Source - RNS
RNS Number : 8842M
Feedback PLC
19 October 2016
 

 

This announcement contains inside information as stipulated under the Market Abuse Regulation (EU) No 596/2014 (MAR).

 

19 October 2016 

Feedback plc

('Feedback' or "the Company')

Final results for the year ended 31 May 2016

Notice of Annual General Meeting

 

Feedback plc is pleased to announce its final results for the year ended 31 May 2016.

 

CHAIRMAN'S STATEMENT FOR THE YEAR ENDED 31 MAY 2016

 

We are pleased to present the results for the year ended 31 May 2016. Revenue for the year was £431,454 (2015: £381,970) and the loss after tax was £183,156 (2015: Loss £1,111,433). Cash as at 31 May 2016 was £105,673 (31 May 2015: £63,261). Cash as at 13 October 2016 was £94,629.

 

The results show growth in revenue and a substantial reduction in the loss after tax. Cash generation has been better than anticipated and reflects payments received from customers in respect of purchase orders before revenue is recognised. Cambridge Computed Imaging Limited ("CCI") performed steadily during the year as it continued to serve its established customer base. Revenue recognised from TexRAD research version sales was higher than in the previous year. In line with management's expectations, there was a reduction in new purchase orders for TexRAD research versions during the year although there remained a good deal of customer interest from research institutions which were looking to obtain grant funding. Dr Balaji Ganeshan continued to lead the sales effort and his hard work has led to a high level of orders received after the year end from world-renowned institutions carrying out oncology research. The Company has also signed collaborative agreements with companies in Japan and South Korea to explore further selling opportunities in these markets for TexRAD research versions which has had some success. In order to support our research customers we have been looking at ways to assist them in analysing and interpreting the results of their studies. We are working on one such project and this could prove to be a useful additional source of revenue in the future. Dr Ganeshan has been continuing his work supporting research into new potential applications of TexRAD. This has led to the publication of scientific papers on TexRAD's use in assessing different types of carcinomas as well as a number of presentations at scientific conferences including the Beijing Society of Radiology in China and participation in Healthtech Week in Auckland, New Zealand.

 

In November 2015 the Company announced that it had signed a Memorandum of Understanding with Alliance Medical Group ("Alliance") with the intention of integrating Feedback's TexRAD texture analysis software into Alliance's PET-CT lung cancer imaging service. The Company has made good progress on a technical solution that would allow the integration of TexRAD into Alliance's network of PET/CT scanners in UK hospitals and a prototype version has been demonstrated to potential users. The next steps will include applying for a CE mark for a medical device which provides analysis of lung PET/CT images with added prognostication through TexRAD. An abstract has been accepted by the Radiological Society of North America (RSNA) for presentation at its annual conference in November 2016 which will highlight the results from the technical and clinical evaluation. Further abstracts publishing the research findings of our customers using TexRAD have also been accepted for presentation at RSNA.

 

During the financial year the Company formed two joint venture companies, Stone Checker Software Ltd and Prostate Checker Ltd. Both companies offer the prospect of developing innovative solutions where routine medical images can provide useful additional information for clinicians. The Company sold its 50% equity interest in Stone Checker Software Ltd to Free Association Books Ltd in May 2016 resulting in a gain of £45,000.

 

After the year end Feedback announced a large-scale collaboration with Future Processing Sp. z o.o. ("Future Processing"), a software development service provider based in Gliwice, Poland to develop medical imaging software. The collaboration will entail a substantially increased development team working on new products and the sharing of intellectual property and future revenues. This collaboration has resulted from Feedback's assistance with a successful EU grant application made by Future Processing. The directors of Feedback believe that by CCI working jointly with the Future Processing healthcare team, CCI's existing product portfolio can be improved and new products developed more rapidly including further applications for TexRAD. Although at this stage only a non-binding letter of intent has been agreed, the intention is for the Company to agree formal licences for new software products to be brought to market in 2017/18 under a shared revenue arrangement.  In the current financial year, the Company expects to make substantial savings in software development costs and thereafter expects to benefit from its share of the revenue from sales of new products.

 

On 1 June 2016, after the year end, the Company announced my appointment as its new chairman with Tom Charlton moving to non-executive deputy chairman. I have extensive experience of managing companies in the healthcare sector and I look forward to assisting the Company to the next stage of its development.

 

We remain encouraged by the continued interest shown in TexRAD and the number of research papers being published which highlight its numerous potential applications. The high level of purchase orders for TexRAD research versions which have been received after the year end should lead to a substantial increase in revenue in the second half of the 2016/17 year and growth in revenue for the year as a whole. We believe there will be opportunities to make further sales of TexRAD research versions in China by partnering with a company with a strong local presence. We are also considering other business relationships which could increase sales of TexRAD research versions in other territories. In addition to the TexRAD sales, Feedback now has the opportunity to grow its revenues through the collaboration with Future Processing and the development of a CE marked product for analysis of lung PET/CT images. We will look at investing in product development, regulatory and marketing resource to support our very positive growth prospects.

 

 

Dr A J Riddell

Chairman

 

18 October 2016

 

 

For further information, contact:

 

Feedback plc
Alastair Riddell

Tel: 01954 718072

Allenby Capital Limited (Nominated Adviser and Joint Broker)
David Worlidge / James Thomas

Tel: 020 3328 5656

Peterhouse Corporate Finance Ltd (Joint Broker)
Lucy Williams / Duncan Vasey

Tel: 020 7469 0936

 

 

STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 MAY 2016

 



Note

2016

2015




£

£











REVENUE



431,454

381,970






Cost of sales



(7,438)

(1,434)






GROSS PROFIT



424,016

380,536






Other operating expenses



(676,596)

(888,600)

Impairment of intangible assets


7

-

(689,142)






Total operating expenses



(676,596)

(1,577,742)






OPERATING LOSS



(252,580)

(1,197,206)






Net finance income



1,361

908






Loss on ordinary activities before taxation



(251,219)

(1,196,298)






Tax credit



23,063

84,865






LOSS ON ORDINARY ACTIVITIES AFTER TAX



(228,156)

(1,111,433)






Profit on disposal of investment


5

45,000


 

Loss for the year attributable to the equity shareholders of the Company



(183,156)

(1,111,433)






Other comprehensive income/(expense)





Translation differences on overseas operations



-

108






Total comprehensive expense for the year



 

(183,156)

 

(1,111,325)











LOSS PER SHARE (pence)










Basic and diluted


4

(0.09)

(0.58)











 

 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 MAY 2016

 

GROUP

Share Capital

Share Premium

Capital Reserve

Retained Earnings

Translation Reserve

Convertible Debt Option Reserve

Total

 

£

£

£

£

£

£

£

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At 1 June 2014

476,867

1,409,334

299,900

(966,339)

(210,104)

189,000

1,198,658

 

 

 

 

 

 

 

 

Share option and warrant costs

-

-

-

1,289

-

-

1,289

 

 

 

 

 

 

 

 

Total comprehensive expense for the year

 

-

 

-

 

-

 

(1,111,433)

 

108

 

-

 

(1,111,325)

 

 

 

 

 

 

 

 

At 31 May 2015

476,867

1,409,334

299,900

(2,076,483)

(209,996)

189,000

88,622

 

 

 

 

 

 

 

 

New Shares issued

 

32,318

190,382

-

-

-

-

222,700

Costs associated with the

raising of funds

 

-

(6,580)

-

-

-

-

(6,580)

Share option and warrant costs

-

-

-

8,163

-

-

8,163

 

 

 

 

 

 

 

 

Total comprehensive expense for the year

 

-

 

-

 

-

 

(183,156)

 

-

 

-

 

(183,156)

 

 

 

 

 

 

 

 

At 31 May 2016

509,185

1,593,136

299,900

(2,251,476)

(209,996)

189,000

129,749

 

 

 

 

 

 

 

 

COMPANY

 

 

Share Capital

Share Premium

Retained Earnings

Convertible Debt Option Reserve

Total

 

 

 

£

£

£

£

£

 

 

 

 

 

 

 

 

At 1 June 2014

 

 

476,867

1,409,334

(875,918)

189,000

1,199,283

 

 

 

 

 

 

 

 

Share option and warrant costs

 

 

-

-

1,289

-

1,289

 

 

 

 

 

 

 

 

Total comprehensive expense for the year

 

 

 

-

 

-

 

(1,172,124)

 

-

 

(1,172,124)

 

 

 

 

 

 

 

 

At 31 May 2015

 

 

476,867

1,409,334

(2,046,753)

189,000

28,448

 

 

 

 

 

 

 

 

New shares issued

 

 

 

32,318

190,382

-

-

222,700

Costs associated with the

raising of funds

 

 

 

-

(6,580)

-

-

(6,580)

Share option and warrant costs

 

 

-

-

8,163

-

8,163

 

 

 

 

 

 

 

 

Total comprehensive expense for the year

 

 

 

-

 

-

 

(224,563)

 

-

 

(224,563)

 

 

 

 

 

 

 

 

At 31 May 2016

 

 

509,185

1,593,136

(2,263,153)

189,000

28,168

 

 

CONSOLIDATED BALANCE SHEET AT 31 MAY 2016



2016

2015


Notes

£

£

ASSETS




Non-current assets




Property, plant and equipment

6

3,639

6,915

Intangible assets

7

110,747

139,558

Investments

5

1,000

-



115,386

146,473

Current assets




Trade receivables


40,894

110,870

Other receivables

8

63,910

101,259

Cash and cash equivalents


105,673

63,261



210,477

275,390





Total assets


325,863

421,863









EQUITY




Capital and reserves attributable to the Company's equity shareholders




Called up share capital

10

509,185

476,867

Share premium account


1,593,136

1,409,334

Capital reserve


299,900

299,900

Translation reserve


(209,996)

(209,996)

Retained earnings


(2,251,476)

(2,076,483)



(59,251)

(100,378)





Convertible debt option reserve


189,000

189,000





TOTAL EQUITY


129,749

88,622





LIABILITIES




Deferred tax liabilities


19,378

27,911



19,378

27,911

Current liabilities




Trade payables


21,546

40,368

Other payables

9

155,190

264,962







176,736

305,330





Total liabilities


196,114

333,241





TOTAL EQUITY AND LIABILITIES


325,863

421,863

 

 

COMPANY BALANCE SHEET AT 31 MAY 2016

 



2016

2015


Notes

£

£

ASSETS




Non-current assets




Investments

5

1,000

-



1,000

-





Current assets




Other receivables

8

16,661

52,993

Cash and cash equivalents


60,492

43,636







77,153

96,629





Total assets


78,153

96,629









EQUITY




Capital and reserves attributable to the Company's equity shareholders


 

 

 

 

Called up share capital

10

509,185

476,867

Share premium account


1,593,136

1,409,334

Retained earnings


(2,263,153)

(2,046,753)







(160,832)

(160,552)





Convertible debt option reserve


189,000

189,000





TOTAL EQUITY


28,168

28,448





Current liabilities




Trade payables


16,901

33,723

Other payables

9

33,084

34,458





Total current liabilities


49,985

68,181





Total Equity and Liabilities


78,153

96,629

 

 

CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MAY 2016

 


2016

2015


£

£




Cash flows from operating activities



(251,229)

(1,196,298)

Adjustments for:



Share option costs

8,163

1,289

Net finance income

(1,361)

(908)

Depreciation and amortisation

46,052

184,170

Impairment of intangible assets

-

689,142

Decrease/(Increase)in trade receivables

69,976

(23,260)

Decrease in other receivables

42,402

52,396

Decrease in trade payables

(18,852)

(184,789)

Decrease in other payables

(109,772)

(163,588)

Corporation tax received

9,506






46,114

554,560




Net cash used in operating activities

(205,105)

(641,738)




Cash flows from investing activities



Purchase of tangible fixed assets

(104)

(9,329)

Purchase of intangible assets

(13,860)

(161,012)

Net finance income received

1,361

908

Proceeds from sale of joint venture

46,000

-

Purchase of shares in joint ventures

(2,000)





Net cash generated/(used by) from investing activities

31,397

(169,433)




Cash flows from financing activities



Net proceeds of share issue

216,120

-




Net cash generated from financing activities

216,120

-




Net increase/(decrease) in cash and cash equivalents

42,412

(811,171)

Cash and cash equivalents at beginning of year

63,261

874,432




Cash and cash equivalents at end of year

105,673

63,261

 

 

COMPANY CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MAY 2016


2016

2015


£

£




Cash flows from operating activities



Loss before tax

(224,563)

(1,172,124)

Adjustments for:



Share options costs

8,163

1,289

Profit on sale of investments

(45,000)

-

Net finance income

(1,356)

-

Provision against intercompany receivable

49,880

356,693

Provision against investment in subsidiaries

-

467,455

(Increase)/decrease in other receivables

(13,548)

49,221

Decrease in trade payables

(16,822)

(125,014)

(Decrease)/increase in other payables

(1,374)

2,670


(20,057)

752,314

Net cash used in operating activities

(244,620)

(419,810)




Cash flows from investing activities






Loans to subsidiary undertakings

-

(155,000)

Net finance income

1,356

-

Purchase of joint ventures

(2,000)

-

Proceeds on sale of joint venture

46,000

-

Net cash generated from/(used in) investing activities

45,356

(155,000)




Cash flows from financing activities






Net proceeds of share issue

216,120

-

Net cash generated from financing activities

216,120

-




Net increase/(decrease) in cash and cash equivalents

16,856

(574,810)

Cash and cash equivalents at beginning of year

43,636

618,446




Cash and cash equivalents at end of year

60,492

43,636

 

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2016

1.         General information

The Company is a public limited company domiciled in the United Kingdom and incorporated under registered number 00598696 in England and Wales. The Company's registered office is Unit 5, Grange Park, Broadway, Bourn, Cambridgeshire, CB23 2TA.

The Company is admitted to trading on the AIM market of the London Stock Exchange. These Financial Statements were authorised for issue by the Board of Directors on the 18 October 2016.

 

2.         Adoption of new and revised International Financial Reporting Standards

            No new International Financial Reporting Standards ("IFRS"), amendments or interpretations became effective in the year ended 31 May 2016 which had a material effect on this financial information.

 

At the date of approval of this financial information, the following IFRS Standards and Interpretations, which have not been applied in these Financial Statements, were in issue but not yet effective. These new Standards, Amendments and Interpretations are those in issue but not yet effective which are expected to apply to the Group and are effective for accounting periods beginning on or after the dates shown below:

 

IFRS Standards and Interpretations issued (and EU adopted) but not yet effective:

                                                                                                                                                     

IFRS 9 Financial Instruments (effective periods beginning 1 January 2018)

IFRS 15 Revenue from Contracts with Customers (effective periods beginning 1 January 2018)

IFRS 16 Leases (effective periods beginning 1 January 2019)

 

The Group has not early adopted these amended standards and interpretations. The Directors do not anticipate that the adoption of these standards and interpretations will have a material impact on the reported results.         

 

3.         SIGNIFICANT ACCOUNTING POLICIES

(a)  Basis of preparation

These financial statements have been prepared in accordance with those IFRS standards and IFRIC interpretations issued and effective or issued and early adopted as at the time of preparing these statements. The policies set out below have been consistently applied to all the years presented.

No separate income statement is presented for the parent Company as provided by Section 408, Companies Act 2006.

(b)  Basis of consolidation

The Group financial statements consolidate the financial statements of Feedback plc and its subsidiaries (the "Group") for the years ended 31 May 2015 and 2016 using the acquisition method.

The financial statements of subsidiaries are prepared for the same reporting year as the parent company, using consistent accounting policies.  All inter-company balances and transactions, including unrealised profits arising from them, are eliminated.  Subsidiaries are fully consolidated from the date on which control is transferred to the Group and cease to be consolidated from the date on which control is transferred out of the Group. Interests in joint ventures are accounted for using the equity method, after initially being recognised at cost within the consolidated balance sheet. The Group's joint ventures did not trade in the year.

(c)  Going Concern

The Directors consider that the Group and the Company are likely to have access to adequate cash resources for at least the next twelve months from the date of this report from a combination of operational cash generation and by obtaining equity finance from the financial markets or by way of loans from the major shareholders. The Directors believe that the company is a going concern and have therefore prepared the financial statements on a going concern basis.

 

4.         LOSS PER SHARE

.     Basic earnings per share is calculated by reference to the loss on ordinary activities after taxation of £195,631 (2015: £1,111,433) and on the weighted average of 203,514,709 (2015: 190,746,746) shares in issue.

.    



As at 31 May 2016

 

As at 31 May 2015

 



£

£





Net loss attributable to ordinary equity holders


(189,156)

(1,111,433)







As at 31 May 2016

 

As at 31 May 2015

Weighted average number of ordinary shares for basic earnings per share


203,514,709

190,746,746

Effect of dilution:




Share Options


-

-

       Warrants


-

-

Weighted average number of ordinary shares adjusted for the effect of dilution


203,514,709

190,746,746





Loss per share (pence)




Basic


(0.09)

(0.58)

Diluted


(0.09)

(0.58)





            There is no dilutive effect of the share options and warrants as the dilution would be negative.

 

5.         INVESTMENTS



Share in group undertakings

   Shares in   joint venture

Total





£

COMPANY










Cost










At 1 June 2014


2,334,455

-

2,334,455






At 31 May 2015


2,334,455

-

2,334,455

Additions


-

2,000

      2,000

Disposals


-

(1,000)

(1,000)

As at 31 May 2016


2,334,455

1000

2,335,455






Provisions





At 1 June 2013


1,867,000

-

1,867,000

Provided in the year


-

-

-

At 31 May 2014


1,867,000

-

1,867,000

Provided in the year


467,455

-

467,455

At 31 May 2015


2,334,455

-

2,334,455

Provided in the year


-

-

-

At 31 May 2016


2,334,455

-

2,334,455






Net Book Value





At 31 May 2016


-

1,000

1,000

 

At 31 May 2015


-

-

-






At 31 May 2014


467,455

-

467,455






All of the above investments are unlisted.

 





 

Following the prudent write down of the intangible assets under the requirements of IFRS in the subsidiaries, the subsidiaries' financial statements show that they have net liabilities. The directors have made full provision against the cost of investment in the subsidiaries due to the net liabilities shown in the subsidiary financial statements.

Particulars of principal subsidiary and joint venture companies during the year, all the shares of which being beneficially held by Feedback PLC, were as follows:

Company

Activity

Country of and incorporation operation

Proportion of Shares held





Feedback Black Box Company Limited

Non trading

England

 

100%

Ordinary £1





Feedback Data GmbH

Non trading (liquidated October 2015)

Germany

100%
Specific capital





Brickshield Limited

Non trading

England

100%
Ordinary £1





Cambridge Computed Imaging Limited

Medical Imaging

England

100%

A Ordinary £1




100% B Ordinary 1p





TexRAD Limited

Medical Imaging

England

100%

Ordinary 1p

Prostate Checker Ltd

 

Non trading

England

50%

Ordinary £1





TexRAD Limited is owned 100% by virtue of a direct holding by Feedback plc of 91% and an indirect holding via Cambridge Computed Imaging Limited of 9%.


Feedback Data GmbH was a subsidiary of Feedback plc following the transfer of ownership from Feedback Data plc on 31 May 2013. The company was liquidated in October 2015.


All the subsidiary companies have been included in these consolidated financial statements.

 

During the year Feedback PLC entered into two joint venture arrangements as follows:

 

Stone Checker Software Ltd

 

Feedback Plc invested £1,000 in Stone Checker Software Ltd in July 2015 for a 50% equity interest and subsequently licenced its TexRAD software to it for exclusive use in relation to kidney stone analysis. On 3 May 2016 the 50% equity interest was sold to Free Association Books Limited for £46,000 cash. This resulted in a profit of £45,000.

 

Prostate Checker Ltd

Feedback Plc has a 50% stake in Prostate Checker Ltd with a cost of £1,000, effective 26 August 2015 (date of incorporation) with QUIBIM S.L holding the remaining 50%. This company assists the detection and diagnosis of prostate cancer. This company has not traded during the year.

 

6.         PROPERTY, PLANT AND EQUIPMENT

 



Plant and




Equipment

Total

GROUP


£

£





Cost of valuation




At 31 May 2014


1,444

1,444

Additions


9,329

9,329





At 31 May 2015


10,773

10,773

Additions


104

104





As 31 May 2016


10,877

10,877









Depreciation




At 31 May 2014


-

-





Charge for the year


3,858

3,858





At 31 May 2015


3,858

3,858





Charge for the year


3,380

3,380





At 31 May 2016


7,238

7,238





Net Book Value




At 31 May 2016


3,639

3,639





At 31 May 2015


6,915

6,915





At 31 May 2014


-

-

 

7.         INTANGIBLE ASSETS


Software

Customer relationships

Patents

Goodwill

Total

GROUP

£

£

£

£

£

Cost












31 May 2014

435,000

100,000

41,585

271,415

848,000

Additions

128,099

-

32,913

-

161,012

At 31 May 2015

563,099

100,000

74,498

271,415

1,009,012

Additions

-

-

13,860

-

13,860







At 31 May 2016

563,099

100,000

88,358

271,415

1,022,872







Amortisation






At 31 May 2014

-

-

-

-

-

Charge for the year

145,372

25,000

9,940

-

180,312

Impairment charge in the year

417,727



271,415

689,142

At 31 May 2015

563,099

25,000

9,940

271,415

869,454

Charge for the year

-

25,000

17,671

-

42,671







At 31 May 2016

563,099

50,000

27,611

271,415

912,125







Net Book Value






At 31 May 2016

-

50,000

60,747

-

110,747







At 31 May 2015

-

75,000

64,558

-

139,558







At 31 May 2014

435,000

100,000

41,585

271,415

848,000







 

In accordance with the accounting policies and IFRS the Directors have assessed the carrying value of the intangible assets. In the year ended 31 May 2015, the Directors took the prudent decision to write down the carrying value of the software development costs in the balance sheet in order to meet the requirements of IFRS. During the year ended 31 May 2016 all similar development costs have been expensed as incurred. However, the Directors believe the Group's technology has great potential and this write down does not reflect their commercial assessment of the value of the Group's intellectual property. Expenditure on software development is being written off as incurred until the provisions of IFRS are met. The customer lists and patents are deemed to have ongoing value to the Group.

 

8.         OTHER RECEIVABLES

 


Group

Company


2016

2015

2016

2015


£

£

£

£

Amounts falling due within one year





Amounts owing by subsidiary undertakings

-

-

-

16,909

Other receivables

8,684

14,290

5,168

5,699

Corporation tax recoverable

37,828

32,775

-

-

Prepayments

17,398

54,194

11,493

30,385







63,910

101,259

16,661

52,993

 

9.         OTHER PAYABLES


Group

Company


2016

2015

2016

2015


£

£

£

£

Amounts falling due within one year





Other payables

4,885

9,396

1,042

16

Other taxes and social security

15,386

33,047

292

16,418

Accruals

31,750

28,701

31,750

18,024

Deferred income

103,169

193,818

-

-







155,190

264,962

33,084

34,458











 

10.        SHARE CAPITAL AND RESERVES







2016

2015












£

£

Authorised and issued share capital





Ordinary shares of 0.25 pence each



509,185

476,867






Allotted, called up and fully paid share capital:






Number

Number

As at 1 June 2015

190,746,746

190,746,746

Issued

12,927,111

-

As at 31 May 2016

203,673,857

190,746,746




           

Share Options

Share options are granted to directors and employees. Options are conditional on the employee completing a specific length of service (the vesting period). The options are exercisable from the end of the vesting period and lapse after ten years after the grant date. The Group has no legal or constructive obligation to repurchase or settle the options in cash.

Share options are valued using the Black-Scholes option pricing model and no performance conditions are included in the fair value calculations. The risk free rate was 1.64%. The expected volatility is based on historical volatility over the last two years and is estimated to be 25%. The average share price during the year was 1.85 pence. During the year the Company had the following share options in issue:

Number of options



At 1 June 2015

Lapsed

Exercised

At 31 May 2016

Exercise price (pence)

Exercise date







4,800,000

800,000

1,600,000

2,400,000

1.25

21/05/14 to19/05/24

4,000,000

-

-

4,000,000

3.00

21/05/15 to19/05/24

4,000,000

-

-

4,000,000

5.00

21/05/15 to19/05/24







12,800,000

800,000

1,600,000

10,400,000









All share options vest one year after the grant date. Each option can only be exercised from one year after the grant date to ten years after the date of grant.

In June 2015 1,600,000 options were exercised at a price of 1.25p.

In March 2016 800,000 options lapsed.

Warrants

Warrants were issued to the vendors of TexRAD Limited at the time of acquisition. The warrants are exercisable from the end of the vesting period and lapse ten years after the grant date. The Group has no legal or constructive obligation to repurchase or settle the warrants in cash.

Warrants are valued using the Black-Scholes pricing model and no performance conditions are included in the fair value calculations. The risk free rate was 1.64%. The expected volatility is based on historical volatility over the last two years and is estimated to be 25%. The average share price during the year was 1.85 pence. During the year the Company had in existence the following warrants:

 

Number of warrants



At 1 June 2015

Granted

Cancelled

At 31 May 2016

Exercise price (pence)

Exercise date







4,550,000

-

-

4,550,000

1.25

19/05/16 to 19/05/24

18,200,000

-

-

18,200,000

3.00

19/05/17 to 19/05/24

22,750,000

-

-

22,750,000









 

Reserves

The nature and purpose of each reserve within equity is as follows:

Share premium 

Amount subscribed for share capital in excess of nominal value

Capital reserve

Reserve on consolidation of subsidiaries

Translation reserve

Gains and losses on the translation of overseas operations into GBP

Retained earnings

All other net gains and losses and transactions with owners not recognised elsewhere

Convertible debt option reserve

Amount of proceeds on issue of convertible debt relating to the equity component of the debt.

 

11.        NOTICE OF ANNUAL GENERAL MEETING ("AGM") AND AVAILABILITY OF REPORT AND FINANCIAL STATEMENTS

The Company hereby announces that its AGM will be held at the offices of Allenby Capital Limited, 3 St Helen's Place, London EC3A 6AB at 10.00 a.m. on 23 November 2016.  

The Company's Annual Report and Financial Statements for the year ended 31 May 2016 are expected to be posted to shareholders, along with the Notice of AGM, on 26 October 2016 and will be available thereafter at the Company's registered office, Unit 5 Grange Park, Broadway, Bourn, Cambridgeshire CB23 2TA and on its website: http://www.fbk.com/category/financial-reports/ 

 

 

 

 

 

 

 

 

                                                                                                 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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