LiDCO Group Plc. (LID.L), a cardiovascular monitoring company, Monday said it still expects to report further growth in both revenues and profits in the year to January 31, 2015.
However, after a solid first quarter, the company has recently experienced a level of destocking in the UK along with a lack of sales to its distributor in Japan.
Therefore this growth, and the results, will be below previous expectations, the firm said in a trading update for the half year ended July 31.
The company also remains on track to be debt free by the year end, as previously expected.
Revenues in the first half are expected to total 3.7 million pounds, compared to 4.2 million pounds last year.
The fall in revenues has been partly mitigated by improved disposable pricing and tight control in overheads. The company still expects to show growth in profitability year-on-year.
The UK market has seen a noticeable shift from capital sales to placement of monitors. There was a level of overstocking of disposables in the prior period when the company experienced 59 percent growth in surgical disposables.
Whilst the installed base grew by 33 surgery monitors in the first half, revenues in the UK are expected fall to 2.6 million pounds from last year's 3.1 million pounds. UK surgical disposables sales were level at 11,000 units.
Revenue in the U.S. climbed over 40 percent. The company expects sales to its distributor in Japan to recommence in the second half.
Terry O'Brien, CEO, said, "Whilst we are disappointed with the lack of growth in UK surgical disposables and the shift from capital sales of monitors to placements, the fact that we have increased the installed user base by 33 units bodes well for the return to growth of our higher margin disposable product."
LID.L declined 12.7 percent in early morning trade at 15.06pence.
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