www.lidco.com
LiDCO Group Plc
Annual Report and Financial Statements
for the 13 months ended 31 January 2005
LiDCO Group Plc
UK Office: 
16 Orsman Road
London N1 5QJ
T: +44 (0)20 7749 1500
F: +44 (0)20 7749 1501
USA Distribution Office:
Wren Medical Systems
905 Lakeside Drive
Gurnee, IL 60031
T: +1 847 625 0600
F: +1 847 625 0981
Sales and Marketing:
Flowers Building
Granta Park
Cambridge CB1 6GU
T: +44 (0)1223 893 081
F: +44 (0)1223 890 187
LiDCO Group Plc Annual Report 2005 LiDCO researches, develops, manufactures 
and markets innovative medical devices. 
Our products primarily serve critical care and
cardiovascular risk hospital patients who
require real-time cardiovascular monitoring.
1 Highlights
2 Group at a glance
4 Chairman’s review
6 Chief Executive’s review
12 Board of Directors
14 Corporate governance report
16 Remuneration report
18 Directors’ report
20 Independent Auditors’ report to the
members of LiDCO Group plc
21 Consolidated profit and loss account
22 Balance Sheets
23 Consolidated cash flow statement
23 Reconciliation of movement in
consolidated equity shareholders’ funds
23 Consolidated statement of total recognised 
gains and losses
24 Notes to the accounts
Professor Solomon Aronson – Professor , Department of Anaesthesia & Critical Care, University of Chicago, 
specializing in major surgery and intensive care medicine.
Dr William Peruzzi – Chief Medical Officer at Memorial Hermann Hospital, T exas.
Dr Max Jonas – Consultant Anaesthetist, Southampton University Hospital, specializing in medical intensive care.
Dr Christopher Wolff – Honorary Clinical Pharmacologist, St. Bartholomew’s Hospital, specializing in Applied Physiology .
Professor Patrick Wouters – Professor of Cardiovascular Anaesthesia, University of Leuven, Belgium.
Auditors
Deloitte & T ouche LLP
Chartered Accountants
Hill House
1 Little New Street
London EC4A 3TR
Stockbroker
Durlacher Limited
Moorgate Hall
155 Moorgate
London EC2M 6XB
Bankers
Barclays Bank PLC
PO Box 885
Mortlock House
Vision Park
Histon
Cambridge CB4 9DE
Registrars
Capita Registrars
34 Beckenham Road
Beckenham
Kent BR3 4TU
Solicitors
Herbert Smith
Exchange House
Primrose Street
London EC2A 2HS
Company Number
2659005
Registered Office
16 Orsman Road
London N1 5QJ
Company Website
www.lidco.com
Scientific advisory panel
Shareholder information 04-05 770 units
03-04 591 units
02-03 300 units
01-02 128 units
OPERATIONAL
2004/05: Highlights
 Sensor and fee for use unit sales increased by
91% to 19,623 over the previous year (10,260)
– fourth year in a row of disposable sales growth
over 90%
 Planned transition from capital sales well
advanced with disposable revenue (recurring
sales) now 66% of product sales – up from 20%
in 2002 and 33% in 2003
 An independent clinical study shows £4,000 cost
savings per patient, potentially worth £500m per
annum to the UK’s NHS 
 The installed base of PulseCO/LiDCOplus monitors
increased by 30% to 770 at the end of the
period (2003: 591)
 Contract signed with Philips Medical Systems and
launch of the LiDCOplus v3.0 software – creates a
communications link between LiDCO’s monitoring
system and Philips’ patient monitors
 A placing of £3.7m (net) of new shares was
completed in June 2004, providing capital to
support the new US, European distributor
programmes and additional R&D
 Total revenues of £2.5m/constant currency
*
£2.6m (2003: £2.7m)
 Pre-tax operating loss steady at £4.2m (2003: £4.1m)
 Loss per share down at 4.34p from 5.34p
 Administration expenses were held at 
£6.0m (£6.1m in 2003)
 Cash outflow before financing £3.8m (2003: £3.4m)
* using the $ exchange rate as at December 2003
FINANCIAL
2004/ 05: Installed base
770units
2004/ 05: Sensor and fee for use sales
19,623units
04-05 19,623 units
03-04 10,260 units
02-03 5,220 units
01-02 1,420 units
1 LiDCO Group plc Annual Report January 2005 £1.65bn
The market for cardiovascular
monitoring equipment is worth
£1.65 bn per year worldwide.
PRODUCTS

BUILDING A GLOBAL PRESENCE
LiDCO: Group at a glance
During the past year we have completed 
the commercial foundations required 
for an expansion of sales into our global 
distribution network.
The LiDCOplus monitor
The LiDCOplus combines the measurement and
monitoring features of LiDCO (lithium dilution 
cardiac output measurement) and PulseCO (real-time
cardiovascular monitoring), significantly enhancing
ease of use and saving space around the patient.
2001: 
UK/USA
Japan
2003: 
Belgium
Czech Republic
Netherlands
Spain
South Africa
2004:
Austria
Italy
Germany
Greece
USA
2005:
Ireland
Norway
Sweden
Denmark
Bulgaria
Brazil
Distribution Network
An increase in installed base of monitors:
591 770units +30%
LiDCO Group plc Annual Report January 2005 2 FINANCIAL
Sensor and fee for use sales
+90% in 2004/05
Increase in distribution reach
 Distributors – five appointed in the US with
appointments in Germany and Austria, 
further increasing global sales reach
 Further product approvals – lithium chloride 
drug registration achieved in: Austria, Italy , 
Denmark, Sweden, Norway , Ireland, Bulgaria 
and Brazil 
 Sales growth of 35% in our priority markets at
£2.3m (2003: £1.7m): USA up 24%, UK up 
32%, Europe up 55%
 Worldwide uptake of LiDCO’s technology 
with 46% of installed monitors in the US, 
35% in Europe and 19% in ROW
 Continual growth of disposable sales expected in
2005 from additional monitor placements into the
recently expanded distribution territories
Disposable Income
Now the majority of sales
 2004/05
“W e are looking forw ard to 
an acceler ation of sales 
during 2005 through our
consider ably expanded 
global distributor network. ” 
Terry O’Brien, Chief Executive
GROWTH
The LiDCOplus sensor
LiDCO has developed a proprietary lithium sensor using
lithium indicator dilution to calculate cardiac output. 
This is used to calibrate the LiDCOplus monitor . Safe and
extremely accurate, this method is simple to perform,
taking less than five minutes for the entire procedure.
focused on: delivering
improved care that reduces
complications and infections
disposable 66.25%
capital 33.75%
 2003
disposable 33.5%
capital 66.5%
3 LiDCO Group plc Annual Report January 2005 Chairman’s review: Theresa Wallis
The 13 months to 31 January 2005 
saw a high level of activity and progress
on several fronts. A significant new
development was the expansion of
LiDCO’s international distributor network.
In the US, this was possible because of the
groundwork conducted by our direct US
sales force. It has established the market
for our products, setting pricing and sales
models. In Europe, final regulatory
approvals received in late 2004 and
continuing into 2005 in a number of
countries opened the way to appointing
distributors in several European
territories and initiating sales activity
there. In the UK, US, continental Europe
and Japan, we continued to encourage
and support product validation studies 
by recognised opinion formers. 
Meanwhile the Company’s London-based
manufacturing facility continued to
produce a growing number of proprietary
sensors efficiently and to the high
standards required by the industry . The
facility has the double benefit of providing
a substantial increase in capacity with
only marginal additional cost. 
Having set the price for our monitors
through direct sales activity , we started to
shift our US sales strategy in 2004 from a
capital sales model to one predominantly
based on annuity revenues. This consists
of an up-front charge, rental and fee per
use revenues. The advantage of this
approach is that it enables a larger
number of hospitals to benefit from 
our minimally invasive hemodynamic
monitoring system at a cost that is linked
to usage and is therefore easier to justify
to those budget holders who are not in 
a position to approve a capital sale. A
further advantage of this approach is 
that annuity revenue, being proportional
to the number of monitors installed in
hospitals, is becoming increasingly
predictable due to our experience 
of monitor usage since launch of 
our products in 2001. 
As expected, given the targeted shift 
in our sales model from a capital sales
model to an annuity sales model, headline
turnover slipped, but excluding a large
distributor stocking order from Japan 
in 2003, sales in 2004 were 37% higher
than in 2003, reflecting strong, healthy
growth in sales of monitors and 
sensors. Careful cost control enabled
administrative costs to  be held at 
£6 million. 
In June, a placing of £3.7 million (net) was
completed to provide additional working
capital to support new US, German and
Austrian distributor programmes and
additional research and development. 
During the year a non-exclusive
partnership agreement was signed with
Philips Medical Systems. Hemodynamic
monitoring data gathered from patients
using LiDCO’s systems can be fed into 
the Philips IntelliVue Patient Monitor , a
patient information system used in many
of our target hospitals. Other recently
developed links also enable our systems
to connect directly to hospitals’ own
information systems, an increasingly
important feature as the NHS and other
healthcare providers move towards an
electronic patient record system. 
The recently announced results of the 
St George’s Hospital outcome study are,
we believe, of particular significance to
the Company’s future development. 
We believe that the study , which used
LiDCOplus monitors, makes the clearest
business and humanitarian case ever
made for the adoption of hemodynamic
monitoring for the treatment of high risk
surgery patients, saving on average over
ten hospital bed days per patient. 
The Company is therefore well placed 
to accelerate penetration of our target
markets for hemodynamic monitoring
systems. In order to ensure that full
advantage is taken of this opportunity ,
maximum effort and commitment will be
required on the part of the Company’s
employees and management. F or 
this reason the Board has decided to
undertake a restructuring of its long 
term incentive programme. New Bridge
Street Consultants LLP is advising the
Board on this area.
I would like to take this opportunity to
extend my thanks to the management
and staff of LiDCO for all their dedication,
hard work and enthusiasm and to our
scientific advisory panel for their 
valuable support. 
Theresa Wallis
Chairman
17 May 2005
The Company is well placed to
accelerate penetration of our 
target markets for hemodynamic
monitoring systems.
LiDCO Group plc Annual Report January 2005 4 FI
In a major trial at St. George’s Hospital, London the LiDCO minimally
invasive cardiovascular monitoring technology was used to both
measure blood flow and increase oxygen delivery in surgery patients.
The results were clear:
 Savings in the cost of treating patients amounting to an average
of £4000 per patient. Extrapolated nationally, this would equate
to a saving of £500 million per annum for the NHS.
 The monetary saving – £248,000 – resulted from 640 hospital
days saved for 62 patients, an average of more than 10 bed days
per patient.
 The savings in cost and time were associated with a significant
reduction in medical complications.
“Once we found out it was 
simple and easy to do, we could
implement it immediately in 
our practice.”
Jayne F awcett RN, MSc, T eam Leader , 
St George's Hospital, London
focused on: significant savings
and improved patient care
OUTCOME STUDY: GOAL DIRECTED THERAPY: ST. GEORGE’S HOSPITAL, LONDON
5 LiDCO Group plc Annual Report January 2005 .The US spent $1.2 billion in 2002 on patient
monitoring products and, with an annual
growth rate of 8. 9%, hospitals will continue
to allocate a significant percentage
(30–40%) of their resources to critical care
patients. There remains a growing need for
advances in cardiovascular monitoring and
the care of such hospital patients. 
The size of the available market therefore
is not in doubt. The challenge for LiDCO 
in 2004/05 was to get into the position
where the Company could fully exploit
the potential for its technology to meet
this growing need. Therefore it was key to
complete residual registration activities in
a number of new territories and appoint
additional distributors in these territories.
These activities have now been
concluded successfully .
Following product approvals the
publication of independent clinical studies
showing both patient and economic
benefits is crucial to the development 
of the minimally invasive monitoring
market. With this in mind I am pleased 
to report that during the year , a number
of trials using LiDCO’s technology have
concluded positively . Of these trials 
the most powerful report was the one
presented on 22 March 2005 at the 25th
International Symposium on Intensive
Care and Emergency Medicine in 
Brussels – following the conclusion of 
a prospective controlled trial conducted
by St. George’s Hospital, London. This 
trial has demonstrated that better post
operative intensive care can be achieved
with the use of LiDCO’s minimally invasive
technology and importantly that such
care translates into benefits for both the
patient and cost savings for the healthcare
provider . The savings achieved through
adoption of this approach to the hospital
per year have been estimated at 
£2 million. This represents a saving of
£4,000 per patient through an average
reduction in stay of more than ten bed
days per patient treated. It has been
estimated that if this form of advanced
cardiovascular care was implemented
throughout the UK, savings of up to 
£500 million per annum could be
achieved for the NHS. 
Business review
During the period we have made
significant advances in the development
of a truly worldwide sales and distribution
network. In order to do so a number of
regulatory milestones were reached in
2004 and in early 2005. We have paid
particular attention to the European
market – as this is the most developed
territory for the adoption of advanced
minimally invasive cardiovascular
monitoring. We have received full
approvals for marketing in eight
additional territories: Italy , Germany ,
Austria, Norway , Sweden, Denmark,
Ireland and Bulgaria. These latest
registrations now provide LiDCO with 
full marketing approval in 13 European
countries. F ollowing these additional
registrations we are now selling product
in a greatly expanded group of territories:
Germany , Austria, Italy , Sweden, Holland,
Belgium, Denmark, Czech Republic,
Croatia, Spain, Sweden, Norway and the
UK. We expect continued and significant
sales growth in Europe during 2005.
We also extended our sales reach in the
US, signing agreements with five regional
distributors. We are supporting these
distributors with our direct sales staff and
will continue to appoint additional
organisations throughout 2005. Our
Chief Executive’s review: T erry O’Brien
Hospitals will always need to maintain a 
high standard of patient care, which means 
a constant need for the latest technology,  
despite budget restraints.
LiDCO Group plc Annual Report January 2005 6 focused on: real-time beat to beat
display of critical parameters
ambition is to achieve full coverage of the
US market through a mixed direct and
distributor sales force. 
In May 2004 the Company announced 
it had contracted with Philips Medical
Systems (‘Philips’) to create a
communications link between LiDCO’s
proprietary , stand-alone monitoring
system (LiDCOplus Monitor) and Philips’
patient monitors, via the Philips Open
VueLink Interface protocol. The
communications link allows Philips’
customers access to LiDCO’s proprietary ,
minimally-invasive hemodynamic
monitoring data on the IntelliVue Patient
Monitor . The integration of critical care
parameters and hemodynamic data
derived from the LiDCOplus monitor 
will allow a fuller picture of the patient’s
condition and history to be displayed and
accessed throughout the hospital. I am
pleased to say that this communication
link software has now been completed
and launched. In addition, for those
hospitals without Phillips monitors we
have provided a real time ethernet based
communication feature. This means that
LiDCO monitors can now be interfaced
through both proprietary and inexpensive
non proprietary protocols. This is a major
step forward as hospital information
systems can now be updated with
LiDCO’s oxygen delivery data, shown by
the St. George’s trial to be fundamental to
improving outcomes for surgical patients.
We believe that there is a growing
requirement from intensive care staff 
and the hospital administration for the
provision and clinical audit of such 
crucial information. Our experience is
that interconnectivity of hemodynamic
monitors to hospital information 
systems is becoming a key part of 
the hemodynamic monitor purchase
specification. Our PC based monitor
approach is highly flexible and 
able to accommodate this 
developing requirement.
Trading review
Sales, margins and placing 
In the period turnover was modestly
down in comparison to 2003. This was a
consequence of our continuing strategy
to promote monitor rental and disposable
sales at the expense of one-off revenues
from capital sales to distributors and
hospitals. Revenues in 2003 were also
boosted by the receipt of an initial 
£0.7 million stocking order from Japan.
Thus the overall revenue figure disguises
the underlying strong growth of revenue 
in Europe and the US – which was
increased by 32% over the previous year .
This reflects continued encouraging
levels of disposable usage and the
expansion in the installed monitor base 
– up 30% (from 591 to 770 systems).
Overall disposable sales increased
strongly in the period – up by 87%. Thus
2004 was the fourth year in succession
where we have seen such growth in
recurring revenue. These more
predictable revenues from sales of
disposables, fee for use and rentals 
now account for the majority (64%) 
of total revenue – see T able 1.
As disposable sales increase in existing
markets and territories that were added
in the second half of the year the
Company expects continued strong
recurring revenue growth in 2005. We
continue to make progress in the USA
which represents 46% of our installed
base of monitors. We expect that, in
addition to the sales achieved by our 
own sales team, there will be a growing
contribution from the five US regional
agents who, following training, are
starting to make an impact on income.
The global interest in minimally invasive
technology is supported by the
widespread distribution of our installed
base of monitors US (46%), Europe
(35%), ROW (17%).
The slightly increased operating loss 
for the period reflects the modestly
reduced turnover with administration
expenses held at just below the previous
year’s figure.
Cost controls have been maintained 
and the underlying monthly cash usage 
is steady despite servicing a larger
distributor sales organisation in a
considerably expanded number of
territories. Our expectation is that the
installed base of monitors (770 as at 
31 January 2005) will continue to
increase and our first commercial
milestone of an installed base of 1,000
monitors looks within reach during 2005. 
In order to support the sales expansion 
in the US and Continental Europe, and 
to finance product development, the
Company concluded a placing of shares 
in June raising approximately £3.7 million
(net). It was gratifying to see a number of
our existing investors supporting this
financing round, and at the same time 
we were able to welcome a number of
new institutional investors.
Hospitals will always need to maintain 
a high standard of patient care – which
means a constant need for the latest
technology , despite budget restraints. 
In January 2005 LiDCO signed an
7 LiDCO Group plc Annual Report January 2005 agreement with a major US finance
house – a leading provider of equipment
acquisition solutions for acute-care
hospitals throughout the United States
and Canada. We will use the flexible
leasing programs on offer to help sell
equipment to US hospital customers via
leasing programs that give hospitals the
ability to obtain equipment immediately
and pay for it in monthly instalments. The
provision of this facility greatly enhances
the ability of our sales team and agents to
provide appropriate financing solutions
for our customers. 
US
T urnover in 2004 was £935,000 (2003:
£754,000) an increase of 2 4% despite 
an adverse currency impact from the
weakening dollar of £131,000. Currency
adjusted turnover (£1.1 million) shows an
increase of 41%. Capital sales of monitors
represented 27% of systems placed in the
period (2003: 58%). The number of
monitors placed and sales of sensors/
fees for use increased by 36% and 111%
respectively compared to 2003. A
number of distributors were appointed
during the second half of 2004 to
supplement our existing direct sales
force, and increase the sales coverage
within the US. The training of their staff
took place during the second half 
of 2004 and sales have commenced.
Further appointments of US agents 
are expected in 2005.
Given the lengthy US capital sales cycle,
the rental/ consignment model was 
introduced during the last quarter 
of 2003 to accelerate market
penetration of our monitoring
systems alongside the existing capital
sales option, and sales through higher
charges on disposables (‘Upcharge’).
Under this new model, customers are
charged a fee each time they use the
LiDCOplus software, but pay no up-
front fee for the monitor . Furthermore,
they can cost-effectively calibrate
their installed LiDCOplus system using
third party products, as well as LiDCO
sensors, thereby further increasing
the range of clinical situations in
which our monitors can be used. With
this sales model we have had successes
at a number of US hospitals where we
have been able to provide advanced,
real-time cardiovascular monitoring,
while still saving the hospital money
against their existing revenue budget
for invasive monitoring. 
UK
T urnover in the UK increased by 32% 
to £930,000 (2003: £706,000) with both
monitor placements and sensor numbers
increasing by 64%. Sales in the UK are
made via a direct sales force of seven
people, ensuring that LiDCOis kept in
direct contact with clinical developments
in the critical care community and can
rapidly adapt its products to meet
changing demands. As in the US, a variety
of sales models are also used in the UK,
with hospitals able to select from simple
capital purchase, up charged sensor
prices (but no capital purchase) or , more
recently, a fee-for-use programme.
The flexibility offered to NHS hospitals
assists them in the acquisition of the
LiDCO technology according to local
budgetary and planning circumstances.
We expect sales growth in the UK to 
be accelerated through adoption of
the protocol for improving outcome in
high risk surgery patients pioneered at 
St. George’s hospital.
Chief Executive’s review continued
Following the additional
registrations we are now selling
product in a greatly expanded
group of territories.
T able 1. Revenue summary – showing transition to annuity stream
13 months to Y ear ended
January 2005 % of December 2003 % of
Sales detail £000 total £000 total
Capital sale 803 33 1,669 61
Sensor revenue 1,456 59 844 31
Monitor fee per use 120 5 – –
Licence fees 77 3 204 8
Total 2,456 2,717
Total at constant currency 2,586
Installed base at period 
end (number of monitors) 770 591
LiDCO Group plc Annual Report January 2005 8 In March 2005, LiDCO launched a new software inter-connectable
with Philips’ technology . The new software incorporates the Philips
VueLink protocol as well as an intranet connectivity . This means
that LiDCO monitors can now be interfaced with hospital
information systems already in place. This will allow many more
hospitals around the world to achieve significant improvement in
patient care and reduction of complication related costs. 
“The LiDCOplus monitor , with 
its ability to connect to other
primary patient monitors, helps 
us to improve our patient care 
by showing all the key clinical
information we need on 
one screen.”
Richard Beale Head of Perioperative, 
Critical Care and Pain Services and
Consultant Intensivist at Guys and 
St Thomas’ NHS F oundation T rust
focused on: immediate response
to interventions
DATA MANAGEMENT: ST. THOMAS’ HOSPITAL, LONDON
9 LiDCO Group plc Annual Report January 2005 Chief Executive’s review continued
Continental Europe
T urnover for the period was £386,000 –
an increase of 55% (2003: £2 49,000).
With the first wave of mutual recognition
approvals only achieved in late 2003,
first sales into continental Europe started
in earnest in mid 2004. The registration
process has continued, with second wave
approvals received in the first quarter 
of 2005. There are now 13 European
territories open to LiDCO and its products,
with further European approvals
scheduled for 2006.
Sales in Europe are made via a network
of distributors supported by LiDCO 
staff based in the UK and Northern
Europe. The market for less invasive
cardiovascular monitoring is most
advanced in Europe, compared to the
rest of the world and interest in adopting
minimally invasive monitoring is strong.
We expect significant sales growth 
in 2005.
F ar East, Japan and the Rest of the World
Sales in the F ar East, Japan and the 
Rest of the World totalled £204,000
(2003: £822,000). Adjusting for the 
one-off stocking order received from 
our Japanese distributor in 2003
(£700,000), reveals a sales increase 
in territories outside of Japan. In Japan,
following their purchase of an initial
stocking order of 100 monitors in 2003
our distributor Nipro have established a
number of key clinical reference sites 
for our technology . The strategy is to
concentrate on these centres initially and
then expand sales through local referrals.
The market for real time hemodynamic
monitoring is less well developed in
Japan when compared to Europe – 2005
will therefore represent a year where 
the product advantages are still being
established by our distributor partner . 
We therefore expect modest sales 
during this market development period.
Research & development and product
application
Focus on improving hospital patient
outcomes and reducing costs 
Our core development activities centre
on the acquisition and intelligent display ,
through a platform PC based monitor , of
combinations of measurements, that
have been proven to influence hospital
patient outcomes positively , and thereby
reduce costs. The advantages to be
obtained through targeting one such
parameter (oxygen delivery) have
already been demonstrated. LiDCO
believe that there will be an increasing
recognition of the advantages of this
form of hemodynamic driven care. 
Hemodynamic driven care and
intravenous fluid management
The Company expects to add a further
software product to simplify and make
safer the administration of fluids for 
re-hydration purposes. Knowing the
precise amount of fluids to administer is
surprisingly difficult. T oo little fluid and
the oxygen delivery and blood pressure
can fall to dangerous levels. T oo much
can result in overloading the circulation
and heart resulting in a greatly extended
hospital stay . LiDCO is developing 
a unique interface allowing the
nurse/ physician-led optimisation of 
fluid administration to such patients. 
This development activity will result in 
an intelligent fluid administration screen
and new software product. This will not
only improve safety but also help in the
implementation of early goal directed
therapy (EGDT) in surgery patients.
Looking ahead, we are also assessing the potential
to use completely non-invasive (skin applied) sensor
technology with the LiDCOplus monitor to identify
and optimise high-risk surgery patients.
“The USA is the biggest
single market and now
represents approximately
50% of our potential
worldwide sales.”
LiDCO Group plc Annual Report January 2005 10 Oxygen delivery and consumption ratio
patent application
Improved outcomes are achieved 
when the consumption and delivery 
of oxygen are well matched – the EGDT /
St. George’s study is an example of where
increasing oxygen delivery to pay back
an oxygen debt has markedly improved
outcome. T o further simplify the
monitoring of the relationship of these
two parameters LiDCO have filed a
patent on a unique way of calculating 
and displaying their relationship in a
simplified form. Through such a display ,
the user can be alerted to any
deterioration in this key ratio and a 
menu of appropriate responses is
presented e.g. giving additional blood,
more fluids or the administration of a
drug. It is our intention to add this
functionality to our software.
Potential neonatal application for the
LiDCOplus monitor
Monitoring of cardiovascular status 
in the unwell pre-term baby (neonate) 
is mostly limited to the continuous
measurement of blood pressure through
an umbilical artery catheter . However ,
these blood pressure values, although
useful, may not accurately reflect actual
tissue perfusion with oxygen. The
continuous measurement of cardiac
output and estimation of oxygen delivery
in these very small babies has not 
been possible, except intermittently 
by echocardiography . Researchers from
the Clinical Science Department (Child
Health), University of Bristol, UK have
shown that continuous analysis of
cardiac output is possible with the
LiDCOplus monitor . The cardiac output
trend derived from our monitor shows 
a closer correlation to changing tissue
oxygen perfusion than standard arterial
blood pressure monitoring. They conclude
that ‘This methodology is applicable to
the term and preterm infant in assessing
cardiovascular function, using either 
a standard umbilical catheter , or a
peripheral arterial line’. The LiDCOplus
monitor is not registered for use in
subjects less than 40 kgs in weight;
however , this work has encouraged 
us to further investigate the potential 
for sales of the LiDCOplus monitor in
neonatal intensive care units. If an
attractive business case can be made
then the appropriate steps will be 
taken for registration of this new 
clinical indication. 
Dr T erence O’Brien
Chief Executive Officer
17 May 2005
focused on: achieving lasting
customer satisfaction
11 LiDCO Group plc Annual Report January 2005 Board of Directors
12
34
5 6
LiDCO Group plc Annual Report January 2005 12 1 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.
2Theresa Wallis
Chairman
Ms Wallis is a Principal Executive of
ANGLE Technology Limited and a
Non-Executive Director of T&G AIM
VCT plc. She worked for the London
Stock Exchange for 13 years, where
from 1995 she was Chief Operating
Officer of the Alternative Investment
Market (AIM), having managed the
market’s development and launch in
1994–1995. She is currently a member
of the Quoted Companies Alliance’s
Markets and Regulation Committee.
3 Hugh McGarel-Groves
Finance Director (with effect 
from 10 May 2005)
Mr McGarel-Groves has held Finance
Director roles in the private
healthcare sector at Hospital
Corporation International, Medical
Services International (Cromwell
Hospital) and Nestor Healthcare
(BNA). He started his career as a
chartered accountant with KPMG in
London, and then held senior finance
positions at BP, Guinness and
Sedgwick. His experience includes
four years managing his own
specialist engineering company.
4 Dr David Band
Scientific Director 
Dr Band co-founded the Group in 1991
and is the co-inventor of the LiDCO
System. 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.  
5 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. 
6Bert Wiegman
Non-Executive Director 
Mr Wiegman is a partner in Langholm
Capital a €250m private equity fund
investing in fast growth European
consumer facing businesses. He has
been involved in venture capital all of 
his career and is also Non-Executive
Chairman of T&G AIM VCT Plc.
13 LiDCO Group plc Annual Report January 2005 LiDCO Group plc Annual Report January 2005 14
Companies that have shares traded on the Alternative Investment Market (AIM) of the London Stock Exchange are not
required to comply with the disclosures of the Combined Code on Corporate Governance which is appended to the Listing
Rules of the Financial Services Authority (‘the 2003 FRC Code’). However , the Board is committed to maintaining the
highest standards of corporate governance, where appropriate for a company of this size.
The Board of Directors
There were four Executive and two Non-Executive Directors throughout 2004. The Finance Director resigned on 
19 January 2005. Post year end, Mr Hugh McGarel-Groves was appointed as Finance Director with effect from 
10 May 2005. Mr R Bird was Company Secretary until 27 January 2005, since when Mrs L O’Brien assumed the 
position. The Board normally meets 12 times a year , with additional special meetings as required.
Both of the Non-Executive Directors bring independent judgement to bear on issues considered by the Board. Mr Wiegman
served as the Senior Independent Director throughout the year .
All Directors have access to the services and advice of the Company Secretary who is responsible for ensuring compliance
with the relevant procedures, rules and regulations. All Directors are able to take independent financial advice in the
furtherance of their duties if necessary.
All new Directors are required to resign and seek re-election at the first Annual General Meeting following their
appointment. All Directors are required to seek re-election at intervals of no more than three years. Executive Directors
have service contracts containing a notice period of one year . Non-Executive Directors do not have service contracts with
the Company.
Committees of the Board
Audit Committee
The members of the Committee are Ms Wallis (Chairman) and Mr Wiegman. The external auditors also attend meetings.
The committee considers financial reporting, corporate governance and internal controls. It also reviews the scope and
results of the external audit and the independence and objectivity of the auditors. It meets at least twice a year and reviews
the interim and annual accounts before they are submitted to the Board.
Remuneration Committee
The members of the Committee are Ms Wallis (Chairman) and Mr Wiegman. The Committee reviews and sets the
remuneration of the Executive Directors. It also agrees a policy for the salaries and bonuses of all staff. It advises on 
share schemes and the granting of share options. The decisions of the Committee are formally ratified by the Board.
Details of Directors’ remuneration are included in note 4 to the accounts.
Nominations Committee
The members of the Committee are Ms Wallis (Chairman), Mr Wiegman 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.
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 published updates to investors on technical 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 of the Company.
Corporate governance report 15 LiDCO Group plc Annual Report January 2005
Corporate governance report continued
Accountability and audit
Going concern
As discussed in note 1 to the accounts and on the basis of current financial projections, the Directors have a reasonable
expectation that the Company has adequate resources to continue in operational existence for the forseeable future. 
For this reason, they continue to adopt the going concern basis in preparing the accounts.
Internal control
The key procedures designed to provide an effective system of internal control are described below:
 Control environment
The Company’s control environment is the responsibility of the Directors and individual managers at all levels. The 
Board has implemented an organisational structure with clearly-defined responsibilities and lines of accountability.
 Information systems and controls
Detailed budgets and forecasts are prepared annually and progress against expectations is reviewed monthly by the
Board. Underpinning these budgets is a system of internal financial control, based on authorisation procedures. 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, the US Food & Drug Agency and other medical bodies.
 Monitoring of effectiveness
The composition of the Board and the senior management team provides a suitable range of knowledge and 
experience to enable adequate risk monitoring. The Company’s information systems provide detailed, regular 
variance reports which are reviewed and acted upon by the Board. The external auditors report separately to 
the Board on the Company’s accounting and internal controls as part of their normal audit work.
Statement of compliance
During the course of 2004/05 there were two areas of non-compliance with the 2003 FRC Code. Firstly a full review of 
the effectiveness of the Group’s system of internal controls did not take place in the the year (the last full review took 
place in December 2003). A full review will be undertaken in the coming few months. Secondly, a formal evaluation of 
the Board’s performance was not performed. Again, this will take place in the coming months. LiDCO Group plc Annual Report January 2005 16
Policy on remuneration
The Remuneration Committee recommends Directors’ remuneration and remuneration policies for all staff. Remuneration
levels are set in order to attract high calibre recruits and to retain and motivate those Directors and employees once they
have joined the Company. This is achieved by a combination of base salary, bonuses and share options, which are offered
both to Executive Directors and to employees at all levels.
The fees paid to Non-Executive Directors are determined by the Board.
Remuneration Committee
The members of the Committee are Ms Wallis and Mr Wiegman. The Committee is assisted by the Company Secretary. 
Service contracts
Dr O’Brien, Dr Band and Mr Barry have service contracts with the Company dated 29 June 2001. The contracts are not set
for a specific term, but include a rolling 12-month notice period. In addition, all Directors retire by rotation at the Company’s
Annual General Meeting and, where appropriate, offer themselves for re-election.
Mr McGarel-Groves has a service contract with the Company dated 5 April 2005; as with the other Directors, this is not 
set for a specific term, but includes a rolling six months’ notice period.
Non-Executive Directors have letters of appointment dated 20 December 2002 in the case of Ms Wallis and 2 July 2001 
in the case of Mr Wiegman. These letters are issued in place of service contracts. In keeping with best practice, these
appointments are terminable without notice by either party.
Remuneration package
All four Executive Directors receive a base salary and allowance in lieu of benefits, as shown in the table in note 4 to the
accounts. Non-Executive Directors’ fees are also shown in note 4.
The four Executive Directors are members of the Company’s Senior Management Bonus Scheme. Under the terms of the
scheme, the Remuneration Committee assesses the Directors’ individual performances at the end of the financial year ,
judged against pre-determined benchmarks. In 2004 the criteria for awarding bonuses were based on sales performance
and the Company’s cash position. Bonuses are capped at 100% of base salary. Non-Executive Directors are not eligible 
for bonuses.
No pension contributions were payable by the Group (2003: £nil).
Directors’ shareholdings
31 January 1 January
2005 2004
Directors Number Number
D M Band 7,060,832 7,060,832
T K O’Brien 10,109,577 9,801,682
T A Wallis (non-executive) 85,000 85,000
R J Mills* – 570,833
J G Barry 379,642 379,642
A E B Wiegman (non-executive) 239,285 239,285
17,874,336 18,137,274
The Directors have no interests in the shares of the Company’s subsidiary undertakings.
* R J Mills resigned on 19 January 2005 – his shareholding as at that date was 623,463.
Remuneration report 17 LiDCO Group plc Annual Report January 2005
Remuneration report continued
0
20.0
40.0
60.0
80.0
100.0
120.0
140.0
02/11/2001
06/12/2001
09/01/2002
12/02/2002
18/03/2002
21/04/2002
25/05/2002
28/06/2002
01/08/2002
04/09/2002
08/10/2002
11/11/2002
15/12/2002
18/01/2003
21/02/2003
27/03/2003
30/04/2003
03/06/2003
07/07/2003
10/08/2003
13/09/2003
17/10/2003
20/11/2003
24/12/2003
27/01/2004
01/03/2004
04/04/2004
08/05/2004
11/06/2004
15/07/2004
18/08/2004
21/09/2004
25/10/2004
28/11/2004
01/01/2005
Relative Price Scale
LiDCO
Mediscience
Directors’ share options
Number of options Date from
1 January 31 January Exercise which Expiry
Directors 2004 Granted Exercised 2005 price exercisable date
D M Band 637,500 – – 637,500 140p 5/7 /04 5/7 /14
750,000 – – 750,000 13p 15/12/05 15/12/15
T K O’Brien 637,500 – – 637,500 140p 5/7 /04 5/7 /14
750,000 – – 750,000 13p 15/12/05 15/12/15
J G Barry 637,500 – – 637,500 140p 5/7 /04 5/7 /14
106,250 – – 106,250 0.5p see below see below
100,000 – – 100,000 116p 16/1/05 16/1/15
750,000 – – 750,000 13p 15/12/05 15/12/15
90,000 – – 90,000 28.25p 25/11/06 25/11/16
4,458,750 – – 4,458,750
Mr Barry’s options priced at 0.5p vested in three equal tranches on 1 January 2002, 1 January 2003 and 1 January 2004.
Each tranche remains exercisable for a period of ten years. 
The following options were granted in April 2005:
Date from
Exercise which Expiry
price exercisable date
D M Band 65,116 21.5p 6/ 4/08 5/ 4/18
T K O’Brien 277,395 21.5p 6/ 4/08 5/ 4/18
J G Barry 356,844 21.5p 6/ 4/08 5/ 4/18
328,481 22p 31/12/05 30/12/15
328,481 22p 30/ 4/06 29/04/16
656,961 22p 30/9/06 29/09/16
Shareholder return
The Directors’ remuneration report regulations specify that a company must provide a graph of its share price over the 
last five years against an appropriate benchmark index. The Company’s shares have been traded on the AIM market of 
the London Stock Exchange since 5 July 2001, prior to which they were not publicly traded. A graph of the Company’s
share price since that date is shown below, using the FTSE T echmark MediScience Index as a comparator , which the
Directors consider to be the most suitable benchmark index.
LiDCO share price performance November 2001 – January 2005 relative to the T echmark Mediscience Index
Approved by the Board of Directors on 17 May 2005 and signed on behalf of the Board
Lucy O’Brien
Secretary LiDCO Group plc Annual Report January 2005 18
Directors’ report
The Directors present their Annual Report and the audited financial statements for the 13 months ended 31 January 2005.
Activities
The principal activity of the Group was the development, manufacture and sale of cardiac monitoring equipment.   
Results and future prospects
The Group’s turnover for the period was £2,456,000 (2003: £2,717 ,000). The Group made a consolidated loss after
taxation during the period of £4,199,000 (2003: £3,875,000). The Directors do not recommend the payment of a dividend 
(2003: £nil).
At 31 January 2005 the Group held £1.6 million of cash (31 December 2003: £1.6 million), which provides the Group with
adequate funding for its business plan. In June 2004 the Company issued £3.7 million of new shares, net of expenses, 
to enable the US distributor programme to commence, to finance additional research and development and to provide
additional working capital.
Recent regulatory approvals in Europe and Brazil have opened more markets in Europe and a new one in South America.
This brings to thirteen the number of European territories in which we are registered to sell lithium chloride as well as
Brazil – the largest medical market in South America. With distributors already appointed in these countries, we are looking
forward to an acceleration of sales through this expanded network of distributors and territories.
The Company’s share price at 31 January 2005 was  20.5p (31 December 2003: 29.25p).
Change of year end
The Company has altered its financial year end from 31 December to 31 January. This enables the completion of sales to
hospitals to be achieved within the financial year , which might otherwise be delayed into future periods due to the absence
of key customer personnel during the Christmas holiday period in the US, UK and Europe.
Research and development
The Group continued to develop the LiDCOplus system during the year , as set out in the Chief Executive’s Statement.
Expenditure on research and development amounted to £310,000 in the period (2003: £269,000) in addition to software
development costs of £126,000 (2003: £210,000) which are capitalised on the balance sheet and amortised.
Euro
The implications of European Monetary Union (EMU) for the firm have been considered. The necessary changes have been
made to our systems and procedures to accommodate the new currency. The cost of these changes is not significant.
Directors and their interests
The Directors who served throughout the year are shown on page 13 with the exception of Mr R Mills who resigned on 
31 January 2005. The Directors’ beneficial interests in the ordinary shares of the Company at 31 January 2005 and 
1 January 2004 are shown on page 16.
Significant shareholdings
In addition to the Directors, the following shareholders had beneficial interests in more than 3% of the Company’s share
capital at 31 January 2005:
Beneficial holding
Number 
Name of shares %
R M Greenshields 9,042,407 9.1
P A Brewer 6,822,221 6.9
H J Leitch 5,876,571 5.9
H G Wellington Inc. 3,300,000 3.3
Merlin Biosciences Fund LP 3,128,000 3.2
J Kratochvil 3,020,278 3.2 19 LiDCO Group plc Annual Report January 2005
Directors’ report continued
Supplier payment policy
The Companies Act 1985, as amended, requires the Group to make a statement of its policy and practice on the 
payment of creditors.
It is and will continue to be the policy of the Group to negotiate with suppliers so as to obtain the best available terms
taking account of quality, delivery, price and period of settlement and, having agreed those terms, to abide by them.
The total amount of of the Group’s trade creditors falling due within the period ended 31 January 2005 represents 81 
days’ worth (2003: 81 days’ worth) as a proportion of the total amount invoiced by suppliers during the period.
Donations
The Group made no charitable contributions during the period (2003: none). No political donations were made during 
the period (2003: none).
Statement of Directors’ responsibilities
United Kingdom company law requires the Directors to prepare financial statements for each financial year which give 
a true and fair view of the state of affairs of the Group and Company as at the end of the financial year and of the profit 
or loss of the Group for that period. In preparing those financial statements, the Directors are required to:
 select suitable accounting policies and then apply them consistently;
 make judgements and estimates that are reasonable and prudent;
 state whether applicable accounting standards have been followed; and
 prepare the financial statements on a going concern basis unless it is inappropriate to presume that the Group 
will continue in business.
The Directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any 
time the financial position of the Company and to enable them to ensure that the financial statements comply with 
the Companies Act 1985. They are also responsible for systems of internal control, safeguarding the assets of the 
Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Going concern
After making reasonable enquiries and performing analysis, the Directors have formed a judgement, at the time of
approving the financial statements, that there is a reasonable expectation that the Group has adequate resources 
to continue in operational existence for the forseeable future.
On the basis of the anticipated levels of sales, costs and cash flow, the Directors have satisfied themselves that the 
level of cash in the business is sufficient for at least the next 12 months.
For these reasons, the Directors continue to adopt the going concern basis in preparing the financial statements.
Auditors
A resolution to reappoint Deloitte & T ouche LLP as auditors will be proposed at the forthcoming Annual General Meeting.
Approved by the Board of Directors on 17 May 2005 and signed on behalf of the Board
Lucy O’Brien
Secretary LiDCO Group plc Annual Report January 2005 20
Independent Auditors’ report to the
members of LiDCO Group plc
We have audited the financial statements of LiDCO Group Plc for the 13 months ended 31 January 2005 which comprise 
the consolidated profit and loss account, the balance sheets, consolidated cash flow statement, the reconciliation of
movement in consolidated equity shareholders’ funds, the consolidated statement of total recognised gains and losses 
and related notes 1 to 23. These financial statements have been prepared under the accounting policies set out therein.
This report is made solely to the Company’s members, as a body, in accordance with section 235 of the Companies Act
1985.  Our audit work has been undertaken so that we might state to the Company’s members those matters we are
required to state to them in an auditors’ report and for no other purpose. T o the fullest extent permitted by law, we do not
accept or assume responsibility to anyone other than the Company and the Company’s members as a body, for our audit
report, for this report, or for the opinions we have formed.
Respective responsibilities of Directors and Auditors
As described in the statement of Directors’ responsibilities, the Company’s Directors are responsible for the preparation of
the financial statements in accordance with applicable United Kingdom law and accounting standards. Our responsibility 
is to audit the financial statements in accordance with relevant United Kingdom legal and regulatory requirements and
auditing standards.
We report to you our opinion as to whether the financial statements give a true and fair view and are properly prepared 
in accordance with the Companies Act 1985. We also report if, in our opinion, the Directors’ report is not consistent with the
financial statements, if the Company has not kept proper accounting records, if we have not received all the information
and explanations we require for our audit, or if information specified by law regarding Directors’ remuneration and
transactions with the Company and other members of the Group is not disclosed.
We read the Directors’ report for the above year and consider the implications for our report if we become aware of any
apparent misstatements or material inconsistencies in the financial statements.
Basis of audit opinion
We conducted our audit in accordance with United Kingdom auditing standards issued by the Auditing Practices Board. 
An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the financial
statements. It also includes an assessment of the significant estimates and judgements made by the Directors in the
preparation of the financial statements, and of whether the accounting policies are appropriate to the Company’s and 
the Group’s circumstances, consistently applied and adequately disclosed.
We planned and performed our audit so as to obtain all the information and explanations which we considered necessary 
in order to provide us with sufficient evidence to give reasonable assurance that the financial statements are free from
material misstatement, whether caused by fraud or other irregularity or error . In forming our opinion we also evaluated 
the overall adequacy of the presentation of information in the financial statements.
Going concern
As set out in note 1 to the financial statements the Company has continued to record operating losses as a result of
continuing to invest in the development of its operations and may require additional funding in the event that new sales 
are not achieved as forecast by the Directors. If necessary, the Directors believe that there are sufficient opportunities
available to them to obtain additional funding from sources which are currently being explored. The financial statements
do not include any adjustments that might arise from the new sales required by the forecasts not being achieved or if
necessary, a failure to obtain new funding. In view of the significance of this uncertainty, we draw attention to this matter ,
but our opinion is not qualified in this respect.
Opinion
In our opinion the financial statements give a true and fair view of the state of affairs of the Company and the Group at 
31 January 2005 and of the loss of the Group for the 13 months then ended and have been properly prepared in accordance
with the Companies Act 1985.
DELOITTE & TOUCHE LLP
Chartered Accountants and
Registered Auditors
London
17 May 2005 21 LiDCO Group plc Annual Report January 2005
13 months Year ended
ended 31 Dec ember
31 January 2003
2005 £’000
Note £’000 (restated)
Turnover 1,3 2,456 2,717
Cost of sales (808) (808)
Gross profit 1,648 1,909
Administration expenses (5,965) (6,090)
Operating loss 5 (4,317) (4,181)
Interest receivable and similar income 77 68 
Loss on ordinary activities before tax (4,240) (4,113)
T ax on loss on ordinary activities 6 41 238
Loss on ordinary activities after tax 
and retained for the period/year 22 (4,199) (3,875)
Loss per share (basic and diluted) (p) 16 4.65 5.34
The prior period restatement is due to a change in accounting policy, as set out in note 2.
All amounts derive from continuing operations.
Consolidated profit and loss account
for the 13 months ended 31 January 2005 LiDCO Group plc Annual Report January 2005 22
Balance Sheets
as at 31 January 2005
The Group The Company
31 Dec ember 31 Dec ember
31 January 2003 31 January 2003
2005 £’000 2005 £’000
Note £’000 (restated) £’000 (restated)
Fixed assets
Intangible fixed assets 7 313 421 – –
T angible fixed assets 8 1,221 1,305 – –
Investments 9 – – 65 65
1,534 1,726 65 65
Current assets
Stocks 10 1,165 1,665 – –
Debtors 11 1,510 1,201 16,449 12,668
Cash at bank and in hand 1,607 1,600 1,213 1,074
4,282 4,466 17,662 13,742
Creditors: amounts falling due within one year 12 (558) (515) (3) (2)
Net current assets 3,724 3,951 17,659 13,740
Total assets less current liabilities 5,258 5,677 17,724 13,805
Creditors: amounts falling due after more than one year 13 (123) (198) – –
Net assets 5,135 5,479 17,724 13,805
Capital and reserves
Called up share capital 15 495 386 495 386
Share premium account 22 17,142 13,396 17,142 13,396
Merger reserve 22 8,513 8,513 – –
Other reserve 22 (88) (88) (88) (88)
Profit and loss account 22 (20,927) (16,728) 175 111
Equity shareholders’ funds 5,135 5,479 17,724 13,805
The prior period restatement is due to a change in accounting policy, as set out in note 2.
These financial statements were approved by the Board of Directors on 17 May 2005.
Signed on behalf of the Board of Directors
Dr T erence O’Brien
Director
17 May 2005 23 LiDCO Group plc Annual Report January 2005
Consolidated cash flow statement
for the 13 months ended 31 January 2005
13 months
ended Year ended 
31 January 31 Dec ember
2005 2003
Note £’000 £’000
Net cash outflow from operating activities 17 (3,535) (3,094)
Returns on investment and servicing of finance 18 77 68
Capital expenditure and financial investment 18 (390) (344)
Cash outflow before financing (3,848) (3,370)
Financing 18 3,855 996
Increase/(decrease) in cash in the year 7 (2,374)
Reconciliation of net cash flow to movement in net funds
13 months
ended Year ended
31 January 31 December
2005 2003
Note £’000 £’000
Movement in cash in the period 18 7 (2,374)
Net funds at 1 January 18 1,600 3,974
Net funds at 31 January/31 December 18 1,607 1,600
Reconciliation of movement in consolidated 
equity shareholders’ funds
for the 13 months ended 31 January 2005
13 months Year ended 
ended 31 Dec ember
31 January 2003
2005 £’000
£’000 (restated)
Loss for the financial period/year (4,199) (3,875)
Issue of shares 3,855 996
Net reduction in equity shareholders’ funds (344) (2,879)
Opening equity shareholders’ funds 5,479 8,358
Closing equity shareholders’ funds 5,135 5,479
Consolidated statement of total recognised 
gains and losses
for the 13 months ended 31 January 2005
13 months Year ended 
ended 31 Dec ember
31 January 2003
2005 £’000
£’000 (restated)
Loss for the period 4,199 3,875
Total recognised gains and losses relating to the period/year 4,199 3,875
Prior year adjustment (as explained in note 2) 88
Total gains and losses recognised since last annual report and financial statements 4,287 LiDCO Group plc Annual Report January 2005 24
Notes to the accounts
for the 13 months ended 31 January 2005
1. Accounting policies
The financial statements are prepared in accordance with applicable United Kingdom law and accounting standards. 
The particular accounting policies adopted are described below.
Advantage has been taken of the exemption under s230 of the Companies Act 1985 not to disclose the profit and loss
account of the Company. The loss of the Company for the year is shown in note 22.
Accounting convention
The financial statements are prepared under the historical cost convention. There have been no changes in the Group’s
accounting policies from those used in the 2003 statutory accounts, with the exception of the implementation of UITF 38
as described in note 2.
Basis of consolidation
The consolidated accounts incorporate the financial statements of the Company and all its subsidiaries.
Going concern
The financial statements have been prepared on the going concern basis, which assumes that the Company will have 
sufficient funds to continue in operational existence for the foreseeable future. The Company has continued to invest in the
development of its operations and as a result has continued to trade at a loss in the thirteen months ended 31 January 2005.
The Directors have approved forecasts until the end of May 2006, which indicate that the Company will have sufficient
funding to continue to trade during that period. The forecasts assume a level of new sales about which there is uncertainty.
If such new sales are not achieved, the Directors believe that there are sufficient opportunities available to them to obtain
additional funding from sources which are currently being explored, to enable the Company to continue to develop its
operations and to meet its liabilities as they fall due. Accordingly the financial statements have been prepared on a going
concern basis. The financial statements do not include any adjustments that would be required in the event that the
Company had insufficient funding available.
Merger accounting
Admission to the AIM Market of the London Stock Exchange occurred on 5 July 2001. The restructuring of the Group agreed
by the shareholders in February 2001, under which the minority holdings in LiDCO Limited would be bought out in exchange
for shares in LiDCO Group, was conditional upon admission and is therefore deemed to have occurred on 5 July 2001. 
The Directors consider that the relative rights of the shareholders have in substance remained unchanged during the 
re-organisation. Merger accounting has therefore been adopted as the accounting treatment for the re-organisation.
Under this method, results are reported as if the acquiring companies have been combined since incorporation. 
No purchased goodwill is created in the transaction and the assets and liabilities of LiDCO Limited are not adjusted 
to reflect their market value. 
Turnover
Turnover represents amounts receivable from product sales – whether sales of monitors, sensors (and associated
disposables) or fees for use of the LiDCOplus monitor (where calibration is performed with another product) and monitor
rentals – and income from licence agreements granted. Dependent upon the terms of each licence agreement, income from
licence agreements is recognised on a straight-line basis, commencing from the date of receipt of cash over the period of
the licence, subject to a maximum of 10 years.
Investments
Investments in subsidiary undertakings are stated at cost less provision for impairment.
Foreign exchange
Transactions denominated in foreign currencies are translated into sterling at the rates ruling at the dates of the
transactions. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are translated 
at the rates prevailing at that date. These translation differences are dealt with in the profit and loss account.
Deferred taxation
Deferred taxation is provided in full on timing differences arising from the different treatment of items for accounting and
taxation purposes, which are expected to reverse in the future without replacement, calculated at the rates at which it is
expected that tax will arise. Deferred taxation is not discounted.
Intangible fixed assets
Intangible fixed assets represent software development costs and clinical trials on the LiDCOplus system. These have been
capitalised and are amortised in equal annual amounts over three years. 25 LiDCO Group plc Annual Report January 2005
1. Accounting policies continued
T angible fixed assets
T angible fixed assets are stated at cost, net of depreciation and any provision for impairment.
Depreciation is provided on a straight-line basis over the estimated useful economic lives of the assets. The annual rates 
of depreciation are as follows:
Land and buildings 10 – 20% per annum
Plant and machinery 20% per annum
Fixtures and fittings 20% per annum
Computer equipment 20 – 33% per annum
Stocks
Stocks are stated at the lower of cost and net realisable value.
Leases
Operating lease rentals are charged to the profit and loss account as incurred.
Capital instruments
Capital instruments are accounted for and classified as equity or non-equity share capital, equity or non-equity minority
interests and debt according to their form. There is no premium payable on redemption of non-equity minority interests.
2. Restatement of comparative figures
As disclosed in the Company’s interim results, following the introduction of UITF 38 (‘ Accounting for Employee Share
Ownership Trusts’) the Company has restated its figures relating to its investment in the LiDCO Group Plc Employee 
Benefit Trust. This change has had the effect of transferring the investments balance of £60,000 (2003: £38,000) 
directly to reserves. A reversal of impairment of £46,000 in the year ended 31 December 2003 has now been taken 
directly to reserves. Changes in the value of shares held in the Trust are no longer shown in the Company’s results.
3. Turnover
13 months Year ended 
ended 31 Dec ember
31 January 2003
2005 £’000
£’000 (restated)
Turnover summary – showing transition to annuity stream
Capital sale 803 1,669
Sensor revenue 1,456 844
Monitor fee per use 120 –
Licence fees 77 204
Total 2,456 2,717
Installed base (number of monitors) 770 591
Turnover by destination
United States 935 754
Far East 114 1,001
United Kingdom 931 706
Other European countries 386 249
Rest of World 90 7
2,456 2,717
All turnover , operating profit and net assets originated within the United Kingdom.
Notes to the accounts continued
for the 13 months ended 31 January 2005 LiDCO Group plc Annual Report January 2005 26
4. Information regarding Directors and employees
13 months
ended Year ended 
31 January 31 Dec ember
2005 2003
The Group Number Number
Average number of persons employed (including Directors)
Production 13 13
Sales 20 23
Administration 7 7
40 43
Staff costs (including Directors) £’000 £’000
Wages and salaries 2,526 2,421
Social security costs 208 234
2,729 2,655
Year ended 
2005 31 Dec ember
Salary 2005 2005 2005 2003 
Directors’ emoluments for and fees Benefits Bonus T otal Total
the 13 months ended 31 January 2005 £’000 £’000 £’000 £’000 £’000
D M Band 130 – – 130 117
T K O’Brien 215 – – 215 195
T A Wallis
1
43–– 43 40
R J Mills
2
159 – – 159 125
J G Barry 194 – 30 224 180
A E B Wiegman 22–– 22 20
763 – 30 793 667
1
Ms Wallis’ fees are payable to ANGLE T echnology Limited.
2
Mr Mills resigned as a Director on 19 January 2005.
5. Operating loss
Operating loss is stated after charging:
13 months
ended Year ended 
31 January 31 Dec ember
2005 2003
The Group £’000 £’000
Auditors’ remuneration
Group audit fees 33 38
Company audit fees 3 5
Non-audit services 18 49
Research and development 310 269
Rentals under operating leases
Hire of plant and machinery 57 58
Land and buildings 293 269
Depreciation – owned assets 389 301
Amortisation 234 354
Notes to the accounts continued
for the 13 months ended 31 January 2005 27 LiDCO Group plc Annual Report January 2005
Notes to the accounts continued
for the 13 months ended 31 January 2005
6. T ax on loss on ordinary activities
13 months Year ended 
ended 31 Dec ember
31 January 2003
2005 £’000
£’000 (restated)
Loss on ordinary activities before tax (4,240) (4,113)
T ax at 30% thereon: (1,272) (1,234)
Effects of:
Expenses not deductible for tax purposes 116 196
Capital allowances in excess of depreciation 107 90
T ax losses not recognised 998 886
Other timing differences 51 62
Research and development tax credits (41) (238)
Current tax credit for period (41) (238)
7. Intangible fixed assets
Clinical Software
trials development Total
The Group £’000 £’000 £’000
Cost:
At 1 January 2004 74 767 841
Additions during the year – 126 126
At 31 January 2005 74 893 967
Accumulated depreciation:
At 1 January 2004 49 371 420
Charge for the year 25 209 234
At 31 January 2005 74 580 654
Net book value:
At 31 January 2005 – 313 313
At 31 December 2003 25 396 421 LiDCO Group plc Annual Report January 2005 28
Notes to the accounts continued
for the 13 months ended 31 January 2005
8. T angible fixed assets
Land and Plant and Fixtures and Computer
buildings machinery fittings equipment Total
The Group £’000 £’000 £’000 £’000 £’000
Cost:
At 1 January 2004 541 385 151 670 1,747
Additions during the period – 16 3 551 570
Disposals – – – 299 299
At 31 January 2005 541 401 154 922 2,018
Accumulated depreciation:
At 1 January 2004 70 105 62 205 442
Charge for the period 61 84 37 207 389
Disposals – – – 34 34
At 31 January 2005 131 189 99 378 797
Net book value:
At 31 January 2005 410 212 55 544 1,221
At 31 December 2003 471 280 89 465 1,305
The Company held no tangible fixed assets as 31 January 2005 (31 December 2003: nil).
9. Investments
Shares in 
subsidiary 
undertakings
The Company £’000
Cost and net book value
At 1 January 2004 and 31 January 2005 65
The Company’s beneficial interest in subsidiary undertakings consists of:
Country of Beneficial Nature of 
registration holding business
LiDCO Limited England and Wales 100% Surgical instruments
and appliances
CAS Limited England and Wales 100% Dormant 29 LiDCO Group plc Annual Report January 2005
10. Stocks
31 January 31 Dec ember
2005 2003
The Group £’000 £’000
Raw materials and consumables 389 74
Finished goods 776 1,591
1,165 1,665
11. Debtors
The Group The Company
31 January 31 Dec ember 31 January 31 Dec ember
2005 2003 2005 2003
£’000 £’000 £’000 £’000
Trade debtors 1,291 970 – –
Amounts owed by Group undertakings – – 16,449 12,667
Other debtors 145 120 – 1
Prepayments and accrued income 74 111 – –
1,510 1,201 16,449 12,668
12. Creditors: amounts falling due within one year
The Group The Company
31 January 31 Dec ember 31 January 31 Dec ember
2005 2003 2005 2003
£’000 £’000 £’000 £’000
Trade creditors 182 206 – –
Other creditors 95 62 3 2
Accruals and deferred income 281 247 – –
558 515 3 2
13. Creditors: amounts falling due after more than one year
The Group The Company
31 January 31 Dec ember 31 January 31 Dec ember
2005 2003 2005 2003
£’000 £’000 £’000 £’000
Deferred income 123 198 – –
14. Deferred taxation
No deferred taxation was provided at 31 January 2005 (31 December 2003: none). The amounts of deferred taxation
unprovided were:
The Group The Company
31 January 31 Dec ember 31 January 31 Dec ember
2005 2003 2005 2003
Unprovided Unprovided Unprovided Unprovided
£’000 £’000 £’000 £’000
Capital allowances in excess of depreciation 53 159 – –
Other (5,428) (4,327) – (1)
(5,376) (4,168) – (1)
Notes to the accounts continued
for the 13 months ended 31 January 2005 LiDCO Group plc Annual Report January 2005 30
Notes to the accounts continued
for the 13 months ended 31 January 2005
15. Called up share capital
31 January 31 Dec ember 31 January 31 Dec ember
2005 2003 2005 2003
The Group and the Company Number Number £’000 £’000
Authorised shares of 0.5p each 150,000,000 100,000,000 750 500
Called up, issued and fully paid 98,906,930 77,235,698 495 386
The authorised share capital was increased to 150,000,000 ordinary shares at the Company’s Annual General Meeting in
June 2004. 21,052,632 shares were then issued at 19p pursuant to a £4.0 million fundraising, on 17 June 2004. 618,600
share options were exercised in the period.
16. Loss per share
Loss per share is calculated by dividing the loss attributable to ordinary shareholders by the weighted average number of
ordinary shares during the year . Share options are regarded as dilutive if the exercise price was below the market price at
31 January 2005.
13 months
ended Year ended  
31 January 31 Dec ember
2005 2003
The Group £’000 £’000
Loss for the financial year (£’000) 4,199 3,875
Weighted average number of ordinary shares (‘000) 90,239 72,604
Effect of dilutive share options (‘000) 6018 5,081
Adjusted weighted average number of ordinary shares (‘000) 96,757 77,685
Loss per share – basic and diluted (p) 4.65 5.34
17 . Net cash outflow from operating activities
13 months
ended Year ended 
31 January 31 Dec ember
2005 2003
The Group £’000 £’000
Operating loss (4,317) (4,181)
Depreciation and amortisation charges 623 655
Decrease/(increase) in stocks 500 627
Decrease/(increase) in debtors (309) 166
Increase/(decrease) in creditors (32) (361)
Net cash outflow from operating activities (3,535) (3,094)
18. Analysis of cash flows for headings netted in the cash flow statement
13 months
ended Year ended 
31 January 31 Dec ember
2005 2003
The Group £’000 £’000
Returns on investment and servicing of finance
Interest received 77 68
Capital expenditure and financial investment
Payments to acquire intangible fixed assets 126 210
Payments to acquire tangible fixed assets 264 134
390 344
Financing
Issue of ordinary share capital 3,855 996 31 LiDCO Group plc Annual Report January 2005
Notes to the accounts continued
for the 13 months ended 31 January 2005
19. Analysis of net funds
1 January 31 January
2004 Cash flow 2005
The Group £’000 £’000 £’000
Cash in hand and at bank 1,600 7 1,607
20. Financial instruments
The Group did not trade in financial instruments in the current period or preceding year .
20.(a) Maturity profile of financial liabilities
The Group did not have any financial liabilities in the current period or preceding year .
20. (b) Interest rate profile
Floating
rate Fixed rate
financial financial
assets assets Total
The Group £’000 £’000 £’000
At 31 January 2005
Sterling 1,481 121 1,602
US$ 5– 5
Gross financial assets 1,486 121 1,607
At 31 December 2003
Sterling 1,174 295 1,469
US$ 131 – 131
Gross financial assets 1,305 295 1,600
20.(c) Fair values of financial assets and liabilities
There was no difference between the fair value and the book value of financial assets and liabilities.
20.(d) Hedging
The Group did not hedge its financial transactions in the current period or preceding year .
20. (e) Currency profile
Sterling is the main functional currency of the Group. The following analysis of net monetary assets and liabilities
shows the Group’s currency exposures. The Group did not use forward contracts or other derivatives to manage 
its currency exposure in the period ended 31 January 2005. The amounts shown represent the transactional (or 
non-structural) exposures that give rise to the net currency gains and losses recognised in the profit and loss 
account. Such exposures comprise the monetary assets and monetary liabilities of the Group that are not
denominated in sterling.
31 January 31 Dec ember
2005 2003
The Group US$’000 US$’000
Sterling 5 233 LiDCO Group plc Annual Report January 2005 32
Notes to the accounts continued
for the 13 months ended 31 January 2005
21. Movement of reserves
Share Other Profit
premium Merger reserve and loss
account reserve £’000 account Total
£’000 £’000 (restated) £’000 £’000
The Group
Balance at 31 December 2003
as previously stated 13,396 8,513 – (16,728) 5,181
Prior year adjustment – – (88) – (88)
Balance at 1 January 2004 as restated 13,396 8,513 (88) (16,728) 5,093
Issue of share capital 3,746 – – – 3,746
Loss for the financial year – – – (4,199) (4,199)
Balance at 31 January 2005 17,142 8,513 (88) (20,927) 4,640
Share Other Profit
premium Merger reserve and loss
account reserve £’000 account Total
£’000 £’000 (restated) £’000 £’000
The Company
Balance at 31 December 2003
as previously stated 13,396 – – 111 13,507
Prior year adjustment – – (88) – (88)
Balance at 1 January 2004 as restated 13,396 – (88) 111 13,419
Issue of share capital 3,746 – – – 3,746
Profit for the financial year – – – 64 64
Balance at 31 January 2005 17,142 – (88) 175 17,229
The other reserve relates to the former investment in shares in the Employee Share Ownership Trust. As stated in note 2,
this investment is no longer classified as an investment of the Company or the Group.
22. Operating lease commitments
The Group was committed to making the following payments under non-cancellable operating leases during the year:
31 January 31 Dec ember
2005 2003 31 January 31 Dec ember
Land and Land and 2005 2003
buildings buildings Other Other
The Group £’000 £’000 £’000 £’000
Leases which expire
Within one year – – 57 58
Within two to five years 293 201 – –
After more than five years – 100 – –
293 301 57 58
23. Commitment and contingent liabilities
At 31 January 2005, the Group had a bank guarantee outstanding for £118,116 (31 December 2003: £118,116) in favour of
Granta Park Limited. The amount is a rent deposit on the Group’s Sales & Marketing office in the Granta Science Park in
Cambridge. The guarantee is effective until July 2006.
At 31 January 2005 the Group had a trade debt guarantee of £100,000 (31 December 2003: £nil) outstanding in favour of
Advantech (UK) Limited, the Group’s supplier of LiDCOplus monitor hardware. On 26 April this guarantee was cancelled.
It is Group policy to commit to making these payments to suppliers in preference to paying for goods and services in
advance, in order to maintain a satisfactory cash flow. LiDCO researches, develops, manufactures 
and markets innovative medical devices. 
Our products primarily serve critical care and
cardiovascular risk hospital patients who
require real-time cardiovascular monitoring.
1 Highlights
2 Group at a glance
4 Chairman’s review
6 Chief Executive’s review
12 Board of Directors
14 Corporate governance report
16 Remuneration report
18 Directors’ report
20 Independent Auditors’ report to the
members of LiDCO Group plc
21 Consolidated profit and loss account
22 Balance Sheets
23 Consolidated cash flow statement
23 Reconciliation of movement in
consolidated equity shareholders’ funds
23 Consolidated statement of total recognised 
gains and losses
24 Notes to the accounts
Professor Solomon Aronson – Professor , Department of Anaesthesia & Critical Care, University of Chicago, 
specializing in major surgery and intensive care medicine.
Dr William Peruzzi – Chief Medical Officer at Memorial Hermann Hospital, T exas.
Dr Max Jonas – Consultant Anaesthetist, Southampton University Hospital, specializing in medical intensive care.
Dr Christopher Wolff – Honorary Clinical Pharmacologist, St. Bartholomew’s Hospital, specializing in Applied Physiology .
Professor Patrick Wouters – Professor of Cardiovascular Anaesthesia, University of Leuven, Belgium.
Auditors
Deloitte & T ouche LLP
Chartered Accountants
Hill House
1 Little New Street
London EC4A 3TR
Stockbroker
Durlacher Limited
Moorgate Hall
155 Moorgate
London EC2M 6XB
Bankers
Barclays Bank PLC
PO Box 885
Mortlock House
Vision Park
Histon
Cambridge CB4 9DE
Registrars
Capita Registrars
34 Beckenham Road
Beckenham
Kent BR3 4TU
Solicitors
Herbert Smith
Exchange House
Primrose Street
London EC2A 2HS
Company Number
2659005
Registered Office
16 Orsman Road
London N1 5QJ
Company Website
www.lidco.com
Scientific advisory panel
Shareholder information www.lidco.com
LiDCO Group Plc
Annual Report and Financial Statements
for the 13 months ended 31 January 2005
LiDCO Group Plc
UK Office: 
16 Orsman Road
London N1 5QJ
T: +44 (0)20 7749 1500
F: +44 (0)20 7749 1501
USA Distribution Office:
Wren Medical Systems
905 Lakeside Drive
Gurnee, IL 60031
T: +1 847 625 0600
F: +1 847 625 0981
Sales and Marketing:
Flowers Building
Granta Park
Cambridge CB1 6GU
T: +44 (0)1223 893 081
F: +44 (0)1223 890 187
LiDCO Group Plc Annual Report 2005