www.lidco.com
2005/6
LiDCO Group Plc
Annual Report and Accounts
for 12 months to 31 January 2006
LiDCO Group Plc
UK Office:
16 Orsman Road
London, N1 5QJ
T: + 44 (0)20 77 49 1500
F: + 44 (0)20 77 49 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 and Accounts 2005/6 C o n t e n t s
0 1 	 Highlights
0 2 	 At a Glance
0 4 	 Chairman’s Statement
0 6 	 Chief Executive Officer’s Review 
1 4 	 Finance Director’s Review
1 6 	 Board of Directors
1 6 	 Clinical Advisory Board
1 8 	 Corporate Governance 
2 0 	 Directors’ Remuneration Report
2 3 	 Directors’ Report
2 6 	 Report of the Independent Auditors
2 7 	 Principal Accounting Policies
2 9 	 Group Profit and Loss Account
3 0 	 Balance Sheets
3 1 	 Group Cash Flow Statement
3 2 	 Group Statement of Total Recognised 
Gains and Losses
3 3 	 Notes to the Financial Statements 
4 2 	 Company Information
4 2 	 Advisers to the Company
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. Corporate Hig Hlig Hts
l argest-ever US order (US$456,000) for  
31 monitors purchased by the US Army
successful major trial at St George’s 
Hospital, London – average savings 
£4,800 per patient
Us$2m three year secured revolving 
convertible loan agreement with Laurus 
Master Fund
r egulatory approval and launch in six  
new territories
l aunch of the LiDCOplus monitor  
version 3.0 software
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 LiDCO Group Plc 
Annual Report and Accounts 2005/6
01
Hig Hlig Hts
 Finan Cial Hig Hlig Hts
turnover at £3.4m, up 51%*
gross profit up 68% at £2.6m
gross profit margin increased from  
67% to 75%
administrative expenses  
down 16% at £4.6m
pre-tax operating loss down  
47% at £2.1m
l oss per share reduced by  
55% at 1.9p
Cash outflow before financing down  
38% at £2.2m
 *comparatives taken as 12/13ths of results for 13 months to 31 January 2005. 
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 KeY Bene Fits oF t He l iDCo plus Monitor 
Provides early warning of patient 
deterioration
 Scientific evidence for improved  
patient outcome
Is minimally invasive and therefore  
widely applicable
Provides information not simply data
Is accurate and calibrated
PC Platform: allows updates to software 
which gives greater flexibility 
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KeY Bene Fits oF t He sensor 
Provides an absolute cardiac output 
value via a novel and proven indicator 
dilution technique
Is less invasive monitoring
Is safe – Lithium Chloride has no side 
effects at this dose
Potential to provide volume parameters 
(intra-thoracic blood volume)
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aDvantages
at a glan Ce
LiDCO
pro DUCts
The use of LiDCOplus monitors in UK hospitals 
could result in estimated savings of £500 million 
annually for the UK National Health Service
t He l iDCo plus Monitor
The LiDCOplus monitor 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.
soFtware version 3.0
 Continuous oxygen  
delivery monitoring
 Interconnectivity with  
Philips monitors
 Proven to reduce  
hospital stay
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t He l iDCo plus 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 
accurate, this method is simple to perform, 
taking around five minutes for the entire 
procedure.
LiDCO Group Plc 
Annual Report and Accounts 2005/6
02 strateg Y
BUsiness MoDel
 Customers are offered a choice of 
outright purchase of the LiDCOplus 
monitor or free of charge placement in 
return for enhanced pricing on the 
associated LiDCO disposables
 In the UK and USA sales are through 
LiDCO’s direct sales force
 In other territories sales are through 
distributors
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CUsto Mers
Major hospitals in developed  
and fast developing countries
Hospital market segments
 Intensive care unit/high  
dependency unit
Risk surgery/operating room
 Cardiac surgery
 Interventional cardiology 
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 LiDCO Group Plc 
Annual Report and Accounts 2005/6
03
international sales “ t he group is in a strong 
position to take advantage 
of opportunities and further 
grow the business”
CHair Man ’s state Ment
Theresa Wallis
LiDCO Group Plc 
Annual Report and Accounts 2005/6
04 t he group continued to 
make good progress during 
the year. 
Despite the well publicised financial 
challenges facing the NHS and similar 
constraints faced by providers of 
healthcare in other territories, turnover 
increased to £3.4 million and the loss 
after tax was halved to £1.9 million. 
Capital sales accounted for 47% of sales, 
with sensor and fee–per–use sales 
accounting for 51%. 
Notable events included the sale of  
31 monitors to the US Army, the sale  
of 49 monitors to a USA medical 
equipment leasing company and the 
publication of the St George’s Hospital 
outcome study in the Critical Care 
journal. 
The UK and USA direct sales teams 
continued to perform well, and the 
performance of most European 
distributors has been encouraging. The 
performance of the Group’s regional 
partners in the USA was, however, 
disappointing and sales activity in the 
USA therefore continued to rely mostly  
on our direct sales team. We will continue 
to look for additional distribution support.
Regulatory approval was achieved  
and sales activities were launched in a 
further six countries, bringing the total 
number of countries in which the Group’s 
products are registered and marketed  
to 16, 13 in the EU plus the USA, Brazil 
and Japan. 
The Board appreciates the importance of 
maintaining high standards of corporate 
governance and complies with most 
provisions of the Combined Code on 
Corporate Governance. During the year, 
the Board performed a wide–ranging 
review of risks and controls. Annual 
independent audits are performed  
to ensure that the Group’s systems, 
procedures and products continue to 
comply with the requirements of Quality 
Standards BS EN ISO 9001:2000 and BS 
EN ISO 13485:2003 and the EC Medical 
Devices Directive. These audits represent 
independent verification of the Group’s 
compliance with some of the key 
elements of corporate governance.
In addition, the Board conducted a review 
of its own composition and performance. 
In May 2005, Hugh McGarel–Groves joined 
the Group and was appointed as Finance 
Director, and in October Ian Brown was 
appointed as a Non–executive Director to 
replace Bert Wiegman, who resigned from 
the Board in December. We are grateful for 
Mr Wiegman’s valuable contribution since 
his appointment in 2001. Mr Brown brings 
with him extensive commercial experience 
in the medical device markets. In January 
2006, Grant Thornton UK LLP were 
appointed as the Group’s auditors. 
During the year, the Group made use  
of its assets to strengthen its working–
capital position, putting in place a 
revolving secured convertible loan 
facility and further agreements with a 
medical equipment leasing company 
relating to installed monitors. 
The body of validation data in support of 
hemodynamic monitoring and the Group’s 
products continues to grow. This and our 
record of continuing to address the needs 
of our customers through regular product 
improvements and upgrades, together 
with our strong direct sales and 
operational teams, places the Group in  
a strong position to take advantage of 
opportunities and further grow the 
business.  
once again, i would like to 
extend my thanks to all the 
group’s Directors and staff 
for their hard work and 
dedication during the year 
and to our Clinical advisory 
Board for its support and 
enthusiasm.
t heresa wallis 
Chairman
LiDCO Group Plc
LiDCO Group Plc 
Annual Report and Accounts 2005/6
05 CHieF eXeCUtive oFFiCer’ s 
review
“ t he market for less invasive 
hemodynamic monitoring 
products is growing 
strongly. t he challenge  
for l iDCo is to keep 
strengthening its product 
offering and distribution 
reach in order to participate 
fully in this growth”
Dr Terry O’Brien
LiDCO Group Plc 
Annual Report and Accounts 2005/6
06 introduction
This has been a highly productive year 
for us on many fronts. I am very pleased 
to report that LiDCO’s revenues have 
grown significantly across our major 
sales territories of the USA and Europe. 
This growth has been achieved despite 
the financial constraints that hospitals 
are subjected to that tend to slow the 
adoption of new medical technologies. 
Higher sales coupled with a reduced 
administrative cost base have resulted in 
our losses being halved within the year. 
Market
It is evident that we have a significant 
and expanding market opportunity that 
is expected to grow from its current  
base of around US$40 million to around 
US$400 million per annum by the year 
2010. During the year, we estimate  
the minimally invasive cardiovascular 
monitoring market grew by about 40%, 
from US$26 million to approximately 
US$40 million per annum. This has 
resulted in most companies providing 
less invasive cardiovascular monitoring 
products reporting sales increases within 
the year. Our percentage sales growth 
increase was greater than those 
reported by any of our competitors — 
albeit we started the year from a low 
revenue base. In marked contrast, sales 
of the older and invasive pulmonary 
artery catheter are expected to continue 
to decline — from US$150 million today, to 
around US$100 million per annum in 
2010. So, while we are sure that 
competition for a share of this market 
will continue, we remain confident that 
we will stay at the forefront of this 
market evolution. 
product development
Continued commercial growth will  
come from promoting a product that is 
efficiently manufactured and backed up 
by excellence in the sales and marketing 
efforts. 
i am delighted to report  
that our product quality  
and customer feedback 
continues to be first–rate. 
Furthermore, our manufacturing 
automation and partnerships with our 
component suppliers will continue to 
reduce the cost of sales and increase 
margins. 
Out in the market, our products have 
now been independently validated 
through controlled clinical trials in 10 
different countries: Japan, USA, UK, 
Italy, Spain, Belgium, Canada, Germany, 
Holland and India. Of these trials, the 
most significant was the patient and 
cost–outcome study by St George’s 
Hospital, London, published in November 
2005. The importance of these trial 
results was highlighted in a Sky News item 
at that time, which featured an elderly 
patient who, following major cancer 
surgery, had her oxygen delivery 
optimised with the LiDCOplus monitor. 
Her post–operative care, managed by our 
technology, ensured that she was fit 
enough to be back at home within 10 
days, without complications, living 
independently again. Patient satisfaction 
was clearly high as she stated: “I have 
friends around me, things to do, people 
to talk to — I’m a lucky bunny”. This one 
case study demonstrates the way in 
which our technology can be harnessed 
to dramatically improve care and save 
money. We have great hopes that the 
excellent clinical results and cost savings 
achieved by St George’s Hospital in their 
patients through using our technology will 
lead to it becoming a worldwide standard 
of care in the post-operative treatment of 
major surgery patients. 
Customers
In the UK, one in four National Health 
Service (NHS) trusts is in deficit. The 
financial crisis has led to closed wards, 
cancelled operations and staff shortages 
in hospitals with managers struggling to 
meet targets and balance their books. 
Clearly, hospital customers are looking 
for technologies that improve outcomes 
while reducing costs. Our technology  
has been shown to satisfy these 
requirements. 
The results of the trial conducted by 
St George’s Hospital, London, 
demonstrated that the use of the 
LiDCOplus monitor to improve oxygen 
levels following major surgery (Early 
Goal Directed Therapy) significantly 
reduced complications (particularly 
infections). Patient stay in hospital was 
significantly shortened — by an average 
of 12 days per patient. This equated to a 
saving of on average £4,800 per patient 
treated. It has been estimated that if this 
approach were adopted by the NHS, it 
would result in a saving of £500 million 
per year. Our minimally invasive 
hemodynamic monitoring equipment 
can significantly reduce hospital costs 
and reduce risks for patients. Interest in 
this modern approach to surgical care is 
on the increase. 
 LiDCO Group Plc 
Annual Report and Accounts 2005/6
07 CHieF eXeCUtive oFFiCer’ s 
review continued
At the fourth Evidence–Based Peri–
Operative Medicine Conference in 
London in June, a review paper* 
concluded that most of the resources  
are already available to hospitals to 
modernise the treatment of surgical 
patients, reduce costs and improve the 
outcomes from surgical intervention. 
Therefore, any additional capital  
and running costs are “marginal in 
comparison with the potential savings”. 
Of significance for the use of LiDCO’s 
technology the report concluded that 
“for hemodynamic optimisation, the 
potential savings in terms of reduced 
hospital stays have been estimated for 
an average NHS trust to be in the order 
of over £2 million, based on a reduction 
in stays of 22–31% and taking into 
account capital outlay of £60,000 and 
annual running costs of £150,000”.
given these clear clinical and 
financial benefits, we are 
working to help our hospital 
customers to adopt l iDCo’s 
advanced hemodynamic 
monitoring products. 
In doing so, we expect there will be  
a considerable benefit to patients.  
I am pleased to report that there are 
additional outcome trials taking place 
using our technology in Europe, and 
North and South America. These trials 
are expected to reinforce the message 
that LiDCO’s technology can reduce 
complications and the costs associated 
with the treatment of major surgery 
patients. Replicating the outstanding 
results achieved at St George’s Hospital in 
more countries will help sales adoption 
through the development of more localised 
business cases. 
a further major validation  
of our technology was  
seen when the Us a rmy 
purchased 31 l iDCoplus 
monitors in november 2005. 
Our product was purchased to be used  
in 16 major medical centres inside and 
outside the USA. This US$456,000 
order is the largest received to date  
by our US sales organisation. It followed  
on from the successful conclusion of an 
extensive evaluation of our technology 
conducted at Brooke Army Medical 
Center, Texas. The choice of LiDCO’s 
technology over the competition was  
a tremendous endorsement for both  
the technology and LiDCO’s US sales 
force. This order was followed by a 
further sale announced in March 2006  
of five LiDCOplus monitors to the US Air 
Force’s main medical facility, Wilford Hall 
Medical Center, in San Antonio, Texas.  
prospects
Looking to the likely sales progress in 
2006, we can see from the newspapers 
and national news that in the UK, hospitals 
are under tremendous pressure to  
save money. In other markets, similar 
pressures exist. So, despite the availability 
of our ethically and financially compelling 
outcome data, we still expect the 
adoption of our technology will take time. 
Hospitals have to become aware of the 
technology and its benefits, prepare  
a business plan, budget for the new 
equipment and then partner with  
LiDCO’s clinical educator support staff to 
implement the change at ward level. The 
market for less invasive hemodynamic 
monitoring products is growing strongly. 
The challenge for LiDCO is to keep 
strengthening its product offering and 
distribution reach, in order to participate 
fully in this growth.
LiDCO is actively searching for potential 
business acquisitions and partnerships, 
where synergistic products or distribution 
channels exist, that will support and 
enhance its own product sales. 
it is anticipated the year 
ahead will bring exciting 
opportunities for such 
strategic opportunities,  
as well as a continuation of 
the strong ongoing organic 
growth we have seen in the 
past year.
*“ Modernising Care for Patients Undergoing Major 
Clinical Efficiency” presented by the Improving 
Surgical Outcomes Group, June 2005.
LiDCO Group Plc 
Annual Report and Accounts 2005/6
08 UK
As in the USA, our sales in the UK 
continue to be made by our direct sales 
force of seven people. Turnover in the 
UK was £1,535,000, an increase of 78% 
over the equivalent previous 12 months. 
The installed base increased by 30 units 
across the year to 152 LiDCOplus 
monitors. To have achieved an increase 
in revenues of 78% despite the very 
harsh economic climate and significant 
overspends within the NHS was an 
additional resource to our nurse education 
programme to support hospitals that wish 
to move towards a less invasive approach. 
The appointment of USA regional 
distributor partners has not been a 
success for us. Two of our distributor 
businesses were purchased during the 
year and we agreed mutually with one 
more that they were not right for the 
task. This is unfortunate given our 
potential in the USA. We are currently 
seeking new distribution support and  
will continue to develop the USA market 
with modest yearly increases in our 
direct sales force. 
Over the course of 2005 we were 
pleased to consolidate and grow our 
position in several large teaching 
hospitals including Vanderbilt University 
in Nashville, Tennessee; the University  
of Alabama; the University of Iowa and 
Duke University Medical Center in 
Durham, North Carolina. In September 
clinicians from Duke University published 
an important validation paper on our 
technology in the journal Critical Care 
Medicine. While benefiting from 
association with these prestigious 
hospitals, it is also encouraging to see 
our technology spreading into different 
departments within the individual 
centres. Doctors from all over the world 
come to these centres for training. 
Hopefully they will carry their LiDCO 
experience with them when they take up 
future positions around the globe. 
trading r eview
USA 
Our sales are made through a direct 
sales force of five people. Turnover in 
2005/6 was £1,123,000, an increase  
of 29% over the equivalent previous  
12 months. The installed base increased 
by 51 units across the year to 409 
LiDCOplus monitors.
The USA represents our biggest potential 
market. It already represents 44% of our 
installed monitor base. However, it is clear 
that in the USA the calibration of our 
monitors is still a blend of calibration with 
an invasive pulmonary artery catheter, 
which we do not supply, and the LiDCO 
System disposables. While this generates 
short–term capital income and establishes 
the LiDCOplus monitor user interfaces,  
it has the unwanted effect of limiting 
growth of our sensor–based disposable 
income. Over time we believe that this 
situation will begin to resolve itself as  
the market moves away from invasive 
catheter calibration. This trend is already 
evident. The majority of LiDCOplus 
monitors sold last year were for calibration 
with the LiDCO System disposables — 
including those sold to the US Army.  
Thus our large USA installed base remains  
a potential source of additional sensor/
disposables income. We are adding 
+29%
Usa
Sales growth
+78%
UK 
Sales growth
LiDCO Group Plc 
Annual Report and Accounts 2005/6
09
Case st UDY
Delivering
to t He 
Us ar MY
The United States Army has purchased 31 
LiDCOplus continuous hemodynamic monitors 
to be used in 16 major medical centres inside 
and outside the US. This order of US$456,000 
for 31 LiDCOplus monitors is the largest 
received to date by our US sales organisation. 
It follows on from the successful conclusion of 
an evaluation conducted at Brooke Army  
Medical Center, Texas.
“ We are looking forward  
to utilising the LiDCOplus 
system in our facilities. 
The use of these  
monitors will provide 
immediate and more 
accurate hemodynamic 
information allowing us to 
better treat and optimise 
our critically ill patients.”
l t. Col. Kurt grathwohl MD, a ssistant Chief 
of a nesthesia at Brooke a rmy Medical 
Center, who coordinated the purchase with 
the Us MeDCo M surgeon general.
t he largest order received to date by 
our Us sales organisation
Us$456,000
 excellent result. A number of new clinical 
centres are looking to adopt our 
technology and we therefore expect  
UK sales to continue to grow well  
in 2006. The main limiting factor on 
revenue growth will most likely be  
the availability of hospital funds for  
the purchase of our equipment and 
associated disposables. The UK is 
probably the most advanced territory  
in terms of its appreciation of  
the benefits of minimally invasive 
hemodynamic monitoring products, 
which in turn leads to it being one of  
the most competitive environments.
While many UK customers have more 
than one technology, it was pleasing  
to see our technology gain traction in 
several large centres including Guys  
and St Thomas’ Hospital in London, 
Addenbrookes Hospital in Cambridge, 
the Royal Victoria Infirmary in 
Newcastle, Leicester General Hospital 
and Bristol Royal Infirmary. Clinicians 
from Guys and St Thomas’ Hospital 
ended the year with an excellent LiDCO 
validation study presentation at the 
Society of Critical Care Medicine’s annual 
meeting in San Francisco. In the majority 
of our UK customers, our position was 
consolidated and in many instances  
we saw the migration of our technology 
into other departments. Nowhere was 
this more evident than in St George’s 
Hospital, where following the publication 
our experiences and 
feedback throughout the 
year in these markets have 
been very encouraging. 
The normal process of establishing 
advocates and reference centres 
continues in these areas. In the longer-
established territories of Italy and Spain, 
progress continues to be made with very 
encouraging year-on-year growth.
Our distributors continue to be 
motivated and excited by the possibilities 
that our technology offers them. We 
expect sales to continue to increase in 
continental Europe through 2006. 
Rest of the World (ROW)
Sales in Asia, Japan and other Rest of 
World countries totalled £213,000, an 
increase of 33% on a 12 months 
equivalent basis. 
This represents slower-than-expected 
capital sales of monitors to these 
territories, resulting in an increase in 
ROW installed base of only 14. However, 
of their outcomes study, the protocol 
incorporating LiDCO’s products was 
implemented as a standard of care for  
all patients undergoing high risk major 
surgery. Following the publication of this 
important paper, other institutions have 
indicated a desire to implement this 
same approach. Hopefully we will see 
this materialise over the course of 2006 
and onwards.
Continental Europe
Turnover for the year was £550,000,  
an increase of 47% over the equivalent 
previous 12 months. 
Sales in continental Europe are made via 
a network of small distributors and now 
that registration has been achieved in 13 
territories, sales are increasing well with 
monitor placements up by 41%.
It was particularly pleasing to achieve 
registration in Denmark and Sweden, 
where our already established 
distribution partners were eager to 
commence sales. 
+47%
europe 
Sales growth
+33%
r est of world 
Sales growth
LiDCO Group Plc 
Annual Report and Accounts 2005/6
10
CHieF eXeCUtive oFFiCer’ s 
review continued we are starting to see encouraging 
growth in sales of sensors into the ROW 
installed base, as newly appointed 
distributors in countries such as Brazil 
develop their local markets. Brazil, where 
marketing activities commenced during 
the year, is the largest medical market in 
Latin America. We expect further growth 
of sales of disposables and additional 
monitor sales in the ROW in 2006.
t he most significant market 
for hemodynamic monitoring 
after the Usa is Japan. 
The market in Japan is dominated by the 
invasive pulmonary artery catheter, for 
which there is a high reimbursement  
rate for hospitals. Having purchased  
100 PulseCO monitors in 2003, our 
distributor, Nipro Corporation, is currently 
selling these to Japanese hospitals via  
a capital sales route for calibration with a 
pulmonary artery catheter. Clinical trial 
results from Japanese university centres 
and customer response to the product 
have been encouraging. 
Following these positive signs from 
Japanese customers, Nipro Corporation 
is currently engaged in establishing the 
clinical trials necessary to achieve a 
hospital reimbursement code for the  
use of our product. We do not expect 
significant additional monitor sales in 
Japan until this has been achieved by 
sometime in 2007. Licence fees of 
£70,000 are included within sales, 
relating to the original agreement with 
Nipro Corporation.
r esearch and development  
and product applications
LiDCOplus monitor software version 3.0 
and Philips VueLink 
This new software was launched in 
March 2005. The majority of customers 
have now elected to upgrade to the new 
software, which includes a number of 
additional new product features, 
including a communications link 
(VueLink interface) between LiDCO’s 
proprietary stand–alone monitoring 
system and Philips’ patient monitors.  
The added functionality, which allows the 
monitor to communicate with Philips  
and other third–party hospital 
information systems, is becoming a 
mandatory feature for a hemodynamic 
monitor. The version 3.0 software also 
has a number of enhancements that allow 
data to be downloaded to a USB key 
device and/or real-time download of 
heart–beat data via a non–proprietary 
ethernet connection. 
It is our goal to introduce a new version of 
the LiDCOplus monitor software each year 
and thereby keep our products ahead of the 
competition. Our target for 2006 is to 
introduce the new version 4.0 software, 
most likely sometime in the second quarter. 
The version 4.0 will include a number of 
significant improvements and a new 
measurement, the intra-thoracic blood 
volume (ITBV).
The version 4.0 software will include 
improvements to fluid management  
and oxygen delivery targeting. This will 
include a new event-response feature,  
or intelligent fluid assessment screen, 
that will allow the detection of fluid 
responsiveness and response to  
fluid administration in ventilated, or 
spontaneously breathing, patients. 
Monitoring fluids in non-ventilated 
patients has been a significant  
technical challenge. 
our new software will  
be seen as a significant 
advance.
In order to help hospitals implement 
Early Goal Directed Therapy (EGDT),  
St George’s Hospital’s high risk surgery 
protocol, the clinician/nurse will now also 
be able to set a visual and individualised 
oxygen delivery target on the Graph 
Screen. This will be a unique feature and 
will help simplify the management of the 
patients scheduled for advanced 
hemodynamic monitoring protocols  
such as the St George’s Hospital EGDT. 
Case st UDY
The results of the trial conducted by St George’s 
Hospital, London demonstrated that the use of 
the LiDCOplus monitor to improve oxygen 
levels following major surgery (Early Goal 
Directed Therapy) significantly reduced 
complications (particularly infections). Patient 
stay in hospital was significantly shortened by 
an average of 12 days per patient. This equated 
to a saving of on average £4,800 per patient 
treated.
These results are highly significant and, if 
replicated in other hospitals in the UK, could 
ensure a widespread reduction in risk 
associated with major surgery.
“ The resulting improvement  
in patient outcomes and 
shorter hospital stay will  
not just mean more patient 
beds available, but ensure 
massive cost savings if 
implemented throughout  
the NHS. St George’s 
Hospital saved £1.8 million 
last year by implementing  
this simple protocol.”
David Bennett, professor of intensive Care 
Medicine at st george’s Hospital
re DUCing
Costs at 
st george’ s 
Hospital
average saving per patient treated 
when using the l iDCoplus monitor
£4,800
LiDCO Group Plc 
Annual Report and Accounts 2005/6
11 If venous blood saturation values are 
available, the version 4.0 software  
will calculate the oxygen delivery and 
consumption, i.e. how much of the 
oxygen is being consumed by the body. 
This feature will again be useful in 
detecting levels of oxygen delivery  
that are inadequate and may lead to 
organ failure.
Finally, the version 4.0 software will have 
a number of changes to the calibration 
procedure that focus on ease of use  
and improved quality checks and user  
help screens.
New measurement: the intra-thoracic 
blood volume (ITBV) 
Accurate measurement of the volume of 
blood in the thorax could be of significant 
benefit to patients and should widen the 
attraction of the LiDCOplus monitor to 
doctors working in intensive–care units. 
This development takes away the need 
to insert an invasive catheter into the 
central venous system, and heart or 
major artery, which is the currently 
established technique for taking the 
measurements.
The ITBV measurement is scheduled  
to be introduced in the second quarter  
of 2006. The lithium ion injection is 
currently used by LiDCO as a marker 
substance to measure cardiac output. 
Combining this existing measurement 
with the time taken for the lithium 
marker to transit from the injection point 
to the LiDCO sensor provides a new 
measurement, the ITBV. Physicians 
endeavour to increase the blood volume 
in order to rehydrate patients in surgery, 
trauma and intensive–care locations. 
Correct fluid management improves 
cardiac performance and critically, the 
oxygen delivery to vital organs that has 
been shown to reduce hospital bed stay. 
The ITBV is a much more sensitive guide 
to the fluid management of patients than 
the traditional invasive catheter–based 
measurement of pulmonary artery 
wedge pressure.
l iDCo expects that this  
new measurement will have 
widespread application in the 
improved fluid management 
of patients.
New applications for LiDCO’s Minimally 
Invasive Monitoring System
Important progress has been made in 
taking LiDCO’s technology into new 
markets.
Obstetric use
Positive data was presented at the 
Society of Obstetric Anesthesia and 
Perinatology meeting held in June 2005 
in Palm Springs, California, USA. Doctors 
at the Departments of Anesthesiology  
& Obstetrics and Gynecology, University 
of Texas Health Science Center, San 
Antonio, Texas, reported that the 
LiDCOplus monitor, used to observe 
cardiovascular changes during 
continuous epidural anaesthesia in a 
patient undergoing caesarean section, 
was able to safely maintain cardiac 
output and blood pressure monitoring 
where this would not otherwise have 
been possible without the use of an 
invasive catheter. This department is  
one of a number of university centres 
actively investigating the potential 
applications of the LiDCO technology to 
the anaesthetic management of high risk 
obstetric patients. We expect this may 
develop as a valuable niche market 
following publication of further positive 
clinical reports.
Veterinary use
A paper from the Royal Veterinary 
Hospital, London, validating the 
LiDCOplus monitor for use in the care of 
horses during surgery was published in 
July. This is the first time that LiDCO’s 
proprietary software, providing 
continuous pulse contour cardiovascular 
monitoring, has been demonstrated to 
be applicable in horses. The paper was 
entitled: “Use of Lithium dilution and 
pulse contour analysis cardiac output 
determination in anaesthetised horses:  
a clinical evaluation” — G. Hallowell &  
LiDCO Group Plc 
Annual Report and Accounts 2005/6
12
CHieF eXeCUtive oFFiCer’ s 
review continued K. Corley, Veterinary Anaesthesia and 
Analgesia, 2005, 32, 201—211. The paper 
concluded that LiDCO’s method of pulse 
contour analysis is a relatively non–
invasive and reliable way of monitoring 
continuous cardiac output in horses 
under anaesthesia. The paper also 
concluded that the ability to easily 
monitor continuous cardiac output might 
decrease morbidity and mortality in the 
anaesthetised horses. 
we are beginning to develop 
a significant niche market in 
veterinary practice.
LiDCO’s Clinical Advisory Board
We were delighted to announce in June 
2005 that Professor David Bennett has 
joined our Clinical Advisory Board. 
professor Bennett was the 
Director of the intensive 
Care Unit, st george’s 
Hospital, for more than 25 
years, and he is a member  
of the editorial Board of 
intensive Care Medicine  
and Critical Care. 
He is internationally renowned for his 
pioneering work on the application of 
less invasive cardiovascular monitoring 
to improve outcomes and reduce costs 
associated with the treatment of risk 
surgery patients. 
The Board was further strengthened in 
October 2005 by the appointment of 
Professor Michael Pinsky, Professor of 
Critical Care Medicine, Bioengineering 
and Anesthesiology, at the University of 
Pittsburgh School of Medicine, USA. He 
is also a member of the editorial board of 
the American Journal of Respiratory and 
Critical Care Medicine, Intensive Care 
Medicine, Critical Care journal and 
Critical Care Forum. He is Editor–in–Chief 
of the eMedicine textbook Critical Care 
Medicine. 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 
minimally invasive, monitoring 
technologies to optimise cardiovascular 
physiology and thereby improve 
outcomes in critically ill patients. 
r egulatory affairs
Lithium Chloride mutual recognition 
approvals in five further European 
territories
Lithium Chloride is used in conjunction 
with the LiDCOplus system to provide an 
absolute measure of a patient’s cardiac 
output. During the period, we announced 
five further European country approvals 
for the Lithium Chloride injection for  
use with the LiDCOplus system in the 
territories of: Denmark, Ireland, Norway, 
Sweden and Bulgaria. These latest 
registrations now provide LiDCO with  
full marketing approval in 13 European 
countries. 
Further applications through a third 
wave application to the Mutual 
Recognition Procedure are scheduled for 
the Lithium Chloride injection in the 
second quarter of 2006. Full marketing 
approvals are expected to start coming 
through in the last quarter of this year, 
with sales commencing in 2007 in 
France, Greece and Slovenia.
Dr terry o ’Brien
Chief Executive Officer
LiDCO Group Plc
LiDCO Group Plc 
Annual Report and Accounts 2005/6
13
Case st UDY
 in Creasing
 sales
no. 1
We are not just providing a product, but  
also educational and in-service support  
in a partnership with our distributors  
and customers. In all aspects of our  
work we have achieved a high degree  
of professionalism in our approach. This 
comment from one of our distributors, one 
of many received from distributors and 
customers during the year, sums up the 
superb efforts made by all the sales and 
marketing department during the year. 
“ The sales team at LiDCO 
are the best and most 
competent I have ever seen 
in this business. Their 
performance and knowledge 
is superb which makes a  
big difference to the clients. 
I strongly believe LiDCO  
as a method will become 
dominant in our market 
within a year or two and this 
will definitely be a result of 
our mutual commitment.” Finan Ce Dire Ctor’s review
Hugh McGarel–Groves
“ turnover for the year was 
£3,421,000…51% up on  
the equivalent previous  
12 months”
LiDCO Group Plc 
Annual Report and Accounts 2005/6
14 trading results
Turnover for the year was £3,421,000, 
an increase of 39% on the previous 
period of 13 months and 51% up on the 
equivalent previous 12 months. Within 
this total were sales of existing placed 
monitors to LiDCO’s US-based hospital 
equipment leasing partner, for 
£436,000, up from £270,000 sold to 
our US leasing partner in 2004/5. This 
included £367,000 of UK monitors, 
which was the first time our USA leasing 
partner had purchased any equipment 
for leasing to hospitals outside the USA 
and demonstrates the strength of this 
ongoing financial partnership. 
Monitor sales of £1,603,000 
were up 59% by value on a 
12 months equivalent basis. 
19,610 sensors were sold  
for £1,611,000, a 50% 
equivalent value increase.
A further 4,192 fees for use (including 
rental equivalent) were earned at a sales 
value of £137,000, up 19%.
Gross margins showed a healthy 
increase from 67% to 75%, mainly 
reflecting price increases achieved 
during the year and also the higher 
proportion of UK sales within the total 
(45% of sales vs 38% in 2004/5), with 
the UK margins significantly higher  
than elsewhere. In combination with the 
strong sales volume growth, this resulted 
in an overall gross profit increase of 
68% to £2,550,000.
During the year the Group continued  
its cost-containment programme,  
and achieved a further reduction  
in administrative expenses of 16%  
(12 months equivalent) to £4,642,000.  
This resulted in an operating loss of 
£2,092,000 – an equivalent 12 months 
reduction of 47%.
tax
The tax charge continues to be nil, whilst 
the Group remains at the pre-profit 
stage. Substantial tax losses have been 
accumulated both in the UK and USA, 
which will permit significant deferral of 
future tax charges, once profitability is 
reached. In the UK, the Group qualifies 
for research and development (R&D) tax 
credits and these are reported within the 
tax line in the profit and loss account. 
Within the year under review are 
included expected R&D tax credits  
of £110,000 relating to 2005/6 and 
£69,000 relating to prior years.
earnings per share
after allowing for the 
expected r &D tax credits, 
the loss per share of 1.91p 
was an improvement of 55% 
over the equivalent prior  
12 month period.
A loss per share of 4.65p was reported 
for the prior 13 month period, or 4.29p 
on a 12 months equivalent basis.
Cash flow
Net operating outflow of £2,214,000 
represents a reduction in net outflow of 
38% on a 12 months equivalent basis 
from 2004/5 and was principally funded 
from existing cash resources £656,000 
and from the Laurus convertible loan 
facility £1,355,000.
A US$2 million asset-backed convertible 
revolving loan facility was established 
with Laurus Master Fund in August 2005 
and, in November 2005, US$445,000 of 
this loan was converted to equity in 
accordance with the terms of the 
agreement. A further drawdown took 
place in January 2006 and at 31 January 
2006 the Laurus convertible loan facility 
was fully utilised.
Capital expenditure of £417,000 in the 
year is close to the total depreciation 
charge of £440,000. Group cash 
balances at 31 January 2006 were 
£951,000 as compared with £1,607,000 
at 31 January 2005. It should be noted 
that the prior period included within 
financing inflows a share placement in 
June 2004 that produced net proceeds 
of about £3.7 million.
a ccounting policies
International Financial Reporting 
Standards (IFRS) are not mandatory for 
the Group, as an AIM-quoted Company, 
until the interim results for the six 
months to 31 July 2007 are reported. 
The Group has decided not to implement 
IFRS earlier than the mandatory date and 
therefore these results are produced in 
accordance with existing UK Accounting 
Standards.  FRS 25 (Financial Instruments: 
Disclosure and Presentation) has been 
implemented for the first time in these 
financial statements, which has resulted 
in the Laurus convertible loan facility 
being split between a liability component 
and an equity component. There are no 
other significant new accounting policies 
reflected in these financial statements.
Hugh Mcgarel-groves
Finance Director
LiDCO Group Plc
 LiDCO Group Plc 
Annual Report and Accounts 2005/6
15 Dr Max Jonas
Dr Jonas is a senior consultant 
anaesthetist at Southampton University 
Hospital, with particular expertise  
and interest in the application of 
hemodynamic monitoring to medical 
intensive-care and surgery.
professor David Bennett
David Bennett is Professor of Intensive 
Care Medicine at St George’s Hospital, 
London where until 2003 he was 
Director of the mixed medical/surgical 
intensive care unit, a position he held for 
more than 25 years. David has chaired 
numerous scientific committees, was 
honorary secretary of the European 
Society of Intensive Care Medicine and 
editor-in–chief of Clinical Intensive Care. 
He is on the editorial board of Intensive 
Care Medicine and Critical Care. He 
reviews regularly for these journals and 
also for Critical Care Medicine and 
Anaesthesia and Analgesia.
LiDCO Group Plc 
Annual Report and Accounts 2005/6
16
Boar D oF Dire Ctors
1. Dr terence o ’Brien
Chief Executive Officer
2. t heresa wallis
Chairman
3. Hugh Mcgarel–groves
Finance Director
4. Dr David Band
Scientific Director
5. John Barry
Sales and Marketing Director
6. ian Brown
Non–Executive Director
Clini Cal aDvisor Y Boar D professor Michael pinsky
Professor Pinsky is Professor of Critical 
Care Medicine, Bioengineering and 
Anesthesiology at the University of 
Pittsburgh School of Medicine, USA and 
is a member of the editorial board of the 
American Journal of Respiratory and 
Critical Care Medicine, Intensive Care 
Medicine, Journal of Critical Care and 
Critical Care Forum. He is editor-in-chief 
of the eMedicine textbook Critical Care 
Medicine. 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.
professor william (Bill) peruzzi
Professor Peruzzi is chief medical officer 
at Memorial Hermann Hospital and 
Memorial Hermann Children’s Hospital, 
Houston, Texas. Bill joined Memorial 
Hermann in 1995 from Northwestern 
University, Feinberg School of Medicine 
in Chicago, where he served as professor 
of anesthesiology, chief of the Critical 
Care Medicine Section, and Director of 
the Anesthesiology Critical Care 
Fellowship Program. He has particular 
clinical expertise in general and 
neurosurgical intensive care and at 
Memorial Hermann is responsible for a 
number of functions including serving as 
the administrative advocate for medical 
staff, service quality, ethics, performance 
improvement and infection control.
professor patrick wouters 
Professor Wouters is the Professor of 
Cardiovascular Anaesthesiology at the 
University of Leuven, Belgium. He has 
researched and published extensively in 
the field of hemodynamic monitoring 
and its clinical applications.
Dr Christopher wolff
Dr Wolff holds the post of Research 
Fellow at St Thomas’ Hospital, 
Department of Applied Physiology, 
London. He is a clinician, physiologist 
and mathematician and has major 
research interests in respiratory and 
cardiovascular physiology.
LiDCO Group Plc 
Annual Report and Accounts 2005/6
17
1. Dr terence o ’Brien
Chief Executive Officer 
Dr O’Brien co–founded the Group  
in 1991. Prior to that, he has 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.
2. t heresa wallis
Chairman 
Ms Wallis is a principal executive of 
ANGLE plc and a non-executive director 
of Noble Income & Growth 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 1994/5.  She is currently  
a member of the Quoted Companies 
Alliance’s Executive Committee  
and Chairman of its Markets and 
Regulations Committee.
3. Hugh Mcgarel–groves
Finance Director 
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. 
6.  ian Brown
Non–Executive Director
For the past 25 years, Mr Brown has 
worked exclusively 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 involved as  
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. 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. LiDCO Group Plc 
Annual Report and Accounts 2005/6
18
Corporate Governan Ce
Compliance with the Combined Code
Companies that have shares traded on the Alternative Investment Market 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 its size.
t he Board of Directors: Board composition
The Board currently consists of four Executive Directors and two Non-Executive Directors. The Non-Executive Directors are free 
from any relationship with the executive management of the Company and the Board considers that both Non-Executive Directors 
are independent Directors. 
Mr Wiegman resigned as Senior Independent Non-Executive Director on 16 December 2005. Mr Brown was appointed as  
a Non-Executive Director on 12 October 2005 and became the Senior Independent Non-Executive Director with effect from  
16 December 2005. 
During the year, the Schedule of Matters reserved for the Board was reviewed and identified areas where executive management 
can grant approval subject to certain financial limits. Where any activities fall outside the limits laid down for executive 
management, approval is sought by the Board.
There were 12 scheduled meetings during the year with additional special meetings as required.
Board evaluation and performance
The Board completed its first Board evaluation in 2005, when the performance, the functioning and constitution of the Board and 
each committee was assessed. The results of the assessments concluded that the performance of the Board and each committee  
is effective. 
It is the Board’s intention to continue to review annually its performance and that of its committees.
Company Secretary
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. The Company Secretary through the Chairman is responsible for ensuring Directors receive accurate, timely 
and clear information in a form that enables them to discharge their duties.
The Company Secretary attends all Board and committee meetings and is responsible for ensuring compliance with the relevant 
procedures, rules and regulations.
Independent professional advice
All Directors are able to take independent advice in the furtherance of their duties, if necessary, at the Company’s expense. 
r e-election of Directors
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. 
Each of the Executive Directors has a service contract which contains a notice period of either six months or one year. The 
Non-Executive Directors do not have service contracts with the Company but have letters of appointment.
Board information
Board members are given appropriate documentation in advance of each Board and committee meeting. Senior executives below 
Board level are invited to attend Board meetings for the purpose of making presentations on their areas of responsibility. In 
addition to formal Board meetings, the Chairman and Chief Executive Officer and/or the Finance Director meet frequently. LiDCO Group Plc 
Annual Report and Accounts 2005/6
19
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, 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 finalised for approval by the Board. The Committee met twice during the year.
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 agrees a policy for the salaries and bonuses of all staff. It advises on share schemes and the granting  
of share options. The Committee met six times during the year.
Nominations 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 met 
twice during the year.
r elations 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.
Internal control and risk management
During the year, the Board completed a wide-ranging review of risks and controls. Progress against agreed actions relating to 
controls is reviewed quarterly at Board meetings.
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 that 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. LiDCO Group Plc 
Annual Report and Accounts 2005/6
20
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 2006.
Committee membership
The membership of the Remuneration Committee is made up of the following Non-Executive Directors:
T A Wallis  (Chairman)
I G Brown 
Mr Wiegman was a member of the Committee throughout the year until his resignation on 16 December 2005. Mr Brown joined the 
Committee on 12 October 2005. None 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.
r emuneration policy of the executive Directors
The Committee determines and recommends, on behalf of the Board, the remuneration for the Executive Directors 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 to Executive Directors and employees at all levels. 
During the year, the Committee sought advice from New Bridge Street Consultants LLP (New Bridge Street) on a variety of matters 
relating to Executive Directors’ remuneration, and the grant of options for key senior employees. The Committee is assisted by the 
Company Secretary. 
Base salary
The annual salary for each Executive Director is paid monthly, is determined by the Committee and is effective from 1 February 
each year. The salary reflects the experience and level of competence of the individual to whom it applies, as judged annually by 
the Committee, taking into account salary levels in the market.
a nnual bonus
The four Executive Directors are members of the Company’s Senior Management bonus scheme. The Remuneration Committee 
assesses the Directors’ individual performances soon after the end of the financial year, judged against pre-determined targets. 
For the year under review, criteria for awarding bonuses are based on a combination of personal and corporate targets.  
Bonuses are capped at 100% of base salary. Non-Executive Directors are not eligible for bonuses.
r emuneration of Directors
	 12 months ended 31 January 2006 	 1 3 	 m on t h s
	 	 	 	 	 	 	 	 e n ded 	
	 	 	 	 	 Salary 	 	 	 3 1 	 J a n u a r y	 	
	 	 	 	 	 	 and fees Bonus Total 	 2 0 0 5 	
	 	 	 	 	 £’000 £’000 £’000 	 £’ 0 0 0
D 	 M 	 B a n d 	 	 	 	 	 48 — 48 	 1 3 0
T 	 K 	 O ’ B r i e n 	 	 	 	 	 204 — 204 	 2 1 5
J 	 G 	 B a r r y 	 	 	 	 	 183 30 213 	 1 9 4
R 	 J 	 M i l l s
1
	 	 	 	 	 — — — 	 1 5 9
H 	 M 	 J 	 M c G a r e l – G r o v e s
2
	 	 	 	 	 74 — 74 	 —
T 	 A 	 W a l l i s
3
	 	 	 	 	 40 — 40 	 4 3
A 	 E 	 B 	 W i e g m a n
4
	 	 	 	 	 13 — 13 	 2 2
I 	 G 	 B r o w n
5
	 	 	 	 	 11 — 11 	 —
T o t a l 	 	 	 	 	 573 30 603 	 7 6 3
1 Mr Mills resigned as a Director on 19 January 2005.
2 Mr McGarel-Groves was appointed to the Board on 10 May 2005.
3 Ms Wallis’ fees are payable to ANGLE Technology Limited.
4 Mr Wiegman resigned as a Director on 16 December 2005.
5 Mr Brown was appointed to the Board on 12 October 2005.
DIre Ctor S’ r emunerat Ion r eport LiDCO Group Plc 
Annual Report and Accounts 2005/6
21
r emuneration policy of the n on-executive Directors
The Board determines the remuneration of the Non-Executive Directors. The Non-Executive Directors do not participate in the 
Company’s share option scheme and are not eligible for annual incentive payments or benefits in kind. All Non-Executive Directors 
are reimbursed for travel and related business expenses reasonably incurred in performing their duties.
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, Dr Band and Mr Barry are dated 29 June 2001 and are not set for a specific term but include  
a rolling 12-month notice period. 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
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 contract 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.
Directors’ interests in share options
The Non-Executive Directors do not participate in the Company’s share incentive plans. Options were granted to the Executive 
Directors as follows:
	 	 O p t i on s 	 a t 	 	 O p t i on s 	 L a p s ed 	 	 Options at 	
	 	 3 1 	 J a n u a r y 	 	 g r a n t ed 	 	 d u r i n g 	 d u r i n g 	 E x e r c i s e 	 	 31 January 	 E x e r c i sa bl e 	 E x p i r y 	
	 	 2 0 0 5 	 2 0 0 5 	 t he 	 y e a r 	 p r i c e 	 	 	 2006 	 f r om 	 D a t e
T 	 K 	 O ’ B r i e n 	 	 6 3 7 , 5 0 0 	 — 	 ( 6 3 7 , 5 0 0 ) * 	 1 4 0 p 	 — 	 – 	 –
	 	 7 5 0 , 0 0 0 	 — 	 — 	 1 3 p 	 750,000 	 D e c - 0 5 	 D e c - 1 2
	 	 2 7 7 , 3 9 5 	 — 	 — 	 2 1 . 5 p 	 277,395 	 A p r - 0 8 	 A p r - 1 5
	 	 	 	
H 	 M 	 J 	 M c G a r e l - G r o v e s 	 	 — 	 2 5 0 , 0 0 0 	 — 	 2 0 . 7 5 p 	 250,000 	 M a y - 0 8 	 M a y - 1 5
	 	 	 	 	
D 	 M 	 B a n d 	 	 6 3 7 , 5 0 0 	 — 	 ( 6 3 7 , 5 0 0 ) * 	 1 4 0 p 	 — 	 — 	 —
	 	 7 5 0 , 0 0 0 	 — 	 — 	 1 3 p 	 750,000 	 D e c - 0 5 	 D e c - 1 2
	 	 6 5 , 1 1 6 	 — 	 — 	 2 1 . 5 p 	 65,116 	 A p r - 0 8 	 A p r - 1 5
	 	 	 	
J 	 G 	 B a r r y 	 	 1 0 6 , 2 5 0 	 — 	 — 	 0 . 5 p 	 106,250 	 s e e 	 n o t e 	 1 	 s e e 	 n o t e 	 1
	 	 6 3 7 , 5 0 0 	 — 	 ( 6 3 7 , 5 0 0 ) * 	 1 4 0 p 	 — 	 – 	 –
	 	 1 0 0 , 0 0 0 	 — 	 ( 1 0 0 , 0 0 0 ) * 	 1 1 6 p 	 — 	 – 	 –
	 	 7 5 0 , 0 0 0 	 — 	 — 	 1 3 p 	 750,000 	 D e c - 0 5 	 D e c - 1 2
	 	 9 0 , 0 0 0 	 — 	 — 	 2 8 . 2 5 p 	 90,000 	 N o v - 0 6 	 N o v - 1 3
	 	 — 	 3 5 6 , 8 4 4 	 — 	 2 1 . 5 p 	 356,844 	 A p r - 0 8 	 A p r - 1 5
	 	 — 	 3 2 8 , 4 8 1 	 — 	 2 2 p 	 328,481 	 D e c - 0 5 	 A p r - 1 5
	 	 — 	 3 2 8 , 4 8 1 	 — 	 2 2 p 	 328,481 	 A p r - 0 6 	 A p r - 1 5
	 	 — 	 6 5 6 , 9 6 1 	 — 	 2 2 p 	 656,961 	 S e p - 0 6 	 A p r - 1 5
T o t a l 	 	 	 	 	 4 , 8 0 1 , 2 6 1 	 1 , 9 2 0 , 7 6 7 	 ( 2 , 0 1 2 , 5 0 0 ) 	 	 4,709,528 	 	
*‘underwater’ options voluntarily surrendered by the Directors.
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. LiDCO Group Plc 
Annual Report and Accounts 2005/6
22
pensions
No pension contributions were payable by the Group during the year (2004/5: £nil). Executive Directors’ salary includes an 
additional element of pay in lieu of non-salary benefits.
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. The graph below shows the share price performance 
since flotation, using the FTSE TechMARK Mediscience Index as a comparator, which the Directors consider to be the most suitable 
benchmark index.
Note: the MediScience price index data is not available prior to 02/11/2001.
t a Wallis
Chairman of the Remuneration Committee
27 April 2006
 LiDCO Group Plc 
Annual Report and Accounts 2005/6
23
DIre Ctor S’ r eport
The Directors of LiDCO Group Plc present their Annual Report and audited financial statements for the 12 months ended 31 January 
2006. Comparative figures are for the 13 months ended 31 January 2005.
principal activities
The principal activity of the Group is the development, manufacture and sale of cardiac monitoring equipment.
r esults and dividends
The Group’s turnover for the year was £3,421,000 (2004/5 13 months: £2,456,000). The Group made a consolidated loss  
after taxation of £1,906,000 (2004/5 13 months: £4,199,000). The Directors do not recommend the payment of a dividend 
(2004/5: £nil).
Recent regulatory approvals in Europe and Brazil have opened more markets in Europe and a new one in South America. This 
brings to 13 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 2006 was 19.75p (31 January 2005: 20.5p).
r esearch and Development
The Group continued to develop the LiDCO p l u s system during the year, as set out in the Chief Executives’ Review. Expenditure  
on research and development amounted to £215,000 (2005: £310,000) in addition to software development costs of £170,000 
(2005: £126,000) and product registration costs of £191,000 (2004/5: £nil) which are capitalised on the balance sheet and amortised.
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 12 and 14 to the financial statements.
Directors
The Directors of the Company who served during the year are set out below; short biographies are set out on pages 16 and 17.
T A Wallis  Non-Executive Chairman
T K O’Brien  Chief Executive Officer
H M J McGarel-Groves (appointed 10 May 2005) Finance Director
D M Band  Scientific Director
J G Barry  Sales and Marketing Director
A E B Wiegman (resigned 16 December 2005) Non-Executive Director
I G Brown (appointed 12 October 2005) Non-Executive Director
 
Mr Brown was appointed since the last Annual General Meeting and therefore offers himself for election. Ms Wallis retires by rotation 
and, being eligible, offers herself for re-election. Mr Barry retires by rotation and, being eligible, offers himself 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 20 to 22.
Directors’ interests in shares
The Directors who held office at 31 January 2006 had beneficial interests in the ordinary shares of the Company as shown below:
Directors’ shareholdings
	 O r d i n a r y 	 s h a r e s 	 o f 	 0 . 5 p 	 e ac h
	 	 	 	 	 	 	 31 January 	 3 1 	 J a n u a r y 	
	 	 	 	 	 	 	 2006 	 2 0 0 5 	
	 	 	 	 	 	 	 Number 	 N u m b e r
T 	 A 	 W a l l i s 	 	 	 	 	 	 	 	 108,000 	 8 5 , 0 0 0
T 	 K 	 O ’ B r i e n 	 	 	 	 	 	 	 10,109,577 	 1 0 , 1 0 9 , 5 7 7
H 	 M 	 J 	 M c G a r e l - G r o v e s 	 	 	 	 	 	 52,000 	 —
D 	 M 	 B a n d 	 	 	 	 	 	 	 7,060,832 	 7 , 0 6 0 , 8 3 2
J 	 G 	 B a r r y 	 	 	 	 	 	 	 379,642 	 3 7 9 , 6 4 2
A 	 E 	 B 	 W i e g m a n 	 * 	 	 	 	 	 	 	 N/a 	 2 3 9 , 2 8 5
I 	 G 	 B r o w n 	 	 	 	 	 	 	 	 100,000 	 —
 
The Directors have no interests in the shares of the Company’s subsidiary undertakings.
* Mr Wiegman resigned from the Board on 16 December 2005. LiDCO Group Plc 
Annual Report and Accounts 2005/6
24
Directors’ indemnities
The Companies (Audit, Investigations and Community Enterprise) Act 2004, which came into force on 6 April 2005, changes the 
provisions of section 310 of the Companies act 1985 and gives companies the power to extend indemnities to Directors against 
liability to third parties (excluding criminal and regulatory penalties) and also to pay Directors’ legal costs in advance, provided that 
these are reimbursed to the Company, where judgement is given against the Director.
Directors’ and officers’ insurance
The Company currently has Directors’ and officers’ insurance cover in place in respect of the personal liabilities which may be 
incurred by Directors and officers of the Company in the course of their service with the Group.
employment policy
Equal opportunity is given to all employees regardless of their gender, race or ethnic origin, religion, age, disability, or  
sexual orientation.
The policy of the Directors is to encourage the involvement of all employees in the development and performance of the Group. 
Employees are regularly briefed on the Group’s activities through regular information releases and meetings. All employees are 
encouraged to invest in the Group through participation in the share option schemes.
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 total amount  
of the Group’s trade creditors falling due within the year ended 31 January 2006 represents 55 days’ worth (2005: 24 days) as  
a proportion of the total amount invoiced by suppliers during the period.
Significant shareholdings
In accordance with sections 198 to 208 of the Companies Act 1985, the Company has been notified that the following shareholders, 
other than Directors, had a beneficial interest in 3% or more of the Company’s ordinary share capital as at 31 March 2006:
	
	 	 	 	 	 	 	 	 N u m b e r 	 o f 	 s h a r e s	 	
	 	 	 	 	 	 	 i n 	 w h i c h 	 t he r e 	 	 P e r c e n t a ge 	
S h a r e h o l de r 	 	 	 	 	 	 	 i s 	 a n 	 i n t e r e st 	 n o t i fi ed *
R 	 M 	 G r e e n s h i e l d s 	 	 	 	 	 	 	 9 , 0 4 2 , 4 0 7 	 9 . 0 %
P 	 A 	 B r e w e r 	 	 	 	 	 	 	 6 , 8 2 2 , 2 2 1 	 6 . 8 %
H 	 J 	 L e i t c h 	 	 	 	 	 	 	 5 , 8 7 6 , 5 7 1 	 5 . 8 %
H 	 G 	 W e l l i n g t o n 	 I n c 	 	 	 	 	 	 	 3 , 3 7 0 , 9 6 0 	 3 . 4 %
L i o n t r u s t 	 A s s e t 	 M a n a g e m e n t 	 	 	 	 	 	 	 3 , 2 1 8 , 5 0 0 	 3 . 2 %
M e r l i n 	 B i o s c i e n c e s 	 F u n d 	 L P 	 	 	 	 	 	 	 3 , 1 2 8 , 0 0 0 	 3 . 1 %
J 	 K r a t o c h v i l 	 	 	 	 	 	 	 3 , 0 2 0 , 2 7 8 	 3 . 2 %
* The percentages shown are based on the issued share capital at that date.
Charitable and political donations
The Group made no charitable or political donations in the year (2004/5: £nil).
DIre Ctor S’ r eport LiDCO Group Plc 
Annual Report and Accounts 2005/6
25
Directors’ responsibilities for the financial statements accounts
The Directors are responsible for preparing the Annual Report and accounts, in accordance with applicable law and regulations.
Company law requires the Directors to prepare financial statements for each financial year, statements which give a true and fair 
view of the state of affairs of the Group and parent 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, subject to any material departures disclosed and explained 
in the financial statements; and
prepare the financial statements on the going-concern basis unless it is inappropriate to presume that the Group will continue  
in business.
The Directors are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial 
position of the Company and that enable them to ensure that the financial statements comply with the Companies Act 1985. They 
have a general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the Group and to 
prevent and detect fraud and other irregularities.
Under applicable law and regulations, the Directors are also responsible for preparing a Directors’ Report, Directors’ Remuneration 
Report and Corporate Governance Statement that comply with that law and those regulations.
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 year ended 31 January 2006.
The Directors have approved forecasts until the end of January 2008, 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 that are currently being explored which would 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.
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 notes 23 and 24 to the financial statements.
a uditors
Grant Thornton UK LLP were appointed auditors on 24 January 2006 to fill a casual vacancy in accordance with section 388(1) of 
the Companies Act 1985. 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.
a nnual General meeting
The Notice to convene the Annual General Meeting of the Company is enclosed with this Annual Report. The Notice details the resolutions 
to be proposed at the meeting and is set out in a separate document that is being sent to shareholders with these accounts.
By order of the Board
Denise Johnson
Company Secretary
27 April 2006
•
•
•
• LiDCO Group Plc 
Annual Report and Accounts 2005/6
26
report oF tHe InDepen Dent au DItor S  
to tHe memBer S oF LiDCo Group pLC
We have audited the Group and parent Company financial statements (the financial statements) of LiDCO Group Plc for the year 
ended 31 January 2006, which comprise the principal accounting policies, the Group profit and loss account, the Group and 
Company balance sheets, the Group cashflow statement, the Group statement of total recognised gains and losses and notes 1 to 
25. 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. 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.
r espective responsibilities of the Directors and auditors
The Directors’ responsibilities for preparing the Annual Report and the financial statements in accordance with United Kingdom  
law and Accounting Standards (United Kingdom Generally Accepted Accounting Practice) are set out in the Statement of  
Directors’ Responsibilities.
Our responsibility is to audit the financial statements in accordance with relevant legal and regulatory requirements and 
International Standards on Auditing (UK and Ireland).
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 to you 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 other transactions  
is not disclosed.
We read other information contained in the Annual Report, and consider whether it is consistent with the audited financial 
statements. This other information comprises only the Chairman’s Statement, Chief Executive Officer’s Review, Corporate 
Governance Report, Remuneration Report and Directors’ Report. We consider the implications for our report if we become aware 
of any apparent misstatements or material inconsistencies with the financial statements. Our responsibilities do not extend to any 
other information.
Basis of opinion
We conducted our audit in accordance with International Standards on Auditing (UK and Ireland) 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 Group’s and Company’s circumstances, 
consistently applied and adequately disclosed.
We planned and performed our audit so as to obtain all the information and explanations that 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.
 
o pinion
In our opinion, the financial statements:
give a true and fair view, in accordance with United Kingdom Generally Accepted Accounting Practice, of the state of the Group’s 
and the parent company’s affairs as at 31 January 2006 and of the Group’s loss for the year then ended; and 
have been properly prepared in accordance with the Companies Act 1985.
Grant t hornton u K LLp
Registered auditors
Chartered accountants
London
27 April 2006
•
• LiDCO Group Plc 
Annual Report and Accounts 2005/6
27
pr InCIpa L aCCount InG poLICIeS
Basis of preparation
The financial statements have been prepared under the historical cost convention and in accordance with applicable United 
Kingdom accounting standards.
The principal accounting policies of the Company have remained unchanged from the previous year apart from the Company 
recognising the presentation and disclosure requirement of FRS 25, which are set out below.
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 year ended 31 January 2006.
The Directors have approved forecasts until the end of January 2008, 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 that are currently being explored which would 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 AIM 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  
reorganisation. 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, including monitors, sensors, fees for use and rentals, and income from 
licence agreements granted, excluding Value Added Tax. The basis of recognition is on delivery of products and for income from 
licences is from the date the licence is granted, recognised in equal instalments over the licence period. 
r esearch and Development
Research expenditure is written off to profit and loss account as it is incurred. Development expenditure is written off as incurred, 
except where it relates to a technically, commercially and financially viable project, when the identifiable expenditure is capitalised 
and amortised over the period the Company is expected to benefit, not exceeding three years. 
Income from investments
Investments in subsidiary undertakings are stated at cost less provision for impairment.
Intangible fixed assets
Intangible fixed assets represent costs relating to product registration in new countries and software development costs and 
clinical trials on the LiDCO and PulseCO systems. 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 of five years 
for product registration costs and three years for software development and clinical trials. LiDCO Group Plc 
Annual Report and Accounts 2005/6
28
tangible fixed assets and depreciation
Depreciation is calculated to write down the cost less estimated residual value of all tangible fixed assets other than freehold land 
by equal annual instalments over their expected useful lives. The rates generally applicable are:
Land and buildings Over the life of the lease
Plant and machinery 10% per annum
Fixtures and fittings Over the life of the lease
Office equipment 20% per annum
Computer equipment 33% per annum
Leases
Operating lease rentals are charged to the profit and loss account as incurred.
Stocks
Stocks are stated at the lower of attributable production costs and net realisable value.
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.
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 instruments
Financial assets plus liabilities are recognised in the Group Balance Sheet when the Group becomes party to the contractual 
provisions of the instrument. 
pr InCIpa L aCCount InG poLICIeS LiDCO Group Plc 
Annual Report and Accounts 2005/6
29
       12 months 	 1 3 	 m on t h s 	
	 	 	 	 	 	 	 ended 	 e n ded 	
	 	 	 	 	 	 	 31 January 	 3 1 	 J a n u a r y 	
	 	 	 	 	 	 	 2006 	 2 0 0 5 	
	 	 	 	 	 	 N o t e £’000 	 £’ 0 0 0
Turnover 	 	 	 	 	 	 1 	 3,421 	 2 , 4 5 6
C o s t 	 o f 	 s a l e s 	 	 	 	 	 	 (871) 	 ( 8 0 8 )
G r o s s 	 p r o fi t 	 	 	 	 	 	 	 2,550 1 , 6 4 8
A d m i n i s t r a t i v e 	 e x p e n s e s 	 	 	 	 	 	 (4,642) 	 ( 5 , 9 6 5 )
Operating loss 	 	 	 	 	 	 (2,092) 	 ( 4 , 3 1 7 )
I n t e r e s t 	 r e c e i v a b l e 	 	 	 	 	 	 	 42 	 7 7
	 	 	 	 	 	 (2,050) 	 ( 4 , 2 4 0 )
I n t e r e s t 	 p a y a b l e 	 	 	 	 	 	 	 (35) 	 —
Loss on ordinary activities before taxation 	 	 	 	 1 	 (2,085) 	 ( 4 , 2 4 0 )
T a x 	 o n 	 l o s s 	 o n 	 o r d i n a r y 	 a c t i v i t i e s 	 	 	 	 	 3 	 179 	 4 1
Loss on ordinary activities after taxation 	 	 	 	 	 1 4 (1,906) 	 ( 4 , 1 9 9 )
Loss per share (basic and diluted) (p) 	 	 	 	 1 3 (1.91) 	 ( 4 . 6 5 )
All transactions arise from continuing operations.
There were no recognised gains or losses other than the loss for the financial year.
Group pro FIt an D LoSS aCCount
For 12 months to 31 January 2006
T h e 	 a c c o m p a n y i n g 	 a c c o u n t i n g 	 p o l i c i e s 	 a n d 	 n o t e s 	 f o r m 	 a n 	 i n t e g r a l 	 p a r t 	 o f 	 t h e s e 	 fi n a n c i a l 	 s t a t e m e n t s . LiDCO Group Plc 
Annual Report and Accounts 2005/6
30
Ba Lan Ce SHeet S 
At 31 January 2006
 Group Company
	 	 	 	 	 2006 	 2 0 0 5 	 2006 	 2 0 0 5 	
	 	 	 	 N o t e 	 £’000 	 £’ 0 0 0 	 £’000 	 £’ 0 0 0
Fixed assets
I n t a n g i b l e 	 a s s e t s 	 	 	 	 4 	 473 	 3 1 3 	 — 	 —
T a n g i b l e 	 a s s e t s 	 	 	 	 5 	 1,038 	 1 , 2 2 1 	 — 	 —
I n v e s t m e n t s 	 	 	 	 6 	 — 	 — 	 65 	 6 5
	 	 	 	 	 1,511 	 1 , 5 3 4 	 65 	 6 5
Current assets
S t o c k s 	 	 	 	 7 	 1,140 	 1 , 1 6 5 	 — 	 —
D e b t o r s 	 	 	 	 8 	 1,995 	 1 , 5 1 0 	 115 	 1 4
A m o u n t 	 d u e 	 f r o m 	 s u b s i d i a r y 	 u n d e r t a k i n g s 	 	 	 8 	 — 	 — 	 18,742 1 6 , 4 3 5
C a s h 	 a t 	 b a n k 	 a n d 	 i n 	 h a n d 	 	 	 	 	 951 	 1 , 6 0 7 	 367 	 1 , 2 1 3
	 	 	 	 	 4,086 	 4 , 2 8 2 	 19,224 	 1 7 , 6 6 2
Creditors: amounts falling due within one year 	 	 9 	 (759) 	 ( 5 5 8 ) 	 — 	 ( 3 )
Net current assets 	 	 	 	 	 3,327 	 3 , 7 2 4 	 19,224 	 1 7 , 6 5 9
Total assets less current liabilities 	 	 	 	 4,838 	 5 , 2 5 8 	 19,289 	 1 7 , 7 2 4
Creditors: amounts falling due after more than one year 	 	 1 0 	 (1,177) 	 ( 1 2 3 ) 	 (1,125) 	 —
Net assets 	 	 	 	 	 3,661 5 , 1 3 5 	 18,164 	 1 7 , 7 2 4
Capital and reserves
C a l l e d - u p 	 s h a r e 	 c a p i t a l 	 	 	 	 1 2 	 503 	 4 9 5 	 503 	 4 9 5
S h a r e 	 p r e m i u m 	 a c c o u n t 	 	 	 	 1 4 	 17,566 	 1 7 , 1 4 2 	 17,566 	 1 7 , 1 4 2
M e r g e r 	 r e s e r v e 	 	 	 	 1 4 	 8,513 	 8 , 5 1 3 	 — 	 —
O t h e r 	 r e s e r v e 	 	 	 	 1 4 	 (88) 	 ( 8 8 ) 	 (88) 	 ( 8 8 )
E q u i t y 	 r e s e r v e 	 	 	 	 1 5 	 — 	 — 	 — 	 —
P r o fi t 	 a n d 	 l o s s 	 a c c o u n t 	 	 	 	 1 4 	 (22,833) 	 ( 2 0 , 9 2 7 ) 	 183 	 1 7 5
Shareholders’ funds 	 	 	 	 	 3,661 	 5 , 1 3 5 18,164 	 1 7 , 7 2 4
The financial statements were approved by the Board of Directors on 27 April 2006.
Dr terence o ’Brien Hugh mcGarel-Groves
Director Director
T h e 	 a c c o m p a n y i n g 	 a c c o u n t i n g 	 p o l i c i e s 	 a n d 	 n o t e s 	 f o r m 	 a n 	 i n t e g r a l 	 p a r t 	 o f 	 t h e s e 	 fi n a n c i a l 	 s t a t e m e n t s . LiDCO Group Plc 
Annual Report and Accounts 2005/6
31
	 	 	 	 	 	 	 12 Months 	 1 3 	 m on t h s 	
	 	 	 	 	 	 	 ended 	 e n ded 	
	 	 	 	 	 	 	 31 January 	 3 1 	 J a n u a r y 	
	 	 	 	 	 	 	 2006 	 2 0 0 5 	
	 	 	 	 	 	 N o t e 	 £’000 	 £’ 0 0 0
Net cash outflow from operating activities 	 	 	 	 	 1 7 	 (1,804) 	 ( 3 , 5 3 5 )
Returns on investments and servicing of finance
I n t e r e s t 	 r e c e i v e d 	 	 	 	 	 	 	 42 	 7 7
I n t e r e s t 	 p a i d 	 	 	 	 	 	 (35) 	 —
Net cash inflow from returns on investments 	 	 	 	 7 	 7 7
Taxation 	 	 	 	 	 	 	 — 	 —
Capital expenditure and financial investment
P u r c h a s e 	 o f 	 t a n g i b l e 	 fi x e d 	 a s s e t s 	 	 	 	 	 	 (55) 	 ( 2 6 4 )
P u r c h a s e 	 o f 	 i n t a n g i b l e 	 fi x e d 	 a s s e t s 	 	 	 	 	 	 (362) 	 ( 1 2 6 )
Net cash outflow from capital expenditure and financial investment 	 	 	 	 (417) 	 ( 3 9 0 )
	 	 	
Net cash outflow before financing 	 	 	 	 	 	 (2,214) 	 ( 3 , 8 4 8 )
	 	 	
Financing 	 	 	
I s s u e 	 o f 	 o r d i n a r y 	 s h a r e 	 c a p i t a l 	 	 	 	 	 	 203 	 3 , 8 5 5
C o n v e r t i b l e 	 l o a n 	 	 	 	 	 	 	 1,355 	 —
Net cash inflow from financing 	 	 	 	 	 	 1,558 3 , 8 5 5
(Decrease)/increase in cash 	 	 	 	 	 	 (656) 	 7
Group Ca SH FLoW Statement
For 12 Months to 31 January 2006
T h e 	 a c c o m p a n y i n g 	 a c c o u n t i n g 	 p o l i c i e s 	 a n d 	 n o t e s 	 f o r m 	 a n 	 i n t e g r a l 	 p a r t 	 o f 	 t h e s e 	 fi n a n c i a l 	 s t a t e m e n t s . LiDCO Group Plc 
Annual Report and Accounts 2005/6
32
	 	 	 	 	 	 	 12 months 	 1 3 	 m on t h s 	
	 	 	 	 	 	 	 ended 	 e n ded 	
	 	 	 	 	 	 	 31 January 	 3 1 	 J a n u a r y 	
	 	 	 	 	 	 	 2006 	 2 0 0 5 	
	 	 	 	 	 	 	 £’000 	 £’ 0 0 0
Loss for the financial year 	 	 	 	 	 	 (1,906) 	 ( 4 , 1 9 9 )
P r i o r 	 y e a r 	 a d j u s t m e n t s 	 	 	 	 	 	 	 — 	 ( 8 8 )
Total gains and losses recognised since last financial statements 	 	 	 	 (1,906) 	 ( 4 , 2 8 7 )
 
Group S tatement oF tota L 
re CoGnISeD GaInS an D LoSSeS
T h e 	 a c c o m p a n y i n g 	 a c c o u n t i n g 	 p o l i c i e s 	 a n d 	 n o t e s 	 f o r m 	 a n 	 i n t e g r a l 	 p a r t 	 o f 	 t h e s e 	 fi n a n c i a l 	 s t a t e m e n t s . LiDCO Group Plc 
Annual Report and Accounts 2005/6
33
note S to t He FInan CIa L Statement S
For 12 Months to 31 January 2006
1 turnover and loss on ordinary activities before taxation
Turnover by destination is analysed as follows:
	 	 	 	 	 	 	 12 months 	 	 1 3 	 m on t h s 	
	 	 	 	 	 	 	 ended 	 	 e n ded 	
	 	 	 	 	 	 	 31 January 	 3 1 	 J a n u a r y 	
	 	 	 	 	 	 	 2006 	 2 0 0 5 	
	 	 	 	 	 	 	 £’000 	 £’ 0 0 0
U n i t e d 	 S t a t e s 	 	 	 	 	 	 	 1,123 	 9 4 4
U n i t e d 	 K i n g d o m 	 	 	 	 	 	 	 1,535 	 9 3 2
C o n t i n e n t a l 	 E u r o p e 	 	 	 	 	 	 	 550 	 4 0 6
R e s t 	 o f 	 W o r l d 	 	 	 	 	 	 	 213 	 1 7 4
	 	 	 	 	 	 	 3,421 	 2 , 4 5 6
Turnover by type
	 	 	 	 	 	 	 12 months 	 	 1 3 	 m on t h s 	
	 	 	 	 	 	 	 ended 	 e n ded 	
	 	 	 	 	 	 	 31 January 	 3 1 	 J a n u a r y 	
	 	 	 	 	 	 	 2006 	 2 0 0 5 	
	 	 	 	 	 	 	 £’000 	 £’ 0 0 0
M o n i t o r 	 s a l e s 	 	 	 	 	 	 	 1,603 	 1 , 0 9 4
S e n s o r 	 s a l e s 	 	 	 	 	 	 	 1,611 	 1 , 1 6 0
F e e s 	 f o r 	 u s e 	 	 	 	 	 	 	 137 	 1 2 5
L i c e n c e 	 f e e s 	 	 	 	 	 	 	 70 	 7 7
	 	 	 	 	 	 	 3,421 	 2 , 4 5 6
All turnover, operating loss and net assets originated within the United Kingdom. The comparative information for the 13 months  
to 31 January 2005 relating to the split between monitor and sensor sales by destination and type has been found to have been 
misclassified and has been restated where necessary.
The loss on ordinary activities before taxation is stated after:
	 	 	 	 	 	 	 12 months 	 1 3 	 m on t h s 	
	 	 	 	 	 	 	 ended 	 e n ded 	
	 	 	 	 	 	 	 31 January 	 	 3 1 	 J a n u a r y 	
	 	 	 	 	 	 	 2006 	 2 0 0 5 	
	 	 	 	 	 	 	 £’000 	 £’ 0 0 0
A u d i t o r s ’ 	 r e m u n e r a t i o n : 	 	
— 	 G r o u p 	 a u d i t 	 s e r v i c e s 	 	 	 	 	 	 	 33 	 3 6
— 	 C o m p a n y 	 a u d i t 	 f e e s 	 	 	 	 	 	 	 — 	 —
— 	 N o n - a u d i t 	 s e r v i c e s * 	 	 	 	 	 	 	 21 	 1 8
R e s e a r c h 	 a n d 	 d e v e l o p m e n t 	 	 	 	 	 	 	 215 	 3 1 0
D e p r e c i a t i o n 	 o f 	 t a n g i b l e 	 fi x e d 	 a s s e t s 	 	 	 	 	 	 	 238 	 3 8 9
A m o r t i s a t i o n 	 o f 	 i n t a n g i b l e 	 fi x e d 	 a s s e t s 	 	 	 	 	 	 202 	 2 3 4
H i r e 	 o f 	 p l a n t 	 a n d 	 m a c h i n e r y 	 u n d e r 	 o p e r a t i n g 	 l e a s e s 	 	 	 	 	 69 	 5 7
R e n t a l 	 o f 	 l a n d 	 a n d 	 b u i l d i n g s 	 	 	 	 	 	 	 306 	 2 9 3
* Non-audit services comprise £15,000 interim review services payable to the previous auditors and £6,000 tax compliance services payable to the current auditors. The Board 
considers it cost effective for the auditors to provide these services. LiDCO Group Plc 
Annual Report and Accounts 2005/6
34
2 Directors and employees
Staff costs during the year were as follows:
	 	 	 	 	 	 	 12 months 	 	 1 3 	 m on t h s 	
	 	 	 	 	 	 	 ended 	 e n ded 	
	 	 	 	 	 	 	 31 January 	 3 1 	 J a n u a r y 	
	 	 	 	 	 	 	 2006 	 2 0 0 5 	
Group 	 	 	 	 	 	 	 £’000 	 £’ 0 0 0
W a g e s 	 a n d 	 s a l a r i e s 	 	 	 	 	 	 	 2,034 	 2 , 5 0 0
S o c i a l 	 s e c u r i t y 	 c o s t s 	 	 	 	 	 	 	 181 	 2 0 6
	 	 	 	 	 	 2,215 	 2 , 7 0 6
The average number of employees (including Executive Directors) of the Company during the year was:
	 	 	 	 	 	 	 2006 	 2 0 0 5 	
	 	 	 	 	 	 	 Number N u m b e r
P r o d u c t i o n 	 	 	 	 	 	 	 13 	 1 3
S a l e s 	 	 	 	 	 	 	 16 	 1 5
A d m i n i s t r a t i o n 	 	 	 	 	 	 	 	 7 	 8
	 	 	 	 	 	 	 36 	 3 6
3 tax on loss on ordinary activities
The tax charge is based on the loss for the year and represents:
	 	 	 	 	 	 	 12 months 	 1 3 	 m on t h s 	
	 	 	 	 	 	 	 ended 	 	 e n ded 	
	 	 	 	 	 	 	 31 January 	 	 3 1 	 J a n u a r y 	
	 	 	 	 	 	 	 2006 	 2 0 0 5 	
	 	 	 	 	 	 	 £’000 	 £’ 0 0 0
U n i t e d 	 K i n g d o m 	 c o r p o r a t i o n 	 t a x 	 a t 	 3 0 % 	 ( 2 0 0 5 : 	 3 0 % ) 	 	 	 	 	 — —
A d j u s t m e n t s 	 i n 	 r e s p e c t 	 o f 	 p r i o r 	 y e a r : 	 	 	 	 	 	 (69) —
R e s e a r c h 	 a n d 	 d e v e l o p m e n t 	 e x p e n d i t u r e 	 t a x 	 c r e d i t s 	 	 	 	 	 (110) 	 ( 4 1 )
	 	 	 	 	 	 	 (179) 	 ( 4 1 )
L o s s 	 o n 	 o r d i n a r y 	 a c t i v i t i e s 	 m u l t i p l i e d 	 b y 	 s t a n d a r d 	 r a t e 	 o f 	 c o r p o r a t i o n 	 t a x 	 i n 	 t h e	 	
	 U n i t e d 	 K i n g d o m 	 o f 	 3 0 % 	 ( 2 0 0 5 : 	 3 0 % ) 	 	 	 	 	 	 (626) 	 ( 1 , 2 7 2 )
E f f e c t 	 o f :
E x p e n s e s 	 n o t 	 d e d u c t i b l e 	 f o r 	 t a x 	 p u r p o s e s 	 	 	 	 	 	 162 	 1 1 6
C a p i t a l 	 a l l o w a n c e s 	 f o r 	 t h e 	 p e r i o d 	 i n 	 e x c e s s 	 o f 	 d e p r e c i a t i o n 	 	 	 	 	 16 	 1 0 7
I n c r e a s e 	 i n 	 t a x 	 l o s s e s 	 	 	 	 	 	 	 469 	 9 9 8
O t h e r 	 t i m i n g 	 d i f f e r e n c e s 	 	 	 	 	 	 	 (21) 	 5 1
R e s e a r c h 	 a n d 	 d e v e l o p m e n t 	 e x p e n d i t u r e 	 t a x 	 c r e d i t s 	 	 	 	 	 (110) 	 ( 4 1 )
C u r r e n t 	 t a x 	 c r e d i t 	 f o r 	 p e r i o d 	 	 	 	 	 	 	 (110) 	 ( 4 1 )
note S to t He FInan CIa L Statement S
For 12 Months to 31 January 2006 LiDCO Group Plc 
Annual Report and Accounts 2005/6
35
4 Intangible fixed assets
	 	 	 	 	 	 P r o d uc t 	 	 S o f tw a r e 	
	 	 	 	 	 C l i n i c a l 	 t r i a l s 	 r eg i st r a t i on 	 de v e l op me n t 	 T o t a l 	
Group 	 	 	 	 	 £’ 0 0 0 	 £’ 0 0 0 	 £’ 0 0 0 	 £’ 0 0 0
C o s t
A t 	 1 	 F e b r u a r y 	 2 0 0 5 	 	 	 	 	 7 4 	 — 	 8 9 3 	 9 6 7
A d d i t i o n s 	 	 	 	 	 — 	 1 9 1 	 1 7 1 	 3 6 2
a t 31 January 2006     74 191 1,064 1,329
A m o r t i s a t i o n
A t 	 1 	 F e b r u a r y 	 2 0 0 5 	 	 	 	 	 7 4 	 — 	 5 8 0 	 6 5 4
C h a r g e 	 f o r 	 t h e 	 y e a r 	 	 	 	 	 — 	 2 2 	 1 8 0 	 2 0 2
a t 31 January 2006     74 22 760 856
Net book amount at 31 January 2006    — 169 304 473
N e t 	 b o o k 	 a m o u n t 	 a t 	 3 1 	 J a n u a r y 	 2 0 0 5 	 	 	 	 	 — 	 	 — 	 1 3 	 	 3 1 3	
5 tangible fixed assets
	 	 	 L a n d 	 a n d 	 P l a n t 	 a n d 	 F i x t u r e s 	 O f fi c e 	 C om p u t e r 	
	 	 	 	 b u i l d i n g s 	 	 m ac h i ne r y 	 a n d 	 fi t t i n g s 	 eq u i p me n t 	 	 eq u i p me n t 	 T o t a l 	
Group 	 	 	 £’ 0 0 0 	 £’ 0 0 0 	 £’ 0 0 0 	 £’ 0 0 0 	 £’ 0 0 0 	 £’ 0 0 0
Cost
A t 	 1 	 F e b r u a r y 	 2 0 0 5 	 	 	 5 4 1 	 4 0 1 	 1 1 5 	 3 9 	 9 2 2 	 2 , 0 1 8
A d d i t i o n s 	 	 	 — 	 	 7 	 	 — 	 	 — 	 	 4 8 	 	 5 5
a t 31 January 2006   541 408 115 39 970 2,073
Depreciation
A t 	 1 	 F e b r u a r y 	 2 0 0 5 	 	 	 1 3 1 	 1 8 9 	 	 	 6 6 	 	 	 3 3 	 	 	 3 7 8 	 	 7 9 7
P r o v i d e d 	 i n 	 t h e 	 y e a r 	 	 	 	 5 6 	 	 	 2 8 	 	 	 1 0 	 	 	 2 	 	 	 1 4 2 	 	 2 3 8
a t 31 January 2006   187 217 76 35 520 1,035
Net book amount at 31 January 2006  354 191 39 4 450 1,038
N e t 	 b o o k 	 a m o u n t 	 a t 	 3 1 	 J a n u a r y 	 2 0 0 5 	 	 4 1 0 	 	 2 1 2 	 	 	 5 0 	 	 5 	 	 5 4 4 	 	 1 , 2 2 1
A review of fixed assets’ lives has taken place in accordance with the relevant standard; this resulted in the useful economic lives  
of plant and machinery, fixtures and fittings and office equipment being revised. If this review had not taken place, the reported 
depreciation charge would have been approximately £63,000 higher.
The Company held no tangible fixed assets at 31 January 2006 or 31 January 2005. LiDCO Group Plc 
Annual Report and Accounts 2005/6
36
6 Investments
	 	 	 	 	 	 	 	 S h a r e s 	 i n 	
	 	 	 	 	 	 	 	 	 s u b s i d i a r y 	
	 	 	 	 	 	 	 	 u n de r t a k i n g s 	
Company 	 	 	 	 	 	 	 	 £’ 0 0 0
Cost and net book value 	 	
A t 	 1 	 F e b r u a r y 	 2 0 0 5 	 a n d 	 a t 	 3 1 	 J a n u a r y 	 2 0 0 6 	 	 	 	 	 	 6 5
T h e 	 C o m p a n y ’ s 	 b e n e fi c i a l 	 i n t e r e s t 	 i n 	 s u b s i d i a r y 	 u n d e r t a k i n g s 	 c o n s i s t s 	 o f :
	 C ou n t r y 	 o f 	 	 B e n e fi c i a l 	 	
	 r eg i st r a t i on 	 h o l d i n g 	 N a t u r e 	 o f 	 b u s i n e s s
L i D C O 	 L i m i t e d 	 E n g l a n d 	 a n d 	 W a l e s 	 1 0 0 % 	 S u r g i c a l 	 i n s t r u m e n t s 	 a n d 	 a p p l i a n c e s
C a s s e t t e 	 A n a l y t i c a l 	 S y s t e m s 	 L i m i t e d 	 E n g l a n d 	 a n d 	 W a l e s 	 1 0 0 % 	 D o r m a n t
7 Stocks
	 	 	 	 	 	 	 2006 	 2 0 0 5 	
Group 	 	 	 	 	 	 	 £’000 	 £’ 0 0 0
R a w 	 m a t e r i a l s 	 a n d 	 c o n s u m a b l e s 	 	 	 	 	 	 212 	 3 8 9
F i n i s h e d 	 g o o d s 	 a n d 	 g o o d s 	 f o r 	 r e s a l e 	 	 	 	 	 	 928 	 7 7 6
	 	 	 	 	 	 	 1,140 	 1 , 1 6 5
8 Debtors
	 Group Company
	 	 	 	 	 2006 	 2 0 0 5 	 2006 	 2 0 0 5 	
	 	 	 	 	 £’000 	 £’ 0 0 0 	 £’000 	 £’ 0 0 0
T r a d e 	 d e b t o r s 	 	 	 	 	 1,508 	 1 , 2 9 1 	 — 	 —
P r e p a y m e n t s 	 a n d 	 a c c r u e d 	 i n c o m e 	 	 	 	 256 	 7 4 	 112 	 —
O t h e r 	 d e b t o r s 	 	 	 	 231 1 4 5 	 3 	 1 4
I n t e r - C o m p a n y 	 d e b t 	 	 	 	 	 — 	 — 	 18,742 	 1 6 , 4 3 5
	 	 	 	 	 1,995 	 1 , 5 1 0 	 18,857 	 1 6 , 4 4 9
T h e 	 i n t e r - C o m p a n y 	 d e b t 	 r e l a t e s 	 t o 	 t h e 	 o n g o i n g 	 f u n d i n g 	 p r o v i d e d 	 t o 	 t h e 	 p r i n c i p a l 	 t r a d i n g 	 s u b s i d i a r y , 	 L i D C O 	 L i m i t e d , 	 w h i l s t 	 i t 	 c o n t i n u e s 	 t o	
b e 	 l o s s - m a k i n g . 	 T h i s 	 d e b t 	 h a s 	 b e e n 	 r e v i e w e d 	 b y 	 t h e 	 D i r e c t o r s 	 o f 	 t h e 	 C o m p a n y , 	 w h o 	 c o n s i d e r 	 t h e r e 	 i s 	 n o 	 i m p a i r m e n t , 	 a l t h o u g h 	 t h e 	 f u l l	
a m o u n t 	 m a y 	 n o t 	 b e 	 r e c o v e r a b l e 	 w i t h i n 	 o n e 	 y e a r .
9 Creditors: amounts falling due within one year
	 Group Company
	 	 	 	 	 2006 	 2 0 0 5 2006 	 2 0 0 5 	
	 	 	 	 	 £’000 	 £’ 0 0 0 	 £’000 	 £’ 0 0 0
T r a d e 	 c r e d i t o r s 	 	 	 	 	 444 	 1 8 2 	 — 	 —
O t h e r 	 c r e d i t o r s 	 	 	 	 	 59 	 9 5 	 — 	 3
A c c r u a l s 	 a n d 	 d e f e r r e d 	 i n c o m e 	 	 	 	 256 	 2 8 1 	 — —
	 	 	 	 759 	 5 5 8 	 — 	 3
10 Creditors: amounts falling due after more than one year
	 Group Company
	 	 	 	 2006 	 2 0 0 5 2006 	 2 0 0 5 	
	 	 	 	 	 £’000 	 £’ 0 0 0 	 £’000 	 £’ 0 0 0
D e f e r r e d 	 i n c o m e 	 	 	 	 52 	 1 2 3 	 — 	 —
C o n v e r t i b l e 	 l o a n 	 	 	 	 1,125 	 — 	 1,125 	 —
	 	 	 	 	 1,177 	 1 2 3 	 1,125 	 —
A US$2 million three year convertible loan agreement was entered into with Laurus Master Fund Ltd (Laurus) on 10 August 2005. 
The notes are convertible into ordinary shares of the Company at any time during the three-year period at a price of 24p, or at 
85% of the average closing price over the preceding 10 trading days, if lower and if the conversion has been requested by the 
Company. Interest is payable at 2% above New York Journal Prime, which has resulted in an effective interest rate of circa 8.5%.
note S to t He FInan CIa L Statement S 
For 12 Months to 31 January 2006 LiDCO Group Plc 
Annual Report and Accounts 2005/6
37
10 Creditors: amounts falling due after more than one year c o n t i n u e d 
A total drawdown of US$2,445,000 has been made against the Laurus loan facility and a conversion ofUS$445,000 was made on  
17 November 2005. The balance of the Laurus loan at 31 January 2006 was US$2,000,000 (£1,125,000). This has been split in the 
balance sheet between the debt element and an equity component, representing the fair value of the embedded option to convert 
the liability into equity of the Group, as follows:
	 Group Company
	 	 	 	 	 2006 	 2 0 0 5 	 2006 	 2 0 0 5 	
	 	 	 	 	 £’000 	 £’ 0 0 0 	 £’000 	 £’ 0 0 0
N o m i n a l 	 v a l u e 	 o f 	 c o n v e r t i b l e 	 l o a n 	 	 	 	 1,125 	 — 	 1,125 	 	 —
E q u i t y 	 c o m p o n e n t 	 	 	 	 	 — 	 — 	 — 	 —
L i a b i l i t y 	 c o m p o n e n t 	 a t 	 fi n a l 	 d r a w d o w n 	 d a t e 	 	 	 	 	 1,125 	 	 — 	 1,125 	 —	
I n t e r e s t 	 c h a r g e d 	 	 	 	 	 35 	 — 	 	 35 	 —
I n t e r e s t 	 p a i d 	 	 	 	 	 	 (29) 	 — 	 (29) 	 —
Liability component at 31 January 2006      1,131 — 1,131  —
The Directors believe the amount shown above represents a fair value of the liability component.
11 Deferred taxation
	 Group Company
	 	 	 	 	 2006 	 2 0 0 5 	 2006 	 2 0 0 5 	
Unprovided 	 	 	 	 	 £’000 	 £’ 0 0 0 	 £’000 	 £’ 0 0 0
A c c e l e r a t e d 	 c a p i t a l 	 a l l o w a n c e s 	 	 	 	 506 	 5 3 	 — 	 —
O t h e r 	 	 	 	 	 (5,927) 	 ( 5 , 4 2 8 ) 	 — 	 —
	 	 	 	 	 (5,421) 	 ( 5 , 3 7 6 ) 	 — 	 —
12 Share capital
	 	 	 	 	 	 	 2006 	 2 0 0 5 	
	 	 	 	 	 	 £’000 	 £’ 0 0 0
A u t h o r i s e d 	 	
1 5 0 , 0 0 0 , 0 0 0 	 o r d i n a r y 	 s h a r e s 	 o f 	 0 . 5 p 	 e a c h 	 	 	 	 	 	 750 7 5 0
	 	
A l l o t t e d , 	 c a l l e d 	 u p 	 a n d 	 f u l l y 	 p a i d 	 	
1 0 0 , 5 7 1 , 8 5 0 	 o r d i n a r y 	 s h a r e s 	 o f 	 0 . 5 p 	 e a c h 	 	 	 	 	 	 503 	 4 9 5
1,664,920 new shares were issued during the year of which 1,166,920 relate to the US$445,000 Laurus loan conversion on  
17 November 2005. The remainder of the new shares issued relate to the exercise of employee share options, which were  
issued at an exercise price of US$0.2353 per share.
13 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 2006.
	
	 	 	 	 	 	 	 12 months 	 1 3 	 m on t h s 	
	 	 	 	 	 	 	 ended 	 	 e n ded 	
	 	 	 	 	 	 	 31 January 	 3 1 	 J a n u a r y 	
	 	 	 	 	 	 	 2006 	 2 0 0 5 	
	 	 	 	 	 	 	 £’000 	 £’ 0 0 0
L o s s 	 a f t e r 	 t a x 	 f o r 	 t h e 	 fi n a n c i a l 	 y e a r 	 	 	 	 	 (1,906) 	 ( 4 , 1 9 9 )
	 	 	 	 	 	 	
	 	 	 	 	 	 	 Number Number
	 	 	 	 	 	 	 (’000) (’000)
W e i g h t e d 	 a v e r a g e 	 n u m b e r 	 o f 	 o r d i n a r y 	 s h a r e s 	 	 	 	 	 99,572 	 9 0 , 2 3 9
E f f e c t 	 o f 	 d i l u t i v e 	 s h a r e 	 o p t i o n s 	 	 	 	 	 	 2,996 	 6 , 0 1 8
A d j u s t e d 	 w e i g h t e d 	 a v e r a g e 	 n u m b e r 	 o f 	 o r d i n a r y 	 s h a r e s 	 	 	 	 	 102,307 	 9 6 , 7 5 7
L o s s 	 p e r 	 s h a r e 	 — 	 b a s i c 	 a n d 	 d i l u t e d 	 ( p ) 	 	 	 	 	 	 (1.91) 	 ( 4 . 6 5 ) LiDCO Group Plc 
Annual Report and Accounts 2005/6
38
14 r eserves
	 	 	 	 S h a r e 	 	 	 	 	 P r o fi t 	
	 	 	 	 p r e m i u m 	 	 	 E q u i t y 	 a n d 	 l o s s	 	
	 	 	 	 ac c ou n t 	 M e r ge r 	 r e s e r v e 	 O t he r 	 r e s e r v e 	 r e s e r v e s 	 ac c ou n t 	
Group 	 	 	 	 £’ 0 0 0 	 £’ 0 0 0 	 £’ 0 0 0 	 £’ 0 0 0 	 £’ 0 0 0
A t 	 1 	 F e b r u a r y 	 2 0 0 5 	 	 	 	 1 7 , 1 4 2 	 8 , 5 1 3 	 ( 8 8 ) 	 — 	 ( 2 0 , 9 2 7 )
I s s u e 	 o f 	 s h a r e 	 c a p i t a l 	 	 	 	 4 2 4 	 — 	 — 	 — 	 —
L o s s 	 f o r 	 t h e 	 fi n a n c i a l 	 y e a r 	 	 	 	 — 	 — 	 — 	 — 	 ( 1 , 9 0 6 )
a t 31 January 2006    17,566 8,513 (88) — (22,833)
	
	 	 	 	 	 S h a r e 	 	 	 	 P r o fi t 	
	 	 	 	 	 p r e m i u m 	 	 	 E q u i t y 	 a n d 	 l o s s 	
	 	 	 	 	 ac c ou n t 	 O t he r 	 r e s e r v e 	 r e s e r v e s 	 ac c ou n t 	
Company 	 	 	 	 	 £’ 0 0 0 	 £’ 0 0 0 	 £’ 0 0 0 	 £’ 0 0 0
A t 	 1 	 F e b r u a r y 	 2 0 0 5 	 	 	 	 	 1 7 , 1 4 2 	 ( 8 8 ) 	 — 	 1 7 5
I s s u e 	 o f 	 s h a r e 	 c a p i t a l 	 	 	 	 	 4 2 4 	 — 	 — 	 —
P r o fi t 	 f o r 	 t h e 	 fi n a n c i a l 	 y e a r 	 	 	 	 	 — 	 — 	 — 	 8
a t 31 January 2006     17,566 (88) — 183
In accordance with the exemptions given by section 230 of the Companies Act 1985, the holding company has not prepared its own 
profit and loss account. The profit for the year of the Company was £8,000 (2004: £62,000).
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.
15 equity reserve
The calculation has been carried out in accordance with FRS 25 in order to determine the equity component of the Laurus 
convertible loan. Based on the assumption that the interest rate payable to Laurus represents a full commercial rate, this 
calculation gives an equity component of zero.
The arrangements for the Laurus convertible loan included the grant of options to Laurus and its agent to subscribe for 1,123,596 
new ordinary shares in the Company at 30p per share, exercisable at any time until 10 August 2010.
16 r econciliation of movements in shareholders’ funds
	 	 	 	 	 	 	 2006 	 2 0 0 5 	
Group 	 	 	 	 	 	 	 £’000 	 £’ 0 0 0
L o s s 	 f o r 	 t h e 	 fi n a n c i a l 	 y e a r 	 	 	 	 	 	 (1,906) 	 ( 4 , 1 9 9 )
I s s u e 	 o f 	 s h a r e s 	 	 	 	 	 	 432 3 , 8 5 5
	 	 	 	 	 	 	 (1,474) 	 ( 3 4 4 )
O p e n i n g 	 s h a r e h o l d e r s ’ 	 f u n d s 	 	 	 	 	 	 5,135 	 5 , 4 7 9
C l o s i n g 	 s h a r e h o l d e r s ’ 	 f u n d s 	 	 	 	 	 	 	 3,661 	 5 , 1 3 5
17 n et cash outflow from operating activities
	 	 	 	 	 	 	 12 months 	 1 3 	 m on t h s 	
	 	 	 	 	 	 	 ended 	 e n ded 	
	 	 	 	 	 	 	 31 January 	 3 1 	 J a n u a r y 	
	 	 	 	 	 	 	 2006 	 2 0 0 5 	
Group 	 	 	 	 	 	 	 £’000 	 £’ 0 0 0
Operating loss 	 	 	 	 	 	 	 (2,092) 	 ( 4 , 3 1 7 )
D e p r e c i a t i o n 	 a n d 	 a m o r t i s a t i o n 	 c h a r g e s 	 	 	 	 	 440 	 6 2 3
D e c r e a s e 	 i n 	 s t o c k 	 	 	 	 	 	 	 25 	 5 0 0
I n c r e a s e 	 i n 	 d e b t o r s 	 	 	 	 	 	 	 (307) 	 ( 3 0 9 )
( D e c r e a s e ) / i n c r e a s e 	 i n 	 c r e d i t o r s 	 	 	 	 	 	 130 	 ( 3 2 )
N e t 	 c a s h 	 o u t fl o w 	 f r o m 	 o p e r a t i n g 	 a c t i v i t i e s 	 	 	 	 	 	 (1,804) 	 ( 3 , 5 3 5 )
note S to t He FInan CIa L Statement S 
For 12 Months to 31 January 2006 LiDCO Group Plc 
Annual Report and Accounts 2005/6
39
18 r econciliation of net cash flow to movement in net debt
	 	 	 	 	 	 	 12 months 	 1 3 	 m on t h s 	
	 	 	 	 	 	 ended 	 e n ded 	
	 	 	 	 	 	 	 31 January 	 3 1 	 J a n u a r y 	
	 	 	 	 	 	 	 2006 	 2 0 0 5 	
Group 	 	 	 	 	 	 £’000 	 £’ 0 0 0
C a s h 	 m o v e m e n t 	 i n 	 t h e 	 y e a r 	 	 	 	 	 	 	 (656) 	 7
I n c r e a s e 	 i n 	 l o a n 	 	 	 	 	 	 (1,355) 	 —
C h a n g e 	 i n 	 n e t 	 ( d e b t ) / c a s h 	 i n 	 t h e 	 y e a r 	 	 	 	 	 (2,011) 	 7
C o n v e r s i o n 	 o f 	 l o a n 	 i n t o 	 s h a r e 	 c a p i t a l 	 	 	 	 	 	 230 	 —
M o v e m e n t 	 i n 	 n e t 	 ( d e b t ) / c a s h 	 	 	 	 	 	 	 (1,781) 	 7
	 N e t 	 o p e n i n g 	 c a s h 	 a t 	 1 	 F e b r u a r y 	 2 0 0 5 	 	 	 	 	 1,607 	 1 , 6 0 0
Net closing (debt)/cash at 31 January 2006 	 	 	 	 (174) 	 1 , 6 0 7
19 a nalysis of changes in net cash and debt
	 	 	 	 	 A t 	 1 	 F e b r u a r y 	 	 	 	 a t 31 January 	
	 	 	 	 	 2 0 0 5 	 C a s h fl o w 	 N on 	 c a s h fl o w 	 	 2006 	
Group 	 	 	 	 	 £’ 0 0 0 	 £’ 0 0 0 	 £’ 0 0 0 	 £’000
C a s h 	 i n 	 h a n d 	 	 	 	 	 1 , 6 0 7 	 ( 6 5 6 ) 	 — 	 951
C o n v e r t i b l e 	 l o a n 	 	 	 	 	 — 	 ( 1 , 3 5 5 ) 	 2 3 0 	 (1,125)
N e t 	 c a s h / ( d e b t ) 	 	 	 	 	 1 , 6 0 7 	 ( 2 , 0 1 1 ) 	 2 3 0 	 (174)
20 Capital commitments
The Company had no capital commitments at 31 January 2006 or 31 January 2005.
 
21 Contingent liabilities
At 31 January 2006, the Group had a bank guarantee outstanding for £118,116 (2005: £118,116) in favour of Granta Park Limited.  
The amount is a rent deposit on the Group’s sales and marketing office in the Granta Science Park in Cambridge. The guarantee is 
effective until 15 August 2006.
There were no other contingent liabilities at 31 January 2006 or 31 January 2005.
22 Leasing commitments
Operating lease payments amounting to £231,000 (2005: £350,000) are due within one year. The leases to which these amounts 
relate expire as follows:
	 2006 	 2 0 0 5
	 	 	 	 	 Land and 	 L a n d 	 a n d 	
	 	 	 	 	 	 buildings Other 	 b u i l d i n g s 	 O t he r 	
Group 	 	 	 	 	 £’000 £’000 	 £’ 0 0 0 	 £’ 0 0 0
I n 	 o n e 	 y e a r 	 o r 	 l e s s 	 	 	 	 97 48 	 — 	 5 7
B e t w e e n 	 o n e 	 a n d 	 fi v e 	 y e a r s 	 	 	 	 	 86 — 	 2 9 3 	 —
I n 	 fi v e 	 y e a r s 	 o r 	 m o r e 	 	 	 	 	 — — 	 — 	 —
	 	 	 	 	 183 48 	 2 9 3 	 5 7
T h e 	 l e a s e 	 o n 	 o f fi c e s 	 i n 	 t h e 	 G r a n t a 	 S c i e n c e 	 P a r k , 	 C a m b r i d g e 	 e x p i r e s 	 i n 	 J u l y 	 2 0 0 6 	 a n d 	 t h e 	 r e m a i n i n g 	 a m o u n t 	 p a y a b l e 	 f r o m 	 1 	 F e b r u a r y	
2 0 0 6 	 t o 	 t h e 	 d a t e 	 o f 	 e x p i r y 	 i s 	 £ 9 7 , 0 0 0 . LiDCO Group Plc 
Annual Report and Accounts 2005/6
40
23 Financial instruments
Financial risks
The Group’s financial instruments comprise cash and liquid resources, borrowings and items such as trade debtors and trade 
creditors that arise from its operations.
The main risks that arise from the Group’s financial instruments are interest rate, currency and liquidity risk. The board reviews  
and agree policies for managing each of these risks and they are summarised below.
Liquidity risk
The Group seeks to manage this financial risk by ensuring sufficient liquidity is available to meet foreseeable needs and to invest 
surplus cash assets safely and profitably.
Currency risk
The Group manages currency risk by assessing the net exposure in each non-sterling currency in which exposure arises. The only 
significant such exposure relates to US dollars and this has been assessed as minimal, since the Laurus loan US$ liability is offset  
by US$ receivables from sales.
24 Group interest rate profile
	 	 	 	 F l o a t i n g 	 r a t e 	 F i x ed 	 r a t e
	 	 	 	 C a s h 	 c u r r e n t 	 D e p o s i t 	 a n d 	 C a s h 	 c u r r e n t 	 D e p o s i t 	 a n d 	 	
	 	 	 	 b a n k 	 ac c ou n t s 	 r e s e r v e 	 ac c ou n t 	 b a n k 	 ac c ou n t s 	 r e s e r v e 	 ac c ou n t 	 T o t a l 	
F i n a n c i a l 	 a s s e t s 	 a t 	 3 1 	 J a n u a r y 	 2 0 0 6 	 	 	 £’ 0 0 0 	 £’ 0 0 0 	 £’ 0 0 0 	 £’ 0 0 0 	 £’ 0 0 0
Currency 	
S t e r l i n g 	 	 	 	 5 4 1 	 2 5 6 	 — 	 1 1 9 	 9 1 6
U S 	 d o l l a r s 	 	 	 	 3 5 	 — 	 — 	 — 	 3 5
	 	 	 	 576 256 — 119 951
	 	 	 	 F l o a t i n g 	 r a t e 	 F i x ed 	 r a t e
	 	 	 	 C a s h 	 c u r r e n t 	 D e p o s i t 	 a n d 	 C a s h 	 c u r r e n t 	 D e p o s i t 	 a n d 	 	
	 	 	 	 b a n k 	 ac c ou n t s 	 r e s e r v e 	 ac c ou n t 	 b a n k 	 ac c ou n t s 	 r e s e r v e 	 ac c ou n t 	 T o t a l 	
F i n a n c i a l 	 a s s e t s 	 a t 	 3 1 	 J a n u a r y 	 2 0 0 5 	 	 	 £’ 0 0 0 	 £’ 0 0 0 	 £’ 0 0 0 	 £’ 0 0 0 	 £’ 0 0 0
Currency 	 	 	 	 	
S t e r l i n g 	 	 	 	 2 6 9 	 1 , 1 0 6 	 — 	 2 2 7 	 1 , 6 0 2
U S 	 d o l l a r s 	 	 	 	 5 	 — 	 — 	 	 5
	 	 	 	 2 7 4 	 1 , 1 0 6 	 — 	 2 2 7 	 1 , 6 0 7
	 	 	 	 	 	 F l o a t i n g 	 r a t e 	 F i x ed 	 r a t e
	 	 	 	 	 2006 	 2 0 0 5 	 2006 	 2 , 0 0 5 	
F i n a n c i a l 	 l i a b i l i t i e s 	 	 	 	 	 £’000 	 £’ 0 0 0 	 £’000 	 £’ 0 0 0
Currency 	 	 	
S t e r l i n g 	 	 	 	 	 — 	 — 	 — 	 —
U S 	 d o l l a r s 	 	 	 	 	 1,125 	 — 	 — 	 —
	 	 	 	 	 1,125 	 — 	 — 	 —
Interest on the Laurus convertible loan is payable at 2% above New York Journal Prime, which has resulted in an effective interest 
rate of circa 8.5%.
The Group did not have any financial liabilities at 31 January 2005.
Fair values of financial assets and liabilities
There was no difference between the fair value and the book value of financial assets and liabilities.
Hedging
The Group did not hedge its financial transactions in the current year or preceding period.
note S to t He FInan CIa L Statement S 
For 12 Months to 31 January 2006 LiDCO Group Plc 
Annual Report and Accounts 2005/6
41
24 Group interest rate profile c o n t i n u e d
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 
year ended 31 January 2006. 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.
	 	 	 	 	 	 	 2006 	 2 0 0 5 	
	 	 	 	 	 	 	 deposit account 	 de p o s i t 	 ac c ou n t 	
F i n a n c i a l 	 a s s e t s 	 	 	 	 	 	 £’000 	 £’ 0 0 0
C u r r e n c y 	 	
U S 	 d o l l a r s 	 	 	 	 	 	 	 35 	 5
	 	 	 	 	 	 	 35 	 5
	 	 	 	 	 	 	 2006 	 2 0 0 5 	
	 	 	 	 	 	 	 convertible 	 c on v e r t i bl e 	
	 	 	 	 	 	 	 loan 	 l o a n 	
F i n a n c i a l 	 l i a b i l i t i e s 	 	 	 	 	 	 £’000 	 £’ 0 0 0
C u r r e n c y 	 	
U S 	 d o l l a r s 	 	 	 	 	 	 	 1,125 	 —
	 	 	 	 	 	 	 1,125 	 —
25 transactions with related parties
The Company has taken advantage of the exemption in Financial Reporting Standard No 8 ‘Related party disclosures’ and has not 
disclosed transactions with Group undertakings. 
There are no other related party transactions.  LiDCO Group Plc 
Annual Report and Accounts 2005/6
42
Solicitors:
Herbert Smith LLP 
Exchange House
Primrose Street
London, EC2A 2HS
Hewitsons
Shakespeare House
42 Newmarket Road
Cambridge, CB5 8EP
a uditors:
Grant Thornton UK LLP
Registered Auditors
Chartered Accountants
Grant Thornton House
Melton Street
Euston Square
London, NW1 2EP
r egistrars: 
Capita Registrars
The Registry
34 Beckenham Road
Beckenham
Kent, BR3 4TU
n ominated adviser 
and stockbroker:
Panmure Gordon & Co
Moorgate Hall
155 Moorgate
London, EC2M 6XB
Bankers:
Barclays Bank Plc
PO Box 885
Mortlock House
Vision Park
Histon
Cambridge, CB4 9DE
Company InFormat Ion
a DvISer S to t He Company
Company registration number: 2 6 5 9 0 0 5
Registered office:
1 6 	 O r s m a n 	 R oa d
L on don , 	 N 1 	 5 QJ
Company website:
w w w . l i dc o . c om
Directors and Secretary:
Ms T a Wallis N on - E x ec u t i v e 	 C h a i r m a n
Dr T K O’Brien C h i e f 	 E x ec u t i v e 	 O f fi c e r
Mr H M J McGarel-Groves F i n a n c e 	 Di r ec t or
Dr D M Band S c i e n t i fi c 	 Di r ec t or
Mr J G Barry S a l e s 	 a n d 	 M a r k e t i n g 	 Di r ec t or
Mr I G Brown N on - E x ec u t i v e 	 Di r ec t or
Ms D Johnson S ec r e t a r y LiDCO Group Plc 
Annual Report and Accounts 2005/6
43
note S LiDCO Group Plc 
Annual Report and Accounts 2005/6
44
note S C o n t e n t s
0 1 	 Highlights
0 2 	 At a Glance
0 4 	 Chairman’s Statement
0 6 	 Chief Executive Officer’s Review 
1 4 	 Finance Director’s Review
1 6 	 Board of Directors
1 6 	 Clinical Advisory Board
1 8 	 Corporate Governance 
2 0 	 Directors’ Remuneration Report
2 3 	 Directors’ Report
2 6 	 Report of the Independent Auditors
2 7 	 Principal Accounting Policies
2 9 	 Group Profit and Loss Account
3 0 	 Balance Sheets
3 1 	 Group Cash Flow Statement
3 2 	 Group Statement of Total Recognised 
Gains and Losses
3 3 	 Notes to the Financial Statements 
4 2 	 Company Information
4 2 	 Advisers to the Company
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. www.lidco.com
2005/6
LiDCO Group Plc
Annual Report and Accounts
for 12 months to 31 January 2006
LiDCO Group Plc
UK Office:
16 Orsman Road
London, N1 5QJ
T: + 44 (0)20 77 49 1500
F: + 44 (0)20 77 49 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 and Accounts 2005/6