducing as the Company approaches 
profitability and the credit of £60,000 this 
year is likely to be the last received in cash. 
The Company has a deferred tax asset of 
£5.3 million although this has not been 
recognised in the accounts.
Cash, financing and working capital
To mitigate against the effect of end of life 
notices being issued by manufacturers on 
some monitor components, the Company 
placed larger than normal forward orders 
for monitors as noted in last year’s financial 
statements. This resulted in an increase  
in inventories during the year of £302,000.  
It is anticipated that these forward monitor 
orders will be absorbed into normal  
trading in 2013. This increase in inventories 
together with shorter-term working capital 
movements and an increase in fixed assets 
resulted in a net cash outflow before 
financing activities of £582,000 (2010/11: 
£433,000).
In January 2012, the Company entered into 
a sale and leaseback financing arrangement 
in respect of 77 upcharge monitors in the 
UK resulting in a cash inflow of £518,000 
repayable in equal instalments over three 
years. These funds are to finance the costs 
for licensing and development of the 
continuous non-invasive blood pressure 
technology project with CNSystems 
Medizintechnik AG, which was announced 
on 9 January 2012, and the increase in 
inventory. Cash balances at 31 January 
2012 totalled £1,553,000 (2010/11: 
£1,404,000). Cash net of the overdraft facility 
was £1,341,000 (2010/11: £1,404,000). The 
Board anticipates that this will be sufficient 
to see the Company through to profitability 
and positive cash flow. 
Expenditure on intangible assets in the  
year of £453,000 was broadly similar  
to the previous year. This will increase 
significantly during 2012/13 as a result  
of the continuous non-invasive blood 
pressure technology project noted above. 
FINANCIAL REVIEW
Operating results 
Turnover increased by 14% to  
£7.12 million (2010/11: £6.24 million). 
Operating losses decreased 
significantly by 90% to £49,000 
(2010/11: £498,000). The Company 
produced its maiden profit after tax 
of £15,000 (2010/11: loss £390,000) 
and earnings per share of 0.01p 
(2010/11: loss 0.22 pence).  
Exports fell by 12% to £3.42 million 
(2011/12: £3.89 million) largely the 
result of reduced sales to the US 
caused by the phasing of orders  
to Covidien. Exports represented 
48% of turnover. 
During the year a total of 364 monitors 
(2010/11: 524 monitors) were sold or 
placed. The seven year installed base  
of monitors at the year end was 2,189 
(2010/11: 2,001) representing a net increase 
in the year of 9% or 188 monitors. The 
installed base includes demonstration and 
evaluation monitors sold to distributors. 
The monitors sold/placed in the year 
comprised 310 LiDCOrapid monitors 
(2010/11: 474) and 54 LiDCOplus monitors 
(2010/11: 52) including 11 (2010/11: 9) 
being placed.
Recurring revenues from the sales of LiDCO 
disposables, service contracts and fees  
for use increased by 4% to £3.81 million 
(2010/11: £3.68 million). Including third 
party disposables, recurring revenue 
increased by 36% and represented 70% 
(2010/11: 59%, though it should be noted 
there were no third party disposable sales 
last year) of total revenues. The number  
of LiDCO disposables sold increased by 6%  
to a milestone 50,595 (20010/11: 47,938).
The average product margin across all 
LiDCO products after external procurement 
costs increased during the period from 76% 
to 80%. This was largely the result of mix 
variance compared with the prior year  
with an increased proportion of disposable 
sales and licence revenue, which have a 
higher margin than monitor sales. Future 
profitability will significantly depend on 
margins achieved on disposables and these 
have remained high during the year.  13
LiDCO Annual Report
2011/12
Expenditure on plant property and 
equipment was £292,000 (excluding the 
effect of the sale and leaseback of the 
upcharge monitors). Of this £211,000 was 
in respect of medical monitors used for 
demonstration purposes, upcharge and 
clinical trials and product development.
PRODUCT DEVELOPMENT 
Hemodynamic monitoring is a key part  
of an effective surgical care pathway for 
high-risk surgery patients. Better outcomes 
can be achieved through more balanced 
fluid, drug and anesthetic use in patients. 
Research will continue to further refine  
and quantify the most effective approaches 
for treating these high-risk surgery  
patients. LiDCO is the sole hemodynamic 
monitoring technology used in two of the 
world’s biggest multi-center trials of their 
kind: OPTIMISE (in the UK) and MOnIToR  
(in the USA). Both trials are progressing well 
with 371 patients recruited in the MOnIToR 
trial and over 400 in the OPTIMISE trial. 
In September 2011, the Company was 
informed by the European Patent Office  
of the intention to grant our European 
patent protecting the novel Graphical  
User Interface (GUI) features that we believe 
help make the LiDCOrapid unique and easy 
to use. The broadening of our patented 
intellectual property into the display is a 
significant development. We are delighted 
that key aspects of our software can be 
protected in this way and have also applied 
for additional patent protection for 
developments that will be part of our 
multi-parameter software. 
Parameter convergence pathway  
for high-risk surgery 
LiDCO is committed to monitor integration 
and parameter convergence that will 
realize the full potential for our PC monitor 
hardware platform. We believe that 
customers require total monitoring 
solutions, ie complete products that  
can replace the multiple existing single 
parameter monitors, and that convergence 
creates more effective monitoring devices. 
The new LiDCOrapid software, that is 
currently being developed, will allow the 
connection of two modules that effectively 
integrate Covidien’s depth of anaesthesia 
and CNSystem’s non-invasive blood 
pressure technology. The non-invasive 
blood pressure module will provide 
continuous data from a simple to use dual 
finger sensor. Combined hemodynamic 
and depth of anesthesia monitoring will 
help anesthetists limit and control the fall  
in blood pressure and blood flow seen after 
anesthetic induction. The technology will 
be quick to set-up, completely non-invasive 
and usable in the more than 80% of surgery 
patients who do not have an existing 
arterial blood pressure catheter. The 
addition of this technology potentially 
doubles the number of major surgery 
patients suitable for fluid and 
hemodynamic monitoring and should 
increase disposable use in both the existing 
and future installed base of LiDCOrapid 
14% increase in turnover
monitors. It has been estimated that 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. 
Intensive care 
Regarding the Company’s intensive care 
product, the LiDCOplus, we expect to 
significantly update the monitor software  
(v 4.02). This will involve updating the 
operating system, adding the arterial line 
blood pressure module option and further 
improving ease of use and calibration 
methodology.
Outlook
This has been an exciting and very 
productive year, and with our broadening 
corporate partnerships we are very well 
placed for the future. The increasing levels 
of adoption within the NHS, along with  
our planned expansion into Japan,  
together with the forthcoming product 
developments give us confidence for 2012 
and beyond.
Terry O’Brien
Chief Executive Officer
23 April 2012 14
LiDCO Annual Report
2011/12
Board of Directors and Company Secretary
Theresa Wallis
Non-Executive Chairman
Dr Terence O’Brien
Chief Executive Officer 
John Barry
Sales and Marketing Director 
Paul Clifford
Finance Director
Ian Brown
Non-Executive Director
John Rowland
Company Secretary 15
LiDCO Annual Report
2011/12
Theresa Wallis
Non-Executive Chairman
Ms Wallis has worked most of her career  
in financial services, moving into the 
technology commercialisation sector in 
2001. She worked for the London Stock 
Exchange for 13 years, where from 1995  
she was chief operating officer of AIM, the 
market for smaller growing companies, 
having managed the market’s development 
and launch in 1994/5. From 2001 to end 
2006 she was a principal executive of 
ANGLE plc, a venture management and 
consulting business focusing on the 
commercialisation of technology.  
Since 2001 she has held a number of 
non-executive directorships and she  
is currently a non-executive director  
of Special Products Limited. She is also  
a member of the Quoted Companies 
Alliance’s Executive Committee. 
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. Over the  
last 25 years Dr O’Brien has been involved 
in the research and development and 
subsequent marketing of a number of 
medical device technologies that are now 
standards of care in the anesthesia, critical 
care and surgery markets.
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. 
Paul Clifford
Finance Director
Mr Clifford qualified as a chartered 
accountant with Touche Ross (now Deloittes) 
in 1975. He joined the Group in April 2008 
having spent 28 years in finance positions 
in technology companies. In 1991 he  
co-founded BCS Computing Limited,  
a private equity backed concern investing 
in computer software companies. He became 
finance director of software group, Comino 
in 1996, prior to its flotation on AIM in 1997. 
In 2006, Comino was acquired by AIM 
quoted Civica plc and Mr Clifford became 
finance director of Civica UK Limited,  
its £80m turnover main operating subsidiary, 
leaving in 2008. Mr Clifford is also  
a non-executive director of AIM quoted 
Prologic plc.
Ian Brown
Non-Executive Director
Mr Brown has over 25 years’ experience  
in the medical devices industry and has 
extensive experience of developing and 
introducing new medical devices to the 
market in the UK and overseas. Between 
1986 and 2003, he was an executive 
director and shareholder in a medical 
device start-up company (Novamedix 
Group), initially as sales and marketing 
director and later as managing director.  
The company was progressively sold  
to a major US healthcare group (Ofix).  
In his early career, Mr Brown worked in  
a number of UK and international sales and 
marketing positions for Johnson & Johnson, 
Smiths Industries and Pharmacia AB.
John Rowland
Company Secretary
Mr Rowland joined the Group in October 
2007 qualifying as a Chartered Secretary  
in 1983. Prior to joining the Group he was 
Group Company Secretary of Robert Dyas, 
the high street retailer, between 2000 and 
2007 and remains a trustee of their pension 
scheme. He has also served as Company 
Secretary of Aegis Group plc and The 
Birkdale Group plc both media companies 
and as an Assistant Company Secretary  
of National Westminster Bank PLC.  
Mr Rowland has previously held senior 
positions with Gestetner Holdings plc  
and Raybeck plc.
Dr Max Jonas
Dr Jonas is a Consultant Intensivist and Senior 
Lecturer in critical care working at Southampton 
University Hospitals. He is currently the Director 
of the 28 bed general intensive care unit and  
has specific interests in hemodynamics and the 
assessment of monitoring equipment. He is an 
elected member of the Council of the Intensive 
Care Society and has completed a six year term  
of the technology assessment section of the 
European Society of Intensive Care Medicine.  
He is the ex-president of the Society of Critical 
Care Technologists.
Professor Michael Pinsky
Professor Pinsky is Professor of Critical Care 
Medicine, Bioengineering, Cardiovascular Diseases 
and Anesthesiology at the University of Pittsburgh 
School of Medicine, USA and is a member of the 
editorial board of the Journal of Critical Care and 
Critical Care Forum. He is editor-in-chief of the 
eMedicine textbook Critical Care Medicine. He was 
awarded Docteur honoris causa from the Université 
de Paris V (Le Sorbonne). He has a wide range  
of research interests – among them being the 
study of heart-lung interactions, hemodynamic 
monitoring, cardiovascular physiology, sepsis and 
outcomes research. He is a world leading authority 
on the application of both existing invasive, and  
the more recent introduced minimally invasive, 
monitoring technologies.
Dr Christopher Wolff
Dr Wolff holds the post of senior research fellow 
at The Centre for Clinical Pharmacology, The William 
Harvey Research Institute, Bart’s and London Queen 
Mary School of Medicine and Dentistry, London.  
He is a clinician, physiologist and mathematician 
and has major research interests in respiratory and 
cardiovascular physiology.
Dr David Band
Dr Band was appointed to the Clinical Group  
in April 2011. He co-founded LiDCO in 1991,  
is the co-inventor of the LiDCO system and until 
April 2011 was the Group’s Scientific Director.  
He is a specialist in the field of respiratory 
physiology, electrochemistry and ion-selective 
electrodes. He has a degree in medicine and was 
a reader in applied physiology in the Division  
of Physiology, GKT School of Biomedical Sciences, 
St Thomas’ campus.
Clinical Advisory 
Group 16
LiDCO Annual Report
2011/12
The UK Corporate Governance Code
Companies that have shares traded on AIM, the London Stock Exchange’s market for smaller growing companies, are not required to comply 
with the UK Corporate Governance Code. However, the Board is committed to maintaining the highest standards of corporate governance, where 
appropriate for a company of its size.
The Board of Directors
The Board currently consists of three executive and two non-executive directors. Biographies of the directors are provided on page 15. There  
is a clear division of responsibilities between the Chairman and the Chief Executive and their roles have been set out in writing and agreed  
by the Board.
The non-executive directors are Theresa Wallis (Chairman) and Ian Brown (Senior Independent Director). The non-executive directors bring  
a wide range of skills and experience to the Board. The Board considers that the non-executive directors are independent although Ms Wallis‘s 
term now exceeds nine years (she was appointed in December 2002).
During the current year, the Board intends to review its composition following a review of the organisational structure of the business being 
undertaken to optimise the next phase of the Group’s growth.
There were ten Board meetings during the year. The attendance of the individual directors at the Board Meetings and the Audit and 
Remuneration Committee Meetings were as follows:
Attendance record at Board meetings and Committees
  Board Audit Remuneration Nomination
Name Position Meetings Committee Committee Committee
Ms T A Wallis Non-executive Chairman 10(10) 2(2) 7(7) n/a
Dr T K O’Brien Chief Executive Officer 10(10) n/a n/a n/a
Mr P L Clifford  Finance Director 10(10) n/a n/a n/a
Dr D M Band* Scientific Director  2(3) n/a n/a n/a
Mr J G Barry Sales and Marketing Director 10(10) n/a n/a n/a
Mr I G Brown Non-executive Director 10(10) 2(2) 7(7) n/a
*Dr Band resigned as Scientific Director on 15 April 2011.
 
Numbers in brackets denote the total number of meetings during the year.
All the directors have access to the advice and services of the Company Secretary, whose appointment and removal is a matter for the Board  
as a whole. All directors are able to take independent advice in the furtherance of their duties, if necessary, at the Company’s expense.  
The Company Secretary supports both the Board and the Committees. 
Under the Company’s Articles of Association, 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. 
 
Board evaluation and performance
In February 2012, the Board carried out an evaluation of the performance, functioning and composition of the Board and its Committees.  
This involved each director reviewing information and completing an evaluation questionnaire, the results of which were collated and discussed 
by the Board and actions were agreed. It is the Board’s intention to continue to review annually its performance and that of its Committees.
Corporate Governance  17
LiDCO Annual Report
2011/12
Committees of the Board
Audit Committee
The members of the Committee are Ms Wallis (Chairman) and Mr Brown. The external auditors also attend meetings. The Committee considers 
financial reporting 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 financial statements before they are submitted for approval 
by the Board. The Committee met twice during the year. The Committee considers annually whether the auditors remain independent for the 
purposes of the audit. This year the fee for non-audit work is £8,000 against an audit fee of £44,000. The Committee is satisfied that the auditors 
remain independent for the purposes of the annual audit. The Committee considers that given the size of the Company and its current stage 
of development a separate internal audit function is not required, but the matter is re-considered annually by the Committee. 
Remuneration Committee
The members of the Committee are Ms Wallis (Chairman) and Mr Brown. The Committee reviews and sets the remuneration of the executive 
directors. It also reviews the policy for the salaries and bonuses of all other staff. It advises on share schemes and approves the granting  
of share options. The Committee met seven times during the year.
Nomination Committee
The members of the Committee are Ms Wallis (Chairman), Mr Brown and Dr O’Brien. 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. The Committee did not meet 
during the year.
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 public announcements to the market on technological and commercial progress. 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 or performance of the Company.
The Chief Executive, Finance Director and Chairman meet regularly with shareholders and the investing community and report to the Board 
feedback from those meetings. Both non-executive directors have the opportunity to attend shareholder meetings. The Board is kept informed 
on market views about the Company.  18
LiDCO Annual Report
2011/12
Corporate social responsibility statement
The Company recognises the importance of Corporate Social Responsibility. 
At the core of LiDCO are its medical products for hemodynamic monitoring which have been developed over a number of years and continue 
to be developed. The original objective of the design of these products was to translate specialist physiological parameters and principles into 
useable information and tangible protocols to improve clinical outcomes. The Company has been successful in achieving this objective and its 
products, which are used in hospitals in many parts of the world, are life saving and help surgeons to improve the outcome of clinical 
operations for the benefit of the patient both during and after surgery and help hospitals to reduce their costs.
LiDCO works with its employees, customers and suppliers to conduct its business in an ethical way. The Company is of a relatively small size but 
growing and thus the Company’s commitment to Corporate Social Responsibility is dynamic and is reviewed when considered appropriate. 
Employees 
The Company recognises that an essential part of its continued success is the support and involvement of its employees.
•	 	 E ff ec tiv e	communication	is	essential	t o	ensur e	its	emplo y ees	ar e	fully	engaged	with	the	business .	 T he	senior	management	t eam	meets	
regularly throughout the year as a forum to discuss interdepartmental issues and briefing sessions are also held by the Chief Executive  
to update employees on Company progress, strategy and objectives.
•	 Emplo y ees	ha v e	annual	appraisals	t o	set	objec tiv es ,	identify	str engths	and	ar eas	f or	de v elopment.
•	 T raining	is	pr o vided	wher e	necessar y	t o	enhance	job	per f or mance	and	aid	de v elopment.
•	 T he	C ompan y	has	a	shar e	option	scheme	with	a	high	le v el	of	emplo y ee	par ticipation.
•	 T he	C ompan y	r egular ly	r e vie ws	the	benefits	off er ed	t o	emplo y ees .
Environment 
Whilst not of substantial impact compared with many other manufacturing industries, nevertheless the Company recognises its activities have 
an impact on the environment and acknowledges its responsibility to ensure this is minimised.
•	 	 I n	accor dance	with	the	r equir ements	of	the	 W ast e	Elec tr ical	and	Elec tr onic	E quipment	R egulations	( WEEE),	the	C ompan y	has	sig ned	 
up to a compliance system to recycle and dispose of electrical equipment waste.
•	 Wher e	possible ,	other	pr oduc ts	ar e	r ec y cled	within	the	C ompan y .
•	 P aper ,	car dboar d	and	ink	car tr idge	r ec y cling	collec tion	facilities	ar e	in	place	in	L ondon	and	C ambr idge .
•	 R edundant	comput er	equipment	is	off er ed	t o	emplo y ees	or	disposed	of	in	accor dance	with	good	prac tice .
•	 C ompan y	pur chased	v ehicles	ar e	run	on	diesel	fuel	f or	fuel	efficienc y .
•	 	 T he	C ompan y	continually	r e vie ws	the	chemicals	it	uses	in	its	manufac tur ing	pr ocesses	with	the	aim	of	using	the	least	t o xic	and	most	
environmentally friendly products commensurate with producing high quality products.  19
LiDCO Annual Report
2011/12
Ethics and Values
•	 	 T he	C ompan y	desig ns	and	manufac tur es	lif e	sa ving	pr oduc ts	which	help	clinicians	t o	impr o v e	the	out come	of	clinical	operations	f or	the	
benefit of patients both during and after surgery and helps hospitals to reduce their costs.
•	 	 T he	C ompan y	aims	f or	all	emplo y ees	t o	ha v e	job	satisfac tion,	a	saf e	and	secur e	w or k ing	en vir onment,	the	f eeling	that	their	achie v ements	
are recognised and an opportunity to develop their full potential.
•	 T he	C ompan y	r ecog nises	cust omer	needs	f or	a	high	le v el	of	cust omer	ser vice	and	qualit y	of	its	pr oduc ts ,	at	the	r ight	pr ice .
Health and Safety
•	 	 A s	a	pr oducer	of	medical	pr oduc ts	the	C ompan y	operat es	in	a	highly	r egulat ed	en vir onment	and	is	subjec t	t o	r egular	inspec tion	and	audit.
•	 	 T he	C ompan y	uses	an	ex t er nal	specialist	t o	advise	on	its	health	and	saf et y	polic y	and	prac tice .	Str ingent	pr ocedur es	ar e	in	place	in	ar eas	 
of the Company where risks are apparent, and the Company provides a physically safe working environment, training, protective clothing 
and equipment to all employees who undertake their duties. 
•	 	 All	C ompan y	car	dr iv ers	ar e	pr o vided	with	a	full	dr iving	r isk	assessment	and	training	upon	joining ,	and	a	fur ther	paper	based	r isk	assessment	
is completed every three years.
•	 Health	and	saf et y	matt ers	ar e	r egular ly	r e vie w ed	at	Boar d	meetings .	
Shareholders
The Company aims to treat its stakeholders in a responsible manner. It maintains regular contact with its major shareholders to explain 
developments in the business and all shareholders are invited to question management at the Annual General Meeting. See also ‘Relations 
with Shareholders’ in the Corporate Governance Report on page 17.  20
LiDCO Annual Report
2011/12
Directors’ remuneration report
The directors present their Remuneration Report which covers the remuneration of both the executive and non-executive directors.  
The report will be subject to shareholder vote at the forthcoming Annual General Meeting in June 2011.
Committee membership
The membership of the Remuneration Committee is made up of the following non-executive directors:
T A Wallis (Chairman)
I G Brown 
Neither of the Committee members has any day-to-day involvement in the running of the Company, nor do they have any business or other 
relationship that could affect, or appear to affect, the exercise of their independent judgement, other than as shareholders. No director plays  
a part in any decision about his or her own remuneration.
Remuneration policy 
The Committee determines on behalf of the Board, the remuneration for the executive directors and reviews remuneration policies for all 
employees. 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 to ensure the future success of the business and to deliver shareholder value. This is achieved by a combination 
of base salary, bonuses and share options, which are offered to executive directors and employees at all levels. The Committee met seven 
times in the year.
Base salary
All executive directors receive a base salary and, if appropriate, an allowance in lieu of benefits. The salary reflects the experience, level  
of competence and days worked of the individual to whom it applies, as judged by the Committee, taking into account salary levels  
in the market.
Annual bonus
The executive directors who served during the year are members of the Company’s Senior Management Bonus Scheme. Under the terms  
of the Scheme, the Remuneration Committee assesses the directors’ individual performances soon after the end of the financial year, judged 
against pre-determined targets. 
The criteria for awarding bonuses during the year included corporate and individual objectives. The principal corporate financial objective  
on which the directors are judged is operating profit/loss. Bonuses are capped at 50% of base salary. 
Remuneration policy of the non-executive directors
The Board determines the remuneration of the non-executive directors. The non-executive directors do not participate in the Group’s share 
option schemes and are not eligible for annual incentive payments or benefits in kind.
  21
LiDCO Annual Report
2011/12
Remuneration of directors
 Year ended 31 January 2012 
  Allowance
 Salary in lieu of
 and fees benefits Benefits Bonus Total 2011
 £’000 £’000 £’000 £’000 £’000 £’000
T A Wallis 44  – – – 44 44
T K O’Brien 191 38 2 33 264 246
J G Barry 180 36 4 33 253 233
P L Clifford 109 20 1 17 147 128
D M Band* 24 5 – – 29 58
I G Brown 29 – – – 29 29
Total 577 99 7 83 766 738 
* Dr Band resigned as Scientific Director on 15 April 2011.
Contracts of service
Details of the service contracts currently in place for the directors who have served during the year are as follows:
Executive directors
The service contracts of Dr O’Brien and Mr Barry are dated 29 June 2001 and are not set for a specific term but include a rolling 12 months’ 
notice period. Mr Clifford, who is part-time, has a service contract with the Company dated 21 April 2008; as with the other executive directors, 
this is not for a specific term, but includes a rolling six months’ notice period. 
 
Non-executive directors
The non-executive directors do not have service contracts with the Company. The letter of appointment for each non-executive director states 
that they are appointed for an initial period of three years. At the end of the initial period, the appointment may be renewed for a further  
period if the Company and the director agree. In keeping with best practice, these appointments are terminable without notice by either  
party. During the year the appointments of Ms Wallis and Mr Brown were renewed for a period of one year. The Chairman’s appointment is for  
a term ending 19 December 2012 and Mr Brown’s appointment for a term ending 11 October 2012.
  22
LiDCO Annual Report
2011/12
Directors’ remuneration report
continued
Directors’ interests in share options
Options were granted to the executive directors as follows: 
    Options      
  Options  granted Exercised Lapsed Options at   
  at 31 Jan Date of during during during 31 Jan Exercise Exercisable Expiry
Name Option type 2011 grant 2011 2011 the year 2012 price (p) from date 
T K O’Brien EMI  750,000 Dec-2002     750,000 13.00 Dec-2005 Dec-2012
 EMI  11,627  Apr-2005     11,627 21.50 Apr-2008  Apr-2015
 Unapproved  265,768  Apr-2005     265,768 21.50 Apr-2008  Apr-2015
 EMI  150,000 May-2009     150,000 12.67 May-2012 May-2019
  1,177,395   Nil Nil Nil 1,177,395   
          
J G Barry Unapproved  106,250  July-2001  (106,250)   Nil  0.50 July-2004  Jul-2011
 Unapproved  211,000  Dec-2002     211,000 13.00 Dec-2005  Dec-2012
 EMI  539,000  Dec-2002     539,000 13.00 Dec-2005  Dec-2012
 Unapproved  90,000  Nov-2003     90,000 28.25 Nov-2006  Nov-2013
 Unapproved  356,844  Apr-2005     356,844 21.50 Apr-2008  Apr-2015
 Unapproved  192,436  Apr-2005     192,436 22.00 Dec-2005  Apr-2015
 Unapproved  328,539  Apr-2005     328,539 22.00 Apr-2006  Apr-2015
 Unapproved  656,903  Apr-2005     656,903 22.00 Sep-2006  Apr-2015
 EMI  136,045  Apr-2005     136,045 22.00 Dec-2005  Apr-2015
 Unapproved  45,000  Jun-2006     45,000 21.00 Jun-2009  Jun-2016
 Unapproved  75,000  Jun-2007     75,000 12.50 Jun-2010  Jun-2017
 Unapproved  83,333  Apr-2008     83,333  7.50 Apr-2011  Apr-2018
 EMI  266,667  Apr-2008     266,667  7.50 Apr-2011  Apr-2018
 Unapproved  150,000 May-2009     150,000 12.67 May-2012 May-2019
 Unapproved  100,000   Jun-2010      100,000 19.92 Jun-2013  Jun-2020
 Unapproved  Apr-2011 150,000    150,000 15.00 Apr-2014  Apr-2021
  3,337,017  150,000 (106,250) Nil 3,380,767   
          
P L Clifford Approved 66,000  Apr-2008     66,000  7.50 Apr-2011 Apr-2018
 Approved 75,000 May-2009      75,000 12.67 May 2012 May-2019
 EMI 100,000  Jun-2010      100,000 19.92 Jun-2013  Jun-2020
 EMI   Apr-2011   478,650    478,650 15.00 Apr-2014  Apr-2021
  241,000  478,650 Nil Nil  719,650   
Totals  4,755,412  628,650 (106,250)  5,277,812   
The share price was 18.75p on 1 February 2011 and 14.00p on 31 January 2012, with high and low during the year of 18.75p and  
14.00p respectively.
  23
LiDCO Annual Report
2011/12
Pensions
No pension contributions were payable by the Group during the year. (2010/11: £nil).
Shareholder return
The graph below shows the share price performance since January 2007, using the FTSE TechMARK Mediscience Index as a comparator,  
which the directors consider to be a suitable benchmark index.
Theresa Wallis
Chairman of the Remuneration Committee
23 April 2012
30
25
20
15
10
5
0
LiDCO Ord 0.5p
TechMARK
MediScience 
Index rebased
31 Jan
2007
31 Jan
2008
31 Jan
2009
31 Jan
2010
31 Jan
2011
31 Jan
2012 24
LiDCO Annual Report
2011/12
Directors’ report
The directors of LiDCO Group Plc present their annual report and audited financial statements (Annual Report) for the year ended  
31 January 2012.
Principal activities, business review and business risks
The principal activity of the Group is the development, manufacture and sale of cardiac monitoring equipment.
The Chairman’s statement, the Chief Executive Officer’s Statement and Corporate Social Responsibility Statement form part of this  
business review.
The Directors consider the key commercial risks and uncertainties associated with the business are:  
The Group employs about 40 people and recognises that its success depends on the calibre of all its employees and ensuring that their 
productivity is maximised. The company therefore maintains programmes for recruiting, appraising, training and motivating employees.  
The risk of underperformance is mitigated by selecting and adopting systems and processes needed to develop realistic plans and budgets 
and then closely monitoring performance against those plans. 
The Group has generated a valuable portfolio of proprietary intellectual property and its success and value depend to a significant extent  
on this. The Company mitigates the risk of a weakening of its intellectual property position through securing and maintaining patents for its 
products, maintaining confidentiality agreements regarding its know-how and regularly reviewing where opportunities might exist to file new 
patent applications. 
The manufacture of the Group’s products relies on the supply of components from third parties; therefore the failure of suppliers or 
subcontractors to continue in business or meet their commitments constitutes a risk to continuity of supply. This is mitigated by maintaining 
good relationships with key suppliers in order to understand their capabilities and maintaining contracts and technical agreements as 
appropriate. Where possible, but with regard to cost, each type of component is obtained from multiple sources. The amount of critical 
components and materials held in stock is determined according to risk-based lead times which are regularly reviewed. 
The Group relies on distributors for its sales and marketing activities outside the UK. The Company mitigates the risk of distributor 
underperformance by selecting distributors with the requisite resources, skills, access to customers and creditworthiness and by providing 
training programmes and extensive support both in the initial phase following appointment and on an on-going basis. 
The key financial risk is the management and maintenance of sufficient cash balances to support the on-going development, supply and 
marketing of the LiDCO products. The Group mitigates this risk by the use of shareholders’ funds, overdrafts and finance facilities. In addition 
the Group seeks to maintain a high level of recurring revenues which reduces its reliance on the sale of capital equipment to its customers.
The Group’s performance is affected by hospitals’ expenditure and any, or developing, capital budgetary constraints, which the Company 
mitigates by targeting its efforts and resources according to sales opportunities where budgets are likely to be available and a wider 
geographic sales growth predominantly through its specialist distributor network.
 
Results and dividends
The Group’s revenue for the year was £7,122,000 (2010/11: £6,237,000). The Group made a consolidated profit after taxation of £15,000 
(2010/11: loss £390,000). The directors do not recommend the payment of a dividend (2009/10: £nil).
The Company’s share price at 31 January 2012 was 14.00p (2011:18.75p).
Research and development
The Group continued to develop the LiDCO products during the year. Details of the costs expended on research and development are set  
out in Notes 3 and 8 to the financial statements on pages 39 and 42 respectively. 
Share capital and share premium account
Full details of the authorised and issued share capital of the Company, together with details of the movements in the Company’s issued share 
capital and the share premium accounts during the year, are shown in notes 14 on page 47 and 4 on page 52 to the financial statements.  25
LiDCO Annual Report
2011/12
Directors
The directors of the Company who served during the year are set out below; short biographies are set out on page 15.
T A Wallis Non-Executive Chairman
T K O’Brien Chief Executive Officer
P L Clifford  Finance Director
D M Band (resigned 23/4/2011) Scientific Director
J G Barry Sales and Marketing Director
I G Brown Non-Executive Director
Mr Barry and Ms Wallis retire by rotation and, being eligible, offer themselves for re-election at the forthcoming Annual General Meeting. 
Directors’ remuneration
The Remuneration Report, which includes information regarding directors’ service contracts, appointment arrangements and interests in share 
options, can be found on pages 21 and 22.
Directors’ interests in shares
The directors who held office at 31 January 2012 had beneficial interests in the ordinary shares of the Company as shown below:
Directors’ shareholdings
 Ordinary shares of 0.5p each
 31 January 31 January
 2012 2011
 Number Number
T A Wallis  331,037 301,037
T K O’Brien 11,516,563 11,516,563
P L Clifford 600,000 575,000
J G Barry 475,139 429,642
I G Brown  200,000 200,000
The directors have no interests in the shares of the Company’s subsidiary undertakings.
Directors’ indemnities and Directors’ and Officers’ insurance
The Company has exercised the power given by shareholders at the 2006 Annual General Meeting to extend the indemnities to directors and 
officers against liability to third parties. The directors also have Directors’ and Officers’ insurance cover in place in respect of personal liabilities 
which may be incurred by directors and officers in the course of their service with the Company. 
Employment policy
Equal opportunity is given to all employees regardless of their gender, race or ethnic origin, religion, age, disability, or sexual orientation.
The Company’s policy is to encourage the involvement of all employees in the development and performance of the Group. Employees are 
briefed on the Group’s activities through meetings and discussions with management and all employees are encouraged to give their views  
on matters of common concern through the line management. A significant number of employees have share options. 
Supplier payment policy
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 Group’s average creditor payment 
period as at 31 January 2012 was 30 days. (2011: 41 days).  26
LiDCO Annual Report
2011/12
Directors’ report
continued
Significant shareholdings
As at 16 April 2012, the Company has been notified that the following shareholders, other than directors, had the following interest of 3%  
or more of the Company’s ordinary share capital: 
 Number of shares
 in which there Percentage
Shareholder is an interest notified
*
Ingalls & Snyder LLC 29,146,594 16.73%
Cheviot Asset Management Limited 13,543,736 7.77%
H J Leitch 13,177,489 7.56%
P A Brewer 11,724,727 6.73%
Liontrust Intellectual Capital Trust 10,913,411 6.26%
R M Greenshields 9,042,407 5.19%
D M Band 7,160,832 4.11%
Octopus Investments Limited 5,580,800 3.78%
* The percentages shown are based on the issued share capital at that date.
Directors’ responsibilities for the financial statements accounts
The directors are responsible for preparing the Annual Report and Group financial statements in accordance with applicable law and 
International Financial Reporting Standards as adopted by the European Union. The parent company financial statements have been prepared 
in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
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 and of the profit or loss of the Group for that period. In preparing those financial statements, the directors are 
required to:
•	 selec t	suitable	accounting	policies	and	then	apply	them	consist ently ;
•	 mak e	judgements	and	estimat es	that	ar e	r easonable	and	prudent;
•	 	 stat e	whether	applicable	accounting	standar ds	ha v e	been	f ollo w ed ,	subjec t	t o	an y	mat er ial	depar tur es	disclosed	and	explained	in	the	
financial statements; and
•	 	 pr epar e	the	financial	stat ements	on	the	going	concer n	basis	unless	it	is	inappr opr iat e	t o	pr esume	that	the	C ompan y	will	continue	 
in business.
Insofar as the directors are aware:
•	 ther e	is	no	r ele vant	audit	inf or mation	of	which	the	C ompan y ’ s	audit ors	ar e	una war e;	and
•	 	 the	dir ec t ors	ha v e	tak en	all	st eps	that	the y	ought	t o	ha v e	tak en	t o	mak e	themselv es	a war e	of	an y	r ele vant	audit	inf or mation	and	t o	establish	
that the auditors are aware of that information.
The directors are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position  
of the Company and enable them to ensure that the financial statements comply with the Companies Act 2006. 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.
The directors are responsible for the maintenance and integrity of the corporate and financial information included on the Group’s website. 
Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation  
in other jurisdictions. 27
LiDCO Annual Report
2011/12
Going concern
The Company’s business activities, together with a review of the market and the Company’s distribution channels are set out in the Chief 
Executive Officer’s Statement on pages 8 to 13. In addition, note 13 to the financial statements include the Company’s policies for managing  
its capital; its financial risk; details of its financial instruments; and its exposures to credit risk and liquidity risk.
The Company has a number of customers across different geographic areas and considerable recurring revenue streams through the sales  
of its disposable sensors and smart cards which represented 54% of its total revenues in the year to 31 January 2012. 
The Group finances its operations through shareholders’ funds, short term borrowings such as overdrafts and medium term borrowings such 
as finance leases. The directors have a reasonable expectation that the Company has adequate resources to continue in operational existence 
for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the annual financial statements.
Financial risk management
The Financial Risk Management objectives and policies of the Group, including the exposure to interest rate risk, liquidity risk and currency  
risk are set out in note 13 to the financial statements on pages 44 to 46.
Key Performance Indicators (KPIs) 
The Board monitors progress against the Group’s strategy and by reference to the KPIs, specifically revenue growth, gross margin and working 
capital levels. These KPIs have been addressed in the Chief Executive Officer’s Review and the Financial Review.
Internal controls, regulation and risk management
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 has implemented an organisational structure with clearly-defined responsibilities and lines of accountability.
Detailed budgets are prepared annually and progress against budget are reviewed monthly. Underpinning the monthly financial reporting  
is a system of internal control, based on authorisation procedures.
The adequacy of internal controls and the internal control structures was reviewed by the Board in April 2012.
As a medical device Company, LiDCO also has a system of regulatory controls, to ensure compliance with all requirements of the Medicines 
and Healthcare products Regulatory Agency (MHRA), the US Food & Drug Administration (FDA) and other medical bodies. During the year the 
Company was compliant with ISO13485 (Medical Devices – Quality Management Systems) and ISO 9001 (Quality Management Systems). 
The Board has established a process involving all departments for the comprehensive assessment of key risks to the business. The risk register 
is regularly updated and reviewed by the Board. Actions to mitigate risk are identified and agreed.
Auditors
A resolution to re-appoint Grant Thornton UK LLP as auditors and to authorise the directors to set their remuneration will be proposed at the 
forthcoming Annual General Meeting.
Annual General Meeting
The Notice to convene the Annual General Meeting of the Company to be held on Wednesday 13 June 2012 is set out on page 3 of the 
separate circular including an explanation of each resolution.
By order of the Board
John Rowland
Company Secretary
23 April 2012 28
LiDCO Annual Report
2011/12
Independent auditor’s report to the members of LiDCO Group Plc
We have audited the Group financial statements of LiDCO Group Plc for the year ended 31 January 2012 which comprise the consolidated 
comprehensive income statement, the consolidated balance sheet, the consolidated cash flow statement, the consolidated statement  
of changes in shareholders equity and the related notes. The financial reporting framework that has been applied in their preparation  
is applicable law and International Financial Reporting Standards (IFRSs) as adopted by the European Union.
This report is made solely to the Company’s members, as a body, in accordance with chapter 3 of part 16 of the Companies Act 2006. 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 auditor’s 
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 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 explained more fully in the Directors’ Responsibilities Statement, the directors are responsible for the preparation of the Group financial 
statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the Group 
financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require  
us to comply with the Auditing Practices Board’s (APB’s) Ethical Standards for Auditors.
Scope of the audit of the financial statements
A description of the scope of an audit of financial statements is provided on the APB’s website at www.frc.org.uk/apb/scope/private.cfm.
In our opinion the Group financial statements:
•	 g iv e	a	true	and	fair	vie w	of	the	stat e	of	the	Gr oup ’ s	affairs	as	at	31	Januar y	2012	and	of	its	pr ofit	f or	the	y ear	then	ended;	
•	 ha v e	been	pr oper ly	pr epar ed	in	accor dance	with	IFRS	as	adopt ed	b y	the	E ur opean	Union;	and
•	 ha v e	been	pr epar ed	in	accor dance	with	the	r equir ements	of	the	C ompanies	A c t	2006.
Opinion on other matter prescribed by the Companies Act 2006
In our opinion the information given in the Directors’ Report for the financial year for which the Group financial statements are prepared  
is consistent with the Group financial statements.
Matters on which we are required to report by exception
We have nothing to report in respect of the following:
Under the Companies Act 2006 we are required to report to you if, in our opinion:
•	 cer tain	disclosur es	of	dir ec t ors ’ 	r emuneration	specified	b y	la w	ar e	not	made;	or
•	 w e	ha v e	not	r eceiv ed	all	the	inf or mation	and	explanations	w e	r equir e	f or	our	audit.
Other matter
We have reported separately on the parent company financial statements of LiDCO Group Plc for the year ended 31 January 2012. 
Christopher Smith
Senior Statutory Auditor
for and on behalf of Grant Thornton UK LLP
Statutory Auditor, Chartered Accountants
London
23 April 2012 29
LiDCO Annual Report
2011/12
  Year Year
  ended ended
  31 January 31 January
  2012 2011
 Note £’000 £’000
Revenue 2 7,122 6,237
Cost of sales  (2,372) (2,021)
Gross profit  4,750 4,216
Administrative expenses  (4,799) (4,714)
Loss from operations 3 (49) (498)
Finance income  4 8
Finance expense  – –
Loss before tax  (45) (490)
Income tax 5 60 100
Profit/(loss) and total comprehensive income/(expense) for the year  
attributable to equity holders of the parent  15 (390)
Earnings/(loss) per share (basic and diluted) (p) 6 0.01 (0.22)
All transactions arise from continuing operations.
There were no items of other comprehensive income for the financial year.
Consolidated comprehensive income statement
For the year ended 31 January 2012
The accompanying accounting policies and notes form an integral part of these financial statements. 30
LiDCO Annual Report
2011/12
Consolidated balance sheet
At 31 January 2012
  2012 2011
 Note £’000 £’000
Non-current assets
Property, plant and equipment 7 1,055 513
Intangible assets 8 775 755
  1,830 1,268
Current assets
Inventory 9 1,349 1,047
Trade and other receivables 10 2,367 1,607
Current tax  60 109
Cash and cash equivalents  1,553 1,404
  5,329 4,167
Current liabilities
Trade and other payables 11 (1,210) (767)
Deferred income 11 (266) (74)
Borrowings 11 (388) (10)
  (1,864) (851)
Net current assets  3,465 3,316
Long term liabilities
Finance lease liabilities 12 (346) (4)
Deferred income 12 (317) –
  (663) (4)
Net assets  4,632 4,580
Equity attributable to equity holders of the parent
Share capital 14 871 870
Share premium  25,403 25,393
Merger reserve  8,513 8,513
Retained earnings  (30,155) (30,196)
Total equity   4,632 4,580
The financial statements were approved by the Board of Directors on 23 April 2012.
Theresa Wallis Terence O’Brien
Director Director
The accompanying accounting policies and notes form an integral part of these financial statements. 31
LiDCO Annual Report
2011/12
Consolidated cash flow statement
For the year ended 31 January 2012
 Year  Year
 ended  ended
 31 January 31 January
 2012 2011
 £’000 £’000
Loss before tax (45) (490)
Net finance income (4) (8)
Depreciation and amortisation charges 658 639
Share based payments 26 150
(Increase)/decrease in inventories (302) 47
(Increase)/decrease in receivables (760) 42
Increase in payables 443 164
Increase/(decrease) in deferred income 34 (540)
Income tax credit received 109 111
Net cash inflow from operating activities 159 115
Cash flows from investing activities
Purchase of property, plant and equipment (292) (127)
Purchase of intangible assets (453) (429)
Interest received 4 8
Net cash used in investing activities (741) (548)
Net cash outflow before financing (582) (433)
Cash flows from financing activities
Repayment of finance lease (10) (10)
Issue of ordinary share capital 11 1
Cash inflow from sale and leaseback arrangement 518 –
Net cash inflow/(outflow) from financing activities 519 (9)
Net decrease in cash and cash equivalents (63) (442)
Opening cash and cash equivalents 1,404 1,846
Closing cash and cash equivalents 1,341 1,404
Closing cash and cash equivalents comprises:
Cash balances 1,553 1,404
Overdraft (212) –
Closing cash and cash equivalents 1,341 1,404
The accompanying accounting policies and notes form an integral part of these financial statements. 32
LiDCO Annual Report
2011/12
Consolidated statement of changes in shareholders’ equity
For the year ended 31 January 2012
 Share Share Merger Retained Total 
 capital premium reserve earnings equity 
 £’000 £’000 £’000 £’000 £’000
At 1 February 2010 869 25,393 8,513 (29,956) 4,819
Issue of share capital 1 – – – 1
Share based payment expense – – – 150 150
Transactions with owners 1 – – 150 151
Loss and total comprehensive expense for the year – – – (390) (390)
At 31 January 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
Loss and total comprehensive income for the year – – – 15 15
At 31 January 2012 871 25,403 8,513 (30,155) 4,632
The share premium account represents the excess over the nominal value for shares allotted. 
The merger reserve represents a non distributable reserve arising from historic acquisitions.
The accompanying accounting policies and notes form an integral part of these financial statements. 33
LiDCO Annual Report
2011/12
Notes to the financial statements
For the year ended 31 January 2012
1  Principal Accounting Policies
The Group’s principal activity is the development, manufacture and sale of cardiac monitoring equipment. LiDCO Group Plc is the Group’s 
ultimate parent company. It is incorporated and domiciled in England & Wales and situated at the address shown on page 53. The Group’s 
shares are quoted on the Alternative Investment Market of the London Stock Exchange.
Basis of preparation
These financial statements have been prepared in accordance with the principal accounting policies adopted by the Group, International 
Financial Reporting Standards (IFRS) and International Financial Reporting Interpretations (IFRIC) as adopted by the EU and those parts of the 
Companies Act 2006 applicable to companies reporting under IFRS. They are presented in Sterling, which is the functional currency of the 
parent company.
The preparation of financial statements in accordance with IFRS requires the use of estimates and assumptions that affect the reported 
amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the date of the financial statements and the reported 
amounts of revenues and expenses during the reporting period. Although these estimates are based on management’s best knowledge  
of current events and actions, actual results may ultimately differ from those estimates.
The accounting policies have been applied consistently throughout all periods presented in these financial statements. These accounting 
policies comply with each IFRS that is mandatory for accounting periods ending on 31 January 2012.
The following standards have been amended or implemented during the year. The Group’s consolidated financial statements have been 
prepared in accordance with these changes where relevant.
•	 IFRS	1	( Amendment).	Limit ed	ex emption	fr om	comparativ e	IFRS	7	disclosur es	f or	first -time	adopt ers
•	 IAS	24	(R e vised):	R elat ed	par t y	disclosur es	intr oducing	r e vised	definitions	of	r elat ed	par ties
•	 IAS	32	( Amendment)	Changes	in	the	classification	of	cer tain	qualifying	financial	instruments	fr om	financial	liabilities	t o	equit y	instrument
•	 	 IFRIC	14	( Amendment)	A ddr ess	unint ended	consequences	that	can	ar ise	fr om	the	pr e vious	r equir ements	when	an	entit y	pr epa ys	futur e	
contributions into a defined benefit pension plan
•	 	 IFRIC	19	Ex tinguishing	F inancial	Liabilities	with	E quit y	I nstruments	which	addr esses	when	the	t er ms	of	a	financial	liabilit y	ar e	r enegotiat ed	
and result in the entity issuing equity instruments to a creditor to extinguish all or part of the financial liability commonly referred to as ‘debt 
for equity swaps’
IFRS standards and interpretations not yet adopted
Standard issued but not yet effective 
The following standards and interpretations are in issue but not yet adopted by the EU: 
•	 IFRS	9	F inancial	I nstruments	( eff ec tiv e	1	Januar y	2015)
•	 IFRS	10	C onsolidat ed	F inancial	Stat ements	( eff ec tiv e	1	Januar y	2013)
•	 IFRS	11	J oint	Ar rangements	( eff ec tiv e	1	Januar y	2013)
•	 IFRS	12	Disclosur e	of	I nt er ests	in	O ther	Entities	( eff ec tiv e	1	Januar y	2013)
•	 IFRS	13	F air	 V alue	M easur ement	( eff ec tiv e	1	Januar y	2013)
•	 IAS	19	Emplo y ee	Benefits	(R e vised	June	2011)	( eff ec tiv e	1	Januar y	2013)
•	 IAS	27	(R e vised),	S eparat e	F inancial	Stat ements	( eff ec tiv e	1	Januar y	2013)
•	 IAS	28	(R e vised),	I n v estments	in	A ssociat es	and	J oint	 V entur es	( eff ec tiv e	1	Januar y	2013)
•	 Disclosur es	-	 T ransf ers	of	F inancial	A ssets	-	Amendments	t o	IFRS	7	( eff ec tiv e	1	July	2011)
•	 D ef er r ed	 T ax:	R eco v er y	of	Under lying	A ssets	-	Amendments	t o	IAS	12	I ncome	 T ax es	( eff ec tiv e	1	Januar y	2012)
•	 	 S e v er e	H yper inflation	and	R emo val	of	F ix ed	Dat es	f or	F irst -time	A dopt ers	-	Amendments	t o	IFRS	1	F irst -time	A doption	of	I nt er national	
Financial Reporting Standards (effective 1 July 2011)
•	 P r esentation	of	I t ems	of	O ther	C ompr ehensiv e	I ncome	–	Amendments	t o	IAS	1	( eff ec tiv e	1	July	2012)
The directors do not anticipate that the adoption of these standards will have a material impact on the Group’s reported results. 
The current endorsement status is listed on the EFRAG website under ‘Endorsement Status’: http://www.efrag.org/homepage.asp  34
LiDCO Annual Report
2011/12
Notes to the financial statements
continued
Going concern
The Company’s business activities, together with a review of the market and the Company’s distribution channels are set out in the Chief 
Executive Officer’s Statement on pages 8 to 13. In addition, note 13 to the financial statements include the Company’s policies for managing  
its capital; its financial risk; details of its financial instruments; and its exposures to credit risk and liquidity risk.
The Company has a number of customers across different geographic areas and considerable recurring revenue streams through the sales  
of its disposable sensors and smart cards which represented 54% of its total revenues in the year to 31 January 2012. 
The Group finances its operations through shareholders’ funds, short term borrowings such as overdrafts and medium term borrowings such 
as finance leases. The directors have a reasonable expectation that the Company has adequate resources to continue in operational existence 
for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the annual financial statements.
Accounting convention
The financial statements are prepared under the historic cost convention. The measurement basis and significant accounting policies are set 
out below.
Basis of consolidation
The Group’s consolidated financial statements consolidate those of the Company and of its subsidiary undertakings drawn up to 31 January 2012. 
Subsidiary undertakings are all entities over which the Group has the power to control the financial and operating policies so as to obtain 
economic benefits from its activities. The Group obtains and exercises control through voting rights.
Business combinations are dealt with by the purchase method. The purchase method involves the recognition at fair value of all identifiable 
assets and liabilities, including contingent liabilities of the subsidiary at the acquisition date whether or not they were recognised in the 
statements of the subsidiary prior to acquisition. On initial recognition the assets and liabilities of the subsidiary are included in the 
consolidated balance sheet at their fair values which are also used as the bases for subsequent measurement in accordance with the Group 
accounting policies. The results of any subsidiary undertakings acquired during the period, where applicable, are included from the date  
of acquisition. All intra-Group transactions, balances, income and expenses are eliminated on consolidation.
Revenue recognition
Revenues are recognised at fair value of the consideration receivable net of the amount of value added taxes.
Sale of goods
Sales revenue comprises revenue earned (net of returns, discounts and allowances) from the provision of products to entities outside the 
consolidated entity. Sales revenue is recognised when the risks and rewards of ownership of the goods passes to the customer, which is 
normally upon delivery, and when the amount of revenue can be measured reliably.
Where delivery is delayed at the buyer’s request, but the buyer takes title to the goods and accepts invoicing, the Group recognises the 
revenue as a capital Bill and Hold sale provided that it is probable that delivery will be made, the goods are on hand and ready for delivery,  
the buyer acknowledges the deferred delivery and usual payment terms apply. 
The Group has an arrangement for the placing of monitors in hospitals with Med One Capital Funding, LLC, a US company that has trading 
relationships with the majority of US hospitals. When the Group has sold monitors to Med One they are entitled to a portion of the monthly 
revenue from the sale of consumables relating to those monitors for a period of three years. The full revenue arising from the sale of such 
consumables is recognised as revenue by the Group and payments made to Med One in this way are included within cost of sales.
Licence fees
Licence fees are recognised in accordance with the substance of the relevant distribution agreement, provided that it is probable that the 
economic benefit associated with the transaction will flow to the Group and the amount of revenue can be reliably measured. Licence fees 
received in advance of the recognition of those fees is shown as deferred income.
Delivery of services
Revenue from rendering services is recognised in the period in which the service is provided.
Interest income
Interest income is brought to account as it accrues, using the effective interest method.
Other income
Other income from support and maintenance is brought to account when the consolidated entity’s right to receive income is established and the 
amount can be reliably measured.  35
LiDCO Annual Report
2011/12
Research and development
Research expenditure is charged to the income statement in the period in which it is incurred. 
Development costs are capitalised when all the following conditions are satisfied:
•	 completion	of	the	intang ible	asset	is	t echnically	f easible	so	that	it	will	be	a vailable	f or	use	or	sale;
•	 the	Gr oup	int ends	t o	complet e	the	intang ible	asset	and	use	or	sell	it;
•	 the	Gr oup	has	the	abilit y	t o	use	or	sell	the	intang ible	asset;
•	 the	intang ible	asset	will	generat e	pr obable	futur e	economic	benefits;
•	 ther e	ar e	adequat e	t echnical ,	financial	and	other	r esour ces	t o	complet e	the	de v elopment	and	t o	use	or	sell	the	intang ible	asset,	and
•	 the	expenditur e	attr ibutable	t o	the	intang ible	asset	dur ing	its	de v elopment	can	be	measur ed	r eliably .
Capitalised development costs which comprise cost of materials, labour and attributable overheads are amortised over a period of 3 to 5 years.
Development costs not meeting the criteria for capitalisation are expensed as incurred.
Intangible assets – development costs
Intangible assets represent costs relating to product registration in new countries, software development costs and clinical trials on the  
LiDCO system. Where the directors are satisfied as to the technical, commercial and financial viability of these projects, the expenditure  
has been capitalised and is amortised in equal amounts over the useful life.
The carrying values of intangible assets are reviewed for impairment when events or changes in circumstances indicate that the carrying value 
may not be recoverable. The amortisation periods generally applicable are:
Clinical trials Three years
Product registration costs Five years
Software development Three years
Property, plant and equipment
Property, plant and equipment are stated at cost, net of depreciation. Depreciation is calculated to write down the cost less estimated  
residual value of these assets by equal annual instalments over their estimated useful economic lives which are re-assessed annually.  
The periods/rates generally applicable are:
Leasehold improvements  Over the expected life of the lease
Plant and machinery  10% per annum
Fixtures and fittings  12.5% per annum
Office equipment  20% per annum
Computer equipment  33% per annum
Medical monitors 20% to 33% per annum
Medical monitors include equipment on long term loan to hospitals for active use where the hospital pays for disposables. Also included  
in this category is equipment for demonstration purposes, clinical trials and testing.
Leases
Leases of property, plant and equipment where the Group has substantially all the risks and rewards of ownership are classified as finance 
leases. Assets held under finance leases are capitalised at the lower of fair value or present value of the minimum lease payments in the 
balance sheet and depreciated over their estimated useful economic lives. The interest element of leasing payments represents a constant 
proportion of the capital balance outstanding and is charged to the income statement over the period of the lease.
All other leases are regarded as operating leases and the payments made under them are charged to the income statement on a straight-line 
basis over the lease term. Profits generated on the sale and leaseback of fixed assets are deferred and recognised over the period of the lease.
Inventories
Inventories are stated at the lower of cost and net realisable value. Net realisable value is the estimated selling price in the ordinary course  
of business, less the estimated costs of selling expenses.
The cost of inventories is based on the first-in first-out principle and includes expenditure incurred in acquiring the inventories and bringing 
them to their existing locations and condition. 36
LiDCO Annual Report
2011/12
Notes to the financial statements
continued
Income tax
Current tax is the tax currently payable based on the taxable result for the year.
Deferred income taxes are calculated using the liability method on temporary differences. Deferred tax is generally provided on the  
difference between the carrying amounts of assets and liabilities and their tax bases. In addition, tax losses available to be carried forward  
as well as other income tax credits to the Group are assessed for recognition as deferred tax assets.
Deferred tax liabilities are provided in full, with no discounting. Deferred tax assets are recognised to the extent that it is probable that the 
underlying deductible temporary differences will be able to be offset against future taxable income. Current and deferred tax assets and 
liabilities are calculated at tax rates that are expected to apply to their respective period of realisation, provided they are enacted or 
substantively enacted at the balance sheet date.
Changes in deferred tax assets or liabilities are recognised as a component of tax expense in the income statement, except where they relate 
to items that are charged or credited directly to other comprehensive income or equity in which case the related deferred tax is also charged 
or credited directly to other comprehensive income or equity.
Foreign currency
Transactions in foreign currencies are translated at the exchange rate ruling at the date of the transaction. Monetary assets and liabilities  
in foreign currencies are translated at the rates of exchange ruling at the balance sheet. Any gain or loss arising from a change in exchange 
rates subsequent to the date of the transaction is included as an exchange gain or loss in the profit and loss statement.
Trade and other receivables
Trade receivables, which generally have 30-90 day terms, are initially recognised at fair value and subsequently at amortised cost using the 
effective interest method, less provisions for impairment. Provision against trade receivables is made when there is objective evidence that  
the Group will not be able to collect all amounts due to it in accordance with the original terms of those receivables. The amount of the 
write-down is determined as the difference between the asset’s carrying amount and the present value of estimated future cash flows.
Cash and cash equivalents
Cash and cash equivalents comprise cash at bank and in hand, bank overdrafts and demand deposits with an original maturity of three 
months or less, and which are subject to an insignificant risk of change in value.
Financial liabilities and equity
Financial liabilities and equity instruments issued by the Group are classified according to the substance of the contractual arrangements 
entered into and the definitions of a financial liability and an equity instrument. Financial liabilities are obligations to pay cash or other  
financial assets and are recognised when the Group becomes party to the contractual provisions of the instrument and are initially recorded  
at fair value net of issue costs. An equity instrument is any contract that evidences a residual interest in the assets of the Group after deducting 
all of its liabilities. The accounting policies adopted for specific financial liabilities and equity instruments are set out below.
Financial liabilities
The Group’s financial liabilities include borrowings, trade and other creditors. Financial liabilities are measured initially at fair value net  
of transaction costs and thereafter at amortised cost using the effective interest rate method.
Share-based payments
The Group has three equity-settled share-based remuneration schemes for employees. Where share options are awarded to employees,  
the fair value of the options at the date of grant is calculated using a pricing model and is charged to the income statement over the vesting 
period. Market related performance conditions are factored into the fair value of the options granted and a charge is made irrespective  
of whether the market related performance conditions are satisfied. In respect of awards with non market related performance conditions,  
an estimate of the proportion that will vest is made at the award date which is adjusted if the number of share options expected to vest  
differs from the previous estimates. Any cumulative adjustment prior to vesting is recognised in the current period.
Where the Group issues share warrants in respect of distributor arrangements, the fair value of the options at the date of grant is calculated 
using a pricing model and is charged to the income statement over the vesting period.
Impairment
The carrying values of property, plant and equipment and intangible assets with finite lives are reviewed for impairment when events  
or changes in circumstances indicate the carrying value may be impaired. If any such indication exists the recoverable amount of the asset  
is estimated in order to determine the extent of impairment loss. 37
LiDCO Annual Report
2011/12
Key judgements in applying the entity’s accounting policies
The Group’s management makes estimates and assumptions regarding the future. Estimates and judgements are continually evaluated based 
on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. 
In the future, actual experience may differ from these estimates and assumptions. The estimates and assumptions that have a significant risk  
of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.
Estimates
Useful lives of intangible assets and property, plant and equipment
Intangible assets and property, plant and equipment are amortised or depreciated over their useful lives. Useful lives are based on the 
management’s estimates of the period that the assets will generate revenue, which are periodically reviewed for continued appropriateness. 
Changes to estimates can result in significant variations in the carrying value and amounts charged to the income statement in specific 
periods (notes 7 and 8).
Inventory
The Group reviews the net realisable value of, and demand for, its inventory on a regular basis to provide assurance that recorded inventory  
is stated at the lower of cost or net realisable value. Factors that could impact estimated demand and selling prices include the timing and 
success of future technological innovations, competitor actions, supplier prices and economic trends (note 9).
Trade receivables
Trade receivables are primarily due from three groups, hospitals in the UK and USA where direct sales are made, global distributors 
predominantly in the USA and independent distributors, predominantly in Europe and the Rest of the World. In making provision for  
overdue trade receivables, management consider the first two groups to be generally of lower risk than those due from independent 
distributors and apply a lower level of provision. The size of the distributor together with its financial credit rating and the length of 
relationship with the Group are also taken into account (note 10).
Judgements
Licence income
The Group may receive licence fees in connection with the granting of distribution rights for overseas territories. When recognising such 
licence fees management considers the substance of the relevant distribution agreement. Any work that the Group needs to undertake  
to fulfil its obligation is taken into consideration and the period over which the work is likely to be performed. Revenue is only recognised 
provided that it is probable that the economic benefit associated with the transaction will flow to the Group and the amount of revenue  
can be reliably measured. Normally such licence fees are received on signature of the distribution agreement. 
Bill and Hold sales
The Group recognizes Bill and Hold sales where delivery is delayed at the buyers request. The recognition of these sales require management’s 
judgment of certain criteria as detailed in the Accounting Policies under revenue recognition.
Capitalisation of development costs
The Group’s policy on the capitalization of development costs of intangible assets are detailed in the accounting policies above. The inclusion 
of such costs requires management’s judgment on the technical, commercial and financial viability of the projects. 38
LiDCO Annual Report
2011/12
2  Revenue and segmental information
The Group has one segment – the supply of monitors, consumables and support services associated with the use of the LiDCO’s cardiac 
monitoring equipment. Geographical and product type analysis is used by the chief operating decision maker to monitor sales activity and  
is presented below:
Revenue and result by geographical region
 Year ended  Year ended  
 31 January 31 January
 2012 2011
Group revenue £’000 £’000
UK 3,701 2,356
USA 1,788 2,358
Continental Europe 853 859
Rest of World 780 664
 7,122 6,237
Result  
UK 842 495
USA 947 965
Continental Europe 492 449
Rest of World 485 373
Total 2,766 2,282
Unallocated costs (2,815) (2,780)
Loss from operations (49) (498)
Products and services
 Year ended  Year ended  
 31 January 31 January
 2012 2011
 £’000 £’000
Monitor sales 1,563 2,009
Disposable sales and recurring revenues 3,813 3,681
Distributed third party disposables 1,206 –
Licence fees and other income 540 547
 7,122 6,237
Payments to Med One as detailed in Note 1 under revenue recognition relating to consumables and included within cost of sales amounted  
to £227,000 (2010/11: £526,000) during the year.
The Group can identify trade receivables and trade payables relating to the geographical areas. 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.
All non-current assets are located in the United Kingdom.
Material customers
During the year, a customer based in the USA, accounted for more than 10% of the Group’s total revenue. Revenue recognised during the year  
is as follows:
 2012 2012 2011 2011
 £’000 % revenue £’000 % revenue
Revenue recognised 1,426 20% 1,894 30%
Notes to the financial statements
continued 39
LiDCO Annual Report
2011/12
3  Loss on operations
The loss on operations before taxation is stated after:
 Year ended Year ended
 31 January  31 January
 2012 2011
 £’000 £’000
Auditors’ remuneration:
– Fees payable to the Company auditors for the audit of the Group accounts: 18 18
Fees payable to the Company auditors for other services:
– Audit of the Company’s subsidiaries 26 25
– Other services relating to the interim review
*
 8 8
– Other services – 5
Research and development expenditure 186 146
Depreciation of property, plant and equipment  226 201
Amortisation of intangible assets 433 438
Operating leases – rental of land and buildings 167 165
Share based payment charge in respect of distributor arrangements (32) 120
Write down of inventories 42 47
Exchange rate losses/(gains) 21 (9)
The cost of goods sold during the year amounted to £1,889,000 (2010: £1,225,000).
*
Non-audit services comprise £8,000 for interim review services. The Board considers it cost-effective for the auditors to provide these services.
4  Staff costs
Staff costs during the year were as follows:
  Year ended Year ended
  31 January 31 January
  2012 2011
Group  £’000 £’000
Wages and salaries  2,154 2,019
Social security costs  216 209
Share based payments charge  26 30
  2,396 2,258
The average number of employees (including executive directors) of the Company during the year was:
  2012 2011
  Number Number
Production  11 11
Sales  17 14
Administration   13 12
  41 37
The remuneration of directors and key management personnel is set out below. Additional information on directors’ and key management 
remuneration, share option, long-term incentive plans, pension contributions and entitlements can be found in the audited section of the 
Directors’ Remuneration Report on pages 21 to 23 and forms part of these accounts.
  2012 2011
  £’000 £’000
Short-term employee benefits  766 738
Share-based payments  17 10
  783 748 40
LiDCO Annual Report
2011/12
Notes to the financial statements
continued
5  Tax on loss on ordinary activities
The tax credit is based on the loss for the year and represents:
  Year ended Year ended
  31 January  31 January
  2012 2011
  £’000 £’000
United Kingdom corporation tax at 26.32% (2010: 28%) – –
United States income taxes  – 9
Research and development expenditure tax credits – current year (60) (109)
Total tax  (60) (100)
United States tax has been calculated at the Federal/State tax rates applicable to profits arising in the respective States.
The tax assessed for the year differs from the standard rate of corporation tax applied to the trading results. The differences are explained below:
Loss on ordinary activities multiplied by standard rate of corporation tax in the 
United Kingdom of 26.32% (2010: 28%)  (12) (137)
Effect of:
Expenses not deductible for tax purposes  13 13
Depreciation for the period in excess of capital allowances (41) (20)
Disposals of fixed assets over cost  59 –
(Decrease) in tax losses  – (5)
Other temporary differences  7 39
Additional deduction for research and development expenditure (149) (111)
Losses surrendered for research and development tax credit 123 221
United States income taxes  – 9
Research and development expenditure tax credits  (60) (109)
Total tax income  (60) (100)
The above table reconciles the income tax credit with the accounting loss at the standard rate of UK corporation tax. 
The current year research and development tax credit of £60,000 (2010: £109,000) represents 14% (2011: 14%) of the Group’s qualifying  
research and development spend.
The amount of the unused tax losses and temporary differences for which no deferred tax asset was recognised at the balance sheet date was:
  Year ended Year ended
  31 January  31 January
  2012 2011
  £’000 £’000
Unused losses (available indefinitely) 24,149  24,149
Temporary differences (available indefinitely) 58  304
 24,207  24,453
The related deferred tax asset (calculated at 22%) of £5.3m (2011: £5.6m) has not been recognised as it is not considered to meet criteria laid 
down in IAS 12. 41
LiDCO Annual Report
2011/12
6  Earnings per share
The calculation of basic earnings or loss per share is based on the earnings or loss attributable to ordinary shareholders divided by the weighted 
average number of shares in issue during the year. The calculation of diluted earnings per share is based on the calculation described above 
adjusted to allow for the issue of shares on the assumed conversion of all dilutive options. Share options are regarded as dilutive when, and only 
when, their conversion to ordinary shares would decrease earnings or increase the loss per share.
 Year ended Year ended
 31 January 31 January
 2012 2011
 £’000 £’000
Profit/(loss) after tax for the financial year 15 (390)
 Number Number
 (’000) (’000)
Weighted average number of ordinary shares 174,084 173,963
Loss per share – basic and diluted (p) (0.03) (0.22)
The diluted effect of share options in 2011/12 is considered immaterial for reporting purposes.
7  Property, plant and equipment
 Leasehold Plant and Fixtures Computer Medical
  improvements  machinery and fittings  equipment monitors Total
 £’000 £’000 £’000 £’000 £’000 £’000
Cost
At 1 February 2010 555 436 169 476 492 2,128
Additions 1 6 4 21 95 127
At 31 January 2011 556 442 173 497 587 2,255
Additions 2 8 1 71 686 768
Retirements - - - (28) (168) (196)
At 31 January 2012 558 450 174 540 1,105 2,827
Accumulated depreciation
At 1 February 2010 408 340 150 425 218 1,541
Charge for the year 53 34 8 27 79 201
At 31 January 2011 461 374  158 452  297 1,742
Additions 54 34 5 38 95 226
Retirements – – – (28) (168) (196)
At 31 January 2012 515 408 163 462 224 1,772
Carrying amount at 31 January 2012 43 42 11 78 881 1,055
Carrying amount at 31 January 2011 95 68 15 45  290 513
Plant and equipment is depreciated at various rates depending on the estimated life of the item of plant or equipment. The rates of depreciation  
are shown in Note 1.
Medical monitors include equipment on long term loan to hospitals for active use where the hospital pays for disposables. Also included in this 
category is equipment for demonstration purposes, clinical trials and testing.
The carrying amount of the Group’s plant and equipment includes £4,000 (2011: £14,000) in respect of assets held under finance leases.
During the year the Company sold a number of medical monitors and leased them back on a financing lease basis. The net book value of the assets 
at the time of sale was £43,000 and are shown as a disposal. The monitors have been included as additions at their fair value of £518,000 and will 
be depreciated over three years.  42
LiDCO Annual Report
2011/12
Notes to the financial statements
continued
8  Intangible assets
  Product  Product
 Clinical trials registration development Total
 £’000 £’000 £’000 £’000
Cost
At 1 February 2010 116 629 2,381 3,126
Additions – 77 352 429
At 31 January 2011 116 706 2,733 3,555
Additions 53 62 338 453
At 31 January 2012 169 768 3,071 4,008
Accumulated amortisation
At 1 February 2010 116 379 1,867 2,362
Charge for the year – 88 350 438
At 31 January 2011 116 467 2,217 2,800
Charge for the year 1 91 341 433
At 31 January 2012 117 558 2,558 3,233
Carrying amount at 31 January 2012 52 210 513 775
Carrying amount at 31 January 2011 –  239 516  755 
Intangible assets includes assets that are internally generated and amortised over their estimated useful lives. Amortisation costs are included  
in administrative expenses. The rates of amortisation are shown in note 1.
9  Inventory
 2012 2011
 £’000 £’000
Raw materials and consumables 450 310
Finished goods and goods for resale 899 737
 1,349 1,047
At 31 January 2012, inventories stated net of allowances for obsolete or slow moving items, was £47,000 (2011: £85,000). 43
LiDCO Annual Report
2011/12
10  Trade and other receivables
  2012 2011
  £’000 £’000
Trade receivables  2,093 1,432
Other receivables 99 12
Prepayments 175 163
  2,367 1,607
All amounts are short term and the directors consider that the carrying amount of trade and other receivables approximates to their fair value. 
All of the Group’s trade and other receivables have been reviewed for indicators of impairment. At 31 January 2012, trade receivables of £1.56m 
(2011: £1.07m) were fully performing. In addition, some of the unimpaired trade receivables are past due as at the reporting date. The age of trade 
receivables past due but not impaired is as follows:
  2012 2011 
  £’000 £’000
Not more than three months 230 195
More than three months but not more than six months 64 31
More than six months but not more than one year 78 30
More than one year 159 104
  531 360
Movements in Group provisions for impairment of trade receivables are as follows, which are included within administrative expenses in the 
income statement.
  2012 2011 
  £’000 £’000
Opening balance 29 6
Provision for receivables impairment 63 32
Receivables written off in year – (9)
Closing balance 92 29
The other classes within trade and other receivables do not contain impaired assets.
11  Current liabilities
  2012 2011 
  £’000 £’000
Trade payables 796 534
Social security and other taxes 155 67
Accruals 259 166
Bank overdraft 212 –
Deferred income 266 74
Finance leases 176 10
  1,864 851
The directors consider that the carrying amount of trade and other payables approximates to their fair value.
The loan is repayable in equal monthly instalments over three years, and loan is denominated in US Dollars. 44
LiDCO Annual Report
2011/12
Notes to the financial statements
continued
12  Non-current liabilities
 2012 2011
 £’000 £’000
Finance leases due within 2 to 5 years (see note 7) 346 4
Deferred income 317 -
 663 4
The finance lease liability is repayable in equal monthly instalments over three years, and the loan is denominated in US Dollars.
13  Financial instruments
Capital risk management
The Group manages its capital structure to ensure that it will be able to continue as a going concern. The capital structure of the Group consists 
of cash and cash equivalents (as disclosed in the cash flow statement), borrowings (as disclosed in note above) and equity (as disclosed in the 
consolidated statement of changes in shareholders’ equity) attributable to the shareholders of the parent as disclosed in the consolidated 
statement of changes in equity.
Financial risks
The Group’s financial instruments comprise cash and liquid resources, borrowings and items such as trade receivables and trade payables that 
arise from its operations.
The main risks that arise from the Group’s financial instruments are credit, interest rate, liquidity and currency risk. The Board reviews and agrees 
policies for managing each of these risks and they are summarised below.
Credit risk
The Group’s credit risk is primarily attributable to trade receivables. The amounts presented in the balance sheet are net of allowances for 
doubtful receivables, estimates by management based on prior experience of customers which is typified by a small number of high value 
accounts and their assessment of the current economic environment. The maximum exposure is £3,805,000 (2011: £2,848,000).
The credit risk on liquid funds is limited because the counterparties are reputable international banks.
Liquidity risk
The Group seeks to manage this financial risk by ensuring sufficient liquidity through the use of variable rate bank overdraft facilities to meet 
foreseeable needs and investing surplus cash assets safely and profitably.
Liquidity risk analysis
The Group manages its liquidity needs by carefully monitoring scheduled finance lease payments for long term financial liabilities as well  
as cash-outflows due in month-to-month business. Liquidity needs are monitored in various time bands, on a month-to-month basis.
The Group maintains cash and marketable securities to meet its liquidity requirements. Funding for long-term liquidity needs is additionally 
secured by an adequate amount of committed credit facilities. 
As at 31 January 2012, the Group’s financial liabilities have contractual maturities which are summarised below:
 Current Non Current
 Within 6 to 12 1 to 5 Over 5
 6 months months years years 
31 January 2012 £’000 £’000 £’000 £’000
Bank overdraft 212 – – –
Trade payables 1,210 – – –
Finance lease liabilities 90 86 346 –
 1,512 86 346 – 45
LiDCO Annual Report
2011/12
This compares to the maturity of the Group’s financial liabilities in the previous reporting period as follows:
 Current Non Current
 Within 6 to 12 1 to 5 Over 5
 6 months months years years 
31 January 2011 £’000 £’000 £’000 £’000
Finance lease obligations 5 5 4 –
Trade and other payables 767 – – –
 772 5 4 –
Market risks
Interest rate risk
The Group finances its operations through a mixture of shareholder funds, variable rate bank facilities and long-term loans. The Group accepts 
the risk attached to interest rate fluctuations as interest rates have been relatively stable or declined over the last three years and the interest 
expense is a small proportion of total administrative expenses.
Currency risk
The Group manages currency risk by assessing the net exposure in each non-Sterling currency in which exposure arises. The only significant 
exposure relates to US Dollars. The Group accepts the risk attached to fluctuations in the US Dollar exchange rate as US Dollar payables are  
partly mitigated by US Dollar receivables from sales. 
Group interest rate profile
 Floating rate
 Cash current Deposit and
 bank accounts reserve account Total
Financial assets at 31 January 2012 £’000 £’000 £’000
Currency 
Sterling 75 940 1,015
US Dollars 528 – 528
Euro 10 – 10
 613 940 1,553
Summary of financial assets and liabilities by category
The carrying amounts of the Group’s financial assets and liabilities as recognised at the balance sheet date of the reporting periods under  
review may also be categorised as follows. See note 1, principal accounting policies, covering financial assets and financial liabilities for 
explanations about how the category of instruments affects their subsequent measurement.
 2012 2011
Current assets £’000 £’000
Loans and receivables:
– Trade and other receivables 2,252 1,444
– Cash and cash equivalents 1,553 1,404
 3,805 2,848
 2012 2011
Current liabilities £’000 £’000
Trade payables and other short term financial liabilities 951 601
 951 601 46
LiDCO Annual Report
2011/12
Notes to the financial statements
continued
Capital risk management
The Group is exposed to translation and transaction foreign exchange risk. The currency where the Group is most exposed to foreign currency 
volatility is US Dollars. The Group had the following balances denominated in US Dollars:
 US Dollars
 2012 2011
 £’000 £’000
Trade and other receivables 37 46
Cash and cash equivalents 528 28
Trade and other payables (33) (30)
 532 44
No hedging instruments are used. The Group keeps under review the extent of its exposure to currency fluctuations, which relate entirely  
to trading transactions.
The following table illustrates the sensitivity of the net result for the year and equity in regards to the Group’s financial assets and financial 
liabilities and the Sterling to US Dollar exchange rates. It assumes a percentage change in the exchange rate based on the foreign currency 
financial instruments held at each balance sheet date. Both of these percentages have been determined based on the average market  
volatility in exchange rates in the previous 12 months.
 US Dollars
 2012 2011
Currency fluctuation 8% 11%
If Sterling had strengthened against the US Dollar by the percentage above retrospectively, then this would have had the following impact:
 US Dollars
 2012 2011
 £’000 £’000
Net result for the year (30) (67)
Equity (30) (67)
If Sterling had weakened against the US Dollar by the percentage above retrospectively, then this would have had the following impact:
 US Dollars
 2012 2011
 £’000 £’000
Net result for the year 30 67
Equity 30 67
Exposure to foreign exchange rates vary during the year depending on the volume of overseas transactions. Nonetheless, the analysis above  
is considered to be representative of the Group’s exposure to currency risk.
Fair values of financial assets and liabilities
There was no difference between the fair value and the book value of financial assets and liabilities. 47
LiDCO Annual Report
2011/12
14  Share capital
 2012 2011
 Number of Number of
 shares  shares
Issued and fully paid – ordinary shares of 0.5 pence each 000 000
At the beginning of the year 173,984 173,942
Issued for cash 236 42
At the end of the year 174,220 173,984
 £’000 £’000
At the beginning of the year 870 869
Issued for cash 1 1
At the end of the year 871 870
During the year 236,250 shares were issued at 0.5p per share on exercise of share options. 
15  Share-based payments
Equity-settled share option scheme
The Group has three equity-settled share option schemes for employees. Where share options are awarded to employees, the fair value of the 
options at the date of grant is calculated using a pricing model and is charged to the income statement over the vesting period. Market related 
performance conditions are factored into the fair value of the options granted and a charge is made irrespective of whether the market related 
performance conditions are satisfied. In respect of awards with non market related performance conditions, an estimate of the proportion that 
will vest is made at the award date and this is trued up or down at each accounting period.
  2012  2011
  Weighted   Weight
  average  average
  exercise  exercise
 Number price (p) Number price (p)
Outstanding at the beginning of the year 11,002,579 17.7 10,568,579 15.8
Issued in the year 2,070,500 15.0 745,750 19.9
Forfeited during the year (104,500) 3.3 (269,250) 13.9
Exercised during the year (221,250) 4.6 (42,500) 0.5
Outstanding at the end of the year 12,747,329 16.9 11,002,579 16.5
Exercisable at the end of the year 8,785,329 16.7 7,823,079 17.7
Fair value is determined by reference to the fair value of the instrument granted to the employee. The expected life used in the model has  
been adjusted, based on management’s best estimate, for the effects of non-transferability, exercise restrictions and behavioural considerations. 
These fair values were calculated using a Black-Scholes option pricing model with the following assumptions:
 2012 2011
Weighted average shares price (p) 15.0 19.9
Weighted average exercise price (p) 15.0 19.9
Expected volatility 40% 50%
Expected life (years) 3.5 3.5
Risk free rate 2% 2%
Expected dividend yield  – –
The weighted average share price for options exercised during the year was 4.55p (2011: 0.5p). 
The expected volatility is based on the Group’s historical share price averaged over a period equal to the expected life. The expected life is the 
average expected period to exercise. The risk free rate of return is based on UK Government gilts. The share options outstanding at the end  
of the year have exercise prices of between 0.5p and 28.25p per share and a weighted average remaining contractual life of 4.5 years. 48
LiDCO Annual Report
2011/12
Notes to the financial statements
continued
Share warrants in respect of distributor arrangements
On 28 July 2009 the Group issued share warrants in respect of an arrangement with a distributor. The distributor may exercise the warrants 
subject to purchasing certain minimum quantities of monitors and disposables during the first and second years of the distribution agreement.  
The maximum number of warrants that the distributor can exercise are over a total of 10,436,493 shares at an exercise price of 14.3 pence.  
The fair value of the exercisable warrants at the date of grant has been calculated using the same pricing model as that used for the equity-
settled share option schemes and has been charged to the income statement over the vesting period. 
16  Capital commitments
At 31 January 2012 the Company had placed forward orders for the purchase of monitors and monitor components to the value of £1,015,000 
(2011: £1,382,000). Delivery of these orders is scheduled between February 2012 and June 2013.
 
17  Contingent liabilities
There were no contingent liabilities at 31 January 2012 or 31 January 2011.
18  Leasing commitments
The future aggregate minimum lease payments under non-cancellable operating leases are as follows:
 2012  2011
 Land and  Land and
  buildings Other buildings Other
Group £’000 £’000 £’000 £’000
In one year or less 168 84 11 39
Between one and five years 1,098 106 – 37
 1,266 190 11 76
19  Related party transactions
During the year, no contracts of significance other than those disclosed within the Directors’ Remuneration Report were existing or entered into 
by the Group or its subsidiaries in which the directors had a material interest.
Key management compensation
Compensation for directors who are the only employees with responsibility for planning, directing and controlling the Group is disclosed in the 
Directors’ Remuneration Report.
Transactions between the Company and its subsidiaries which are related parties are eliminated on consolidation. There were no transactions 
between the Company and its subsidiaries.  49
LiDCO Annual Report
2011/12
Independent auditor’s report to the members of LiDCO Group Plc
We have audited the parent company financial statements of LiDCO Group Plc for the year ended 31 January 2012 which comprise the parent 
company balance sheet, and the related notes. The financial reporting framework that has been applied in their preparation is applicable law 
and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
This report is made solely to the Company’s members, as a body, in accordance with Chapter 3 of part 16 of the Companies Act 2006.  
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 auditor’s 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 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 explained more fully in the Directors’ Responsibilities Statement, the directors are responsible for the preparation of the parent company 
financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the 
parent company financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those 
standards require us to comply with the Auditing Practices Board’s (APB’s) Ethical Standards for Auditors.
Scope of the audit of the financial statements
A description of the scope of an audit of financial statements is provided on the APB’s website at www.frc.org.uk/apb/scope/private.cfm.
Opinion on financial statements
In our opinion the parent company financial statements:
•	 g iv e	a	true	and	fair	vie w	of	the	stat e	of	the	C ompan y ’ s	affairs	as	at	31	Januar y	2012;	
•	 ha v e	been	pr oper ly	pr epar ed	in	accor dance	with	Unit ed	K ingdom	G enerally	A ccept ed	A ccounting	P rac tice;	and
•	 ha v e	been	pr epar ed	in	accor dance	with	the	r equir ements	of	the	C ompanies	A c t	2006.
Opinion on other matter prescribed by the Companies Act 2006
In our opinion the information given in the Directors’ Report for the financial year for which the financial statements are prepared is consistent 
with the parent company financial statements.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
•	 	 adequat e	accounting	r ecor ds	ha v e	not	been	k ept	b y	the	par ent	compan y ,	or	r etur ns	adequat e	f or	our	audit	ha v e	not	been	r eceiv ed	fr om	
branches not visited by us; or
•	 the	par ent	compan y	financial	stat ements	ar e	not	in	ag r eement	with	the	accounting	r ecor ds	and	r etur ns;	or
•	 cer tain	disclosur es	of	dir ec t ors ’ 	r emuneration	specified	b y	la w	ar e	not	made;	or
•	 w e	ha v e	not	r eceiv ed	all	the	inf or mation	and	explanations	w e	r equir e	f or	our	audit.
Other matter
We have reported separately on the Group financial statements of LiDCO Group Plc for the year ended 31 January 2012.
Christopher Smith
Senior Statutory Auditor
for and on behalf of Grant Thornton UK LLP
Statutory Auditor, Chartered Accountants
London
23 April 2012 50
LiDCO Annual Report
2011/12
Company balance sheet
At 31 January 2012
  2012 2011
 Note £’000 £’000
Fixed assets
Investments 2 65 65
  65 65
Current assets
Amount due from subsidiary undertakings 3 14,344 14,344
Cash at bank  75 66
  14,419 14,410
Current liabilities
Creditors: Amounts falling due within one year  – –
   
Net current assets  14,419 14,410
Total assets less current liabilities  14,484 14,475
Net Assets  14,484 14,475
Shareholders’ funds
Share capital 4 871 870
Share premium 5 25,403 25,393
Retained earnings    
 5 (11,790) (11,788)
Shareholders’ funds  14,484 14,475
The financial statements were approved by the Board of Directors on 23 April 2012.
Theresa Wallis Terence O’Brien
Director Director
The accompanying accounting policies and notes form an integral part of these financial statements. 51
LiDCO Annual Report
2011/12
Notes to the financial statements
For the year ended 31 January 2012
1  Principal Accounting Policies
Basis of preparation
The separate financial statements of the Company are presented as required by the Companies Act 2006. As permitted by that Act, the  
separate financial statements have been prepared in accordance with all applicable United Kingdom accounting standards. The principal 
accounting policies of the Company are set out below.
The financial statements have been prepared on the historical cost basis.
Going concern
The Company’s business activities, together with a review of the market and the Company’s distribution channels are set out in the Chief 
Executive Officer’s Statement on pages 8 to 13. In addition, note 13 to the financial statements include the Company’s policies for managing  
its capital; its financial risk; details of its financial instruments; and its exposures to credit risk and liquidity risk.
The Company has a number of customers across different geographic areas and considerable recurring revenue streams through the sales  
of its disposable sensors and smart cards which represented 54% of its total revenues in the year to 31 January 2012. 
The Group finances its operations through shareholders’ funds, short term borrowings such as overdrafts and medium term borrowings such  
as finance leases. The directors have a reasonable expectation that the Company has adequate resources to continue in operational existence 
for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the annual financial statements.
Investments
Investments in subsidiary undertakings are stated at cost less provision for impairment.
Foreign currency
Transactions in foreign currencies are translated at the exchange rate ruling at the date of the transaction. Monetary assets and liabilities  
in foreign currencies are translated at the rates of exchange ruling at the balance sheet date. Any gain or loss arising from a change  
in exchange rates subsequent to the date of the transaction is included as an exchange gain or loss in the profit and loss account.
Financial liabilities and equity
Financial liabilities and equity instruments issued by the Company are classified according to the substance of the contractual arrangements 
entered into and the definitions of a financial liability and an equity instrument. An equity instrument is any contract that evidences a residual 
interest in the assets of the Company after deducting all of its liabilities.
Share-based payment charges
The Group has three equity-settled share-based remuneration schemes for employees. Where share options are awarded to employees, the fair 
value of the options at the date of grant is calculated using a pricing model and is charged to the income statement over the vesting period. 
Market related performance conditions are factored into the fair value of the options granted and a charge is made irrespective of whether the 
market related performance conditions are satisfied. In respect of awards with non market related performance conditions, an estimate of the 
proportion that will vest is made at the award date which is adjusted if the number of share options expected to vest differs from the previous 
estimates. Any cumulative adjustment prior to vesting is recognised in the current period.
Where the Group issues share warrants in respect of distributor arrangements, the fair value of the options at the date of grant is calculated 
using a pricing model and is charged to the income statement over the vesting period.
2  Investments
 Shares in subsidiary
  undertakings
Company £’000
Cost and net book value
At 1 February 2011 and at 31 January 2012 65
The Company’s beneficial interest in subsidiary undertakings consists of:
 Country of registration Beneficial holding Nature of business
LiDCO Limited England and Wales 100% Medical instruments and appliances
Cassette Analytical Systems Limited England and Wales 100% Dormant 52
LiDCO Annual Report
2011/12
Notes to the financial statements
continued
3  Debtors
 2012 2011
 £’000 £’000
Amount due from subsidiary 14,344 14,339
The amount due from subsidiary relates to the ongoing funding provided to the principal trading subsidiary, LiDCO Limited, whilst it continues 
to be loss-making. The directors made a provision for impairment of £12m in the year to 31 January 2008, and consider that no further 
impairment provision is necessary at 31 January 2012. The timing of the repayment of this debt is uncertain and unlikely to be within one year.
4  Share capital
 2012 2011
 £’000 £’000
Allotted, called up and fully paid
174,220,304 ordinary shares of 0.5p each 871 870
During the year 236,250 shares were issued at 0.5p per share on exercise of share options. 
5  Reserves
 Share Other Equity Profit and loss
 premium reserve reserve account
 £’000 £’000 £’000 £’000
At 1 February 2011 25,393 – – (11,788)
Profit for the year – – – (2)
Shares issued 10 – – –
At 31 January 2012 25,403 – – (11,790)
6  Reconciliation of shareholders’ funds
 2012 2011
 £’000 £’000
Profit for the year (2) 55
Shares issued 2 1
Share premium account 9 –
 9 56
Opening shareholders’ funds 14,475 14,419
Closing shareholders’ funds 14,484 14,475
7  Loss for the financial year
In accordance with the exemption given by section 408 of the Companies Act 2006, the holding company has not presented its own profit  
and loss account. The loss for the year of the Company was £2,000 (2010/11: £55,000 profit). 
8  Related party transactions
There were no transactions between the Company and its subsidiary, which are related parties.  53
LiDCO Annual Report
2011/12
Solicitors:
Hewitsons LLP
Shakespeare House
42 Newmarket Road
Cambridge
CB5 8EP
Auditors:
Grant Thornton UK LLP
Registered Auditors
Chartered Accountants
Grant Thornton House
Melton Street
Euston Square
London
NW1 2EP
Registrars:
Capita Registrars
The Registry
34 Beckenham Road
Beckenham
Kent
BR3 4TU
Nominated adviser and 
stockbroker:
FinnCap
60 New Broad Street
London
EC2M 1JJ
Bankers:
NatWest Bank Plc
63-65 Piccadilly
London
W1J 0AJ
Advisers to the Company
Company information
Company registration number: 
2659005
Registered office:
16 Orsman Road
London
N1 5QJ
Company website:
www.lidco.com
Directors and Company Secretary:
Ms T A Wallis Non-Executive Chairman
Dr T K O’Brien Chief Executive Officer
Mr J G Barry Sales and Marketing Director
Mr I G Brown Non-Executive Director
Mr P L Clifford Finance Director
Mr J P Rowland Company Secretary LiDCO Group Plc
Head Office:
16 Orsman Road
London  N1 5QJ
T: + 44 (0)20 7749 1500
F: + 44 (0)20 7749 1501
Sales and Marketing Office:
Unit M
South Cambridgeshire Business Park
Babraham Road
Sawston
Cambridge  CB22 4JH
T: + 44 (0) 1223 830666
F: + 44 (0) 1223 837241
www.lidco.com
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