LiDCO Group Plc annual report & accounts for the year ended 31 January 2011
2010
/
11 LiDCO Annual Report
2010/11
LiDCO Group Plc
www.lidco.com
Early intervention to avoid potentially dangerous
and life threatening events has been proven 
to reduce complications and length of hospital
stay in high risk surgery patients. 
LiDCO manufactures minimally invasive
hemodynamic monitoring equipment and
disposables. Our products are the result 
of a multi-disciplinary developmental approach
that transforms complex physiological data into
useable and effective information.
01 Highlights
02 Products
03 Market access
04 Evidence and awareness
05 Translational skills
06 Chairman’s statement
08 Chief Executive Officer’s statement
14 Board of Directors and Company Secretary
15 Clinical Advisory Group
16 Corporate Governance report
18 Corporate social responsibility statement
20 Directors’ remuneration report
24 Directors’ report
28 Independent auditor’s report (Group)
29 Consolidated comprehensive income statement
30 Consolidated balance sheet
31 Consolidated cash flow statement
32 Consolidated statement of changes in shareholders’ equity
33 Notes to the financial statements
49 Independent auditor’s report (Company)
50 Company balance sheet
51 Notes to the financial statements
53 Company information
53 Advisers to the Company
Click on the headings below 
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LiDCO Annual Report
2010/11
Financial highlights
Total revenue increased by 16% to £6.24m (2009/10: £5.37m)
Traded profitably in second half of the year  
UK sales increased 29% to £2.36m (2009/10: £1.82m)
Recurring revenues of £3.68m, representing 59% of total revenues
Gross profit up 28% to £4.22m; gross margin 68% (2009/10: 61%)
Operating loss reduced 68% to £498,000 (2009/10: £1.54m)
Lowest ever annual cash outflow before financing of £433,000 (2009/10: £1.04m)
Cash balance of £1.40m (2009/10: £1.85m)
Loss per share 0.22p (2009/10: 0.87p)
Operational highlights
524 monitors sold/placed – installed base of 2001 units at year end
Disposable sales of 47,948 units – up 26% (2009/10: 37,918)
Study shows use reduces mortality in shock patients
LiDCOrapid v1.03 and blood pressure module completed in September
LiDCO monitors now have connectivity to Philips and GE hospital information systems 
LiDCO study day receives Royal College of Nursing accreditation
Post period end
Argon appointed LiDCO as UK distributor for their critical care products with distribution commencing in May 2011
Revenue 
(million)
2006
2007
£3.44
2007
2008
£4.05
2008
2009
£4.53
2009
2010
£5.37
£6.24
2010
2011
Loss from operations
(million)
2006
2007
£2.6
2007
2008
£2.0
2008
2009
£1.8
2009
2010
£1.5
£0.5
2010
2011
Net cash outﬂow before ﬁnancing
(million)
2006
2007
£1.6
2007
2008
£1.7
2008
2009
£1.8
2009
2010
£1.0
£0.4
2010
2011 2
LiDCO Annual Report
2010/11
Products
LiDCO researches, develops, manufactures and sells innovative medical devices,
primarily for critical care and cardiovascular risk hospital patients who require real-time
hemodynamic monitoring while undergoing major surgery, intensive care and cardiac
procedures. LiDCO’s products provide critical hemodynamic data regarding the
performance of a patient’s heart and effectiveness of the blood circulation in delivering
oxygen to the body’s tissues. Improved hemodynamic monitoring reduces length 
of stay and complications in high risk surgery patients. 
Patent protected
LiDCO products are innovative and unique.
They are protected as strongly as possible
by proprietary intellectual property rights –
patents, copyright, trademarks and
confidentiality/secrecy arrangements
(know-how).
Large and growing 
market opportunity 
They are designed for point-of-care use 
and are minimally invasive, portable and
easy to use at a patient’s bedside. They
address a potential worldwide market
opportunity of US$1.2 billion per annum.
R&D activities 
LiDCO has a product development
programme of incremental product
improvement/evolution improving ease 
of use and enabling convergence and
integration of multiple monitoring
parameters, either on LiDCO monitor screens
or third party monitors via software licensing. 3
LiDCO Annual Report
2010/11
Market access
LiDCO’s distribution strategy is to put effective arrangements in place in order
to access the market opportunity at a cost which allows the Company to meet
its strategic goals and meet market expectations. LiDCO targets territories that
are developing in terms of hemodynamic monitoring, where strong distribution
networks are available that can be supported from LiDCO’s UK base.
UK sales summary
• Total revenue up 29% at £2.36m (2009/10: £1.82m)
• Monitor revenue up 52% to £0.50m (2009/10: £0.33m)
– ICU: LiDCOplus monitor revenue up 49% to £0.30m
– Surgery: LiDCOrapid monitor revenue up 118% to £0.20m
• Disposables sales of £1.80m up 21% (2009/10: £1.49m)
• Other income £55,000 (2009/10: nil)
USA sales summary
• Distribution revenue up 26% to £1.89m (2009/10: £1.50m) 
• LiDCOrapid monitor revenue steady at £0.68m (2009/10: £0.68m)
• LiDCOrapid smart card sales up 54% to £0.83m (2009/10: £0.54m)
• Licence fee and other income of £0.38m up 35% (2009/10: £0.28m)
Continental Europe sales summary
• Total revenue down by 13% to £0.86m (2009/10: £0.99m)
• Monitor sales revenue of £0.32m down 40% (2009/10: £0.53m)
• Sensor/smart card sales up 17% to £0.54m (2009/10: £0.46m)
Rest of World and licence fee income
• Total revenue up 135% at £0.66m (2009/10: £0.28m)
• Monitor revenue up 225% to £0.39m (2009/10: £0.12m)
• Sensor/smart card sales up by 117% to £0.13m (2009/10: £0.06m)
• Licence fee and other income of £0.14m (2009/10: £0.10m)
29%
increase in UK 
total sales 
26%
increase in US 
distribution revenue
17%
increase in sales of sensor/smart card
sales in continental Europe
225%
increase in monitor revenues 
from Rest of World 4
LiDCO Annual Report
2010/11
Evidence and awareness
Complications from major surgery in patients undergoing emergency
surgery, or surgery in patients with limited cardiovascular reserves are
common. Not only are complications such as infections costly to treat and
necessitate longer hospital stay, they also have long-term consequences
negatively influencing both survival and quality of life in survivors. 
We now know that these complications 
are potentially avoidable with the use of 
a pre-emptive ‘enhanced recovery’ strategy
that involves better monitoring through use
of advanced hemodynamic monitors such
as those provided by LiDCO. 
Sufficient evidence has now been
accumulated to demonstrate that the
relatively inexpensive upfront costs 
of hemodynamic monitoring are easily
outweighed by the short-term benefits 
to the patient and hospital in terms 
of reduced length of stay. 
The ‘body of clinical evidence’ has resulted
in the emergence and availability in the 
UK of guidelines on fluid management, 
a ‘How To, Why To’ guide and more recently
a Commission for Quality and Innovation
(CQUIN) payment that links a proportion 
of the hospital’s income to the adoption 
of improved practice. 
More than 100 published papers and
presentations have been given on LiDCO’s
technology, with 25 abstracts and papers
during the last year alone. Positive outcome
data is available for both high risk surgery
and shock patients with LiDCO being the
sole technology used in two current large
multi-centre outcome trials:
• MOnIToR USA transplantation study donor 
• OPTIMISE UK high risk surgery study
Hospital departmental strategy and use 
of advanced hemodynamic monitors 
is heavily influenced by the accumulated
body of clinical evidence. Adoption
incentives have followed resulting in the
expectation that the minimally invasive
hemodynamic monitoring market will 
grow to a value of US$1.2 billion per annum
worldwide and in the UK  – where a lot of the
research was pioneered – by 17% per annum.
Professional body guidance
92.1%
50%
36.3%
6.8%
CE/senior management decision
2.6%
Other
12%
Hospital policy
Top requirements for cardiac output monitor
Factors that influence the decision to implement 
fluid optimisation/enhanced recovery
78%
ease of use
46%
suitable for broadest
application of use
71%
accuracy
45%
size of body 
of evidence
Body of clinical evidence
Departmental/clinical strategy
Source: UK lntensive Care Society market survey 2010 5
LiDCO Annual Report
2010/11
Translational skills
Productive use of LiDCO’s hemodynamic monitoring products has to be supported
by excellence in clinical education. In April 2010 LiDCO established a Hemodynamic
Workshop in collaboration with doctors at St George’s Hospital in London, aimed 
at teaching hemodynamic optimization techniques to senior physicians. This course 
is accredited by the UK’s Royal College of Anaesthetists for continuing medical
education points. 
The course has been very well received 
by all attendees and we have seen a high
degree of participation both domestically 
and by European doctors for the courses
organised for this year. 
In July 2010 LiDCO received accreditation
from the UK Royal College of Nursing (RCN)
for its LiDCOplus monitor competency-
based study day. The course is designed 
for all critical care nurses, nurse educators,
professional development nurses, nurse
consultants and junior doctors. 
Our plans are to considerably expand both 
of these educational activities. We are highly
committed to helping our hospital customers
to translate these skills into practice.
Dr Maurizio Cecconi
presenting at 
St George’ s Hospital at
LiDCO’s Hemodynamic
Monitoring Workshop 6
LiDCO Annual Report
2010/11
2010/11 was another good year 
for LiDCO. Continuing with our
strategy for growth, we saw
revenues increase by 16% and the
number of disposables sold grow 
by 26%. Despite returning a profit 
in the second half of the year, 
the difficult economic climate
experienced in our target markets
impeded us from recording a profit
for the year as a whole, though 
we were able to record an EBITDA 
of £141,000. 
Chairman’s statement
We have ended the year with a robust cash
position and no debt. LiDCO’s strategy for
growth continues to be focused on the
three key areas of products, market access
and evidence and awareness. 
Products
Concern over associated risks means 
that demand for invasive catheter-based
hemodynamic monitoring products
continues to decline. LiDCO’s minimally
invasive technology enables measurement,
analysis, audit and sharing of real-time and
historic hemodynamic data, both in critical
care units (LiDCOplus) and the operating
theatre (LiDCOrapid). Both the LiDCOplus
and the LiDCOrapid are high value, high
margin products with strong intellectual
property protection. 
We continued to improve our products
during the year with software upgrades 
and additional features that improve 
delivery of data to the clinician.
Compatibility with other healthcare 
systems and technologies has further
enhanced our products’ appeal, and LiDCO
monitors now have connectivity to Philips’
and GE’s hospital information systems. 
The marketing collaboration signed with
Argon Medical in the UK in March of this
year will provide our UK sales force with
additional, well established products
complementing and strengthening our
own offering. 
Market access
Minimally invasive hemodynamic monitoring
is the fastest growing segment within the
European patient monitoring market, and
the UK is leading Europe in terms of its rate 
of adoption of the technology. In the UK we
have a direct sales and nurse educator team
successfully increasing our installed base 
in this major market and growing sales 
by 29% in the year. 
In the USA, our partner is Covidien: 
a leading global healthcare products
company. In 2010 Covidien strengthened 
its sales team, surgery franchise and
combination technology offering,
enhancing LiDCO’s access to this 
lucrative market.
Theresa Wallis
Chairman 7
LiDCO Annual Report
2010/11
Evidence and awareness
An increasing body of evidence shows
improved patient outcomes from the use 
of less invasive hemodynamic monitoring
technologies. In 2010, clinicians demonstrated
the effectiveness of LiDCO products 
in a variety of fields including: major and
bariatric surgery, obstetrics, intensive care
and cardiology. Studies have also been
published showing reduced mortality 
in shock patients as well as reduced length
of stay and complications in surgery
patients that have been hemodynamically
monitored using LiDCO’s products. 
Financial position
LiDCO’s operating loss for the year reduced
from £1.54m to £498,000, on turnover of
£6.24m. With its cash usage reaching its
lowest level ever, at £433,000, the Group
ended the year with £1.40m in cash. 
Dr David Band 
In April, Dr David Band, the Group’s 
co-founder and Scientific Director resigned
from the Board after many years of service.
We are very grateful for his important
contribution to the Group. I am delighted
he has agreed to continue advising LiDCO
with regard to product development. 
Prospects
Hospitals are under increasing pressure 
to cut costs and improve efficiency and
patient outcomes. These challenges 
present significant opportunities for LiDCO,
as our products can reduce costly patient
complications and hospital stay lengths,
while providing significant improvements
to quality of care. We have worked hard 
to position ourselves to respond to the
escalating demand. 
I am grateful to our shareholders for their
continuing loyalty to LiDCO in 2010/11 
and my fellow directors for their support. 
I would also like to acknowledge the
valuable contribution made by our Clinical
Advisory Group. Finally I wish to thank our
staff for their enthusiasm and commitment
throughout the year. The year ahead will 
be another challenging one but we are well
placed to continue our progress. 
Theresa Wallis
Chairman
15 April 2011
16%
increase in revenues 
this year
26%
growth in unit sales 
of disposables
The pressures on hospitals to cut
costs and improve efficiency present
significant opportunities for LiDCO. 8
LiDCO Annual Report
2010/11
The market
The directors estimate that the potential
number of patients in Europe who could
benefit from hemodynamic monitoring 
is six times the number currently being
monitored. The cost of critical care
continues to grow. Heightened awareness
of the benefits from the use of LiDCO’s
technology such as reductions in infections,
length of stay and costs are all contributing 
to increased sales. 
The market for minimally invasive
hemodynamic monitors breaks down into
three categories: intensive care (ICU), high
risk surgery and alternate sites such as trauma
and ‘outreach’ (i.e. outside the ICU) care sites.
LiDCO monitors have the potential to play
major roles in each of these arenas.
Reducing surgical complications such 
as infections is a key growth driver for our
business. In the US, it is estimated that
surgical site infections alone cost US$10bn
per annum. The need to prevent central line
infection and septic complications has led
to a drive to reduce the use of invasive
central venous catheters. Use of LiDCO’s
technology can reduce central venous
catheter use by up to 80% in high risk
surgery (Green D, Paklet L (2010) Latest
Chief Executive Officer’s statement
LiDCO had another very good year.
The monitor base increased by a net
233 units (13%) to 2001 units, with
524 units sold or placed during the
year. Disposables income increased 
in our intensive care and surgery
markets by 8% and 39% respectively.
Overall revenues were up 16% on the
previous year to £6.24m with gross
profit up 28% to £4.22m. Expenses
were kept under tight control
resulting in administration costs
reducing by 2%. Average product
margins were maintained at 76%.
Cash outflows before financing were
at a record low with the Group
trading profitably during the second
half of the year. Over the prior year
the loss fell by over £1m with the loss
per share reducing by 75% to 0.22p.
developments in peri-operative monitoring 
of the high-risk major surgery patient.
International Journal of Surgery 8 90-99).
With a US$1.2bn market potential in surgery
and intensive care, the global market for
minimally invasive hemodynamic
monitoring products is large and growing.
The experience level of clinicians in the ICU 
is declining due to the retirement of staff
experienced in the use of older invasive
catheter based technologies. Consequently
there is a growing need for reliable, accurate
and easily adoptable products that can
deliver more cost effective care. The
minimally invasive market now represents
53% of the European hemodynamic
monitoring market value, followed by the
invasive and non-invasive markets which
represent 42% and 5% of sales respectively. 
It is projected that the European minimally
invasive hemodynamic monitoring market
will grow at a compound rate of 12% per
annum; from US$51m today to US$112m 
by 2017 (iData 2011 patient monitoring
research report). The UK represents the
biggest European market for, and fastest
rate of adoption of, minimally invasive
technology. Sales in the UK are projected 
to grow by an average of 17% per annum
from US$14m in 2010 to US$42m in 2017.
The NHS in the UK is now the largest
healthcare organisation in the world, with
an annual spend of £100bn. LiDCO has 
a direct sales force in the UK where our sales
revenues increased last year by a noteworthy
29%. We are resourced to take advantage 
of this fast growing domestic market
opportunity. Acquiring the sales and
marketing rights to the Argon critical 
care products has further broadened and
strengthened our hemodynamic offering 
to our UK customers. 
Evidence and awareness
The minimally invasive hemodynamic
market is documented as the fastest
growing sector in the European hospital
monitoring field. The potential size of the
market, its growth rate and the increasing
presence of clinical guidelines for adoption
of hemodynamic monitoring is inevitably
resulting in an increasing appetite from the
major corporate players to participate 
in providing these advanced products.
The pressure on hospitals to reduce costs
while improving efficiency is intensifying. 
In the UK, the NHS QIPP (Quality, Innovation,
Productivity and Prevention) and ERAS
(Enhanced Recovery After Surgery)
programmes have resulted in a higher focus 
on adopting advanced hemodynamic
monitoring technology. For example, 
in a 2010 survey of UK hospitals by the
British Intensive Care Society, 77% of hospitals
had, or were planning to implement, 
fluid-optimisation of their colorectal 
cancer surgery patients. The three most
important issues determining their choice
of technology were ease of use/adoption,
Dr Terence O’Brien
Chief Executive Oﬃcer 9
LiDCO Annual Report
2010/11
trending accuracy and suitability of use 
for the broadest variety of patients. 
The LiDCOrapid was specifically designed 
to be easy to set up and usable in the fluid
and drug management of any patient with
arterial line access. Our surgical product 
is proving very adoptable, with UK sales 
of LiDCOrapid disposables increasing 
by 137% in the year. 
Cumulatively more than 100 publications
are in print referencing our technology.
During 2010 alone 25 research abstracts
and papers on the use of LiDCO monitors
were presented and published. Using 
LiDCO technology for high-risk surgery
patients has been shown to help reduce
complications – particularly infections – 
by more than a third, reducing hospital stay
by an average of 12 days per patient and
costs by £4,800 per patient (Pearse et al. 
Early goal-directed therapy after major 
surgery reduces complications and duration 
of hospital stay. A randomized, controlled trial.
Crit. Care 2005, 9 (6) 687-693).
In September 2010, the Journal of Critical
Care published the findings of a study from
the University of Iowa, showing that using
the LiDCOplus monitor significantly reduced
the mortality rate in patients treated for
shock (Hata et al. Reduced mortality with non
invasive hemodynamic monitoring of shock,
Journal of Critical Care, 26:2, pages 224.e1-
224.e8). Treatment of patients using LiDCO’s
monitor significantly reduced the observed
mortality rate to 13% against 32% and 20%
in the two invasively monitored groups and
37% in the unmonitored patient groups.
These results add to the previous findings 
of Pearse et al who reported that supportive
care guided by LiDCO’s lithium dilution and
arterial waveform assessments of cardiac
output was associated with reduced peri-
operative morbidity compared with
conventional assessment.
Two further large multi-centre outcome
trials are progressing well. In the UK, the
LiDCOrapid cardiac output monitor was
chosen as the sole monitoring system 
to be used in OPTIMISE, a government-
supported trial which aims to improve
surgical outcomes by optimising a patient’s
cardiovascular management. The trial,
covering 12 centres, is the largest of its 
type to date; it is underway and currently
recruiting patients. 
The LiDCOplus is the sole hemodynamic
monitor used in a 960 patient US-
Government funded multi-centre trial –
MOnIToR (Monitoring Organ donors 
to Improve Transplantation Results). 
The results of earlier studies using
LiDCOplus to monitor and develop 
a treatment protocol designed to improve
the hemodynamic status of donors
generated considerable interest within 
the US transplantation community. 
As with the OPTIMISE trial, the MOnIToR 
trial is progressing well. 
To facilitate adoption and productive 
use of its equipment, LiDCO’s monitoring
products are also supported by excellence 
in clinical education. In April 2010 LiDCO
established a Hemodynamic Workshop 
in collaboration with doctors at St George’s
Hospital in London aimed at teaching
hemodynamic optimisation techniques 
to senior physicians. This course is accredited
by the UK’s Royal College of Anaesthetists
for continuing medical education points.
The course has been very well received 
by all the consultant level attendees and 
we have seen a high degree of participation
and take up by our European distributors 
of places for courses held this year. In July
LiDCO received accreditation from the 
Royal College of Nursing (RCN) for its
LiDCOplus monitor competency-based
study day. The course is designed for 
all critical care nurses, nurse educators,
professional development nurses, nurse
consultants and junior doctors. Our plans
are to considerably expand both of these
educational activities. 
Products and applications
LiDCO applies several common criteria 
to its products. They must be innovative,
protectable, and applicable to significant
clinical applications. They must have a large
addressable market and deliver significant
margins. The manufacturing process must
also be low cost with very high reliability. 
Each LiDCO monitor addresses a particular
market. Launched in 2008, the LiDCOrapid
principally focuses on high risk surgery
patients with arterial lines, but also addresses
alternate site use – for example in trauma,
obstetrics and shock. The LiDCOplus is used
mainly in the intensive care arena. 
During the year several new product
developments were introduced, for example: 
• a software upgrade to the LiDCOrapid,
including a module to expand access 
to blood pressure data;
• a translation facility to convert information
from English into 22 languages; and
• improved communication with Philips
and GE hospital information systems.
Sales and distribution 
Revenue was up 16% to £6.24m (2009/10:
£5.37m). A similar number of LiDCO
monitors were sold or placed in the year
(524 vs. 565 units in 2009/10) with monitor
capital income up 5%. The monitor base 
at the year end was 2,001 units, with a net
increase of 233 units (13%) in the year. 
As explained in the Financial Review, 
from this year we are now reporting our
installed base as the net number of sold
and placed units over the last seven years.
Our monitors have an expected life of seven
years in use, so we have decided to assume
all monitors over seven years old will 
no longer be disposable income generating.
From here on the installed base will only
increment by the difference between those
monitors sold in the year and those retired
i.e. that were sold eight years ago. The
LiDCOrapid portion of the installed base
grew by 474 units and now represents 
in excess of 50% of the monitor base.
US$10bn
annual estimated cost of surgical
site infections in the US
US$1.2bn
global market potential in surgery and intensive
care for minimally invasive hemodynamic products 10
LiDCO Annual Report
2010/11
Chief Executive Officer’s statement continued
Disposables income was higher for both 
our intensive care and surgery markets 
by 8% and 39% respectively and by 18%
overall. Disposables numbers were also up
26% at 47,938 units (2009/10: 37,918 units).
Export sales represent 62% of total income –
slightly down from 66% in the prior period,
reflecting the very strong UK sales growth
seen in the period as well as economic
weakness in some parts of continental Europe. 
LiDCO’s strategy is to sell directly to the 
high value, high growth UK hospital 
market via its strong, direct sales force and 
is expecting to take a significant share 
of the domestic market growth. In export
territories we are focusing on addressable
markets i.e. those where we expect good
growth and where we have access to
specialist distribution partners with the
attributes and commitment to sell our
products and develop our market within
their territory. These include the US, Japan,
Scandinavia, Eastern Europe, the Middle
East and Latin America. 
In the US there are almost 5,000 hospitals
performing surgery and within these
hospitals there are over 100,000 intensive
care beds. In addition to the challenge 
of selling to this large and geographically
spread out hospital market, there are 
a significant number of regional and/or
national accounts to work with. Once sales
traction is gained in the US, these hospital
groups and group purchasing organisations
(such as Premier and Novation) become
increasingly important customers. 
Over the years it is clear that fully accessing
the growing USA hemodynamic monitoring
market has become logistically and
financially impossible for the smaller and
even larger sized companies. Therefore, 
in order to address a significant share 
of this opportunity we have established 
a distribution agreement in the US with 
the Respiratory and Monitoring division 
of Covidien plc (‘Covidien’). Covidien has 
a long standing and substantial existing
oximetry monitoring business and more
recently made significant investment 
in the monitoring market, acquiring two
additional US monitoring companies
(Aspect and Somanetics) with a very
significant total investment of US$460m. 
Collectively the Respiratory and Monitoring
division now has one of the largest
monitoring equipment sales forces available
today in the US. Importantly this group sells
into over 80% of operating rooms in the
major hospitals. In the US Covidien is now
able to offer customers a suite of monitoring
systems that can collectively monitor
respiratory function, brain oxygenation and
through the LiDCOrapid the underlying
hemodynamic status. These products are 
a natural fit together and offer, in particular,
advantages to the management of high risk
surgery patients. Accordingly, we believe
that the commitment by Covidien 
to promoting LiDCO’s LiDCOrapid monitor
along side their own products is strong. 
Covidien achieved the first year’s minimum
sales requirements and our business with
them grew 26% over the prior year. This was
a good result, as inevitably amalgamations
of this scale take a lot of effort and time out
from the field. Indeed, training of the new
members of the consolidated sales force
and internal national accounts sales teams
on LiDCO’s product is still taking place. 
We expect the number of evaluations 
and pipeline to continue to build as the
recently trained representatives also start 
to contribute to the sales efforts. Clearly
Covidien has made a significant investment
in the monitoring field and has the interest,
infrastructure, resources and products
necessary to access in particular a significant
share of the high risk surgery hemodynamic
monitoring market. 
Geographic sales and trading
UK sales summary
• Total revenue up 29% at £2.36m
(2009/10: £1.82m)
• Monitor revenue up 52% to £0.50m
(2009/10: £0.33m)
– ICU: LiDCOplus monitor revenue 
up 49% to £0.30m
– Surgery: LiDCOrapid monitor revenue
up 118% to £0.20m
• Disposables sales of £1.80m up 21%
(2009/10: £1.49m)
• Other income £55,000 (2009/10: nil)
Our focus last year was to maintain our ICU
business and grow our LiDCOrapid surgery
interest. Our direct sales force had a very
good year achieving both these goals. Total
income was up 29% to £2.36m, with the 
UK representing 38% of our total worldwide
sales. Monitor and disposables income
increased across both the ICU and surgery
markets. As expected the greatest growth
was experienced in the surgery segment
where LiDCOrapid monitor sales were 
up 118% and smart card disposables 
up 137%. The monitor base increased 
by a net 24 units (9%) to 300 units in the UK,
with 61 units sold placed during the year.
The total number of disposables sold
increased from 14,055 to 17,605. 
In the UK there will be intense pressure 
on the NHS in terms of revenue and capital
spend in the new financial year starting 
this month. We believe this will continue 
to drive hospitals to focus on reducing 
costs while improving efficiency. ERAS
programmes within the NHS will most likely
continue to be prioritized, despite the
Review of revenue and units sold and placed 
%
Year to Year to Increase/ Increase/
31 Jan 2011 31 Jan 2010 (decrease) (decrease)
Revenue by type (£’000)
– Monitors 1,953 1,855 98 5%
– Sensors/smart cards/use fees 3,681 3,125 556 18%
– Licence fees and other income 603 387 216 56%
– Total revenues 6,237 5,367 870 16%
Monitors (units) 524 565 (41) (7%)
Sold 515 536 (21)
Placed 9 29 (20)
Sensor, smart card and fee 
per use sales (units) 47,938 37,918 10,020 26%
Monitor base (7 year net) 2,001 1,768 233 13% 11
LiDCO Annual Report
2010/11
worsening economic conditions. We expect
these conditions will deliver sales growth 
of our surgery product in particular. Fluid
and hemodynamic monitoring is already
adopted, or planned in the majority of UK
hospitals. Additional sales growth should
come from increasing use in a number 
of surgical procedures. 
We announced in March 2011 that LiDCO
was appointed by Argon Medical Devices
Inc. (‘Argon’) to take over their existing UK
critical care sales. Argon acquired the critical
care business of Becton Dickinson (‘BD’) 
in late 2010. We are delighted that Argon
has decided to extend the relationship 
we previously established with BD’s
Japanese critical care group. We expect 
to start selling Argon’s products from May
2011. UK customers will then be able to buy
an expanded and related group of critical
care and surgery products including the
arterial pressure transducer necessary for
use with our monitors. 
USA sales summary
• Distribution revenue up 26% to £1.89m
(2009/10: £1.50m) 
• LiDCOrapid monitor revenue steady
£0.68m (2009/10: £0.68m)
• LiDCOrapid smart card sales up 54% 
to £0.83m (2009/10: £0.54m)
• Licence fee and other income of £0.38m
up 35% (2009/10: £0.28m)
Sales to Covidien were up 26% during the
period. Comparisons across the period 
are complicated by the stocking orders
taken in both periods and the subsequent
temporary sales disruption from acquisition
and integration of the Aspect and
Somanetics sales forces. We are pleased 
to report that Covidien has achieved the
minimum sales in the first year of our
contract. Overall Covidien has purchased
657 LiDCOrapid monitors representing 
both sales stock and a demonstration/
evaluation pool. Covidien has shown a high
level of commitment to developing the
high risk surgical market opportunity and 
is putting a significant amount of time into
training and incentivising the sales force. 
LiDCO has retained sales responsibility 
for the ICU-focused LiDCOplus product 
sales in the US with our direct sales force.
Direct sales have decreased to £464,000
(2009/10: £773,000) with £111,000 of the 
fall the inevitable result of the transfer 
to Covidien of LiDCOrapid sales in accounts
that were previously a direct sales business.
Capital revenues (i.e. new monitor sales)
from the LiDCOplus fell from £184,000 
to £83,000 due to the reduced sales effort 
as four of the LiDCO sales team transferred 
to Covidien. LiDCOplus sensor sales declined
from £422,000 to £341,000, a consequence
of some customers now purchasing the
LiDCOrapid – where previously they would
have purchased the LiDCOplus – and
reduced geographic sales coverage outside
our key accounts. 
LiDCOplus consumable sales to our key
accounts (i.e. accounts where we can
support the business) declined modestly – 
by only £43,000. Most of this decline was
due to product substitution in a small
number of accounts towards use of the
LiDCOrapid. Going forward we expect the
core key account direct business to be
supportable and maintainable while we
focus on the bigger and more addressable
surgery opportunity for the LiDCOrapid. 
We continue to believe there is a significant
ICU market in the US for our more precise
and sensor calibrated monitor. 
Continental Europe sales summary
• Total revenue down by 13% to £0.86m
(2009/10: £0.99m)
• Monitor sales revenue of £0.32m down
40% (2009/10: £0.53m)
• Sensor/smart card sales up 17% to £0.54m
(2009/10: £0.46m)
We reported at the interim stage that the
economic climate in Europe had been
weak, delaying capital and disposable
purchases in some countries. Where
economic conditions have been poor this 
has affected our distributors’ business. 
In contrast, where finances are stronger, 
e.g. in Eastern Europe, we have seen a very
significant increase in sales. The results are
therefore very mixed; ranging from increases
of 71% in Slovenia to an 82% fall in business
in Italy, previously our best performing
territory. Despite the challenging conditions,
underlying disposable income was up by 17%.
We expect sales to increase modestly in 2011
as the economic climate gradually improves. 
Rest of World and licence fee income
• Total revenue up 135% at £0.66m
(2009/10: £0.28m)
• Monitor revenue up 225% to £0.39m
(2009/10: £0.12m)
• Sensor/smart card sales up by 117% 
to £0.13m (2009/10: £0.06m)
• Licence fee and other income of £0.14m
(2009/10: £0.10m)
Sales in the ROW were up 135%, reflecting
increases across the board in licence fees,
monitor and disposable revenues. This was 
a good performance with particularly good
results seen in Brazil and the Middle East.
Minimally invasive hemodynamic monitoring 
is becoming well established in Japan. 
We believe the Japanese hemodynamic
monitoring high risk surgery market has 
a potential market value of US$285 million 
per annum, with reimbursement currently
available. With respect to our distribution
arrangements in Japan, in October 2010
Argon announced that it had acquired the
critical care division of BD. LiDCO had signed 
a distribution agreement with BD in April
2009 for sales of the LiDCOrapid in Japan 
and a registration application file for product
approval has been prepared for submission.
We expect registration and reimbursement
to be approved late 2011/early 2012.
Negotiations with distribution parties 
in Japan are well advanced and a Heads 
of Agreement has been signed – we expect
to be able to further update shareholders 
in the near future.
73%
reduction in post-tax losses
US$285m
potential annual value of Japanese high risk 
surgery market for hemodynamic monitoring 12
LiDCO Annual Report
2010/11
Financial review
Turnover increased by 16% to £6.24m
(2009/10: £5.37m). Losses after tax
decreased significantly by 73% 
to £390,000 (2009/10: £1,427,000)
and the loss per share was reduced
to 0.22 pence (2009/10: 0.87 pence).
Exports rose by 9% to £3.88m but
with a strong increase in sales in the
UK represented 62% of sales, down
from 66% the previous year.
During the year a total of 524 monitors
(2009/10: 565 monitors) were sold or placed.
Historically the reported installed base has
represented the total monitors sold or placed
since the first sales in 2001. It is inevitable
that some of the earlier monitors will now
have been replaced by newer models 
or may simply be no longer in use and 
in common with some other companies 
in our sector, the installed base has been
restated based on the number of units sold
or placed within the last seven years. 
The restated installed base of monitors 
at the year end was 2,001 (2009/10: 1,768)
representing a net increase in the year 
of 233 monitors. Some of the installed base
will be demonstration and evaluation
monitors sold to distributors. The monitors
sold/placed in the year comprised 474
LiDCOrapid monitors and 50 LiDCOplus
monitors with 515 (2009/10: 536) of the
monitors being sold and nine (2009/10: 29)
being placed.
Recurring revenues from the sales 
of disposables, service contracts and fees 
for use increased by 18% to £3.68m (2009/10:
£3.13m) and represent 59% of total revenues.
The number of disposables sold increased 
by 26% to 47,938 (2009/10: 37,918). 
The average product margin across all
products after external procurement costs
increased slightly during the period from
75% to 76%. Future profitability will
significantly depend on margins achieved
on disposables and these have remained
high during the year. Margins achieved 
on LiDCOplus sensors remained steady 
at 86% and on LiDCOrapid smart cards
increased marginally to 93% (2009/10: 92%). 
Sales of LiDCOrapid smart cards which 
rose by 39% will be an important growth
revenue stream in future years. In the UK
where hemodynamic output monitoring
has been demonstrated to help to reduce
hospital costs and where we have detailed
usage information, we have seen the
average use rate increase from 3.5 to 4.7
uses per monitor per month, with use 
in some hospitals as high as 15 uses per
monitor per month.
The overall gross margin on sales was 67%,
up from 61% in the previous year largely
due to reduced Med One payments in the
period which amounted to £526,000
(2009/10: £688,000). Med One payments 
are expected to reduce to about £230,000 
in 2011/12 and be minimal in the following
year. Total overheads fell by £118,000 (2%)
compared with the previous year. As noted
previously, the comparative effect 
of transferring most of the US sales force 
to Aspect (now Covidien) in July 2009 was
to reduce costs by about £325,000. This
reduction was offset most significantly 
by additional sales and marketing costs 
in the UK where sales increased by 29%.
Taxation
As the Group is still at the pre-profit stage
there was no tax charge for the year and 
in addition the Group has a deferred tax
asset of £5.6m although this has not been
recognised in the accounts. The Group
qualifies for research and development tax
credits, which are estimated as £109,000
(2009/10: £122,000) and are shown in the
income statement. 
Cash, ﬁnancing and working capital
The net cash outflow before financing
activities was £433,000 (2009/10: £1,044,000),
its lowest rate since flotation in July 2001.
Cash balances at 31 January amounted 
to £1,404,000 and the Company has no
bank borrowings. The Board anticipates 
this will be sufficient to see the Company
through to profitability and positive cashflow. 
Stock at the year end decreased slightly 
to £1.05m and represents 18% (2009/10: 22%)
of non-licence fee revenue. Expenditure 
on fixed and intangible assets in the year 
of £556,000 compares with £608,000 the
previous year and is below the charge for
depreciation and amortisation of £639,000.
Expenditure on fixed and intangible assets
is not expected to rise significantly in the
foreseeable future.
Product development 
New product development
The latest revision of the LiDCOrapid
software, version 1.03 and the development
of the universal pressure waveform module
were completed in the year. The new
software release introduced a number 
of features focused on further developing
the LiDCOrapid graphical user interface 
and simplifying use of, and connectivity 
to, our monitors.
Summary of developments 
concluded during 2010
Universal pressure waveform module 
This allows wider hospital use of our
technology by allowing a broader range 
of arterial blood pressure catheters 
to be accessed.
LiDCO monitor language localisation 
Converts the information on the LiDCOrapid
monitors’ screens from English into 
22 languages.
RS232 communication changes 
Allowing the LiDCOrapid monitor 
to communicate with a wider range 
of hospital information systems. One such
communication project, announced in
October, was to connect to GE’s Centricity
Clinical Information Systems in Europe, the
Middle East and Africa. This follows our
previous software development enabling 
a link between LiDCO’s proprietary stand-
alone monitoring system and Philips’
patient monitors via the Philips VueLink.
Chief Executive Officer’s statement continued 13
LiDCO Annual Report
2010/11
LIDCO software evolution
Given the growing interest in fluid
management and hemodynamic monitoring,
we are exploring further refining the
graphical user interface and core algorithm
software architecture to allow for potential
OEM solutions, whereby elements of the
software could be more easily licenced 
to third parties. Research is also underway
into the performance of the core algorithm
with alternate, often less high fidelity, signal
sources with the objective of widening the
patient applications and thereby increasing
the addressable market for our technology. 
Regarding our intensive care product 
the LiDCOplus we intend to update the
LiDCOplus monitor software to v 4.02. This
will involve updating the operating system,
adding the blood pressure module option
and further improving ease of use and
calibration methodology. 
We believe that there is a significant market
for a combined graphical user interface that
can realise the clinical synergy between
Covidien’s Bispectral Index (BIS) depth 
of anesthesia product and the LiDCOrapid
monitor. The former ensures the correct
depth of anesthesia is achieved, and the
LiDCOrapid is used to restore and maintain
blood pressure and cardiac output 
to appropriate levels after anesthesia
induction and during surgery. A prospective
study at King’s College Hospital, London,
strongly suggested that this combination
display could significantly improve 
the management of patients’ levels 
of anesthesia, fluid and hemodynamic
status. The project to develop a combined
graphical user interface (GUI) is advancing
with a communication interface already
developed. Work is now progressing to
finalise the screen design. This development
project is expected to conclude around 
the last quarter of 2011. Patent applications
have been filed on both the basic structure
of the LiDCOrapid monitor GUI and this has
been followed by a second application 
on the combined hemodynamic and depth
of anesthesia GUI display. 
Regulatory and quality review
During the year LiDCO Limited was
successfully audited against the
requirements of ISO13485:2003,
ISO9001:2008, the EU Medical Devices
Directive and the Health Canada Medical
Device Regulations, allowing continued
certification of the Company and our
products. Also during the year, LiDCO was
successfully inspected by the UK MHRA, 
to ensure continued compliance with 
Good Distribution Practice requirements.
Our activities and products comply with the
requirements of all relevant EU Directives –
the Waste Electrical and Electronic
Equipment (WEEE) regulations; the
Restrictions of the use of certain Hazardous
Substances in Electrical and Electronic
Equipment (RoHS) regulations; the
Registration, Evaluation and Authorisation
of Chemicals (REACH) regulations; the Waste
Batteries and Accumulators regulations; the
Batteries and Accumulators (Placing on the
Market) regulations; the Machinery Directive 
and the Eco Design Directive.
LiDCO’s products are registered in a number
of major territories and registration of LiDCO
products is ongoing in Japan.
Outlook and prospects 
We are pleased to be reporting another year
of considerable progress. Looking ahead,
independent research shows that cardiac
output monitoring is now the fastest
growing sector within the European
monitoring market with the minimally
invasive products now representing more
than 50% of sales (source: 2011 iData
Research). With our pressure waveform
based technology, international distribution
partners and increasing evidence and
awareness, we are confident of continuing
commercial progress. We traded profitably
in the second half of the year and for the full
year on an EBITDA basis. We look forward 
to building on this and making further
progress in 2011 and beyond.
On a personal note my co-founder and
Scientific Director, Dr David Band, has
retired from the Board this month. David
has worked with me on the Board since the
Company’s foundation and has contributed
enormously to bringing the Company 
to its current position. His many contributions
to medical science over the last 50 years
have had a profound impact on the
management of high risk patients. We thank
David for all he has done. I am delighted 
to say he will be staying with us and
continue advising LiDCO with regards 
to product development.
Dr Terence O’Brien
Chief Executive Officer
15 April 2011 14
LiDCO Annual Report
2010/11
Board of Directors and Company Secretary
Theresa Wallis
Non-Executive Chairman
John Barry
Sales and Marketing Director
Dr Terence O’Brien
Chief Executive Oﬃcer
Paul Cliﬀord
Finance Director
Ian Brown
Non-Executive Director
John Rowland
Company Secretary 15
LiDCO Annual Report
2010/11
Theresa Wallis
Non-Executive Chairman
Ms Wallis has spent most of her career 
in financial services, moving into the
technology commercialisation sector in 2001.
She worked for the London Stock Exchange
for 13 years, where from 1995 she was chief
operating officer of AIM, the market for smaller
growing companies, having managed the
market’s development and launch in 1994/5.
From 2001 to end 2006 she was a principal
executive of ANGLE plc, a venture
management and consulting business
focusing on the commercialisation 
of technology. Since 2001 she has held 
a number of non-executive directorships 
and she is currently a non-executive director
of Special Products Limited. She is also 
a member of the Quoted Companies
Alliance’s Executive Committee. 
Dr Terence O’Brien
Chief Executive Oﬃcer 
Dr O’Brien co-founded the Group in 1991.
Prior to that, he held senior positions with
biomedical companies including Sandoz SA,
Pharmacia AB, Meadox Medical Inc,
Novamedix Ltd, Enzymatix Ltd and Surgicraft
Ltd. Dr O’Brien was associate commercial
director at Enzymatix, which subsequently
listed on the London Stock Exchange as
ChiroScience Plc. Over the last 25 years 
Dr O’Brien has been involved in the research
and development and subsequent marketing
of a number of medical device technologies
that are now standards of care in the
anesthesia, critical care and surgery markets.
John Barry
Sales and Marketing Director 
Mr Barry joined the Group in February 2001.
He entered the medical industry working
for Baxter Healthcare Inc. In 1997 he was
appointed director of marketing for critical
care in Europe and in 1999, when Baxter
Healthcare sold Edwards Lifesciences
Corporation, Mr Barry was appointed
director of marketing for the cardiac 
surgery business of Edwards Lifesciences
Corporation in Europe, the Middle East 
and Africa. 
Clinical Advisory
Group
Paul Cliﬀord
Finance Director
Mr Clifford qualified as a chartered
accountant with Touche Ross (now Deloittes)
in 1975. He joined the Group in April 2008
having spent 28 years in finance positions 
in technology companies. In 1991 he co-
founded BCS Computing Limited, a private
equity backed concern investing in computer
software companies. He became finance
director of software group, Comino in 1996,
prior to its flotation on AIM in 1997. In 2006,
Comino was acquired by AIM quoted Civica
plc and Mr Clifford became finance director
of Civica UK Limited, its £80m turnover main
operating subsidiary, leaving in 2008. 
Mr Clifford is also a non-executive director 
of AIM quoted Prologic plc.
Ian Brown
Non-Executive Director
Mr Brown has over 25 years’ experience 
in the medical devices industry and has
extensive experience of developing and
introducing new medical devices to the
market in the UK and overseas. Between
1986 and 2003, he was an executive director
and shareholder in a medical device start-up
company (Novamedix Group), initially 
as sales and marketing director and later 
as managing director. The company was
progressively sold to a major US healthcare
group (Ofix). In his early career, Mr Brown
worked in a number of UK and international
sales and marketing positions for Johnson &
Johnson, Smiths Industries and Pharmacia AB.
John Rowland
Company Secretary
Mr Rowland joined the Group in October
2007 qualifying as a Chartered Secretary 
in 1983. Prior to joining the Group he was
Group Company Secretary of Robert Dyas,
the high street retailer, between 2000 and
2007 and remains a trustee of their pension
scheme. He has also served as Company
Secretary of Aegis Group plc and The Birkdale
Group plc both media companies and 
as an Assistant Company Secretary of National
Westminster Bank PLC. Mr Rowland has
previously held senior positions with
Gestetner Holdings plc and Raybeck plc.
Dr Max Jonas
Dr Jonas is a Consultant Intensivist and Senior
Lecturer in critical care working at Southampton
University Hospitals. He is currently the Director 
of the 28 bed general intensive care unit and has
specific interests in hemodynamics and the
assessment of monitoring equipment. He is an
elected member of the Council of the Intensive
Care Society and has completed a six year term 
of the technology assessment section of the
European Society of Intensive Care Medicine. 
He is the ex-president of the Society of Critical
Care Technologists.
Professor David Bennett
David Bennett is visiting Professor of Intensive
Care at King’s College Hospital, London and was
formerly 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 Anesthesia and Analgesia.
Professor Michael Pinsky
Professor Pinsky is Professor of Critical Care
Medicine, Bioengineering, Cardiovascular Diseases
and Anesthesiology at the University of Pittsburgh
School of Medicine, USA and is a member of the
editorial board of the Journal of Critical Care and
Critical Care Forum. He is editor-in-chief of the
eMedicine textbook Critical Care Medicine. He was
awarded Docteur honoris causa from the Université
de Paris V (Le Sorbonne). He has a wide range 
of research interests – among them being the 
study of heart-lung interactions, hemodynamic
monitoring, cardiovascular physiology, sepsis and
outcomes research. He is a world leading authority
on the application of both existing invasive, and 
the more recent introduced minimally invasive,
monitoring technologies.
Dr Christopher Wolﬀ
Dr Wolff holds the post of senior research fellow 
at The Centre for Clinical Pharmacology, The William
Harvey Research Institute, Bart’s and London
Queen Mary School of Medicine and Dentistry,
London. He is a clinician, physiologist and
mathematician and has major research interests 
in respiratory and cardiovascular physiology.
Dr David Band
Dr Band was appointed to the Clinical Advisory
Group in April 2011. He co-founded LiDCO 
in 1991, is the co-inventor of the LiDCO system
and until April 2011 was the Group’s Scientific
Director. He is a specialist in the field of respiratory
physiology, electrochemistry and ion-selective
electrodes. He has a degree in medicine and was 
a reader in applied physiology in the Division 
of Physiology, GKT School of Biomedical Sciences,
St Thomas’ campus. 16
LiDCO Annual Report
2010/11
The UK Corporate Governance Code
Companies that have shares traded on AIM, the London Stock Exchange’s market for smaller growing companies, are not required to comply
with the disclosures of The UK Corporate Governance Code. However, the Board is committed to maintaining the highest standards 
of corporate governance, where appropriate for a company of its size.
The Board of Directors
The Board currently consists of three executive 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, other than through
their shareholdings, are independent directors. The non-executive directors bring a wide range of skills and experience to the Board.
The Chairman of the Board is Ms Wallis and Mr Brown is the senior independent non-executive director. Directors’ biographies are provided 
on page 15. 
There were 10 Board meetings during the year. The attendance of the individual directors at the Board Meetings and the Audit and
Remuneration Committee Meetings was as follows:
Attendance record at Board meetings and Committees
Board Audit Remuneration Nomination
Name Position Meetings Committee Committee Committee
Ms T A Wallis Non-executive Chairman 10 (10) 2(2) 6(6) n/a
Dr T K O’Brien Chief Executive Officer 9 (10) n/a n/a n/a
Mr P L Clifford Finance Director 10 (10) n/a n/a n/a
Dr D M Band Scientific Director 6 (10) n/a n/a n/a
Mr J G Barry Sales & Marketing Director 9 (10) n/a n/a n/a
Mr I G Brown Non-executive Director 10(10) 2(2) 6(6) n/a
Numbers in brackets denote the total number of meetings during the year.
All the directors have access to the advice and services of the Company Secretary, whose appointment and removal is a matter for the Board 
as a whole. All directors are able to take independent advice in the furtherance of their duties, if necessary, at the Company’s expense. 
The Company Secretary supports both the Board and the Committees. 
Under the Company’s Articles of Association, all new directors are required to resign and seek re-election at the first Annual General Meeting
following their appointment. All directors are required to seek re-election at intervals of no more than three years. 
Board evaluation and performance
In February 2011, the Board carried out an evaluation of the performance, functioning and composition of the Board and its Committees. 
This involved the Chairman having a discussion with each director individually following which the findings were collated and discussed 
by the Board and actions were agreed. It is the Board’s intention to continue to review annually its performance and that of its Committees. 
Corporate Governance report 17
LiDCO Annual Report
2010/11
Committees of the Board
Audit Committee
The members of the Committee are Ms Wallis (Chairman) and Mr Brown. The external auditors also attend meetings. The Committee considers
financial reporting and internal controls. It also reviews the scope and results of the external audit and the independence and objectivity 
of the auditors. It meets at least twice a year and reviews the interim and annual financial statements before they are submitted for approval
by the Board. The Committee met twice during the year. The Committee considers annually whether the auditors remain independent for the
purposes of the audit. This year the fee for non-audit work is £13,000 against an audit fee of £43,000. The Committee is satisfied that the auditors
remain independent for the purposes of the annual audit. The Committee considers that given the size of the Company and its current stage
of development a separate internal audit function cannot be justified, but the matter is re-considered annually by the Committee. 
Remuneration Committee
The members of the Committee are Ms Wallis (Chairman) and Mr Brown. The Committee reviews and sets the remuneration of the executive
directors. It also reviews the policy for the salaries and bonuses of all other staff. It advises on share schemes and approves the granting 
of share options. The Committee met six times during the year.
Nomination Committee
The members of the Committee are Ms Wallis (Chairman), Mr Brown and Dr O’Brien. The Committee considers, at the request of the Board,
candidates for new appointments to the Board and advises on all matters relating to Board appointments. The Committee did not meet during 
the year.
Relations with shareholders
The Company seeks to maintain and enhance good relations with its shareholders. The Company’s interim and annual reports are supplemented
by public announcements to the market on technological and commercial progress. All investors have access to up-to-date information 
on the Company via its website, www.lidco.com, which also provides contact details for investor relations enquiries. All shareholders are invited 
to make use of the Company’s Annual General Meeting to raise any questions regarding the management or performance of the Company.
The Chief Executive, Finance Director and Chairman meet regularly with shareholders and the investing community and report to the Board
feedback from those meetings. Both non-executive directors have the opportunity to attend shareholder meetings. The Board is kept
informed on market views about the Company. 18
LiDCO Annual Report
2010/11
The Company recognises the importance of corporate social responsibility. 
At the core of LiDCO are its medical products for hemodynamic monitoring which have been developed over a number of years and continue
to be developed. The original objective of the design of these products was to translate specialist physiological parameters and principles into
useable information and tangible protocols to improve clinical outcomes. The Company has been successful in achieving this objective and 
its products, which are used in hospitals in many parts of the world, are life saving and help surgeons to improve the outcome of clinical
operations for the benefit of the patient both during and after surgery and help hospitals to reduce their costs.
LiDCO works with its employees, customers and suppliers to conduct its business in an ethical way. The Company is of a relatively small size,
but growing. Thus the Company’s commitment to corporate social responsibility is dynamic and is reviewed when considered appropriate. 
Employees 
The Company recognises that an essential part of its continued success is the support and involvement of its employees.
• Effective communication is essential to ensure its employees are fully engaged with the business. The senior management team meets
regularly throughout the year as a forum to discuss interdepartmental issues and briefing sessions are also held by the Chief Executive 
to update employees on Company progress, strategy and objectives.
• Employees have annual appraisals to set objectives, identify strengths and areas for development.
• Training is provided where necessary to enhance job performance and aid development.
• The Company has a share option scheme with a high level of employee participation.
• The Company regularly reviews the benefits offered to employees.
Environment 
Whilst not of substantial impact compared with many other manufacturing industries, nevertheless the Company recognises its activities 
have an impact on the environment and acknowledges its responsibility to ensure this is minimised. 
• In accordance with the requirements of the Waste Electrical and Electronic Equipment Regulations (WEEE), the Company has signed 
up to a compliance system to recycle and dispose of electrical equipment waste.
• Where possible, other products are recycled within the Company.
• Paper, cardboard and ink cartridge recycling collection facilities are in place in London and Cambridge.
• Redundant computer equipment is offered to employees or disposed of in accordance with good practice.
• Company purchased vehicles are run on diesel fuel for fuel efficiency.
• The Company continually reviews the chemicals it uses in its manufacturing processes with the aim of using the least toxic and most
environmentally friendly products commensurate with producing high quality products. 
Corporate social responsibility statement 19
LiDCO Annual Report
2010/11
Ethics and values 
• The Company designs and manufactures life saving products which help clinicians to improve the outcome of clinical operations 
for the benefit of patients both during and after surgery and helps hospitals to reduce their costs.
• The Company aims for all employees to have job satisfaction, a safe and secure working environment, the feeling that their achievements
are recognised and an opportunity to develop their full potential.
• The Company recognises customer needs for a high level of customer service and quality of its products, at the right price.
Health and safety
• As a producer of medical products the Company operates in a highly regulated environment and is subject to regular inspection and audit.
• The Company uses an external specialist to advise on its health and safety policy and practice. Stringent procedures are in place in areas 
of the Company where risks are apparent, and the Company provides a physically safe working environment, training, protective clothing
and equipment to all employees who undertake their duties. 
• All Company car drivers are provided with a full driving risk assessment and training upon joining, and a further paper based risk assessment
is completed every three years.
• Health and safety matters are regularly reviewed at Board meetings. 
Shareholders
The Company aims to treat its stakeholders in a responsible manner. It maintains regular contact with its major shareholders to explain
developments in the business and all shareholders are invited to question management at the Annual General Meeting. See also ‘Relations
with shareholders’ in the Corporate Governance Report on page 17.  20
LiDCO Annual Report
2010/11
The directors present their Remuneration Report which covers the remuneration of both the executive and non-executive directors. 
The report will be subject to shareholder vote at the forthcoming Annual General Meeting in June 2011.
Committee membership
The membership of the Remuneration Committee is made up of the following non-executive directors:
T A Wallis (Chairman)
I G Brown 
Neither of the Committee members has any day-to-day involvement in the running of the Company, nor do they have any business or other
relationship that could affect, or appear to affect, the exercise of their independent judgement, other than as shareholders. No director plays 
a part in any decision about his or her own remuneration.
Remuneration policy 
The Committee determines on behalf of the Board, the remuneration for the executive directors and reviews remuneration policies for all
employees. Remuneration levels are set in order to attract high calibre recruits and to retain and motivate those directors and employees once
they have joined the Company to ensure the future success of the business and to deliver shareholder value. This is achieved by a combination
of base salary, bonuses and share options, which are offered to executive directors and employees at all levels. The Committee met six times 
in the year.
Base salary
All executive directors receive a base salary and, if appropriate, an allowance in lieu of benefits. The salary reflects the experience, level 
of competence and days worked of the individual to whom it applies, as judged by the Committee, taking into account salary levels 
in the market.
Annual bonus
The executive directors who served during the year are members of the Company’s Senior Management Bonus Scheme. Under the terms 
of the Scheme, the Remuneration Committee assesses the directors’ individual performances soon after the end of the financial year, judged
against pre-determined targets. 
The criteria for awarding bonuses during the year included corporate and individual objectives. The principal corporate objective on which the
directors are judged is operating profit/loss. Bonuses are capped at 50% of base salary. 
Remuneration policy of the non-executive directors
The Board determines the remuneration of the non-executive directors. The non-executive directors do not participate in the Group’s share
option schemes and are not eligible for annual incentive payments or benefits in kind.
Directors’ remuneration report 21
LiDCO Annual Report
2010/11
Remuneration of directors
Year ended 31 January 2011
Allowance
Salary in lieu of
and fees beneﬁts Beneﬁts Bonus Total 2010
£’000 £’000 £’000 £’000 £’000 £’000
T A Wallis 44 – – – 44 44
T K O’Brien 185 38 1 22 246 259
J G Barry 175 35 4 19 233 241
P L Clifford 96 20 1 11 128 92
D M Band 46 9 – 3 58 61
I G Brown 29 – – – 29 28
Total 575 102 6 55 738 725
Contracts of service
Details of the service contracts currently in place for the directors who have served during the year are as follows:
Executive directors
The service contracts of Dr O’Brien and Mr Barry are dated 29 June 2001 and are not set for a specific term but include a rolling 12 months’
notice period. Mr Clifford, who is part-time, has a service contract with the Company dated 21 April 2008 as with the other executive directors,
this is not for a specific term, but includes a rolling six months’ notice period. 
Non-executive directors
The non-executive directors do not have service contracts with the Company. The letter of appointment for each non-executive director states
that they are appointed for an initial period of three years. At the end of the initial period, the appointment may be renewed for a further
period if the Company and the director agree. In keeping with best practice, these appointments are terminable without notice by either party.
The Chairman’s appointment is for a term ending 19 December 2011 and Mr Brown’s appointment for a term ending 11 October 2011. 22
LiDCO Annual Report
2010/11
Directors’ interests in share options
Options were granted to the executive directors as follows: 
Options
Options granted Lapsed Options
at 31 Jan Date of during during at 31 Jan Exercise Exercisable Expiry 
Name Option type 2010 grant the year the year 2011 price (p) from date
T K O’Brien EMI 750,000 Dec-2002 750,000 13.00 Dec-2005 Dec-2012
EMI 11,627 Apr-2005 11,627 21.50 Apr-2008 Apr-2015
Unapproved 265,768 Apr-2005 265,768 21.50 Apr-2008 Apr-2015
EMI 150,000 May-2009 150,000 12.67 May-2012 May-2019
1,177,395 Nil Nil 1,177,395
D M Band EMI 750,000 Dec-2002 750,000 13.00 Dec-2005 Dec-2012
EMI 11,627 Apr-2005 11,627 21.50 Apr-2008 Apr-2015
Unapproved 53,489 Apr-2005 53,489 21.50 Apr-2008 Apr-2015
815,116 Nil Nil 815,116
J G Barry Unapproved 106,250 July-2001 106,250 0.50 July-2004 Jul-2011
Unapproved 211,000 Dec-2002 211,000 13.00 Dec-2005 Dec-2012
EMI 539,000 Dec-2002 539,000 13.00 Dec-2005 Dec-2012
Unapproved 90,000 Nov-2003 90,000 28.25 Nov-2006 Nov-2013
Unapproved 356,844 Apr-2005 356,844 21.50 Apr-2008 Apr-2015
Unapproved 192,436 Apr-2005 192,436 22.00 Dec-2005 Apr-2015
Unapproved 328,539 Apr-2005 328,539 22.00 Apr-2006 Apr-2015
Unapproved 656,903 Apr-2005 656,903 22.00 Sep-2006 Apr-2015
EMI 136,045 Apr-2005 136,045 22.00 Dec-2005 Apr-2015
Unapproved 45,000 Jun-2006 45,000 21.00 Jun-2009 Jun-2016
Unapproved 75,000 Jun-2007 75,000 12.50 Jun-2010 Jun-2017
Unapproved 83,333 Apr-2008 83,333 7.50 Apr-2011 Apr-2018
EMI 266,667 Apr-2008 266,667 7.50 Apr-2011 Apr-2018
Unapproved 150,000 May-2009 150,000 12.67 May-2012 May-2019
Unapproved – Jun-2010 100,000 100,000 19.92 Jun-2013 Jun-2020
3,237,017 100,000 Nil 3,337,017
P L Clifford Approved 66,000 Apr-2008 66,000 7.50 Apr-2011 Apr-2018
Approved 75,000 May-2009 75,000 12.67 May 2012 May-2019
EMI – Jun-2010 100,000 100,000 19.92 Jun-2013 Jun-2020
141,000 100,000 Nil 241,000
Totals 5,370,528 200,000 Nil 5,570,528
The share price was 18.25p on 1 February 2010 and 18.75p on 31 January 2011, with high and low during the year of 24.50p and 
16.50p respectively.
Directors’ remuneration report
continued 23
LiDCO Annual Report
2010/11
Pensions
No pension contributions were payable by the Group during the year (2009/10: £nil). 
Shareholder return
The graph below shows the share price performance since January 2006, using the FTSE TechMARK Mediscience Index as a comparator, 
which the directors consider to be a suitable benchmark index.
Theresa Wallis
Chairman of the Remuneration Committee
15 April 2011
31 Jan
2006
31 Jan
2007
31 Jan
2008
31 Jan
2009
31 Jan
2010
31 Jan
2011
0
5
10
15
20
25
30 LiDCO Ord 0.5p
TechMARK 
MediScience 
Index rebased 24
LiDCO Annual Report
2010/11
The directors of LiDCO Group Plc present their annual report and audited financial statements (Annual Report) for the year ended 
31 January 2011.
Principal activities, business review and business risks
The principal activity of the Group is the development, manufacture and sale of cardiac monitoring equipment.
The Chairman’s statement, the Chief Executive Officer’s Statement and Corporate Social Responsibility Statement form part of this 
business review.
The key commercial risks associated with the business are:
• healthcare spending – the Group’s performance is affected by hospitals’ expenditure and any, or developing, capital budgetary constraints,
which the Group mitigates by targeting its efforts and resources according to sales opportunities where budgets are likely to be available
and a wider geographic sales growth predominantly through its specialist distributor network;
• competitive activity from other producers of hemodynamic monitors who sell competing products which may restrict the Group’s ability 
to maintain or make further progress in increasing its share of the growing minimally invasive hemodynamic monitoring market. The Group
addresses this by encouraging independent clinical validation of its products, introducing product developments/enhancements and
supporting clinical studies that focus on patient outcome improvement and economic benefits; and
• the Group relies on distributors for its sales and marketing activities outside the UK. The Group mitigates the risk of distributor
underperformance by selecting distributors with the requisite resources, skills, access to customers and creditworthiness and by providing
training programmes and extensive support both in the initial phase following appointment and on an ongoing basis.
The key financial risk is the management and maintenance of sufficient cash balances to support the ongoing development, supply and
marketing of the LiDCO products. 
Results and dividends
The Group’s revenue for the year was £6,237,000 (2009/10: £5,367,000). The Group made a consolidated loss after taxation of £390,000 
(2009/10: £1,427,000). The directors do not recommend the payment of a dividend (2009/10: £nil).
The Company’s share price at 29 January 2011 was 18.75p (2010: 18.25p).
Research and development
The Group continued to develop the LiDCO products during the year. Details of the costs expended on research and development are set out
in notes 3 and 8 to the financial statements on pages 39 and 42 respectively. 
Share capital and share premium account
Full details of the issued share capital of the Company, together with details of the movements in the Company’s issued share capital and the
share premium accounts during the year, are shown in notes 14 on page 47 and 4 on page 52 to the financial statements. 
Directors
The directors of the Company who served during the year are set out below; short biographies are set out on page 15.
T A Wallis Non-executive Chairman
T K O’Brien Chief Executive Officer
P L Clifford Finance Director
D M Band Scientific Director
J G Barry Sales and Marketing Director
I G Brown Non-executive Director
Mr Brown and Mr Clifford retire by rotation and, being eligible, offer themselves for re-election at the forthcoming Annual General Meeting. 
Dr Band resigned as a director on 18 April 2011 and joined the Clinical Advisory Group. 
Directors’ remuneration
The Remuneration Report, which includes information regarding directors’ service contracts, appointment arrangements and interests in share
options, can be found on pages 21 and 22.
Directors’ report 25
LiDCO Annual Report
2010/11
Directors’ interests in shares
The directors who held office at 31 January 2011 had beneficial interests in the ordinary shares of the Company as shown below:
Directors’ shareholdings
Ordinary shares of 0.5p each
31 January 31 January
2011 2010
Number Number
T A Wallis 301,037 301,037
T K O’Brien 11,516,563 11,516,563
P L Cliﬀord 575,000 500,000
D M Band 7,160,832 7,160,832
J G Barry 429,642 429,642
I G Brown 200,000 200,000
The directors have no interests in the shares of the Company’s subsidiary undertakings.
Directors’ indemnities and Directors’ and Oﬃcers’ insurance
The Company has exercised the power given by shareholders at the 2006 Annual General Meeting to extend the indemnities to directors and
officers against liability to third parties. The directors also have Directors’ and Officers’ insurance cover in place in respect of personal liabilities
which may be incurred by directors and officers in the course of their service with the Company. 
Employment policy
Equal opportunity is given to all employees regardless of their gender, race or ethnic origin, religion, age, disability, or sexual orientation.
The Company’s policy is to encourage the involvement of all employees in the development and performance of the Group. Employees are
briefed on the Group’s activities through meetings and discussions with management and all employees are encouraged to give their views 
on matters of common concern through the line management. A significant number of employees have share options. 
Supplier payment policy
It is and will continue to be the policy of the Group to negotiate with suppliers so as to obtain the best available terms taking account 
of quality, delivery, price and period of settlement and, having agreed those terms, to abide by them. The Group’s average creditor payment
period as at 31 January 2011 was 41 days (2010: 25 days).  26
LiDCO Annual Report
2010/11
Signiﬁcant shareholdings
As at 11 April 2011, the Company has been notified that the following shareholders, other than directors, had the following interest of 3% or
more of the Company’s ordinary share capital: 
Number of shares 
in which there Percentage
Shareholder is an interest notiﬁed
*
Ingalls & Snyder Llc 27,878,594 16.02%
Cheviot Asset Management Limited 13,956,163 8.02%
H J Leitch 13,177,489 7.57%
P A Brewer 11,724,727 6.74%
R M Greenshields 9,042,407 5.20%
Liontrust Intellectual Capital Trust 8,738,639 5.02%
Octopus Investments Limited 5,634,200 3.24%
*
The percentages shown are based on the issued share capital at that date.
Directors’ responsibilities for the ﬁnancial statements accounts
The directors are responsible for preparing the Annual Report and Group financial statements in accordance with applicable law and
International Financial Reporting Standards as adopted by the European Union. The parent company financial statements have been prepared
in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the directors to prepare financial statements for each financial year which give a true and fair view of the state of affairs
of the Company and the Group and of the profit or loss of the Group for that period. In preparing those financial statements, the directors are
required to:
• 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 Company will continue 
in business.
In so far as the directors are aware:
• there is no relevant audit information of which the Company’s auditors are unaware; and
• the directors have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish
that the auditors are aware of that information.
The directors are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position 
of the Company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for
safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The directors are responsible for the maintenance and integrity of the corporate and financial information included on the Group’s website.
Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation 
in other jurisdictions.
Directors’ report
continued 27
LiDCO Annual Report
2010/11
Going concern
The Company’s business activities, together with a review of the market and the company’s distribution channels are set out in the Chief Executive
Officer’s Statement on pages 8 to 13. In addition, note 13 to the financial statements includes the Company’s policies for managing its capital;
its financial risk; details of its financial instruments; and its exposures to credit risk and liquidity risk.
The Company has a number of customers across different geographic areas and considerable recurring revenue streams through the sales 
of its disposable sensors and smart cards which represented 59% of its total revenues in the year to 31 January 2011. 
The Group finances its operations through shareholders’ funds and has no borrowings. The directors have a reasonable expectation that 
the Company has adequate resources to continue in operational existence for the foreseeable future based on forecasts for the two years 
to 31 January 2013. Thus they continue to adopt the going concern basis of accounting in preparing the annual financial statements.
Financial risk management
The Financial Risk Management objectives and policies of the Group, including the exposure to interest rate risk, liquidity risk and currency risk
are set out in note 13 to the financial statements on pages 44 to 46.
Key Performance Indicators (KPIs) 
The Board monitors progress against the Group’s strategy and by reference to the KPIs, specifically revenue growth, gross margin, working
capital levels and market position. These KPIs have been addressed in the Chief Executive Officer’s Review and the Financial Review.
Internal controls, regulation and risk management
The composition of the Board and the senior management team provides a suitable range of knowledge and experience to enable adequate
risk monitoring. The Company has implemented an organisational structure with clearly defined responsibilities and lines of accountability. 
Detailed budgets are prepared annually and progress against budget are reviewed monthly. Underpinning the monthly financial reporting 
is a system of internal control, based on authorisation procedures.
The adequacy of internal controls and the internal control structures was reviewed by the Board during the year.
As a medical device Company, LiDCO also has a system of regulatory controls, to ensure compliance with all requirements of the Medicines 
and Healthcare Products Regulatory Agency (MHRA), the US Food and Drug Administration (FDA) and other medical bodies. During the year
the Company was compliant with ISO13485 (Medical Devices – Quality Management Systems) and ISO 9001 (Quality Management Systems). 
The Board has established a process involving all departments for the comprehensive assessment of key risks to the business. The risk register 
is updated on an ongoing basis and regularly reviewed by the Board. Actions to mitigate risk are identified and agreed.
Auditors
A resolution to re-appoint Grant Thornton UK LLP as auditors and to authorise the directors to set their remuneration will be proposed at the
forthcoming Annual General Meeting.
Annual General Meeting
The Notice to convene the Annual General Meeting of the Company to be held on Wednesday 29 June 2011 is set out on page 3 of the
separate circular which includes an explanation of each resolution.
By order of the Board
John Rowland
Company Secretary
15 April 2011 28
LiDCO Annual Report
2010/11
We have audited the Group financial statements of LiDCO Group Plc for the year ended 31 January 2011 which comprise the consolidated
comprehensive income statement, the consolidated balance sheet, the consolidated cash flow statement, the consolidated statement 
of changes in shareholders equity and the related notes. The financial reporting framework that has been applied in their preparation 
is applicable law and International Financial Reporting Standards (IFRSs) as adopted by the European Union.
This report is made solely to the Company’s members, as a body, in accordance with chapter 3 of part 16 of the Companies Act 2006. Our
audit work has been undertaken so that we might state to the Company’s members those matters we are required to state to them in an
auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other
than the Company and the Company’s members as a body, for our audit work, for this report, or for the opinions we have formed. 
Respective responsibilities of directors and auditors
As explained more fully in the Directors’ Responsibilities Statement, the directors are responsible for the preparation of the Group financial
statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the Group
financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require 
us to comply with the Auditing Practices Board’s (APB’s) Ethical Standards for Auditors.
Scope of the audit of the ﬁnancial statements
A description of the scope of an audit of financial statements is provided on the APB’s website at www.frc.org.uk/apb/scope/private.cfm.
Opinion on ﬁnancial statements
In our opinion the Group financial statements:
• give a true and fair view of the state of the Group’s affairs as at 31 January 2011 and of its loss for the year then ended; 
• have been properly prepared in accordance with IFRS as adopted by the European Union; and
• have been prepared in accordance with the requirements of the Companies Act 2006.
Opinion on other matter prescribed by the Companies Act 2006
In our opinion the information given in the Directors’ Report for the financial year for which the Group financial statements are prepared 
is consistent with the Group financial statements.
Matters on which we are required to report by exception
We have nothing to report in respect of the following:
Under the Companies Act 2006 we are required to report to you if, in our opinion:
• certain disclosures of directors’ remuneration specified by law are not made; or
• we have not received all the information and explanations we require for our audit.
Other matter
We have reported separately on the parent company financial statements of LiDCO Group Plc for the year ended 31 January 2011. 
Christopher Smith
Senior Statutory Auditor
for and on behalf of Grant Thornton UK LLP
Statutory Auditor, Chartered Accountants
London
15 April 2011
Independent auditor’s report to the members of LiDCO Group Plc 29
LiDCO Annual Report
2010/11
Consolidated comprehensive income statement
For the year ended 31 January 2011
Year Year
ended ended
31 January 31 January
2011 2010
Note £’000 £’000
Revenue 2 6,237 5,367
Cost of sales (2,021) (2,074)
Gross proﬁt 4,216 3,293
Administrative expenses (4,714) (4,832)
Loss from operations 3 (498) (1,539)
Finance income 8 5
Finance expense – (11)
Loss before tax (490) (1,545)
Income tax 5 100 118
Loss and total comprehensive expense for the year attributable to equity holders of the parent (390) (1,427)
Loss per share (basic and diluted) (p) 6 (0.22) (0.87)
All transactions arise from continuing operations.
There were no items of other comprehensive income for the ﬁnancial year.
The accompanying accounting policies and notes form an integral part of these ﬁnancial statements.  30
LiDCO Annual Report
2010/11
2011 2010
Note £’000 £’000
Non-current assets
Property, plant and equipment 7 513 587
Intangible assets 8 755 764
1,268 1,351
Current assets
Inventory 9 1,047 1,094
Trade and other receivables 10 1,607 1,649
Current tax 109 120
Cash and cash equivalents 1,404 1,846
4,167 4,709
Current liabilities
Trade and other payables 11 (767) (603)
Deferred income 11 (74) (614)
Borrowings 11 (10) (10)
(851) (1,227)
Net current assets 3,316 3,482
Total assets less current liabilities 4,584 4,833
Equity attributable to equity holders of the parent
Share capital 14 870 869
Share premium 25,393 25,393
Merger reserve 8,513 8,513
Retained earnings (30,196) (29,956)
Total equity 4,580 4,819
Non-current liabilities
Finance lease liability 12 4 14
Total non-current liabilities 4 14
Total equity and non-current liabilities 4,584 4,833
The ﬁnancial statements were approved by the Board of Directors on 15 April 2011.
Theresa Wallis Terence O’Brien
Director Director
The accompanying accounting policies and notes form an integral part of these ﬁnancial statements.
Consolidated balance sheet
At 31 January 2011 31
LiDCO Annual Report
2010/11
Consolidated cash ﬂow statement
For the year ended 31 January 2011
Year Year
ended ended
31 January 31 January
2011 2010
£’000 £’000
Loss before tax (490) (1,545)
Net ﬁnance (income)/costs (8) 6
Depreciation and amortisation charges 639 672
Share-based payments 150 46
Decrease/(increase) in inventories 47 (41)
Decrease in receivables 42 37
Increase/(decrease) in payables 164 (302)
Decrease/(increase) in deferred income (540) 577
Interest paid – (11)
Income tax credit received 111 118
Net cash inﬂow/(outﬂow) from operating activities 115 (443)
Cash ﬂows from investing activities
Purchase of property, plant and equipment (127) (132)
Purchase of intangible assets (429) (474)
Interest received 8 5
Net cash used in investing activities (548) (601)
Net cash outﬂow before ﬁnancing (433) (1,044)
Cash ﬂows from ﬁnancing activities
Repayment of ﬁnance lease (10) (10)
Issue of ordinary share capital 1 3,021
Invoice discounting ﬁnancing facility – (364)
Net cash (outﬂow)/inﬂow from ﬁnancing activities (9) 2,647
Net (decrease)/increase in cash and cash equivalents (442) 1,603
Opening cash and cash equivalents 1,846 243
Closing cash and cash equivalents 1,404 1,846
The accompanying accounting policies and notes form an integral part of these ﬁnancial statements. 32
LiDCO Annual Report
2010/11
Share Share Merger Retained Total 
capital premium reserve earnings equity
£’000 £’000 £’000 £’000 £’000
At 1 February 2009 710 22,531 8,513 (28,575) 3,179
Issue of share capital 159 2,862 – – 3,021
Share-based payment expense – – – 46 46
Transactions with owners 159 2,862 – 46 3,067
Loss and total comprehensive expense for the year – – – (1,427) (1,427)
At 31 January 2010 869 25,393 8,513 (29,956) 4,819
Issue of share capital 1––– 1
Share-based payment expense – – – 150 150
Transactions with owners 1 – – 150 151
Loss and total comprehensive expense for the year – – – (390) (390)
At 31 January 2011 870 25,393 8,513 (30,196) 4,580
The share premium account represents the excess over the nominal value for shares allotted. 
The merger reserve represents a non-distributable reserve arising from historic acquisitions.
The accompanying accounting policies and notes form an integral part of these ﬁnancial statements.
Consolidated statement of changes in shareholders’ equity
For the year ended 31 January 2011 33
LiDCO Annual Report
2010/11
Notes to the ﬁnancial statements
For the year ended 31 January 2011
1  Principal accounting policies
The Group’s principal activity is the development, manufacture and sale of cardiac monitoring equipment. LiDCO Group Plc is the Group’s
ultimate parent company. It is incorporated and domiciled in England & Wales and situated at the address shown on page 53. The Group’s
shares are quoted on the AIM section of the London Stock Exchange.
Basis of preparation
These financial statements have been prepared in accordance with the principal accounting policies adopted by the Group, International
Financial Reporting Standards (IFRS) and International Financial Reporting Interpretations (IFRIC) as adopted by the EU and those parts of the
Companies Act 2006 applicable to companies reporting under IFRS. They are presented in sterling, which is the functional currency of the
parent company.
The preparation of financial statements in accordance with IFRS requires the use of estimates and assumptions that affect the reported
amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the date of the financial statements and the reported
amounts of revenues and expenses during the reporting period. Although these estimates are based on management’s best knowledge 
of current events and actions, actual results may ultimately differ from those estimates.
The accounting policies have been applied consistently throughout all periods presented in these financial statements. These accounting
policies comply with each IFRS that is mandatory for accounting periods ending on 31 January 2011.
The Group’s consolidated financial statements are prepared in accordance with the principal accounting policies adopted by the Group as set
out below and International Financial Reporting Standards (IFRS) and International Financial Reporting Interpretations (IFRIC) as adopted 
for use in the European Union (EU), and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS. 
The following standards have been amended or implemented during the year. The Group’s consolidated financial statements have been
prepared in accordance with these changes where relevant.
• IFRS 2 (amendments), ‘Group cash-settled share-based payment transactions’ , incorporates IFRIC 8, ‘Scope of IFRS 2’ , and IFRIC 11, ‘IFRS 2 –
Group and treasury share transactions’ , and expands on the guidance in IFRIC 11 to address the classification of group arrangements.
• IFRS 3 (revised), ‘Business combinations’ , and consequential amendments to IAS 27, ‘Consolidated and separate financial statements’ , IAS 28,
‘Investments in associates’ , and IAS 31, ‘Interests in joint ventures’ , are effective prospectively to business combinations for which the
acquisition date is on or after the beginning of the first annual reporting period beginning on or after 1 July 2009.
• IFRS 5 (amendment), ‘Non-current assets held for sale and discontinued operations’ , clarifies the disclosures required in respect of non-current
assets (or disposal groups) classified as held for sale or discontinued operations.
• IAS 1 (amendment), ‘Presentation of financial statements’ , clarifies that the potential settlement of a liability by the issue of equity is not
relevant to its classification as current or non-current.
• IAS 27 (revised) requires the effects of all transactions with non-controlling interests to be recorded in equity if there is no change in control
and these transactions will no longer result in goodwill or gains and losses.
• IAS 36 (amendment), ‘Impairment of assets’ , clarifies that the largest cash generating unit (or group of units) to which goodwill should 
be allocated for the purposes of impairment testing is an operating segment, as defined by paragraph 5 of IFRS 8, ‘Operating segments’ .
• IFRIC 9, ‘Reassessment of embedded derivatives and IAS 39, Financial instruments: Recognition and measurement’ , requires an entity 
to assess whether an embedded derivative should be separated from a host contract when the entity reclassifies a hybrid financial asset 
out of the ‘fair value through profit or loss’ category.
• IFRIC 16, ‘Hedges of a net investment in a foreign operation’ , states that, in a hedge of a net investment in a foreign operation, qualifying
hedging instruments may be held by any entity or entities within the group, including the foreign operation itself, as long as the
designation, documentation and effectiveness requirements of IAS 39 that relate to a net investment hedge are satisfied.
• IFRIC 17, ‘Distribution of non-cash assets to owners’ , provides guidance on accounting for arrangements whereby an entity distributes 
non-cash assets to shareholders either as a distribution of reserves or as dividends.
• IFRIC 18, ‘Transfers of assets from customers’ clarifies the requirements of IFRSs for agreements in which an entity receives an item of property,
plant and equipment from a customer.
These standards are effective but the Group has not adopted them early. 34
LiDCO Annual Report
2010/11
IFRS standards and interpretations not yet adopted
Standard issued but not yet eﬀective 
The following standards and interpretations are in issue but not yet adopted by the EU: 
• IFRS 9 Financial Instruments (effective 1 January 2013) 
• Improvements to IFRS issued May 2010 (some changes effective 1 July 2010, others effective 1 January 2011) 
• Disclosures – Transfers of Financial Assets – Amendments to IFRS 7 (effective 1 July 2011) 
• Deferred Tax: Recovery of Underlying Assets – Amendments to IAS 12 Income Taxes (effective 1 January 2012) 
• Severe Hyperinflation and Removal of Fixed Dates for First-time Adopters – Amendments to IFRS 1 First-time Adoption of International
Financial Reporting Standards (effective 1 July 2011)
The current endorsement status is listed on the EFRAG website under ‘Endorsement Status’: http://www.efrag.org/homepage.asp 
Going concern
The Company’s business activities, together with a review of the market and the Company’s distribution channels are set out in the Chief
Executive Officer’s Statement on pages 8 to 13. In addition, note 13 to the financial statements include the Company’s policies for managing 
its capital; its financial risk; details of its financial instruments; and its exposures to credit risk and liquidity risk.
The Company has a number of customers across different geographic areas and considerable recurring revenue streams through the sales 
of its disposable sensors and smart cards which represented 59% of its total revenues in the year to 31 January 2011. 
The Group finances its operations through shareholders’ funds and has no borrowings. The directors have a reasonable expectation that the
Company has adequate resources to continue in operational existence for the foreseeable future based on forecasts for the two years 
to 31 January 2013. Thus they continue to adopt the going concern basis of accounting in preparing the annual financial statements.
Accounting convention
The financial statements are prepared under the historic cost convention. The measurement basis and significant accounting policies are set
out below.
Basis of consolidation
The Group’s consolidated financial statements consolidate those of the Company and of its subsidiary undertakings drawn up to 31 January 2011.
Subsidiary undertakings are all entities over which the Group has the power to control the financial and operating policies so as to obtain
economic benefits from its activities. The Group obtains and exercises control through voting rights.
Business combinations are dealt with by the purchase method. The purchase method involves the recognition at fair value of all identifiable
assets and liabilities, including contingent liabilities of the subsidiary at the acquisition date whether or not they were recognised in the
statements of the subsidiary prior to acquisition. On initial recognition the assets and liabilities of the subsidiary are included in the
consolidated balance sheet at their fair values which are also used as the bases for subsequent measurement in accordance with the Group
accounting policies. The results of any subsidiary undertakings acquired during the period, where applicable, are included from the date 
of acquisition. All intra-Group transactions, balances, income and expenses are eliminated on consolidation.
Revenue recognition
Revenues are recognised at fair value of the consideration receivable net of the amount of value added taxes.
Sale of goods
Sales revenue comprises revenue earned (net of returns, discounts and allowances) from the provision of products to entities outside the
consolidated entity. Sales revenue is recognised when the risks and rewards of ownership of the goods passes to the customer, which 
is normally upon delivery, and when the amount of revenue can be measured reliably.
The Group has an arrangement for the placing of monitors in hospitals with Med One Capital Funding, LLC, a US company that has trading
relationships with the majority of US hospitals. When the Group has sold monitors to Med One they are entitled to a portion of the monthly
revenue from the sale of consumables relating to those monitors for a period of three years. The full revenue arising from the sale of such
consumables is recognised as revenue by the Group and payments made to Med One in this way are included within cost of sales.
Licence fees
Licence fees are recognised in accordance with the substance of the relevant distribution agreement, provided that it is probable that the
economic benefit associated with the transaction will flow to the Group and the amount of revenue can be reliably measured. Licence fees
received in advance of the recognition of those fees is shown as deferred income.
Notes to the ﬁnancial statements
continued 35
LiDCO Annual Report
2010/11
Delivery of services
Revenue from rendering services is recognised in the period in which the service is provided.
Interest income
Interest income is brought to account as it accrues, using the effective interest method.
Other income
Other income is brought to account when the consolidated entity’s right to receive income is established and the amount can be reliably measured. 
Research and development
Research expenditure is charged to the income statement in the period in which it is incurred. 
Development costs are capitalised when all the following conditions are satisfied:
• completion of the intangible asset is technically feasible so that it will be available for use or sale;
• the Group intends to complete the intangible asset and use or sell it;
• the Group has the ability to use or sell the intangible asset;
• the intangible asset will generate probable future economic benefits;
• there are adequate technical, financial and other resources to complete the development and to use or sell the intangible asset; and
• the expenditure attributable to the intangible asset during its development can be measured reliably.
Capitalised development costs which comprise cost of materials, labour and attributable overheads are amortised over a period of three 
to five years.
Development costs not meeting the criteria for capitalisation are expensed as incurred.
Intangible assets – development costs
Intangible assets represent costs relating to product registration in new countries, software development costs and clinical trials on the 
LiDCO system. Where the directors are satisfied as to the technical, commercial and financial viability of these projects, the expenditure 
has been capitalised and is amortised in equal amounts over the useful life.
The carrying values of intangible assets are reviewed for impairment when events or changes in circumstances indicate that the carrying 
value may not be recoverable. The amortisation periods generally applicable are:
Clinical trials Three years
Product registration costs Five years
Software development Three years
Property, plant and equipment
Property, plant and equipment are stated at cost, net of depreciation. Depreciation is calculated to write down the cost less estimated residual
value of these assets by equal annual instalments over their estimated useful economic lives which are re-assessed annually. The periods/rates
generally applicable are:
Leasehold improvements Over the expected life of the lease
Plant and machinery 10% per annum
Fixtures and fittings 12.5% per annum
Office equipment 20% per annum
Computer equipment 33% per annum
Medical monitors 20% per annum
Medical monitors include equipment on long-term loan to hospitals for active use where the hospital pays for disposables. Also included 
in this category is equipment for demonstration purposes, clinical trials and testing. 36
LiDCO Annual Report
2010/11
Leases
Leases of property, plant and equipment where the Group has substantially all the risks and rewards of ownership are classified as finance
leases. Assets held under finance leases are capitalised at the lower of fair value or present value of the minimum lease payments in the
balance sheet and depreciated over their estimated useful economic lives. The interest element of leasing payments represents a constant
proportion of the capital balance outstanding and is charged to the income statement over the period of the lease.
All other leases are regarded as operating leases and the payments made under them are charged to the income statement on a straight-line
basis over the lease term.
Inventories
Inventories are stated at the lower of cost and net realisable value. Net realisable value is the estimated selling price in the ordinary course 
of business, less the estimated costs of selling expenses.
The cost of inventories is based on the first-in first-out principle and includes expenditure incurred in acquiring the inventories and bringing
them to their existing locations and condition.
Income tax
Current tax is the tax currently payable based on the taxable result for the year.
Deferred income taxes are calculated using the liability method on temporary differences. Deferred tax is generally provided on the difference
between the carrying amounts of assets and liabilities and their tax bases. In addition, tax losses available to be carried forward as well as other
income tax credits to the Group are assessed for recognition as deferred tax assets.
Deferred tax liabilities are provided in full, with no discounting. Deferred tax assets are recognised to the extent that it is probable that the
underlying deductible temporary differences will be able to be offset against future taxable income. Current and deferred tax assets and
liabilities are calculated at tax rates that are expected to apply to their respective period of realisation, provided they are enacted or substantively
enacted at the balance sheet date.
Changes in deferred tax assets or liabilities are recognised as a component of tax expense in the income statement, except where they relate
to items that are charged or credited directly to other comprehensive income or equity (such as the revaluation of land) in which case the
related deferred tax is also charged or credited directly to equity.
Foreign currency
Transactions in foreign currencies are translated at the exchange rate ruling at the date of the transaction. Monetary assets and liabilities 
in foreign currencies are translated at the rates of exchange ruling at the balance sheet. Any gain or loss arising from a change in exchange
rates subsequent to the date of the transaction is included as an exchange gain or loss in the income statement.
Trade and other receivables
Trade receivables, which generally have 30-90 day terms, are initially recognised at fair value and subsequently at amortised cost using the
effective interest method, less provisions for impairment. Provision against trade receivables is made when there is objective evidence that 
the group will not be able to collect all amounts due to it in accordance with the original terms of those receivables. The amount of the 
write-down is determined as the difference between the asset’s carrying amount and the present value of estimated future cash flows.
Cash and cash equivalents
Cash and cash equivalents comprise cash at bank and in hand and demand deposits with an original maturity of three months or less, and
which are subject to an insignificant risk of change in value.
Financial liabilities and equity
Financial liabilities and equity instruments issued by the Group are classified according to the substance of the contractual arrangements
entered into and the definitions of a financial liability and an equity instrument. Financial liabilities are obligations to pay cash or other 
financial assets and are recognised when the Group becomes party to the contractual provisions of the instrument and are initially recorded 
at fair value net of issue costs. An equity instrument is any contract that evidences a residual interest in the assets of the Group after deducting
all of its liabilities. The accounting policies adopted for specific financial liabilities and equity instruments are set out below.
Notes to the ﬁnancial statements
continued 37
LiDCO Annual Report
2010/11
Financial liabilities
The Group’s financial liabilities include borrowings, trade and other creditors. Financial liabilities are measured initially at fair value net 
of transaction costs and thereafter at amortised cost using the effective interest rate method.
Share-based payments
The Group has three equity-settled share-based remuneration schemes for employees. Where share options are awarded to employees, 
the fair value of the options at the date of grant is calculated using a pricing model and is charged to the income statement over the vesting
period. Market related performance conditions are factored into the fair value of the options granted and a charge is made irrespective 
of whether the market related performance conditions are satisfied. In respect of awards with non market related performance conditions, 
an estimate of the proportion that will vest is made at the award date which is adjusted if the number of share options expected to vest 
differs from the previous estimates. Any cumulative adjustment prior to vesting is recognised in the current period.
Where the Group issues share warrants in respect of distributor arrangements, the fair value of the options at the date of grant is calculated
using a pricing model and is charged to the income statement over the vesting period.
Impairment
The carrying values of property, plant and equipment and intangible assets with finite lives are reviewed for impairment when events 
or changes in circumstances indicate the carrying value may be impaired. If any such indication exists the recoverable amount of the asset 
is estimated in order to determine the extent of impairment loss.
Key judgements in applying the entity’s accounting policies
The Group’s management makes estimates and assumptions regarding the future. Estimates and judgements are continually evaluated based
on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
In the future, actual experience may differ from these estimates and assumptions. The estimates and assumptions that have a significant risk 
of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.
Useful lives of intangible assets and property, plant and equipment
Intangible assets and property, plant and equipment are amortised or depreciated over their useful lives. Useful lives are based on the
management’s estimates of the period that the assets will generate revenue, which are periodically reviewed for continued appropriateness.
Changes to estimates can result in significant variations in the carrying value and amounts charged to the income statement in specific 
periods (notes 7 and 8).
Inventory
The Group reviews the net realisable value of, and demand for, its inventory on a regular basis to provide assurance that recorded inventory 
is stated at the lower of cost or net realisable value. Factors that could impact estimated demand and selling prices include the timing and
success of future technological innovations, competitor actions, supplier prices and economic trends (note 9).
Trade receivables
Trade receivables are primarily due from three groups: hospitals in the UK and USA where direct sales are made, global distributors
predominantly in the USA and independent distributors, predominantly in Europe and the Rest of the World. In making provision for 
overdue trade receivables, management consider the first two groups to be generally of lower risk than those due from independent
distributors and apply a lower level of provision. The size of the distributor together with its financial credit rating and the length 
of relationship with the Group are also taken into account (note 10).
Licence income
The Group may receive licence fees in connection with the granting of exclusive distribution rights for overseas territories. When recognising
such licence fees management considers the substance of the relevant distribution agreement. Any work that the Group needs to undertake 
to fulfil its obligation is taken into consideration and the period over which the work is likely to be performed. Revenue is only recognised
provided that it is probable that the economic benefit associated with the transaction will flow to the Group and the amount of revenue can
be reliably measured. Normally such licence fees are received on signature of the distribution agreement.  38
LiDCO Annual Report
2010/11
2  Revenue and segmental information
The Group has one segment – the supply of monitors, consumables and support services associated with the use of the LiDCO’s cardiac
monitoring equipment. Geographical and product type analysis is used by the chief operating decision maker to monitor sales activity and 
is presented below:
Turnover and result by geographical region
Year ended Year ended
31 January 31 January
2011 2010
Group revenue £’000 £’000
UK 2,356 1,822
USA 2,358 2,273
Continental Europe 859 990
Rest of World 664 282
6,237 5,367
Result
UK 495 113
USA 965 459
Continental Europe 449 402
Rest of World 373 127
Total 2,282 1,101
Unallocated costs (2,780) (2,640)
Loss from operations (498) (1,539)
Products and services
Year ended Year ended
31 January 31 January
2011 2010
£’000 £’000
Monitor sales 2,009 1,855
Consumables sales and recurring revenues 3,681 3,125
Licence fees and other income 547 387
6,237 5,367
Payments to Med One as detailed in note 1 under revenue recognition relating to consumables and included within cost of sales amounted 
to £526,000 (2009/10: £688,000) during the year.
The Group can identify trade receivables and trade payables relating to the geographical areas. As noted above, the Group has one segment
and other assets and liabilities together with non sales related overheads are not accounted for on a segment by segment basis. Accordingly,
segment assets, liabilities and segment cash ﬂows are not provided.
All non-current assets are located in the United Kingdom.
Material customers
During the year a customer based in the USA accounted for more than 10% of the Group’s total revenue. Revenue recognised during the year is
as follows:
2011 2011 2010 2010
£’000 % revenue £’000 % revenue
Revenue recognised 1,894 30% 1,526 28%
Notes to the ﬁnancial statements
continued 39
LiDCO Annual Report
2010/11
3  Loss from operations
The loss on operations before taxation is stated after:
Year ended Year ended
31 January 31 January
2011 2010
£’000 £’000
Auditors’ remuneration:
– Fees payable to the Company auditors for the audit of the Group accounts 18 17
Fees payable to the company auditors for other services:
– Audit of the Company’s subsidiaries 25 25
– Other services relating to the interim review
*
8 9
– Other services
*
5 1
Research and development expenditure 146 109
Depreciation of property, plant and equipment 201 216
Amortisation of intangible assets 438 456
Operating leases – rental of land and buildings 165 165
Share-based payment charge in respect of distributor arrangements 120 63
Write down of inventories 47 46
Exchange rate (gains)/losses (9) 23
The cost of goods sold during the year amounted to £1,225,000 (2009: £1,224,000).
*
Non-audit services comprise £8,000 for interim review services. The Board considers it cost eﬀective for the auditors to provide these services.
4  Staff costs
Staff costs during the year were as follows:
Year ended Year ended
31 January 31 January
2011 2010
Group £’000 £’000
Wages and salaries 2,019 1,970
Social security costs 209 179
Share-based payments charge 30 (97)
2,258 2,052
The average number of employees (including executive directors) of the Company during the year was:
2011 2010
Number Number
Production 11 10
Sales 14 16
Administration 12 13
37 39
The remuneration of directors and key management personnel is set out below. Additional information on directors’ and key management
remuneration, share option, long-term incentive plans, pension contributions and entitlements can be found in the audited section of the
Directors’ Remuneration Report on pages 21 to 23 and forms part of these accounts.
2011 2010
£’000 £’000
Short-term employee beneﬁts 738 725
Share-based payments 10 (22) 40
LiDCO Annual Report
2010/11
5  Tax on loss on ordinary activities
The tax credit is based on the loss for the year and represents:
Year ended Year ended
31 January 31 January
2011 2010
£’000 £’000
United Kingdom corporation tax at 28% (2010: 28%) – –
United States income taxes 9 4
Research and development expenditure tax credits – current year (109) (120)
– prior year – (2)  
Total tax (100) (118)
United States tax has been calculated at the federal/state tax rates applicable to proﬁts arising in the respective states.
The tax assessed for the year diﬀers from the standard rate of corporation tax applied to the trading results. The diﬀerences are explained below:
Loss on ordinary activities multiplied by standard rate of corporation tax in the United Kingdom of 28% (2010: 28%) (137) (433)
Eﬀect of:
Expenses not deductible for tax purposes 13 24
Depreciation for the period in excess of capital allowances (20) 50
Prior year adjustment – (2)
(Decrease)/increase in tax losses (5) 217
Other temporary diﬀerences 39 13
Additional deduction for research and development expenditure (111) (99)
Losses surrendered for research and development tax credit 221 231
United States income taxes 9 3
Research and development expenditure tax credits (109) (122)
Total tax income (100) (118)
The above table reconciles the income tax credit with the accounting loss at the standard rate of UK corporation tax. 
The current year research and development tax credit of £109,000 (2010: £120,000) represents 14% (2010: 24.5%) of the Group’s qualifying
research and development spend.
The amount of the unused tax losses and temporary diﬀerences for which no deferred tax asset was recognised at the balance sheet date was:
Year ended Year ended
31 January 31 January
2011 2010
£’000 £’000
Unused losses (available indeﬁnitely) 24,149 23,408
Temporary diﬀerences (available indeﬁnitely) 304 427
24,453 23,835
The related deferred tax asset of approximately £5.6m (2010: £6.7m) in respect of trading losses of the subsidiary have not been recognised 
as it is unlikely to be recognisable in the foreseeable future.
Notes to the ﬁnancial statements
continued 41
LiDCO Annual Report
2010/11
6  Loss per share
The calculation of basic earnings per share is based on the loss attributable to ordinary shareholders divided by the weighted average 
number of shares in issue during the year. The calculation of diluted earnings per share is based on the calculation described above adjusted 
to allow for the issue of shares on the assumed conversion of all dilutive options. Share options are regarded as dilutive when, and only when,
their conversion to ordinary shares would increase the loss per share.
Year ended Year ended
31 January 31 January
2011 2010
£’000 £’000
Loss after tax for the ﬁnancial year (390) (1,427)
Number Number
(’000) (’000)
Weighted average number of ordinary shares 173,963 164,597
Loss per share – basic and diluted (p) (0.22) (0.87)
7  Property, plant and equipment
Leasehold Plant and Fixtures Computer Medical
improvements machinery and ﬁttings equipment monitors Total
£’000 £’000 £’000 £’000 £’000 £’000
Cost
At 1 February 2009 555 431 171 450 477 2,084
Additions – 5 1 47 81 134
Disposals – – (3) (21) (66) (90)
At 31 January 2010 555 436 169 476 492 2,128
Additions 1 6 4 21 95 127
At 31 January 2011 556 442 173 497 587 2,255
Accumulated depreciation
At 1 February 2009 355 308 138 416 196 1,413
Charge for the year 53 32 15 28 88 216
Disposals – – (3) (19) (66) (88)
At 31 January 2010 408 340 150 425 218 1,541
Charge for the year 53 34 8 27 79 201
At 31 January 2011 461 374 158 452 297 1,742
Carrying amount at 31 January 2011 95 68 15 45 290 513
Carrying amount at 31 January 2010 147 96 19 51 274 587
Plant and equipment is depreciated at various rates depending on the estimated life of the item of plant or equipment. The rates of depreciation
are shown in note 1.
Medical monitors include equipment on long term loan to hospitals for active use where the hospital pays for disposables. Also included in this
category is equipment for demonstration purposes, clinical trials and testing.
The carrying amount of the Group’s plant and equipment includes £14,000 (2010: £24,000) in respect of assets held under ﬁnance leases.  42
LiDCO Annual Report
2010/11
8  Intangible assets
Product Product
Clinical trials registration development Total
£’000 £’000 £’000 £’000
Cost
At 1 February 2009 116 556 1,980 2,652
Additions – 73 401 474
At 31 January 2010 116 629 2,381 3,126
Additions – 77 352 429
At 31 January 2011 116 706 2,733 3,555
Accumulated amortisation
At 1 February 2009 101 260 1,545 1,906
Charge for the year 15 119 322 456
At 31 January 2010 116 379 1,867 2,362
Charge for the year – 88 350 438
At 31 January 2011 116 467 2,217 2,800
Carrying amount at 31 January 2011 – 239 516 755
Carrying amount at 31 January 2010 – 250 514 764 
Intangible assets includes assets that are internally generated and amortised over their estimated useful lives. Amortisation costs are included
in administrative expenses. The rates of amortisation are shown in note 1.
9  Inventory
2011 2010
£’000 £’000
Raw materials and consumables 310 246
Finished goods and goods for resale 737 848
1,047 1,094
At 31 January 2011, inventories stated net of allowances for obsolete or slow moving items, was £85,000 (2010: £106,000).
Notes to the ﬁnancial statements
continued 43
LiDCO Annual Report
2010/11
10  Trade and other receivables
2011 2010
£’000 £’000
Trade receivables 1,432 1,473
Other receivables 12 51
Prepayments 163 125
1,607 1,649
All amounts are short-term and the directors consider that the carrying amount of trade and other receivables approximates to their fair value.
All of the Group’s trade and other receivables have been reviewed for indicators of impairment. At 31 January 2011, trade receivables of £1.07m
(2010: £1.10m) were fully performing. In addition, some of the unimpaired trade receivables are past due as at the reporting date. The age 
of trade receivables past due but not impaired is as follows:
2011 2010
£’000 £’000
Not more than three months 195 182
More than three months but not more than six months 31 94
More than six months but not more than one year 30 15
More than one year 104 79
360 370
Movements in Group provisions for impairment of trade receivables are as follows, which are included within administrative expenses in the
income statement.
2011 2010
£’000 £’000
Opening balance 6 95
Provision for receivables impairment 32 94
Receivables written oﬀ in year (9) (183)
Closing balance 29 6
The other classes within trade and other receivables do not contain impaired assets.
11  Current liabilities
2011 2010
£’000 £’000
Trade payables 534 332
Social security and other taxes 67 65
Accruals 166 206
Deferred income 74 614
Finance leases 10 10
851 1,227
The directors consider that the carrying amount of trade and other payables approximates to their fair value. 44
LiDCO Annual Report
2010/11
12  Non-current liabilities
2011 2010
£’000 £’000
Finance leases 4 14
13  Financial instruments
Financial risks
The Group’s ﬁnancial instruments comprise cash and liquid resources, borrowings and items such as trade receivables and trade payables that
arise from its operations.
The main risks that arise from the Group’s ﬁnancial instruments are credit, interest rate, liquidity and currency risk. The Board reviews and agrees
policies for managing each of these risks and they are summarised below.
Credit risk
The Group’s credit risk is primarily attributable to trade receivables. The amounts presented in the balance sheet are net of allowances for
doubtful receivables, estimates by management based on prior experience of customers which is typiﬁed by a small number of high value
accounts and their assessment of the current economic environment. The maximum exposure is £2,848,000 (2010: £3,370,000).
The credit risk on liquid funds is limited because the counterparties are reputable international banks.
Liquidity risk
The Group seeks to manage this ﬁnancial risk by ensuring suﬃcient liquidity through the use of variable rate bank facilities is available to meet
foreseeable needs and to invest surplus cash assets safely and proﬁtably.
Liquidity risk analysis
The Group manages its liquidity needs by carefully monitoring scheduled debt servicing payments for long-term ﬁnancial liabilities as well 
as cash-outﬂows due in day-to-day business. Liquidity needs are monitored in various time bands, on a day-to-day and week-to-week basis.
The Group maintains cash and marketable securities to meet its liquidity requirements. Funding for long-term liquidity needs is additionally
secured by an adequate amount of committed credit facilities. 
As at 31 January 2011, the Group’s liabilities have contractual maturities which are summarised below:
Current Non-current
Within 6 to 12 1 to 5 Over 5 
6 months months years years
31 January 2011 £’000 £’000 £’000 £’000
Finance lease obligations 554 –
Trade payables 767–––
77254 –
This compares to the maturity of the Group’s ﬁnancial liabilities in the previous reporting period as follows:
Current Non-current
Within 6 to 12 1 to 5 Over 5 
6 months months years years
31 January 2010 £’000 £’000 £’000 £’000
Finance lease obligations 5 5 14 –
Trade payables 603–––
608 5 14 –
Notes to the ﬁnancial statements
continued 45
LiDCO Annual Report
2010/11
Market Risks
Interest rate risk
The Group ﬁnances its operations through a mixture of shareholder funds and variable rate bank facilities. The Group accepts the risk attached
to interest rate ﬂuctuations as interest rates have been relatively stable or declined over the last three years and the interest expense is a small
proportion of total administrative expenses.
Currency risk
The Group manages currency risk by assessing the net exposure in each non-sterling currency in which exposure arises. The only signiﬁcant
exposure relates to US dollars. The Group accepts the risk attached to ﬂuctuations in the US dollar exchange rate as US dollar payables are
partly mitigated by US dollar receivables from sales. 
Group interest rate proﬁle
Floating rate
Cash current Deposit and
bank accounts reserve account Total
Financial assets at 31 January 2011 £’000 £’000 £’000
Currency
Sterling 75 1,272 1,347
US dollars 28 – 28
Euro 29 – 29
132 1,272 1,404
Summary of ﬁnancial assets and liabilities by category
The carrying amounts of the Group’s ﬁnancial assets and liabilities as recognised at the balance sheet date of the reporting periods under
review may also be categorised as follows. See note 1, ‘principal accounting policies’ , covering ﬁnancial assets and ﬁnancial liabilities for
explanations about how the category of instruments aﬀects their subsequent measurement.
2011 2010
Current assets £’000 £’000
Loans and receivables:
– Trade and other receivables 1,444 1,524
– Cash and cash equivalents 1,404 1,846
2,848 3,370
2011 2010
Non-current liabilities £’000 £’000
Finance lease obligations 4 14
4 14
2011 2010
Current liabilities £’000 £’000
Financial liabilities measured as amortised cost:
– Borrowings 10 10
Trade payables and other short term ﬁnancial liabilities 601 332
611 342 46
LiDCO Annual Report
2010/11
Capital risk management
The Group manages its capital to ensure that entities in the Group will be able to continue as going concerns while maximising the return 
to shareholders through the optimal use of equity. 
The Board reviews the capital structure, including the level of indebtedness and foreign currency holdings as required whether included 
as cash or other working capital balances.
The Group is exposed to translation and transaction foreign exchange risk. The currency where the Group is most exposed to foreign currency
volatility is US dollars.
The Group had the following balances denominated in US dollars:
US Dollars
2011 2010
£’000 £’000
Trade and other receivables 46 79
Cash and cash equivalents 28 394
Trade and other payables (30) (37)
44 436
No hedging instruments are used. The Group keeps under review the extent of its exposure to currency ﬂuctuations, which relate entirely 
to trading transactions.
The following table illustrates the sensitivity of the net result for the year and equity in regards to the Group’s ﬁnancial assets and ﬁnancial
liabilities and the Sterling to US dollar exchange rates. It assumes a percentage change in the exchange rate based on the foreign currency
ﬁnancial instruments held at each balance sheet date. Both of these percentages have been determined based on the average market volatility
in exchange rates in the previous 12 months.
US Dollars
2011 2010
Currency ﬂuctuation 11% 11%
If Sterling had strengthened against the US dollar by the percentage above retrospectively, then this would have had the following impact:
US Dollars
2011 2010
£’000 £’000
Net result for the year (67) (76)
Equity (67) (76)
If Sterling had weakened against the US dollar by the percentage above retrospectively, then this would have had the following impact:
US Dollars
2011 2010
£’000 £’000
Net result for the year 67 76
Equity 67 76
Exposure to foreign exchange rates vary during the year depending on the volume of overseas transactions. Nonetheless, the analysis above 
is considered to be representative of the Group’s exposure to currency risk.
Fair values of ﬁnancial assets and liabilities
There was no diﬀerence between the fair value and the book value of ﬁnancial assets and liabilities.
Notes to the ﬁnancial statements
continued 47
LiDCO Annual Report
2010/11
14  Share capital
2011 2010
Number of Number of 
shares shares
Issued and fully paid – ordinary shares of 0.5 pence each 000 000
At the beginning of the year 173,942 141,983
Issued for cash 42 31,959
At the end of the year 173,984 173,942
£’000 £’000
At the beginning of the year 869 710
Issued for cash 1 159
At the end of the year 870 869
On 23 August 2010 42,500 shares were issued at 0.5p per share on exercise of share options.
15  Share-based payments
Equity-settled share option schemes
The Group has three equity-settled share option schemes for employees. Where share options are awarded to employees, the fair value of the
options at the date of grant is calculated using a pricing model and is charged to the income statement over the vesting period. Market related
performance conditions are factored into the fair value of the options granted and a charge is made irrespective of whether the market related
performance conditions are satisﬁed. In respect of awards with non-market related performance conditions, an estimate of the proportion that
will vest is made at the award date and this is trued up or down at each accounting period.
2011 2010
Weighted Weighted 
average average
exercise exercise 
Number price (p) Number price (p)
Outstanding at the beginning of the year 10,526,079 15.8 9,353,872 15.9
Issued in the year 751,000 19.9 1,309,000 13.3
Forfeited during the year (259,500) 13.9 (94,293) 18.4
Exercised during the year (42,500) 0.5 (42,500) 0.5
Outstanding at the end of the year 10,975,079 16.4 10,526,079 15.8
Exercisable at the end of the year 7,334,579 18.0 7,377,079 18.0
Fair value is determined by reference to the fair value of the instrument granted to the employee. The expected life used in the model has been
adjusted, based on management’s best estimate, for the eﬀects of non-transferability, exercise restrictions and behavioural considerations.
These fair values were calculated using a Black-Scholes option pricing model with the following assumptions:
2011 2010
Weighted average share price (p) 19.9 13.3
Weighted average exercise price (p) 19.9 13.3
Expected volatility 50% 50%
Expected life (years) 3.5 3.5
Risk free rate 2% 3.0% -3.5%
Expected dividend yield – –
The expected volatility is based on the Group’s historical share price averaged over a period equal to the expected life. The expected life is the
average expected period to exercise. The risk free rate of return is based on UK Government gilts. The share options outstanding at the end 
of the year have exercise prices of between 0.5p and 28.25p per share and a weighted average remaining contractual life of 4.5 years. 48
LiDCO Annual Report
2010/11
Share warrants in respect of distributor arrangements
On 28 July 2009 the Group issued share warrants in respect of an arrangement with a distributor. Warrants were issued over a total of 13,915,324
shares at an exercise price of 14.3 pence which represented a 20% premium over the mid market price for a period of 10 days before and 
10 days after the date of the distributor agreement. The fair value of the warrants at the date of grant has been calculated using the same
pricing model as that used for the equity-settled share option schemes and will be charged to the income statement over the vesting period.
The distributor may exercise the warrants subject to purchasing certain minimum quantities of monitors and disposables during the ﬁrst and
second years of the distribution agreement.
16  Capital commitments
At 31 January 2011 the Company had placed forward orders for the purchase of monitors and monitor components to the value of £1,382,000
(2010: £390,000). Delivery of these orders is scheduled between February 2011 and June 2013.
17  Contingent liabilities
There were no contingent liabilities at 31 January 2011 or 31 January 2010.
18  Leasing commitments
The future aggregate minimum lease payments under non-cancellable operating leases are as follows:
2011 2010
Land and Land and
buildings Other buildings Other
Group £’000 £’000 £’000 £’000
In one year or less 11 39 45 73
Between one and ﬁve years –37 15 46
11 76 60 119
19  Related party transactions
During the year, no contracts of signiﬁcance other than those disclosed within the Directors’ Remuneration Report were existing or entered 
into by the Group or its subsidiaries in which the directors had a material interest.
Key management compensation
Compensation for directors who are the only employees with responsibility for planning, directing and controlling the Group is disclosed 
in the directors’ remuneration report.
Transactions between the Company and its subsidiaries which are related parties are eliminated on consolidation. There were no transactions
between the Company and its subsidiaries.
Notes to the ﬁnancial statements
continued 49
LiDCO Annual Report
2010/11
Independent auditor’s report to the members of LiDCO Group Plc
We have audited the parent company financial statements of LiDCO Group Plc for the year ended 31 January 2011 which comprise the parent
company balance sheet, and the related notes. The financial reporting framework that has been applied in their preparation is applicable law
and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
This report is made solely to the Company’s members, as a body, in accordance with Chapter 3 of part 16 of the Companies Act 2006. 
Our audit work has been undertaken so that we might state to the Company’s members those matters we are required to state to them 
in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone
other than the Company and the Company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Respective responsibilities of directors and auditors
As explained more fully in the Directors’ Responsibilities Statement, the directors are responsible for the preparation of the parent company
financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the
parent company financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those
standards require us to comply with the Auditing Practices Board’s (APB’s) Ethical Standards for Auditors.
Scope of the audit of the ﬁnancial statements
A description of the scope of an audit of financial statements is provided on the APB’s website at www.frc.org.uk/apb/scope/private.cfm.
Opinion on ﬁnancial statements
In our opinion the parent company financial statements:
• give a true and fair view of the state of the Company’s affairs as at 31 January 2011; 
• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
• have been prepared in accordance with the requirements of the Companies Act 2006.
Opinion on other matter prescribed by the Companies Act 2006
In our opinion the information given in the Directors’ Report for the financial year for which the financial statements are prepared is consistent
with the parent company financial statements.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
• adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from
branches not visited by us; or
• the parent company financial statements are not in agreement with the accounting records and returns; or
• certain disclosures of directors’ remuneration specified by law are not made; or
• we have not received all the information and explanations we require for our audit.
Other matter
We have reported separately on the Group financial statements of LiDCO Group Plc for the year ended 31 January 2011. 
Christopher Smith
Senior Statutory Auditor for and on behalf of Grant Thornton UK LLP
Statutory Auditor, Chartered Accountants
London
15 April 2011 50
LiDCO Annual Report
2010/11
2011 2010
Note £’000 £’000
Fixed assets
Investments 2 65 65
65 65
Current assets
Debtors 3 5 5
Amount due from subsidiary undertakings 3 14,339 14,338
Cash at bank 66 11
14,410 14,354
Current liabilities
Creditors: Amounts falling due within one year – –
– –
Net current assets 14,410 14,354
Total assets less current liabilities 14,475 14,419
Net assets 14,475 14,419
Shareholders’ funds
Share capital 4 870 869
Share premium 5 25,393 25,393
Retained earnings 5 (11,788) (11,843)
Shareholders’ funds 14,475 14,419
The ﬁnancial statements were approved by the Board of Directors on 15 April 2011.
Theresa Wallis Terence O’Brien
Director Director
The accompanying accounting policies and notes form an integral part of these ﬁnancial statements.
Company balance sheet
At 31 January 2011 51
LiDCO Annual Report
2010/11
Notes to the ﬁnancial statements
For the year ended 31 January 2011
1  Principal accounting policies
Basis of preparation
The separate ﬁnancial statements of the Company are presented as required by the Companies Act 2006. As permitted by that Act, the
separate ﬁnancial statements have been prepared in accordance with all applicable United Kingdom accounting standards. The principal
accounting policies of the Company are set out below.
The ﬁnancial statements have been prepared on the historical cost basis.
Going concern
The Company’s business activities, together with a review of the market and the Company’s distribution channels are set out in the Chief
Executive Oﬃcer’s Statement on pages 8 to 13. In addition, note 13 to the ﬁnancial statements include the Company’s policies for managing 
its capital; its ﬁnancial risk; details of its ﬁnancial instruments; and its exposures to credit risk and liquidity risk.
The Company has a number of customers across diﬀerent geographic areas and considerable recurring revenue streams through the sales 
of its disposable sensors and smart cards which represented 59% of its total revenues in the year to 31 January 2011. 
The Group ﬁnances its operations through shareholders’ funds and has no borrowings. The directors have a reasonable expectation that 
the Company has adequate resources to continue in operational existence for the foreseeable future based on forecasts for the two years 
to 31 January 2013. Thus they continue to adopt the going concern basis of accounting in preparing the annual ﬁnancial statements.
Investments
Investments in subsidiary undertakings are stated at cost less provision for impairment.
Foreign currency
Transactions in foreign currencies are translated at the exchange rate ruling at the date of the transaction. Monetary assets and liabilities 
in foreign currencies are translated at the rates of exchange ruling at the balance sheet date. Any gain or loss arising from a change in exchange
rates subsequent to the date of the transaction is included as an exchange gain or loss in the proﬁt and loss account.
Financial liabilities and equity
Financial liabilities and equity instruments issued by the Company are classiﬁed according to the substance of the contractual arrangements
entered into and the deﬁnitions of a ﬁnancial liability and an equity instrument. An equity instrument is any contract that evidences a residual
interest in the assets of the Company after deducting all of its liabilities.
Share-based payment charges
The Group has three equity-settled share-based remuneration schemes for employees. Where share options are awarded to employees, the fair
value of the options at the date of grant is calculated using a pricing model and is charged to the income statement over the vesting period.
Market related performance conditions are factored into the fair value of the options granted and a charge is made irrespective of whether the
market related performance conditions are satisﬁed. In respect of awards with non-market related performance conditions, an estimate of the
proportion that will vest is made at the award date which is adjusted if the number of share options expected to vest diﬀers from the previous
estimates. Any cumulative adjustment prior to vesting is recognised in the current period.
Where the Group issues share warrants in respect of distributor arrangements, the fair value of the options at the date of grant is calculated
using a pricing model and is charged to the income statement over the vesting period.
2  Investments
Shares in subsidiary
undertakings
Company £’000
Cost and net book value
At 1 February 2010 and at 31 January 2011 65
The Company’s beneﬁcial interest in subsidiary undertakings consists of:
Country of registration Beneﬁcial holding Nature of business
LiDCO Limited England and Wales 100% Medical instruments and appliances
Cassette Analytical Systems Limited England and Wales 100% Dormant 52
LiDCO Annual Report
2010/11
3  Debtors
2011 2010
£’000 £’000
Other debtors 5 5
Amount due from subsidiary 14,339 14,338
14,344 14,343
The amount due from subsidiary relates to the ongoing funding provided to the principal trading subsidiary, LiDCO Limited, whilst it continues
to be loss-making. The directors made a provision for impairment of £12m in the year to 31 January 2008, and consider that no further
impairment provision is necessary at 31 January 2011. The timing of the repayment of this debt is uncertain and unlikely to be within one year.
4  Share capital
2011 2010
£’000 £’000
Allotted, called up and fully paid
173,984,054 ordinary shares of 0.5p each 870 869
On 23 August 2010 42,500 shares were issued at 0.5p per share on exercise of share options.
5  Reserves
Share Other Equity Proﬁt & loss
premium reserve reserve account
£’000 £’000 £’000 £’000
At 1 February 2010 25,393 – – (11,843)
Proﬁt for the year – – – 55
At 31 January 2011 25,393 – – (11,788)
6  Reconciliation of shareholders’ funds
2011 2010
£’000 £’000
Proﬁt for the year 55 2
Shares issued 1 159
Share premium account – 2,862
56 3,023
Opening shareholders’ funds 14,419 11,396
Closing shareholders’ funds 14,475 14,419
7  Loss for the financial year
In accordance with the exemption given by section 408 of the Companies Act 2006, the holding company has not presented its own proﬁt and
loss account. The proﬁt for the year of the Company was £55,000 (2009/10: £2,000). 
8  Related party transactions
There were no transactions between the Company and its subsidiary, which are related parties.
Notes to the ﬁnancial statements
continued 53
LiDCO Annual Report
2010/11
Company information
Company registration number: 
2659005
Registered oﬃce:
16 Orsman Road
Hoxton
London, N1 5QJ
Company website:
www.lidco.com
Directors and Secretary:
Ms T A Wallis Non-Executive Chairman
Dr T K O’Brien Chief Executive Officer
Dr D M Band Scientific Director
Mr J G Barry Sales and Marketing Director
Mr I G Brown Non-Executive Director
Mr P L Clifford Finance Director
Mr J P Rowland Company Secretary
Solicitors:
Hewitsons LLP
Shakespeare House
42 Newmarket Road
Cambridge 
CB5 8EP
Auditors:
Grant Thornton UK LLP
Registered Auditors
Chartered Accountants
Grant Thornton House
Melton Street
Euston Square
London 
NW1 2EP
Registrars:
Capita Registrars
The Registry
34 Beckenham Road
Beckenham
Kent 
BR3 4TU
Nominated adviser 
and stockbroker:
FinnCap Limited
60 New Broad Street
London
EC2M 1JJ
Bankers:
NatWest Bank Plc
63-65 Piccadilly
London
W1J 0AJ
Advisers to the Company LiDCO Group Plc
UK Oﬃce:
16 Orsman Road
Hoxton
London N1 5QJ
T: + 44 (0) 20 7749 1500
F: + 44 (0) 20 7749 1501
Sales and Marketing:
Unit M
South Cambridgeshire Business Park
Babraham Road
Sawston
Cambridge CB22 3JH
T: + 44 (0) 1223 830666
F: + 44 (0) 1223 837241
www.lidco.com
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