LiDCO Group Plc
Annual report and financial statements
for the year ended 31 December 2003
LiDCO Group Plc
UK Office:
16 Orsman Road
London N1 5QJ
Tel: +44 (0)20 7749 1500
Fax: +44 (0)20 7749 1501
USA Distribution Office:
Wren Medical Systems
905 Lakeside Drive
Gurnee, IL 60031
Tel: +1 847 625 0600
Fax: +1 847 625 0981
Sales and Marketing:
Flowers Building
Granta Park
Cambridge CB1 6GU
Tel: +44 (0)1223 893 081
Fax: +44 (0)1223 890 187
Annual report 2003 www .lidco.com
LiDCO Group Plc Annual report and financial statements for the year ended 31 December 2003 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.
01 Highlights
02 Group at a Glance
04 Chairman’s Review
06 Chief Executive’s Review
12 Board of Directors
14 Corporate Governance Report
16 Remuneration Report
18 Directors’ Report
20 Independent Auditors’ Report to 
the Members of LiDCO Group Plc
21 Consolidated Profit and Loss Account
22 Balance Sheets
23 Consolidated Cash Flow Statement
23 Reconciliation of Movement in 
Consolidated Shareholders’ Funds
24 Notes to the Accounts
Advisors 
Auditors 
Deloitte & Touche LLP
Chartered Accountants
Hill House
1 Little New Street
London EC4A 3TR
Stockbrokers 
Durlacher Limited
4 Chiswell Street
London EC1Y 4UP
Bankers 
NatWest Bank PLC
PO Box 35
10 Southwark Street
London SE1 1TT
Registrars 
Capita Registrars
34 Beckenham Road
Beckenham
Kent BR3 4TU
Solicitors 
Herbert Smith
Exchange House
Primrose Street 
London EC2A 2HS
Company Number
2659005
Registered Office 
16 Orsman Road
London N1 5QJ
Company Website
www.lidco.com Financial
Turnover up 33% to £2.7 million; with the gross margin increased
to 70.2% from 61.9%.
The pre-tax loss reduced by 26% to £4.07 million, following a
14% reduction in overheads.
Cash burn reduced by 54% to £3.4 million (pre the £1.0 million
placing in October 2003).
Commercial
£3.7 million net has been raised in May 2004,conditional on
shareholder approval, by the placing of additional shares with
institutional and other investors, to finance a programme of
expanded US sales through independent agents and to enable
new product applications to be developed and marketed.
Heads of Agreement have been signed for the appointment of
four regional distributors in the US, which would enable LiDCO to
increase the number of salesmen promoting its products in
the US from seven at the end of 2003 to around 60.
In May 2004, a contract was signed with Philips Medical
Systems to create a communications link between LiDCO’s
proprietary stand-alone monitoring system and Philips’ patient
monitors.
Turnover £millions
2.72
m
03 2.72
02 2.04
01 1.13
LiDCO Group Plc Annual report and accounts, year ended 31 December 2003
page 1
Highlights
03 290
02 211
01 128
Sensor Sales Units
10,260
units
03 10,260
02 5,220
01 1,420
Monitor sales Units
290
units During the past year, we enhanced every
aspect of our business. We aim to make every
day extraordinary for every one of our
customers, exceeding their expectations 
and delivering added value.
Customers
Our customers are hospitals for critical care
and cardiovascular patients who require 
real-time, minimally-invasive cardiac
monitoring.
LiDCO Group Plc Annual report and accounts, year ended 31 December 2003
Group at a Glance
page 2
Our business
The LiDCOplus combines the measurement and
monitoring features of LiDCO (lithium dilution cardiac
output measurement) and PulseCO (real-time
cardiovascular monitoring), significantly enhancing 
ease of use and saving space around the patient.
Process
The Group has developed a minimally-
invasive product,disposables and monitoring
equipment which improve the standard of
care,reduce the incidence of adverse events
and reduce costs.
Opportunities
The market for cardiovascular monitoring
equipment is worth £1.65 billion per year
worldwide.
£1 . 65 b n
The LiDCOplus monitor
Coverage
LiDCO now has distributors and sales 
forces covering the major markets of 
the US,UK and Japan and sells to 
19 countries worldwide. Future developments
In 2004, LiDCO signed a deal with Philips Medical Systems to
create a communications link between the LiDCOplus monitor
and Philips’ IntelliVue Patient Monitor.This will allow Philips’
customers access to LiDCO’s hemodynamic monitoring data 
on the Philips monitor.
LiDCO Group Plc Annual report and accounts, year ended 31 December 2003
page 3
Focus on rail and
roads
In rail we offer three distinct types of services:
track renewals; multi-disciplinary rail maintenance services;
and one-off projects (such as capacity improvements and
signalling schemes).
On the roads our operating companies are involved in
highways maintenance; manufacturing and installing
specialist products and surfaces.
LiDCO has developed a proprietary lithium sensor using
lithium indicator dilution to calculate cardiac output.
This is used to calibrate the LiDCOplus monitor. Safe and
extremely accurate, this method is simple to perform,
taking less than five minutes for the entire procedure.
The LiDCO sensor is activated by a small dose of lithium
chloride, injected via a central venous catheter.The
resulting arterial lithium concentration-time curve is
recorded by withdrawing blood past the lithium sensor.
“LiDCO is developing its
product to be useable in a
wider variety of applications,
including peri-operative
optimisation and congestive
heart failure.”
200
Over 200 hospitals worldwide use
the LiDCO system.
What is driving market growth:
• Increasing numbers of elderly people living longer
• Demand for less invasive products offering better care
• Need for better records and integration
Our global reach
LiDCO sells through a combination of direct sales
forces and specialist medical distributors, who are
trained in the use of the LiDCO System.
The LiDCO sensor Lithium chloride solution LiDCO Group Plc Annual report and accounts, year ended 31 December 2003
Chairman’s Review
page 4
Theresa Wallis Chairman
Sales in the UK were particularly
encouraging and, at the end of 
2003, 25% of UK acute care hospitals 
had purchased LiDCO’s products.
The year 2003 was one of consistent sales growth and growing
recognition of the benefits of minimally-invasive haemodynamic
monitoring.The foundations that had been built previously in terms 
of manufacturing capacity and efficiency enabled the Company 
to increase sales whilst maintaining pricing and gross margins.
Sales grew by 33% to £2.7 million and the loss after tax was reduced 
by 30% to £3.8 million.The installed base of monitors stood at 591 
(264 in the US) at the year end and 10,260 sensors were sold during
the year. As anticipated, overall expenditure by the Company during
the year was reduced substantially to £3.4 million (excluding a
placement of shares which raised £1 million) from £7.4 million in 2002.
This was made possible because of the earlier significant investment 
in the manufacturing equipment, and facilities coupled to product
margin improvements. Careful cost control was also important 
in minimising expenditure.
Sales in the UK were particularly encouraging and at the year end
approximately 25% of UK acute care hospitals had purchased LiDCO’s
products. Delays in implementation of the EU mutual recognition
approvals meant that sales into Europe were delayed into 2004.
However in Japan, PulseCO registration was achieved and a substantial
sale made. In the US, new sales models were introduced during the
second half of the year in order to address the slow US capital sales
cycle anticipated in last year’s report.
During the year, significant effort was devoted to finding and
evaluating potential US sales partners, concluding with the signing of
Heads of Agreement in May 2004 with four distributors across North
America.This will enable LiDCO to increase the number of salesmen
promoting the LiDCO System in the US from seven in 2003 to around
60. We look forward to working with our distributors and agents across
the world in order to maximize our market penetration.
Besides the actual growth in sales, the Company has made significant
progress in increasing its name recognition. In addition, awareness 
and understanding of the benefits of the Company’s products and 
the minimally-invasive technology on which they are based have risen.
These are significant achievements for a young company that only
launched its first products in 2001.
Demand from investors enabled us to issue £1.0 million of new shares
in 2003 to provide additional working capital for the Company.
Principally in order to enable us to fund our US expansion plans, a
further £3.7 million of shares are being issued in 2004. Looking ahead,
I am confident that sales will continue to grow, both directly through
our highly-skilled sales force and indirectly through our distributor
network.Tight controls on cash expenditure will be maintained.
I would like to take this opportunity to extend my thanks to the
management and staff of LiDCO for all their dedication, hard work and
enthusiasm and to our scientific advisory panel for their valuable input
and support.
Theresa Wallis
Chairman
18 May 2004 LiDCO Group Plc Annual report and accounts, year ended 31 December 2003
Our breadth
Breadth of application 
The LiDCO System brings
minimally-invasive cardiac
output monitoring to a wider
variety of major operations.
Intensive care, recovery, surgery etc
Clinicians who use the LiDCO System have found it invaluable
not only in intensive care units, but on patients undergoing a
variety of surgery. Some of these are not able to have catheters
inserted and are reliant on LiDCO’s minimally-invasive approach
to monitoring.This brings the benefits of the LiDCO System to 
an ever-growing new market.
CASE STUDY PENROSE HOSPITAL, COLORADO, USA 
“I find the LiDCOplus continuous cardiac output monitor
invaluable in providing the highest quality and most up-to-date
anesthesia to my patients during major operative procedures.
I use it on all major spine cases and many of my partners now
use it on all their heart cases, especially off-pump bypass cases.”
Dr. Jon Taylor, Chief of Anesthesia
page 5 LiDCO Group Plc Annual report and accounts, year ended 31 December 2003
Chief Executive’s Review
page 6
Terry O’Brien Chief Executive
The requirement for less invasive, more portable and user friendly
monitoring continues to grow. Estimates are that, by the year 2030, more
than 70 million Americans will be over the age of 65 and more than 60%
of senior citizens will experience some form of cardiovascular disease
and require treatment in the emergency room, intensive care unit and
other locations throughout the hospital. It is estimated that 90% of
hospitals are already at or over capacity for treating such patients.This
lack of capacity and the resulting shortages create an obvious need 
for faster, simpler and more efficient monitoring equipment. Such
monitoring products need to promote earlier diagnosis and intervention
as well as the ability to monitor a patient’s condition during operations
and thereby help in improving patient care and outcomes.There is
increasing evidence that this kind of accelerated care translates into
quicker recovery, shorter hospitalization and reduced costs.
Increasingly, hospitals are purchasing minimally-invasive monitoring
technologies, driven by a desire to move patients quickly from high
cost areas to lower cost care units such as high dependency and 
step-down wards. Lower risk monitors which focus on key parameters,
such as oxygen delivery, and do not require the use of a ventilator, or 
a cardiac invasive catheter, are meeting the monitoring needs of the
ageing population in the 21st Century.
Given this clear market opportunity, I am pleased to report that
acceptance of our products is now occurring in all our sales territories.
This is evidenced by the fact that at the end of 2003, we estimate that
our technology had been adopted in more than 200 hospitals in
Europe, USA and the Far East.
US distribution agreements
In the US, our key goal was to continue to recruit new customers and
explore various sales models through our existing sales force. In last
year’s Annual Report, we stated our intention to expand distribution
through a sales partnership. After considerable discussion with a
number of interested parties, the decision was made to appoint a
group of independent sales agents in parallel with our own sales
specialists. Consequently, four distributors have signed Heads of
Agreement, with final contracts due shortly.These four agents provide
a wealth of experience and customer relationships and a combined
sales force of around 60 people and will provide significantly increased
US geographic coverage.The newer sales models introduced in the US
during the second half of 2003 will underpin the approach to be taken
by both our own direct US sales force and the expanded group of
agents. Although this approach will require working capital support,
the Directors anticipate that these new sales arrangements will be 
self-financing within 18 months.
Technical collaboration with Philips Medical Systems
The adoption of our products by key clinical centres has enhanced
LiDCO’s recognition.This has led to the signing of a contract with Philips
Medical Systems to create a communications link between LiDCO’s
proprietary, stand-alone monitoring system and Philips' patient monitors,
via the Philips Open Vuelink Interface protocol. Under the agreement,
Philips is providing LiDCO with appropriate software to enable a
communications link between Philips' Intellivue Patient Monitor and the
LiDCOplus Hemodynamic Monitor. Once completed, the communications
link will allow Philips customers to access LiDCO’s proprietary
hemodynamic monitoring data on the IntelliVue Patient Monitor.
The integration of critical care parameters and data derived from the
LiDCOplus monitor will allow a fuller picture of the patient’s condition
and history to be displayed and accessed throughout the hospital.
Financial Review
Turnover increased by 33% to £2,717,000.This growth was impacted by
the targeted shift in business model in the US away from capital sales
towards upcharge and rental models.This reduced turnover in 2003, but
is expected to generate greater ongoing revenue in future years.The
gross profit of £1,909,000 (2002 - £1,263,000) represents a gross margin 
of 70.2% (2002 - 61.9%). In direct sales territories, margins remain strong 
at 70% to 85% for the monitor and 79% to 90% for the disposables, with 
a payback on the apportioned capital costs (in upcharge or fee per use
accounts) of around five months or less.
In 2003, the Company continued its active and ongoing cost
management programme, the initial impact of which was a reduction
of 14% in administration expenses to £6,044,000 (2002 - £7,038,000).
The post-tax loss was £3,829,000 (2002 - £5,496,000) and the loss per
share of 5.27p was an improvement of 32% (2002 - 7.72p). At the year
end, net assets amounted to £5.6 million, including net current assets 
of £4.0 million.The year end net cash balance was £1.6 million 
(2002 - £4.0 million). LiDCO Group Plc Annual report and accounts, year ended 31 December 2003
Our technology
Beat-to-beat monitoring
The LiDCOplus monitor provides
real-time, beat-to-beat
information on the patient’s
status. Each heartbeat is displayed
on the monitor screen as a
separate data point.
Real-time data: essential for patient care
Instead of averaging patient data over several minutes, the
LiDCOplus displays each new reading on its screen without delay.
Changes in the patient’s condition can be seen at once by the
clinician, who can adjust the patient’s treatment accordingly.
CASE STUDY HOSPITAL SANTIAGO APOSTOL, VITORIA, SPAIN
“Determining whether to provide cardiac drugs and at what dose
in critically ill patients with overwhelming infections is a difficult
problem. Initially, in a patient with circulatory failure, the first step
is to determine if they need fluids or drugs which alter the way
the cardiovascular system works.The LiDCOplus monitor
provides this vital information on a beat-to-beat basis and is the
only monitor which helps in the decision making process with
data interpretation screens. Continuous monitoring with the
LiDCOplus helps us to resuscitate the patients, adjust the doses
of drugs, and optimise the patient’s heart rate, oxygen delivery
and stabilise organ function.”
Dr. Javier Maynar, Spain
page 7 Our adaptability
Ease of use
The time taken to attach a
patient to a monitor can be
critical in determining patient
outcomes.
Saving clinicians’ time
The LiDCO System is designed so that nurses can attach the
sensor to the patient.This frees up time for the doctors on the
ward.The patient’s data is then presented on the monitor screen
in an easily-readable form, so that nurses can see at a glance the
condition of each patient.
CASE STUDY VANDERBILT UNIVERSITY HOSPITAL, USA
“The LiDCOplus monitor has been well received in the culture of
our unit.The nurses are comfortable with both the initial setup
and the interpretation of the data. I feel that this monitor has great
potential in this unique patient population. Given the technical
expertise required and risk of infection, there is little reason to
insert a pulmonary artery catheter instead of a LiDCO sensor.”
Dr. Jeff Guy, Assistant Professor of Surgery,Trauma Surgery,
Burns, & Critical Care
LiDCO Group Plc Annual report and accounts, year ended 31 December 2003
page 8 The second half of 2004 is expected to see significant expansion in our
sales activities, particularly in the US, Japan and Continental Europe.
Revenue is increasingly moving towards being based on a recurring
annuity stream from sensor sales, monitor rental income and software
‘fee per use’ , rather than capital sales of the monitor. In order to support
the sales expansion in the US and in additional new territories, to
finance product development and to provide additional working
capital, the Company is issuing an additional £3.7 million of shares 
(net of costs).
Trading Review
The installed base of monitors rose by 97% to 591 (2002 - 300), while
sales of single use sensors also rose by 97% to 10,260 (2002 - 5,220).
Of the total sales in 2003 of £2,717,000, 67% related to monitors 
(2002 - 74%) and 33% related to sensors and licence fees (2002 - 26%).
LiDCO estimates that as of May 2004 between 2,000 and 2,500 patients
per month are being treated with its technology.The Board’s ambition
is to achieve the Company’s first profits on a monthly basis by the end
of 2005.
Usage of LiDCO sensors is continuing to double every year, and 
this rate of growth is consistent with progress to date on sensor 
sales in 2004.
US
During 2003, sales to US customers were made through our direct 
US-based sales force.Turnover was £742,000 (2002 - £1,008,000), with
capital sales of monitors representing 39% of units placed (2002 - 96%).
The number of monitors and sensors placed increased by 27% and 72%
respectively, with 20% of customers reordering equipment. Like-on-like
sales per sales person increased by 30%.The average number of
monitors purchased/placed (first order) was 3.5 with the average
number of sensors used per month being up from 3 (in previous years)
to 5 in LiDCO sensor calibration accounts.Turnover was adversely
impacted by the shift from capital sale towards upcharge and rental/fee
per use models. In addition, there was an adverse currency impact from
the weakening dollar of £92,000.
The US is the biggest single market and represents approximately 50%
of our potential worldwide sales. Having demonstrated the demand for
LiDCO’s products with a limited direct sales resource, the most pressing
need was to put in place a broad-based distribution network that
would be able to access this market of around 14,000 potential call
points within 3,500 hospitals.To this end, we conducted a review of
distribution and partnership options available (in conjunction with a
US bank - William Blair).The conclusion was that the most effective
approach would be to establish a network of regional agents.
Alongside existing capital sales and upcharge sales models, the
rental/consignment model was introduced during the last quarter 
of 2003 as a basis for accelerating the market penetration of our
monitoring systems given the lengthy US capital sales cycle. Under 
this new model, customers are charged a fee each time they use 
the LiDCOplus software, but pay no up-front fee for the monitor.
Furthermore, they can cost-effectively calibrate their installed LiDCOplus
system using third party products, as well as LiDCO sensors, thereby
further increasing the range of clinical situations in which our monitors
can be used.With this sales model we have had successes at a number
of US hospitals where we have been able to provide advanced, real-
time cardiovascular monitoring, while still saving the hospital money
against their existing revenue budget for invasive monitoring.
UK
Turnover increased by 135% to £707,000 (2002 - £302,000) with sensor
sales (at an average of 8 sensors per monitor per month) more than
doubling. Around 25% of UK critical care hospitals now use LiDCO’s
technology.
In 2003, the UK became the first territory where the use of these newer
products approximated that of the traditional, more invasive catheters.
Given the cost constraints affecting the UK’s National Health Service,
this demonstrates that hospitals are willing to make investments that
are regarded as relatively low-cost and high-value propositions.
Continental Europe
Sales progress in Continental Europe was slower than anticipated due to
unavoidable delays at the individual country level in the implementation
of our January 2003 EU mutual recognition approvals.The extent of
these delays meant that sales into first wave European territories were
delayed into 2004.Turnover for 2003 was £249,000 (2002 - £441,000).
LiDCO continues to sign up new
distributors in countries across the world.
Our sales by market in 2003
%
Far East
37%
USA
28%
UK
26% 
Europe
9% 
LiDCO Group Plc Annual report and accounts, year ended 31 December 2003
page 9 Far East and Japan
Sales in the Far East and Japan totalled £815,000 (2002 - £152,000).
Approval of the PulseCO system for sale in Japan was received in August
2003 and the Company’s distributor, Nipro Corporation, purchased 100
monitors in preparation for the launch of the product. Following the
product launch in November 2003, Nipro initiated the training of its 
200-strong sales force in February 2004 and began sales activity.
Research and Development and Product Applications
Our development activities centre on additional product applications
that can be quickly added to our platform monitor through further
developments in the proprietary software signal processing and user
interfaces. In particular, we expect to add further functionality in terms
of the optimisation of risk surgery patients, which we believe to be 
a considerable unexploited market opportunity.
Improving outcomes and reducing costs in high-risk surgery patients
One of the most important aspects in the evolution of intensive care 
is the change in emphasis from the intensive care unit as a physical
location to which critically ill patients are taken, towards a hospital wide
cardiovascular physiology knowledge base. Adopting this strategy
means that hospitals can provide cardiovascular monitoring for the 
sub-acute and pre-critically ill patient in less costly alternative sites of
care. Perioperative optimization is the preventative manipulation of
patients’ physiological parameters during the period around surgery 
to ensure adequate oxygen delivery to the brain and other critical
organs.These optimization protocols have a positive influence on 
patient outcomes.The increasing recognition of the advantages of
preventative cardiovascular management we believe has increased 
the market for our minimally-invasive and portable technology.
In conjunction with a number of leading hospitals, LiDCO is developing
the LiDCOplus user interface to allow the nurse-led optimization of
fluid administration to such patients.This will reduce the risks and 
costs associated with improving outcomes in surgery patients using
more invasive technologies.Tests are in progress to validate the use 
of our technology in this application. Results from these tests will 
be available shortly.
Looking ahead, we are also assessing the potential to use completely
non-invasive (skin applied) sensor technology with the LiDCOplus
monitor to identify and optimize high-risk surgery patients.
In November 2003, our PulseCO monitor
was launched in Japan.The Japanese
market is the second largest in the world,
after the USA.
LiDCO Group Plc Annual report and accounts, year ended 31 December 2003
page 10 Our market
Market opportunity
The US, UK and Japan account for
the majority of the £1.65 billion
worldwide market for cardiac
monitoring equipment. LiDCO
now sells its products into all 
these countries.
LiDCO’s wide spread
LiDCO has built up a network of distributors across the world 
and the LiDCO system is in use in 19 countries. Developing
markets have been early adopters of the LiDCOplus monitor.
CASE STUDY SOUTH AFRICA
“I was called out last night to anaesthetise for a major abdominal
operation on an 85- year old patient.The surgeon advised 
his family that he would be unlikely to survive the procedure 
or leave the operating room. However, we used the LiDCOplus
device to monitor the patient throughout the case and, as 
a result, the patient survived to be taken to intensive care 
and within 24 hours he was out of danger.”
Dr R. Drummond, St. Augustine’s hospital, Durban
LiDCO Group Plc Annual report and accounts, year ended 31 December 2003
page 11 LiDCO Group Plc Annual report and accounts, year ended 31 December 2003
Board of Directors
page 12
01
03
05
07
04
06
02
01 Dr Terence O’Brien 
Chief Executive Officer 
03 Dr David Band 
Scientific Director 
05 John Barry 
Sales and Marketing Director 
02 Theresa Wallis 
Chairman 
04 Richard Mills 
Finance Director
06 Bert Wiegman 
Non-Executive Director 
07 Roger Bird 
Company Secretary  LiDCO Group Plc Annual report and accounts, year ended 31 December 2003
page 13
01 Dr Terence O’Brien Chief Executive Officer 
Dr O’Brien co-founded the Group in 1991. Prior to that, he held senior
positions with biomedical companies including Sandoz SA,
Pharmacia AB, Meadox Medical Inc, Novamedix Ltd, Enzymatix Ltd
and Surgicraft Ltd. Dr O’Brien was Associate Commercial Director at
Enzymatix, which subsequently listed on the London Stock Exchange
as ChiroScience Plc.
03 Dr David Band Scientific Director 
Dr Band co-founded the Group in 1991 and is the co-inventor of 
the LiDCO System. He was seconded to the Company full-time 
in 1992 from St Thomas’ Hospital and is a specialist in the ﬁeld 
of respiratory physiology, electrochemistry and ion-selective
electrodes. He has a degree in medicine , and was a Reader in
Applied Physiology in the Division of Physiology, GKT School of
Biomedical Sciences, St Thomas’ campus. Dr Band retired from 
King’s College in August 2001 and became a full-time employee 
of the Group.
05 John Barry Sales and Marketing Director 
Mr Barry joined the Group in February 2001. He entered the medical
industry working for Baxter Healthcare Inc. In 1997 he was
appointed Director of marketing for critical care in Europe and 
in 1999, when Baxter Healthcare sold Edwards Lifesciences
Corporation, Mr Barry was appointed Director of marketing for 
the cardiac surgery business of Edwards Lifesciences Corporation 
in Europe, the Middle East and Africa.
02 Theresa Wallis Chairman 
Ms Wallis is a Principal Executive of ANGLE Technology Limited and
a Non-Executive Director of T&G AIM VCT plc. She worked for the
London Stock Exchange for 13 years, where from 1995 she was 
Chief Operating Officer of the Alternative Investment Market (AIM),
having managed the market's development and launch in 1994-
1995. She is currently a member of the London Stock Exchange's
AIM Advisory Group and the Quoted Companies Alliance’s Markets
and Regulation Committee.
04 Richard Mills Finance Director
Mr Mills joined the Group in April 2001. He is a qualiﬁed chartered
accountant with 20 years’ experience in the medical diagnostics
industry, with Corning Limited, Ciba Corning Diagnostics Limited,
Chiron Diagnostics Limited and Bayer AG. He has considerable
experience of assisting organisations through periods of growth
and transition and establishing the ﬁnancial and other systems
required to successfully manage this.
06 Bert Wiegman Non-Executive Director 
Mr Wiegman is a partner in Langholm Capital LLP and has over 
25 years experience in the private equity industry. He is Chairman 
of T&G AIM VCT Plc.
07 Roger Bird Company Secretary 
Mr Bird is the Financial Controller and Company Secretary and
joined the Group in August 2001. He is a qualified chartered
accountant and spent six years at Deloitte & Touche, latterly as 
an audit manager. Prior to this, Mr Bird worked as a university
lecturer in industrial economics.
Scientiﬁc Advisory Panel
Professor Solomon Aronson
Professor, Department of Anaesthesia & Critical Care, University of
Chicago, specialising in major surgery and intensive care medicine
Dr Max Jonas
Consultant Anaesthetist, Southampton University Hospital, in medical
intensive care
Professor Patrick Wouters
Professor of Cardiovascular Anaesthesia, University 
of Leuven, Belgium
Dr William Peruzzi
Associate Professor of Anaesthiology, Northwestern University
Medical School & Director of Respiratory Care, Northwestern
Memorial Hospital, specialising in Neurosurgical intensive care
Dr Christopher Wolff
Honorary Clinical Pharmacologist, St. Bartholomew’s Hospital,
in Applied Physiology LiDCO Group Plc Annual report and accounts, year ended 31 December 2003
page 14
Corporate Governance Report
Companies that have shares traded on the Alternative Investment Market (AIM) of the London Stock Exchange are not required
to comply with the disclosures of the Combined Code. However, the Board is committed to maintaining the highest standards of
Corporate Governance, where appropriate for a company of this size.
The Board of Directors
There were four executive and two Non-Executive Directors throughout 2003 and as at the date of this report.The Board
normally meets six times a year, with additional special meetings as required.
Both of the Non-Executive Directors bring independent judgement to bear on issues considered by the Board. Mr.Wiegman
served as the Senior Independent Director throughout the year.
All Directors have access to the services and advice of the Company Secretary who is responsible for ensuring compliance with
the relevant procedures, rules and regulations.All Directors are able to take independent financial advice in the furtherance of their
duties if necessary.
All new Directors are required to resign and seek re-election at the first Annual General Meeting following their appointment.
All Directors are required to seek re-election at intervals of no more than three years. Executive Directors have service contracts
containing a notice period of one year. Non-Executive Directors do not have service contracts with the Company.
Committees of the Board
Audit committee
The members of the committee are Ms.Wallis (Chairman) and Mr.Wiegman.The external auditors also attend meetings.
The committee considers financial reporting, corporate governance and internal controls. It also reviews the scope and results 
of the external audit and the independence and objectivity of the auditors. It meets at least twice a year and reviews the interim
and annual accounts before they are submitted to the Board.
Remuneration committee
The members of the committee are Ms.Wallis (Chairman) and Mr.Wiegman.The committee reviews and sets the remuneration 
of the Executive Directors. It also agrees a policy for the salaries and bonuses of all staff. It advises on share schemes and the
granting of share options.The decisions of the committee are formally ratified by the Board.
Details of Directors’ remuneration are included in note 3 to the accounts.
Nominations committee
The members of the committee are Ms.Wallis (Chairman), Mr.Wiegman and Dr O’Brien.The committee considers, at the request
of the Board, candidates for new appointments to the Board and advises on all matters relating to Board appointments.
Relations with shareholders
The Company seeks to maintain and enhance good relations with its shareholders.The Company’s interim and annual reports are
supplemented by regular published updates to investors on technical and commercial progress.The Chief Executive and Finance
Director maintain regular contact with major shareholders through a programme of regular meetings in connection with these
published updates.The Company Secretary reviews each week’s trading in the Company’s shares and writes to each individual new
shareholder whose name and address can be identified, to send them a New Investor’s pack.
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. LiDCO Group Plc Annual report and accounts, year ended 31 December 2003
page 15
Accountability and audit
Going concern
On the basis of current financial projections, the Directors have a reasonable expectation that the Company has adequate resources
to continue in operational existence for the forseeable future. For this reason, they continue to adopt the going concern basis in
preparing the accounts.
Internal control
The key procedures designed to provide an effective system of internal control are described below:
• Control environment
The Company’s control environment is the responsibility of the Directors and individual managers at all levels.The Board has
implemented an organizational structure with clearly-defined responsibilities and lines of accountability.
• Information systems and controls
Detailed budgets and forecasts are prepared annually and progress against expectations is reviewed monthly by the Board.
Underpinning these budgets is a system of internal financial control, based on authorization procedures and tiers of authority.
As a medical device Company, LiDCO also has a system of Regulatory controls, to ensure compliance with all requirements 
of the Medicines Control Agency, the US Food & Drug Agency and other medical bodies.
• Monitoring of effectiveness
The composition of the Board and the senior management team provides a suitable range of knowledge and experience to enable
adequate risk monitoring.The Company’s information systems provide detailed, regular variance reports which are reviewed and
acted upon by the Board.The external auditors report separately to the Board on the Company’s accounting and internal controls
as part of their normal audit work.
Statement of compliance
During the course of 2003, there was one area of non-compliance with the Code, in that the Company has two Non-Executive
Directors, rather than the recommended minimum of three.The Board considers that the current balance of membership is the
most suitable for a Company of LiDCO’s current size, but will monitor this position as the Company continues to grow. LiDCO Group Plc Annual report and accounts, year ended 31 December 2003
page 16
Remuneration Report
Policy on remuneration
The Remuneration Committee recommends Directors’ remuneration and remuneration policies for all staff. Remuneration levels
are set in order to attract high calibre recruits and to retain and motivate those Directors and employees once they have joined the
Company.This is achieved by a combination of base salary, bonuses and share options, which are offered both to Executive
Directors and to employees at all levels.
The fees paid to Non-Executive Directors are determined by the Board.
Remuneration committee
The members of the committee are Ms.Wallis and Mr.Wiegman.The committee is assisted by the Company Secretary.
Service contracts
All four of the Executive Directors have service contracts with the Company dated 29 June 2001.The contracts are not set for a
specific term, but include a rolling 12-month notice period. In addition, all Directors retire by rotation at the Company’s Annual
General Meeting and, where appropriate, offer themselves for re-election.
Non-Executive Directors have letters of appointment dated 20 December 2002 in the case of Ms Wallis and 2 July 2001 in the
case of Mr Wiegman.These letters are issued in place of service contracts. In keeping with best practice, these appointments are
terminable without notice by either party.
Remuneration package
All four Executive Directors receive a base salary and allowance in lieu of benefits, as shown in the table in note 3 to the accounts.
Non-Executive Directors’ fees are also shown in note 3.
The four Executive Directors are members of the Company’s Senior Management Bonus Scheme. Under the terms of the scheme,
the Remuneration Committee assesses the Directors’ individual performances at the end of the financial year, judged against pre-
determined benchmarks. In 2003 the criteria for awarding bonuses were based on sales performance and the Company’s cash
position.The same framework will apply for 2004. Bonuses are capped at 100% of base salary. Non-Executive Directors are not
eligible for bonuses.
No pension contributions were payable by the Group (2002 - £nil).
Directors’ shareholdings
31 December 1 January
2003 2003
Directors No. No.
D M Band 7,060,832 7,060,832
T K O’Brien 9,801,682 9,711,682
T A W allis (Non-Executive) 85,000 -
R J Mills 570,833 500,000
J G Barry 379,642 187,142
A E B Wiegman (Non-Executive) 239,285 239,285
18,137,274 17,698,941
The Directors have no interests in the shares of the Company’s subsidiary undertakings. LiDCO Group Plc Annual report and accounts, year ended 31 December 2003
page 17
Directors’ share options
Number of options Date from
1 January 31 December Exercised which Expiry
Directors 2003 Granted Exercised 2003 price exercisable date
D M Band 637,500 – – 637,500 140p 5/7/04 5/7/14
750,000 – – 750,000 13p 15/12/05 15/12/15
T K O’Brien 637,500 – – 637,500 140p 5/7/04 5/7/14
750,000 – – 750,000 13p 15/12/05 15/12/15
R J Mills 212,500 – – 212,500 140p 5/7/04 5/7/14
106,250 – (70,833) 35,417 0.5p 1/4/04 1/4/14
75,000 – – 75,000 116p 16/1/05 16/1/15
750,000 – – 750,000 13p 15/12/05 15/12/15
– 90,000 – 90,000 28.25p 25/11/06 25/11/16
J G Barry 637,500 – – 637,500 140p 5/7/04 5/7/14
318,750 – (212,500) 106,250 0.5p 1/1/04 1/1/14
100,000 – – 100,000 116p 16/1/05 16/1/15
750,000 – – 750,000 13p 15/12/05 15/12/15
– 90,000 – 90,000 28.25p 25/11/06 25/11/16
5,725,000 180,000 (283,333) 5,621,667
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 Alternative Investment Market of
the London Stock Exchange since 5 July 2001, prior to which they were not publicly traded.A graph of the Company’s share
price since that date is shown below, using the FTSE Techmark MediScience Index as a comparator, which the Directors consider
to be the most suitable benchmark index.
Approved by the Board of Directors on 18 May 2004 and signed on behalf of the Board
Roger Bird
Secretary
160
140
120
100
80
60
40
20
0
Nov 2001
Dec 2001
Jan 2002
Feb 2002
March 2002
April 2002
May 2002
May 2002
June 2003
June 2002
July 2002
Aug 2002
Sept 2002
Oct 2002
Nov 2002
Dec 2002
Jan 2003
Febr 2003
March 2003
April 2003
July 2003
Aug 2003
Sept 2003
Oct 2003
Nov 2003
Dec 2003
Relative Price Scale
LiDCO share price performance 2001-3 relative to the Techmark Mediscience Index
LIDCO
Techmark Mediscience LiDCO Group Plc Annual report and accounts, year ended 31 December 2003
page 18
Directors’ Report
The Directors present their Annual Report and the audited Financial Statements for the year ended 31 December 2003.
Activities
The principal activity of the Group was the development, manufacture and sale of cardiac monitoring equipment. Sales in the
USA are handled via LiDCO’s US branch.
Results and future prospects
The Group’s turnover for the year was £2,717,000 (2002 - £2,042,000), following the successful launch of the LiDCO and
PulseCO systems in the US in July 2001 and in the UK in September 2001.The Group made a consolidated loss after taxation
during the year of £3,829,000 (2002 - £5,496,000).The Directors do not recommend the payment of a dividend (2002 – £nil).
At 31 December 2003 the Group held £1.6 million of cash (2002 - £4.0 million). In October 2003 the Company issued 
£1 million of new shares, to provide additional cover for working capital requirements in 2004.The Chief Executive’s report
assesses the future prospects of the Group in 2004.
The Company’s share price at 31 December 2003 was 29.25p (31 December 2002 – 14p).
Research and development
The Group continued to develop the LiDCOplus system during the year, as set out in the Chief Executive’s Statement.
Expenditure on research and development amounted to £269,000 in the year (2002 – £89,000) in addition to software
development costs of £210,000 (2002 – £208,000) which are capitalised on the balance sheet and amortized.
Euro
The implications of European Monetary Union (EMU) for the firm have been considered.The necessary changes have been made
to our systems and procedures to accommodate the new currency.The cost of these changes is not significant.
Directors and their interests
The Directors who served throughout the year are shown on page 13.The Directors’ beneficial interests in the ordinary shares 
of the Company at 31 December 2003 and 1 January 2003 are shown on page 16.
Significant shareholdings
In addition to the Directors, the following shareholders had beneficial interests in more than 3% of the Company’s share capital 
at 31 December 2003:
Beneficial holding
Name Number of shares %
R M Greenshields 5,542,407 7.2
P A Brewer 3,322,221 4.3
Merlin Biosciences Fund LP 3,128,000 4.1
J Kratochvil 3,120,278 4.0
King’s College London 3,020,278 3.9
H G Wellington Inc. 2,500,000 3.2 LiDCO Group Plc Annual report and accounts, year ended 31 December 2003
page 19
Supplier payment policy
The Companies Act 1985, as amended, requires the Group to make a statement of its policy and practice on the payment 
of creditors.
It is and will continue to be the policy of the Group to negotiate with suppliers so as to obtain the best available terms taking
account of quality, delivery, price and period of settlement and, having agreed those terms, to abide by them.
The total amount of of the Group’s trade creditors falling due within the period ended 31 December 2003 represents 81 days’
worth (2002 – 90 days’ worth) as a proportion of the total amount invoiced by suppliers during the year.
Donations
The Group made no charitable contributions during the year (2002 – none). No political donations were made during the year
(2002 – none).
Statement of Directors’ Responsibilites
United Kingdom company law requires the Directors to prepare Financial Statements for each financial year which give a true 
and fair view of the state of affairs of the Company as at the end of the financial year and of the profit or loss of the group 
for that period. In preparing those Financial Statements, the Directors are required to:
• select suitable accounting policies and then apply them consistently;
• make judgements and estimates that are reasonable and prudent;
• state whether applicable accounting standards have been followed; and
• prepare the Financial Statements on a going concern basis unless it is inappropriate to presume that the Group will continue 
in business.
The Directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the
financial position of the Company and to enable them to ensure that the Financial Statements comply with the Companies Act
1985.They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention
and detection of fraud and other irregularities.
Going Concern
After making reasonable enquiries and performing analysis, the Directors have formed a judgement, at the time of approving the
Financial Statements, that there is a reasonable expectation that the Company has adequate resources to continue in operational
existence for the forseeable future.
On the basis of the anticipated levels of sales, costs and cash flow, together with the additional funds being raised by issuing 
new shares in 2004, the Directors have satisfied themselves that the level of cash in the business is sufficient for at least the next 
12 months.
For these reasons, the Directors continue to adopt the going concern basis in preparing the Financial Statements.
Auditors
A resolution to reappoint Deloitte & Touche LLP as auditors will be proposed at the forthcoming Annual General Meeting.
Approved by the Board of Directors on 18 May 2004 and signed on behalf of the Board
Roger Bird
Secretary LiDCO Group Plc Annual report and accounts, year ended 31 December 2003
page 20
Independent Auditors’ Report to the Members
of LiDCO Group Plc
We have audited the Financial Statements of LiDCO Group Plc for the year ended 31 December 2003 which comprise the
Consolidated Profit and Loss Account, the Balance Sheets, Consolidated Cash Flow Statement, Reconciliation of Movement in
Consolidated Shareholders’ Funds and related Notes 1 to 23.These Financial Statements have been prepared under the accounting
policies set out therein.
This report is made solely to the Company’s members, as a body, in accordance with section 235 of the Companies Act 1985. Our
audit work has been undertaken so that we might state to the Company’s members those matters we are required to state to them
in an auditors’ report and for no other purpose.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 report, for this report, or for the opinions
we have formed.
Respective responsibilities of Directors and auditors
As described in the statement of Directors’ responsibilities, the Company’s Directors are responsible for the preparation of the
Financial Statements in accordance with applicable United Kingdom law and accounting standards. Our responsibility is to audit 
the Financial Statements in accordance with relevant United Kingdom legal and regulatory requirements and auditing standards.
We report to you our opinion as to whether the Financial Statements give a true and fair view and are properly prepared in
accordance with the Companies Act 1985.We also report if, in our opinion, the Directors’ report is not consistent with the
Financial Statements, if the Company has not kept proper accounting records, if we have not received all the information and
explanations we require for our audit, or if information specified by law regarding Directors’ remuneration and transactions with
the Company and other members of the Group is not disclosed.
We read the Directors’ Report for the above year and consider the implications for our report if we become aware of any apparent
misstatements.
Basis of audit opinion
We conducted our audit in accordance with United Kingdom auditing standards issued by the Auditing Practices Board.An audit
includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the Financial Statements. It also includes
an assessment of the significant estimates and judgements made by the Directors in the preparation of the financial statements, and 
of whether the accounting policies are appropriate to the Company's and the Group’s circumstances, consistently applied and
adequately disclosed.
We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order
to provide us with sufficient evidence to give reasonable assurance that the Financial Statements are free from material
misstatement, whether caused by fraud or other irregularity or error. In forming our opinion we also evaluated the overall
adequacy of the presentation of information in the Financial Statements.
Going concern
In arriving at our audit opinion we have considered the adequacy of the disclosure in note 1 concerning the Company’s
requirement for further funding which it is seeking by way of a placing of shares, which is subject to shareholder approval. In view
of the significance of this uncertainty, we draw attention to this matter, but our opinion is not qualified in this respect.
Opinion
In our opinion the Financial Statements give a true and fair view of the state of the state of affairs of the Company and the Group
at 31 December 2003 and of the loss of the Group for the year then ended and have been properly prepared in accordance with
the Companies Act 1985.
DELOITTE & TOUCHE LLP
Chartered Accountants and
Registered Auditors
18 May 2004 LiDCO Group Plc Annual report and accounts, year ended 31 December 2003
page 21
Consolidated Profit and Loss Account
Year ended 31 December 2003
2003 2002
Note £’000 £’000
Turnover 1,2 2,717 2,042
Cost of sales (808) (779)
Gross profit 1,909 1,263
Administration expenses (6,044) (7,038)
Operating loss 4 (4,135) (5,775)
Interest receivable and similar income 68 279
Loss on Ordinary Activities before Tax (4,067) (5,496)
Tax credit on loss on ordinary activities 5 238 –
Loss On Ordinary Activities after Tax (3,829) (5,496)
Loss per share (basic and diluted) (p) 15 5.27 7.72
All amounts derive from continuing operations.
There are no recognised gains or losses for the current or preceding years other than as stated above. LiDCO Group Plc Annual report and accounts, year ended 31 December 2003
page 22
Balance Sheets
As at 31 December 2003
The Group The Company
2003 2002 2003 2002
Note £’000 £’000 £’000 £’000
Fixed Assets
Intangible fixed assets 6 421 565 – –
Tangible fixed assets 7 1,305 1,234 – –
Investments 8 88 42 153 107
1,814 1,841 153 107
Current Assets
Stocks 9 1,665 2,292 – –
Debtors 10 1,201 1,367 12,668 9,333
Cash at bank and in hand 1,600 3,974 1,074 3,522
4,466 7,633 13,742 12,855
Creditors: amounts falling due within one year 11 (515) (741) (2) (168)
Net Current Assets 3,951 6,892 13,740 12,687
Total Assets Less Current Liabilities 5,765 8,733 13,893 12,794
Creditors: amounts falling due after more than one year 12 (198) (333) – –
Net Assets 5,567 8,400 13,893 12,794
Capital and Reserves
Called up share capital 14 386 356 386 356
Share premium 21 13,396 12,430 13,396 12,430
Merger reserve 21 8,513 8,513 – –
Profit and loss account 21 (16,728) (12,899) 111 8
Equity Shareholders’ Funds 5,567 8,400 13,893 12,794
These Financial Statements were approved by the Board of Directors on 18 May 2004.
Signed on behalf of the Board of Directors
Richard Mills
Director LiDCO Group Plc Annual report and accounts, year ended 31 December 2003
page 23
Consolidated Cash Flow Statement
As at 31 December 2003
2003 2002
Note £’000 £’000
Net cash outflow from operating activities 16 (3,094) (6,356)
Returns on investment and servicing of finance 17 68 279
Capital expenditure and financial investment 17 (344) (1,387)
Cash outflow before financing (3,370) (7,464)
Financing 17 996 73
Decrease in cash in the year (2,374) (7,391)
Reconciliation of net cash flow to movement in net funds
2003 2002
Note £’000 £’000
Movement in cash in the year 18 (2,374) (7,391)
Net funds at 1 January 18 3,974 11,365
Net funds at 31 December 18 1,600 3,974
Reconciliation of Movement in Consolidated
Shareholders’ Funds
Year ended 31 December 2003
2003 2002
£’000 £’000
Loss for the financial year (3,829) (5,496)
Issue of shares 996 73
Net reduction in shareholders’ funds (2,833) (5,423)
Opening shareholders’ funds 8,400 13,823
Closing shareholders’ funds 5,567 8,400 LiDCO Group Plc Annual report and accounts, year ended 31 December 2003
page 24
Notes to the Accounts
Year ended 31 December 2003
1. Accounting Policies
The Financial Statements are prepared in accordance with applicable United Kingdom law and accounting standards.The
particular accounting policies adopted are described below.
Advantage has been taken of the exemption under s230 of the Companies Act 1985 not to disclose the profit and loss account 
of the Company.The loss of the Company for the year is shown in note 21.
Accounting convention
The Financial Statements are prepared under the historical cost convention.
Basis of consolidation
The consolidated accounts incorporate the Financial Statements of the Company and all its subsidiaries.
Going concern
The Company requires further funding to enable it to expand its US distribution arrangements and exploit the development of its
products.The Company is seeking to raise up to £4.0 million in additional funds by way of a placing of shares.The fundraising is
subject to shareholder approval, which is of its nature uncertain at this time.These accounts are prepared on a going concern basis
on the assumption that such approval will be obtained.
Merger accounting
Admission to the Alternative Investment Market of the London Stock Exchange (“AIM”) occurred on 5 July 2001.The
restructuring of the Group agreed by the shareholders in February 2001, under which the minority holdings in LiDCO Limited
would be bought out in exchange for shares in LiDCO Group, was conditional upon admission and is therefore deemed to have
occurred on 5 July 2001.
The Directors consider that the relative rights of the shareholders have in substance remained unchanged during the re-
organization. Merger accounting has therefore been adopted as the accounting treatment for the re-organization. Under this
method, results are reported as if the acquiring companies have been combined since incorporation. No purchased goodwill is
created in the transaction and the assets and liabilities of LiDCO Limited are not adjusted to reflect their market value.The
comparative figures have been restated.
Turnover
Turnover represents amounts receivable from product sales and income from licence agreements granted. Dependent upon the
terms of each licence agreement, income from licence agreements is recognized on a straight-line basis, commencing from the 
date of receipt of cash over the period of the licence, subject to a maximum of ten years.
Investments
Investments in subsidiary undertakings are stated at cost less provision for impairment. Investments in shares in LiDCO Group Plc
held by the Company’s Employee Share Ownership Trust are valued at the lower of cost and year end market value.
Foreign exchange
Transactions denominated in foreign currencies are translated into sterling at the rates ruling at the dates of the transactions.
Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are translated at the rates prevailing 
at that date.These translation differences are dealt with in the profit and loss account.
Taxation
Deferred taxation is provided in full on timing differences arising from the different treatment of items for accounting and taxation
purposes, which are expected to reverse in the future without replacement, calculated at the rates at which it is expected that tax will arise.
Current tax, including UK corporation tax and foreign tax, is provided at amounts expected to be paid (or recovered) using the
tax rates and laws that have been enacted or substantively enacted by the balance sheet date. LiDCO Group Plc Annual report and accounts, year ended 31 December 2003
page 25
Intangible fixed assets
Intangible fixed assets represent software development costs and clinical trials on the LiDCO and PulseCO systems.These have
been capitalized and are amortized in equal annual amounts over three years.
Tangible fixed assets
Depreciation is provided on a straight-line basis over the estimated useful economic lives of the assets.The annual rates 
of depreciation are as follows:
Plant and machinery 20% per annum
T ools and equipment 33% per annum
Fixtures and fittings 20% per annum
Computer equipment 33% per annum
Stocks
Stocks are stated at the lower of cost and net realisable value.
Leases
Operating lease rentals are charged to the profit and loss account as incurred.
Capital instruments
Capital instruments are accounted for and classified as equity or non-equity share capital, equity or non-equity minority interests
and debt according to their form.There is no premium payable on redemption of non-equity minority interests.
2. Turnover
2003 2002
£’000 £’000
Turnover by class of business
Licence agreements 204 140
Product sales 2,513 1,902
2,717 2,042
Turnover by destination
United States 754 1,009
Far East 1,001 292
United Kingdom 706 300
Other European countries 249 441
Rest of World 7 –
2,717 2,042
All turnover, operating profit and net assets originated within the United Kingdom. LiDCO Group Plc Annual report and accounts, year ended 31 December 2003
page 26
Notes to the Accounts
Year ended 31 December 2003
3. Information regarding Directors and Employees
2003 2002
The Group No. No.
Average number of persons employed
Production 13 11
Sales 23 24
Administration 7 8
43 43
Staff costs £’000 £’000
Wages and salaries 2,421 3,239
Social security costs 234 306
2,655 3,545
2003 2003 2003 2003 2002
Salary and fees Benefits Bonus Total T otal
Directors’ emoluments £’000 £’000 £’000 £’000 £’000
D M Band 117 – – 117 113
T K O’Brien 194 1 – 195 189
T A W allis 
1
40 – – 40 1
T W Alexander 
2
–––– 345
R J Mills 120 – 5 125 119
J G Barry 174 1 5 180 191
P N Levensohn 
3
–––– 18
A E B Wiegman 20 – – 20 20
665 2 10 677 996
1
Ms.Wallis was appointed as a Director on 20 December 2002. Ms Wallis’ fees are payable to ANGLE T echnology Limited.
2
Mr.Alexander resigned as a Director on 19 December 2002. Mr Alexander’s service contract entitled him to receive 12 months’ salary and benefits upon the termination of his contract. Mr Alexander did not
receive any bonus payment in respect of 2002, nor as part of the termination agreement.
3
Mr. Levensohn resigned as a Non–Executive Director on 27 November 2002.
4. Operating Loss
Operating loss is stated after charging:
2003 2002
The Group £’000 £’000
Auditors’ remuneration
Group audit fees 38 35
Company audit fees 5 5
Non–audit services 49 51
(Gain)/loss on shares in Employee Share Ownership Trust (46) 223
Research and development 269 89
Rentals under operating leases
Hire of plant and machinery 58 58
Land and buildings 269 251
Depreciation – owned assets 301 121
Amortization 354 210 LiDCO Group Plc Annual report and accounts, year ended 31 December 2003
page 27
5. Tax on Loss on Ordinary Activities
2003 2002
£’000 £’000
Loss on ordinary activities before tax (4,067) (5,496)
Tax at 30% thereon: (1,220) (1,649)
Effects of:
Other timing differences 62 –
Expenses not deductible for tax purposes 182 51
Capital allowances in excess of depreciation 90 (89)
Unutilized tax losses 886 1,687
Research and development tax credits (238) –
Current tax credit for year (238) –
6. Intangible Fixed Assets
Clinical Software 
trials development T otal
The Group £’000 £’000 £’000
Cost:
At 1 January 2003 74 777 851
Additions during the year – 210 210
Disposals –(220) (220)
At 31 December 2003 74 767 841
Accumulated depreciation:
At 1 January 2003 15 271 286
Charge for the year 34 320 354
Disposal (220) (220)
At 31 December 2003 49 371 420
Net book value:
At 31 December 2003 25 396 421
At 31 December 2002 59 506 565 LiDCO Group Plc Annual report and accounts, year ended 31 December 2003
page 28
Notes to the Accounts
Year ended 31 December 2003
7. Tangible Fixed Assets
Land and Plant and Fixtures and Computer
buildings machinery fittings equipment T otal
The Group £’000 £’000 £’000 £’000 £’000
Cost:
At 1 January 2003 534 459 187 393 1,573
Additions during the year 7 61 2 376 446
Disposals – (135) (38) (99) (272)
At 31 December 2003 541 385 151 670 1,747
Accumulated depreciation:
At 1 January 2003 14 172 58 95 339
Charge for the year 56 68 42 135 301
Disposals – (135) (38) (25) (198)
At 31 December 2003 70 105 62 205 442
Net book value:
At 31 December 2003 471 280 89 465 1,305
At 31 December 2002 520 287 129 298 1,234
Computer equipment includes LiDCOplus and PulseCO monitors leased to hospitals.
Computer 
equipment
The Company £’000
Cost:
At 1 January and 31 December 2003 2
Accumulated depreciation:
At 1 January and 31 December 2003 2
Net book value:
At 31 December 2003 and 2002 –
8. Investments
Shares in 
subsidiary Other
undertakings investments T otal
£’000 £’000 £’000
The Group
At 1 January 2003 –4242
Gain in the year –4646
At 31 December 2003 –8888
The Company
At 1 January 2003 65 42 107
Gain in the year –4646
At 31 December 2003 65 88 153 LiDCO Group Plc Annual report and accounts, year ended 31 December 2003
page 29
8. Investments (continued)
The Company’s beneficial interest in subsidiary undertakings consists of:
Country of Beneficial Nature of 
registration holding business
LiDCO Limited England and Wales 100% Surgical instruments and appliances
CAS Limited England and Wales 100% Dormant
Other investments consist of 302,118 (2002 – 302,118) ordinary shares in LiDCO Group Plc held by the Company’s Employee Share
Ownership T rust.
9. Stocks
2003 2002
The Group £’000 £’000
Raw materials and consumables 74 90
Finished goods 1,591 2,202
1,665 2,292
10. Debtors
The Group The Company
2003 2002 2003 2002
£’000 £’000 £’000 £’000
Trade debtors 970 1,055 – –
Amounts owed by Group undertakings – – 12,667 9,327
Other debtors 120 246 1 6
Prepayments and accrued income 111 66 – –
1,201 1,367 12,668 9,333
11. Creditors: Amounts falling due within one year
The Group The Company
2003 2002 2003 2002
£’000 £’000 £’000 £’000
Trade creditors 206 192 – –
Other creditors 62 123 2 168
Accruals and deferred income 247 426 – –
515 741 2 168
12. Creditors: Amounts falling due after more than one year
The Group The Company
2003 2002 2003 2002
£’000 £’000 £’000 £’000
Deferred income 198 333 – – LiDCO Group Plc Annual report and accounts, year ended 31 December 2003
page 30
Notes to the Accounts
Year ended 31 December 2003
13. Deferred Taxation
No deferred taxation was provided at 31 December 2003 (2002 – none).The amounts of deferred taxation unprovided were:
The Group The Company
2003 2002 2003 2002
Unprovided Unprovided Unprovided Unprovided
£’000 £’000 £’000 £’000
Capital allowances 159 248 – –
Other (4,327) (3,773) (1) (1)
(4,168) (3,525) (1) (1)
14. Called up Share Capital
2003 2002 2003 2002
The Group and the Company No. No. £’000 £’000
Authorized shares of 0.5p each 100,000,000 100,000,000 500 500
Called up, issued and fully paid 77,235,698 71,294,311 386 356
15. Loss per Share
Loss per share is calculated by dividing the loss attributable to ordinary shareholders by the weighted average number of ordinary
shares during the year. Share options are regarded as dilutive if the exercise price was below the market price at 31 December.
Dilutive options reduce the level of earnings per share, but are not considered to dilute a loss.
The Group 2003 2002
Loss for the financial year (£’000) 3,829 5,496
Weighted average number of ordinary shares (‘000) 72,604 71,147
Effect of dilutive share options (‘000) 5,081 4,469
Adjusted weighted average number of ordinary shares (‘000) 77,685 75,616
Loss per share – basic and diluted (p) 5.27 7.72
16. Net Cash Outflow from Operating Activities
2003 2002
The Group £’000 £’000
Operating loss (4,135) (5,775)
Depreciation and amortization charges 655 331
(Increase)/decrease in the value of investments (46) 223
Decrease/(increase) in stocks 627 (319)
Decrease/(increase) in debtors 166 (171)
Decrease in creditors (361) (645)
Net cash outflow from operating activities (3,094) (6,356) LiDCO Group Plc Annual report and accounts, year ended 31 December 2003
page 31
17. Analysis of Cash Flows for Headings Netted in the Cash Flow Statement
2003 2002
The Group £’000 £’000
Returns on investment and servicing of finance
Interest received 68 279
Capital expenditure and financial investment
Payments to acquire intangible fixed assets 210 (208)
Payments to acquire tangible fixed assets 134 (1,172)
Investing activities – (7)
344 (1,387)
Financing
Issue of ordinary share capital 996 73
18. Analysis of net funds
2002 Cashflow 2003
The Group £’000 £’000 £’000
Cash in hand and at bank 3,974 (2,374) 1,600
19. Financial Instruments
The Group did not trade in financial instruments in 2002 or 2003.
20. (a) Maturity Profile and Financial Liabilities 
The Group did not have any financial liabilities in 2002 or 2003.
20. (b) Interest Rate Profile
Floating rate Fixed rate
financial financial
assets assets T otal
The Group £’000 £’000 £’000
At 31 December 2003
Sterling 1,174 295 1,469
US$ 131 – 131
Gross financial assets 1,305 295 1,600
At 31 December 2002
Sterling 3,584 – 3,584
US$ 390 – 390
Gross financial assets 3,974 – 3,974
20. (c) Fair Values of Financial Assets and Liabilities
There was no difference between the fair value and the book value of financial assets and liabilities.
20. (d) Hedging
During 2002, forward exchange contracts were taken out to maximize the sterling value of net dollar revenue for the year.
These contracts were closed out during 2002.The Group did not hedge its financial transactions in 2003. page 32
Notes to the Accounts
Year ended 31 December 2003
20. (e) Currency Profile
Sterling is the main functional currency of the Group.The following analysis of net monetary assets and liabilities shows the
Group’s currency exposures.The Group did not use forward contracts or other derivatives to manage its currency exposure in the
year ended 31 December 2003.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.
2003 2002
The Group US$’000 US$’000
Sterling 233 628
21. Movements of Reserves
Share Profit &
premium Merger loss
account reserve account T otal
£’000 £’000 £’000 £’000
The Group
Balance at 1 January 2003 12,430 8,513 (12,899) 8,044
Issue of share capital 966 – – 966
Loss for the financial year – – (3,829) (3,829)
Balance at 31 December 2003 13,396 8,513 (16,728) 5,181
The Company
Balance at 1 January 2003 12,430 – 8 12,438
Issue of share capital 966 – – 966
Profit for the financial year – – 103 103
Balance at 31 December 2003 13,396 – 111 13,507
22. Operating Lease Commitments
The Group was committed to making the following payments under operating leases during the year:
2003 2002
Land and Land and 2003 2002
buildings buildings Other Other
The Group £’000 £’000 £’000 £’000
Leases which expire
Within one year – 13 58 –
Within two to five years 201 201 – 58
After more than five years 100 55 – –
301 269 58 58
23. Commitments and Contingent Liabilities
At 31 December 2003, the Group had a bank guarantee outstanding for £118,116 (2002 - £nil), in favour of Granta Park Limited.
This amount is a rent deposit on the Group’s Sales & Marketing office in the Granta Science Park in Cambridge.The guarantee is
effective until July 2006.
At 31 December 2003, the Group had a bank guarantee outstanding for £174,636 (2002 - £nil) in favour of Guy’s & St.Thomas’
NHS Trust.This is in respect of the supply of ampoules for the production process.The guarantee is effective until December 2004.
It is Group policy to commit to making these payments to suppliers in preference to paying for goods and services in advance, in
order to maintain a satisfactory cash flow.
LiDCO Group Plc Annual report and accounts, year ended 31 December 2003 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.
01 Highlights
02 Group at a Glance
04 Chairman’s Review
06 Chief Executive’s Review
12 Board of Directors
14 Corporate Governance Report
16 Remuneration Report
18 Directors’ Report
20 Independent Auditors’ Report to 
the Members of LiDCO Group Plc
21 Consolidated Profit and Loss Account
22 Balance Sheets
23 Consolidated Cash Flow Statement
23 Reconciliation of Movement in 
Consolidated Shareholders’ Funds
24 Notes to the Accounts
Advisors 
Auditors 
Deloitte & Touche LLP
Chartered Accountants
Hill House
1 Little New Street
London EC4A 3TR
Stockbrokers 
Durlacher Limited
4 Chiswell Street
London EC1Y 4UP
Bankers 
NatWest Bank PLC
PO Box 35
10 Southwark Street
London SE1 1TT
Registrars 
Capita Registrars
34 Beckenham Road
Beckenham
Kent BR3 4TU
Solicitors 
Herbert Smith
Exchange House
Primrose Street 
London EC2A 2HS
Company Number
2659005
Registered Office 
16 Orsman Road
London N1 5QJ
Company Website
www.lidco.com LiDCO Group Plc
Annual report and financial statements
for the year ended 31 December 2003
LiDCO Group Plc
UK Office:
16 Orsman Road
London N1 5QJ
Tel: +44 (0)20 7749 1500
Fax: +44 (0)20 7749 1501
USA Distribution Office:
Wren Medical Systems
905 Lakeside Drive
Gurnee, IL 60031
Tel: +1 847 625 0600
Fax: +1 847 625 0981
Sales and Marketing:
Flowers Building
Granta Park
Cambridge CB1 6GU
Tel: +44 (0)1223 893 081
Fax: +44 (0)1223 890 187
Annual report 2003 www .lidco.com
LiDCO Group Plc Annual report and financial statements for the year ended 31 December 2003