Source - LSE Regulatory
RNS Number : 8355D
Feedback PLC
21 February 2024
 

Feedback plc

 

Half Year Results to 30 November 2023

 

Feedback plc (AIM: FDBK, "Feedback" or the "Company"), the clinical infrastructure specialists, announces its audited results for the six months to 30 November 2023 (the "Period").

 

Operational Highlights

·     Continued focus on high margin growth opportunities and demonstration of technical improvements, time, and efficiency savings provided by its products

·      Continued development of Bleepa version 1.6 ahead of imminent release to underpin sales prospects

·      Granted import license for Bleepa as a registered medical device in India

·      Appointment of in-country Managing Director in India, to support business development and enable the conversion of opportunities for Bleepa in the country

·      Engaged with a growing pipeline of both domestic and international opportunities

 

Financial Highlights

·      Revenue was £437k (H1 2023: £576k), 24% lower primarily due to the timing of revenue recognition of the QVH/Sussex ICS pilot contract during the previous period and legacy product contracts reaching end of term in the Period; Bleepa-CareLocker contributed 77%

·      Sales(1) were £411k (H1 2023: £612k) ; Bleepa-CareLocker contributed 73%

·      EBITDA loss(2) increased to £1,675k (H1 2023: £1,226k) reflecting lower revenue and higher operating costs, primarily staff costs and maintenance of the Bleepa-CareLocker platform

·      Cash as at 30 November 2023 was £5,372k (30 November 2022: £9,228k, 31 May 2023: £7,318k)

 

Post period Highlights

·      £300k NHS England ("NHSE) central funding award for Bleepa pilots in two Community Diagnostics Centres ("CDC") - secured as a result of participation in the All-Party Parliamentary Group ("APPG") Report

·      Second paid contract extension with Queen Victoria Hospital ("QVH") / Sussex Integrated Care System ("Sussex ICS"), worth £225k - to run until 30 June 2024 until formal procurement is progressed

·      Agreement to pilot Bleepa-CareLocker with Medical Imaging Partnership ("MIP") to deliver multiple clinical pathways to its customers in the UK private healthcare sector

·      APPG report on future of CDCs used Bleepa case study to highlight the need for the integration of patient data and digital tools within CDCs, with the recommendation of commitment to further digital investment

  

Analyst Presentation: 09:30 today

A remote briefing for analysts will be held at 9.30 a.m. today. Analysts interested in attending should contact Walbrook PR on feedbackplc@walbrookpr.com or 020 7933 8780.

 

Investor Presentation: 16:00 today

Management will be providing a presentation and hosting an investor Q&A session on the Company's results and future prospects at 16:00 today. Investors can sign up for free and register to meet FDBK via the following link: https://www.investormeetcompany.com/feedback-plc/register-investor

 

Questions can be submitted pre-event and at any time during the live presentation via the Investor Meet Company Platform.

 

Dr Tom Oakley, CEO of Feedback, said: "We are delighted with the increased traction for our core products as customer recognition, new contracts, and positive impact data all point towards the same conclusion; that Bleepa is both ideally suited and uniquely positioned to connect medical professionals safely and securely, and there is a compelling case that could see it become a third pillar of build for the expanding NHS CDC programme.

 

"As the UK, in particular, combats continuing winter pressures and a growing backlog of patients, there is an increasing focus on digital infrastructure and digitally enabled tools as a means to streamline working practices and introduce time cost savings; which Bleepa has proven it can provide at the Northern Care Alliance. There is also a prevailing direction of travel, both in the UK and Internationally, that should see stricter data governance regulations imposed on the industry, which, the Board believes, will directly benefit Feedback, underpin demand for its products, and further differentiate it from competitors.

 

"The near-term outlook is promising. The implementation of the DPDP Act 23 in India and the ruling of the UK ICO against NHS Lanarkshire demonstrate that regulation and compliance are making a resurgence post COVID in both of our core markets. This, combined with the compelling evidence of clinical improvement that Bleepa delivers for its customers, has drawn increasing attention to Feedback and our products, culminating in our inclusion in the APPG for Diagnostics Report on CDCs and the award of central NHS funding to expand our pilot programme. The Board expects continued focus and investment in the CDC programme and cross-provider pathways in H2 and the upcoming financial year as the NHS continues its efforts to address the growing care backlog. We believe that Bleepa is optimally positioned to capture this opportunity and deliver meaningful system impact and commercial opportunities as a result."

 

Note (1): "Sales" is non-IFRS metric representing the total customer contract value invoiced in a period. The figure does not take account of accrued or deferred income adjustments that are required to comply with accounting standards for revenue recognition across the life of a customer contract (typically 12 months, although pilot contracts may vary).

 

Note (2): " EBITDA loss" is a non-IFRS metric being earnings before interest, tax, depreciation and amortisation.

 

Enquiries:

 

Feedback plc

Tom Oakley, CEO

Anesh Patel, CFO

+44 (0) 20 3997 7634

IR@fbk.com

 


Panmure Gordon (UK) Limited (NOMAD and Broker)

Emma Earl/Freddy Crossley (Corporate Finance)

Rupert Dearden (Corporate Broking)

+44 (0)20 7886 2500

 


Walbrook PR Ltd;

Tel: 020 7933 8780 or feedbackplc@walbrookpr.com

Nick Rome/Joe Walker

07748 325 236 or 07407 020 470

 

 

About Feedback

 

Feedback plc helps clinical teams to make better decisions faster for patients. We design products that enhance clinician access to patient data and to their colleagues. Our unique approach centres around individual patient episodes, into which we pull relevant clinical data from hospital systems and around which we build remote clinical teams for collaboration. As a result, we produce a digital infrastructure that makes patient data available to clinicians in multiple settings, in a format that enables them to meaningfully interact with it, providing flexibility to clinicians and free movement of patients between provider settings - clinicians can practice from anywhere and patients can attend any care provider for treatment. 

 

Our products Bleepa and CareLocker work together to deliver unparalleled value to our customers. Bleepa is our application layer and sits on top of CareLocker as our data layer. Bleepa is a clinician facing platform that displays clinical results from a patient's CareLocker at a certified and regulated quality, that is suitable for clinical use and enables dialogue on a patient-by-patient basis with colleagues through a secure, auditable chat interface that links back to the patient medical record. The CareLocker data storage model is built around the patient. Our vision is one where relevant clinical data is always available to the patient as well as to any care setting that they may attend - a federated data architecture with the patient as the tenant.  

 

The Company has a number of growth opportunities domestically and internationally across a range of markets including the NHS and private healthcare providers and its highly scalable Software as a Service ("SaaS")-based model is expected to provide increasing levels of revenue visibility as the Company grows its customer base.

  

Feedback plc

 

Chairman and Chief Executive's Statement 

 

The first half of this year saw the focus of senior NHS decision makers drawn away from digital priorities to tackle a rolling programme of staff strikes and the operational pressures arising from the growing elective care backlog. This has been further complicated by a funding shortfall that has seen many Integrated Care Systems ("ICSs") having to implement a 30% real term cost saving in-year, resulting in many digital funding pots being repurposed to meet other operational priorities including staff salaries; over £800m of digital funds alone were redirected to cover the impact of strike action resulting in the collapse of 132 Trust's EPR programmes. This, combined with yet another cabinet reshuffle, has created one of the most challenging trading environments in recent history of UK healthcare.

 

Despite this, the Company has continued to make positive headway and successfully secured much sought after central funding to expand the pilot programme around CDC pathways, providing further evidence that Feedback continues to offer unparalleled value into a priority area for the NHS. The strong base of evidence that we were able to generate from the Northern Care Alliance ("NCA") and at QVH/Sussex ICS in the prior period has stood us in good stead and made a compelling case for further investment in digital infrastructure as part of the CDC programme, which was presented to senior leaders of the NHS as well as to parliament - at the APPG for Diagnostics. As a result of Feedback's participation at the APPG's inquiry into CDCs, the Company was able to secure £300k of funding to undertake a pilot at Amersham CDC and at a regional level across Buckingham, Oxfordshire and Berkshire ("BOB") ICS. The APPG published its report, which includes a case study on Feedback, at the end of January 2024. This can be found here: CDCs unveiled: challenges and triumphs | The Royal College of Radiologists (rcr.ac.uk).

 

The APPG report also discusses the difficulties around staffing and recruitment and how digitisation helps alleviate issues, enabling hospitals to do more with less. Feedback has delivered impressive cost and time savings at QVH/Sussex ICS without the need for additional clinical staff - providing a great case study for the wider market, which is becoming increasingly focused on investment in digital - yet to receive parity to commitments to investment in buildings, equipment and staffing.

 

Growing Momentum

 

The Company is pleased to report that during the Period it has seen growing momentum behind its core products, with Bleepa-CareLocker illustrating a steadily more compelling operational and cost benefit potential, when adopted in a care pathway setting.

 

Feedback has continued to establish a substantive and authoritative case that its technology represents a core infrastructure and potential key foundation for the NHS's plans to address waiting list pressures and reduce growing care backlogs across the UK. The relationships that the Company has fostered with key stakeholders are now beginning to bear fruit across the board - with increasing recognition and discussion of the need for digitisation.

 

With over 174 CDCs now approved and under construction, Feedback has a growing market to sell into. At a target contract value of £400k - £600k/annum per CDC on average, this creates a sizeable opportunity for the Company. Having worked on a pilot with QVH/Sussex ICS for over two years, the Company is now awaiting the results of the current procurement process which will soon complete. The rest of the NHS will be closely following the outcome of the QVH/Sussex ICS procurement process, and management is optimistic that success here would lead to more rapid contract conversion at other sites.

 

Growing Regulatory Backing

 

The recent Information Commissioners Office ("ICO") ruling against NHS Lanarkshire for the clinical use of WhatsApp and 500 associated patient data breaches has also seen a resurgence in the interest from Trusts around Bleepa as a WhatsApp replacement tool. This was the original value proposition for Bleepa when the product first came to market, but the Company pivoted into the cross-provider CDC space when Covid saw the broad acceptance of WhatsApp as part of the pandemic response. This renewed focus by regulators on the data risks associated with WhatsApp and other unregulated platforms is welcomed by the Company and is likely to result in direct commercial opportunities. Indian regulation is also following suit with Q1 CY2024 seeing the implementation of the DPDP Act 23, a GDPR equivalent legislation that will see data privacy and security enshrined in law and enforced by financial penalties. The Company believes that this will lead to opportunities with NHS hospital customers, an estimated total addressable market opportunity of £28m, who will be affected by the new legislation and that are keen to avoid the financial penalties for non-conformance.

 

Feedback continues to invest strategically in both its products and its team. During the Period work was completed on Bleepa v1.6. Key additional features now developed include a dashboard view of patient pathways to assist with pathway coordination and administration, giving customers the ability to track their patients' progress across care settings; improvements to message directionalising within chat, and the ability to generate urgent messages to highlight key clinical insights.

 

The sales team was expanded during the Period, both to improve conversion of current opportunities and to generate new leads focusing on the NHS organisations where there is the greatest demand and opportunity. Rohit Singh was appointed, as in-country MD for the India subsidiary in order to lead the market opportunity in the country. Rohit joined us from the UKIBC, which facilitates the introduction of UK companies into the Indian market.

 

The Company is aligned with the three key priorities of its core customer, the NHS; waitlist reduction, staff efficiencies, and cost savings. Feedback has strong evidence of these benefits and has presented them to senior stakeholders, leading to the award of central funding. Although the market is challenging at present, the Company could not be better aligned to the customer need, and the Board is confident in the growth opportunity based on the signs we are seeing; that these three areas will remain a priority for the system and that the funding which does exist in the system is now being aligned to these priority areas.

 

Key milestones in the upcoming period will be the outcome of the QVH/Sussex ICS procurement which is anticipated to lead to further business within the southeast region if converted, successful delivery of the current pilots utilising central funds disbursed by NHSE with a view that this will unlock both contracts and further potential pilots in new areas in the coming NHS financial year (April 2024 onwards), and the conversion of a deep and growing sales pipeline of both local and regional opportunities.

 

The Company is also developing opportunities in other market segments; domestically, Feedback is embarking on a pilot of Bleepa-CareLocker in the private sector post-period, translating NHS pathway work and the associated efficiencies into this area. In India, the changing legislative landscape presents real opportunity for a premium UK product with a proven record of delivering GDPR compliance in its domestic market. The recognition of Bleepa through awards such as the Gold medal from the IHW Council demonstrates increasing awareness of the brand and capabilities within this market and is a real platform to propel Bleepa forward.

 

The Board remains optimistic about the opportunity and looks forward to creating value for shareholders whilst helping address some of the most critical pressures facing healthcare today.

 

Business Strategy

 

Focus on Commercialisation and High Margin Growth Opportunities

Bleepa-CareLocker now contributes the majority of total revenues (77%) with growing commercialisation opportunities and routes to market matching the scalability of its product suite. This includes Bleepa, CareLocker and Feedback Connect (previously BleepaBox) - which are providing increased exposure to the community diagnostic programme in the UK and India respectively. Redirecting internal resource away from legacy products towards high margin growth opportunities is essential to delivering greater value for shareholders and underpins the Company's strategy to move into larger addressable market opportunities.

 

The Company's strategy is to pursue opportunities for cross-provider care delivery where higher contract values and operational margins are expected within a less competitive environment. This will predominantly be in the CDC space in the UK, which has an estimated total addressable market of £96m, in addition to the significant opportunity in remote care settings in India. The Company will continue to target its core products at traditional NHS opportunities with individual NHS trusts around clinical communication and replacement of legacy communication methods such as pagers and fax machines, especially in light of the recent ICO ruling against NHS Lanarkshire which is generating renewed attention from target customers.

 

The decision-making process and associated sales cycle is currently particularly long within the NHS, due to several factors described above and, as such, the Company is also targeting parallel market segments for its technology that require minimal additional product development and where there is a mirror value proposition that can be sold into, such as India and the UK private sector. Post period, we entered into a pilot agreement for the Bleepa-CareLocker solution in the UK private sector with MIP. This pilot agreement enables translation of the NHS pathway model  into the private sector and, when successful, it will make a compelling reason for other private providers to similarly adopt the technology.

 

Proven Results

The most recent data from the QVH/Sussex ICS pilot, now covering 16 months of delivery to December 2023, has demonstrated a 63% reduction in wait time compared to the national 18-week RTT target. Management is encouraged that this remains broadly consistent with the 69% metric based on earlier datasets. The most recent data continues to show a significant reduction in outpatient appointment requirement, of 88%. In combination these figures means that Bleepa-CareLocker could reduce the backlog whilst freeing up staff capacity and we estimate it could save in the order of £295 per patient episode though a reduction in outpatient appointments; addressing all three core NHS priorities.

 

An independent review carried out by Unity Insights has highlighted numerous benefits of the Company's clinical communications platform Bleepa within the NCA.

 

The report highlighted a dramatic reduction in clinical response times with a reduction of 74% in average referral times across three clinical specialties when compared to previous paper-based referral systems. It estimates that the cost savings could be as much as £819,000 for the Trust over the next five years and, if adopted across the entire Greater Manchester ICB footprint, has the potential to free up a further £7.7 million in the same period. 76% of staff interviewed identified meaningful time savings, 80% saw improvements in staff communication, and 88% found Bleepa easy to use.

 

The study, commissioned by Feedback and conducted by Unity Insights, examined Bleepa referral data from July 2021 to April 2023, collected at Royal Oldham Hospital and Fairfield General Hospital in Bury - run by the Northern Care Alliance NHS Foundation Trust.

 

The full report can be found on the Company's website at: Bleepa independent evaluation report - Bleepa

 

Legislation set to Drive Compliance

 

The Board believes that Bleepa remains the only communication platform that is certified as a medical device for image display in the UK, retaining its unique position in the market. The recent ruling by the ICO against NHS Lanarkshire's use of WhatsApp for clinical comms has shone a light back onto the regulatory landscape in the UK and the obligations of Trusts in protecting patient data and ensuring that their staff are using appropriate digital platforms. This, combined with the pressing needs in the system which Bleepa uniquely addresses, creates a strong driver for engagement with customer organisations. This position will only be strengthened if further action is taken by the ICO including the potential issue of fines and custodial penalties.

 

In India the adoption of the DPDP Act 23 should have a similar impact to the adoption of GDPR in the UK. It has similar principals with potentially very significant fines on organisations and individuals who do not comply. Management believes that this legislation may drive an opportunity for large and mid-tier hospitals who are of a size to be of interest to the regulatory authorities and whom we shall be targeting with our sales and marketing campaigns in India.

 

Strengthening CDC Proposition

 

Following the £450k pilot contract for the Sussex ICS with QVH, the Company was awarded a nine-month, fixed-term contract extension for the Bleepa-CareLocker CDC solution. The Company has now been awarded an additional paid extension at the request of QVH/Sussex ICS following the abandonment of its previous procurement process and subsequent extension as QVH/Sussex ICS undertake a new tender exercise (as per the announcement dated 04 April 2023).

 

This additional paid extension at the same rate, is worth £225k for a further six-months to 30 June 2024. Further to previous announcements, QCH/Sussex ICS launched a replacement procurement process in November 2023 which is expected to complete by March 2024. Feedback is participating in this replacement procurement process and management hopes to hear the outcome in the coming months.

 

QVH/Sussex ICS is one of the UK's exemplar CDC sites and the first to deliver end-to-end symptom-based pathways through the CDC programme. As previously announced, the deployment of Feedback's product suite at QVH/Sussex ICS is intended to be used as a blueprint model for future CDC digital infrastructure models across the UK and was presented to MPs and senior NHS officials at the APPG for diagnostics in June 2023, culminating in Bleepa-CareLocker's inclusion in the final report in January 2024, which recommended further investment in digital infrastructure to support the CDC programme.

 

Participation with the APPG enabled the Company to engage with NHSE national leaders who subsequently awarded £300k of central funding to allow two further sites to implement a pilot of the Bleepa technology with the aim of assessing whether the QVH/Sussex ICS impact data could be replicated in other areas of the system. If the Company is able to demonstrate consistent, or enhanced results at these sites the board believes that it will create a compelling argument for additional funding and wider support for adoption of Bleepa-CareLocker within the system.

 

Broadening the Company's reach

 

Post-period, the Company announced an agreement with MIP to pilot Bleepa-CareLocker, to deliver multiple clinical pathways to its customers in the UK private healthcare sector. The Bleepa-CareLocker platform will host a number of different diagnostic-led clinical pathways, starting initially with a novel direct access prostate screening service, pioneered by MIP, with further pathways across cardiac and Women's Health services to be onboarded later in the year. The fact that this is a direct translation of the NHS pathway work into the UK private healthcare sector highlights the important role that the private sector can play in supporting the NHS recovery and those patients affected by long waiting lists. It is an opportunity for the Company to demonstrate a value proposition to the UK Private Healthcare Market and when successful is anticipated to open up further opportunities with private hospitals and health insurance providers. The Company is already engaged in a number of conversations with other providers in this space and will hope to convert further opportunities well in advance of the culmination of the MIP pilot, based off initial success data.

 

Global Opportunities

 

The team is extremely excited by global opportunities - with inroads in India highlighting the scalability of the Company's solutions. Importantly, management believes that increased regulatory demands both in the UK and India will further underpin demand. There is increasing focus on technologies to secure the transfer and display of images and videos, and the landscape is very much moving in Feedback's favour - with digital infrastructure and digitally enabled tools seen as key solutions to significant administrative burdens.

 

During the Period the Company secured an import licence to sell Bleepa as a medical device in India through its local subsidiary, which was shortly followed by the appointment of Rohit Singh as in-country MD. Rohit's considerable market experience and the newly granted import licence has enabled the Company to rapidly build a growing pipeline of opportunity. Early signs of growing market awareness are already coming through, such as the award of a Gold medal by the IHW Council for the best Digital Solution in Rural Healthcare , in recognition of the current pilot in TB screening in Odisha.

 

Financial Review

 

Revenue for the Period decreased 24% to £437k (H1 2023: £576k). This is primarily due to the prior period being positively impacted by the QVH/Sussex ICS pilot contract, which was signed in September 2022 but covered the 12-month period from 31 March 2022, and the planned ongoing decline in legacy product revenues as these legacy contracts reach the end of term.

 

Sales, a non IFRS measure representing the total customer contract value invoiced in the period, decreased 33% to £411k (H1 2023: £612k), driving the decrease in reported revenue. Bleepa-CareLocker contributed 73% and Image Engineering license fees contributed 20%. Sales include £300k from the two pilots mentioned above, with Amersham CDC and a pan regional pilot across BOB ICS. Sales are recognised as revenue monthly across the life of a customer contract (typically 12 months, although pilot contracts vary), with any amount not recognised as revenue in the current financial year remaining on the balance sheet as contract liabilities and recognised as revenue in the forthcoming financial year.

 

Operating expenses increased 17% to £2,536k (H1 2023: £2,161k) primarily due to higher staff costs arising from headcount expansion and cost-of-living wage increases, a portion, £64k (H1 2023: nil), of outsourced software development costs being recognised as maintenance (operating) expense rather than capital given the ongoing maturity of Bleepa, increased contractor/consultancy costs for business development activities and higher amortisation charges (non-cash). Operating loss increased to £2,135k (H1 2023: £1,622k). EBITDA loss, excluding depreciation and amortisation charges of £460k (H1 2023: £396k), increased 37% to £1,675k (H1 2023: £1,226k).

 

The Group capitalised a further £654k (H1 2023: £601k) in outsourced software development costs related to product enhancements and new features including a dashboard view of patient pathways to assist with pathway coordination and administration, giving customers the ability to track their patients' progress across care settings.

 

The Group's cash position as at 30 November 2023 was £5,372k (30 November 2022: £9,228k, 31 May 2023: £10,306k).

 

Outlook

 

We believe there is growing opportunity for Feedback's products both domestically and internationally. Although the trading conditions of the UK healthcare sector are currently extremely challenging, Bleepa is well positioned, supported by strong evidence and is now truly on the national radar. The Company has successfully leveraged national funding at a time when most digital funds are being redirected to meet other system pressures and has gained the attention of parliament and senior NHSE leaders through its involvement with the APPG's inquiry into CDCs. Feedback is poised to capitalise on this momentum and work has already started on engaging the pilot sites to get the solution live and underway. Successful deployment of these pilots is critical to the next phase of NHS engagement and the Company is confident that it will be able to deliver meaningful impact through its technologies at these sites.

 

However, the NHS is not the only growth opportunity, and in recognition of the difficult trading environment it is prudent to explore other options in parallel. The closest and most obvious is the UK private healthcare sector, which is currently delivering an increasing range of services, in many cases without robust IT in place to transfer patient data securely between NHS and private provider, often resulting in duplication of investigations and therefore cost to the system. Insurers are seeing increasing claims against policies and therefore need to innovate rapidly in order to deliver claims more cost effectively. These drivers are creating a compelling need for Bleepa which both addresses safe transfer of data but also more efficient models of care that are both faster for patients and more cost effective, with the added advantage that it releases clinician time that can be used to carry out more billable services. Post period, the Company was delighted to enter into a pilot agreement for its technology with the innovative private provider MIP with the hope that it will enable the team to demonstrate considerable value within the sector and stimulate a number of commercial opportunities with providers in this space.

 

The Company is similarly looking to international opportunities. Having successfully attained its import licence for Bleepa and appointed a very competent in-country MD the Company believes that it is set up to commercialise Bleepa within India. Momentum is already building, fuelled in part by the launch of the DPDP Act 23 and as evidenced by the Award recognition from the eminent IHW Council. We have also learnt from the deployment in India and recognised the barrier that medical device conformance can represent in different territories. To face this in all international markets would hinder the growth opportunity and the Company has therefore sought to incorporate a third-party viewer into Bleepa with existing regulatory credentials for key markets including the USA, Middle East and Europe.

 

The post-period awards of a second paid contract extension with QVH/Sussex ICS worth £225k to run until 30 June 2024 until formal procurement is progressed, and £300k in NHSE central funding for two Bleepa CDC pilots, set the Company up for a stronger H2.

 

The Board is confident in its position and market opportunity and believes in the valuable work that the Company is undertaking to deliver impactful solutions to health systems, clinicians and, most importantly patients. The Board wishes to thank shareholders for their ongoing support of this mission.

 

Dr Tom Oakley

Chief Executive Officer

 

Professor Rory Shaw
Non-Executive Chairman

 

 Feedback plc

Consolidated Statement of Comprehensive Income

For the six months ending 30 November 2023


                

                 Note

            

 6 months

ending

30 November 2023

(Unaudited)

£'000

            

 6 months

ending

30 November 2022

(Unaudited)

£'000

            

 12 months ending

31 May

2023

(Audited)

£'000


 

 

 

 

Revenue


437

576

1,025

Cost of sales


(36)

(37)

(84)





 

Gross profit


401

539

941

Other operating expenses


(2,536)

(2,161)

(4,363)





 

Operating loss

 

(2,135)

(1,622)

(3,422)

Net finance income


47

12

48





 

Loss before taxation


(2,088)

(1,610)

(3,374)

Tax credit


152

242

456





 

Loss after tax attributable to the equity shareholders of the Company

 

(1,936)

(1,368)

 

(2,918)





 

Translation difference on overseas operation


(1)

-

(2)

Total comprehensive expense for the year


(1,937)

(1,368)

(2,920)






Loss per share (pence)



 

 

Basic and diluted

2

(14.52)

(10.26)

(21.88)



 

Feedback plc

Consolidated Statement of Changes in Equity

As at 30 November 2023

 

 

 

Share Capital

Share Premium

Capital Reserve

Retained Earnings

Translation Reserve

Share option Reserve

Total

 

£'000

£'000

£'000

£'000

£'000

£'000

£'000









At 31 May 2023

6,667

15,350

300

(11,767)

(212)

531

10,869









Loss for the year and Total comprehensive loss for the year

-

-

-

(1,936)

(1)

-

(1,937)


-

-

-

-

-

-

-

New shares issued

-

-

-

-

-

-

-

Costs of new shares issued

-

-

-

-

-

-

-

Share-based payments

-

-

-

-

-

37

37

Total transactions with owners

-

-

-

-

-

37

37









At 30 November 2023

6,667

15,350

300

(13,703)

(213)

568

8,969

 

 

As at 30 November 2022 (prior period):

 

 

 

Share Capital

Share Premium

Capital Reserve

Retained Earnings

Translation Reserve

Share option Reserve

Total

 

£'000

£'000

£'000

£'000

£'000

£'000

£'000

















At 31 May 2022

6,667

15,351

300

(8,849)

(210)

450

13,709









Total comprehensive loss for the year

-

-

-

(1,368)

-

-

(1,368)


-

-

-

-

-

-

-

New shares issued

-

-

-

-

-

-

-

Costs of new shares issued

-

(0)

-

-

-

-

(0)

Share-based payments

-

-

-

-

-

29

29

Total transactions with owners

-

(0)

-

-

-

29

29









At 30 November 2022

6,667

15,351

300

(10,217)

(210)

479

12,370



 

Feedback plc

Consolidated Statement of Financial Position

As at 30 November 2023

 

 

 

 

30 November 2023

(Unaudited)

 

30 November 2022

(Unaudited)

 

31

May

2023

(Audited)

 

Note

£'000

£'000

£'000

Assets

 

 

 

 

Non-current assets





Property, plant and equipment


14

16

15

Intangible assets

3

3,911

3,499

3,711



3,925

3,515

3,726

 





Current assets





Trade and other receivables


435

39

 225

Corporation tax receivable


151

242

 456

Cash and cash equivalents


5,372

9,228

 7,318



5,958

9,509

7,999






Total assets


9,883

13,024

11,725











Equity





Capital and reserves attributable to the Company's equity shareholders





Called up share capital


6,667

6,667

6,667

Share premium account


15,350

15,351

15,350

Capital reserve


300

300

300

Translation reserve


(213)

(210)

(212)

Share option expense reserve


568

479

531

Retained earnings


(13,703)

(10,217)

(11,767)

Total equity


8,969

12,370

10,869






Liabilities

 




Current liabilities

 




Trade and other payables


914

654

855



914

654

855






 

Non-current liabilities





Contract liabilities


-

-

-



-

-

-

 

 




Total liabilities

 

914

654

855

 

 



-

Total equity and liabilities

 

9,883

13,024

11,724

 

 Feedback plc

Consolidated Statement of Cash Flow

For the six months ending 30 November 2023

 

 

            

 6 months ending

30 November

2023

(Unaudited)

£'000

            

 6 months ending

30 November

2022

(Unaudited)

£'000

            

 12 months ending

31 May

2023

(Audited)

£'000





Cash flows from operating activities




Adjustments for:








Net finance income

(47)

(12)

(48)

Depreciation and amortisation

460

396

809

impairment of intangible assets

-

-

7

Share based payment expense

37

29

81

Decrease/(increase) in trade receivables

(229)

196

95

Decrease/(increase) in other receivables

20

73

(12)

Increase / (decrease) in trade payables

124

1

(104)

Increase / (decrease) in other payables

(65)

59

365

Corporation tax received

456

392

393

Translation difference on overseas operation

(1)

0

(2)

Total adjustments

755

1,134

1,584





Net cash used in operating activities

(1,333)

(476)

(1,790)





Cash flows from investing activities




Purchase of tangible fixed assets

(6)

(13)

(19)

Purchase of intangible assets

(654)

(601)

(1,226)

Net finance income received

47

12

48





Net cash used in investing activities

(613)

(602)

(1,197)





Cash flows from financing activities




Net proceeds of share issue

(0)

(0)

(1)





Net cash generated from financing activities

(0)

(0)

(1)





Net increase/(decrease) in cash and cash equivalents

(1,946)

(1,078)

 

(2,988)

 

Cash and cash equivalents at beginning of period

7,318

10,306

10,306

 

 



Cash and cash equivalents at end of period

5,372

9,228

7,318

 

 

Notes to the Unaudited Interim results for the six months to 30 November 2023

 

 

1.   Basis of preparation

 

The consolidated financial statements of Feedback Plc have been prepared in accordance with UK adopted international accounting standards. The accounting policies applied are consistent with those applied in the most recent consolidated annual report and accounts for the year ended 31 May 2023.

 

The information set out in this interim report for the six months ended 30 November 2023 does not constitute full statutory accounts under Section 434 of the Companies Act 2006 and was not subject to a formal review by the auditors. The financial information in respect of the year ended 31 May 2023 has been extracted from the statutory accounts which have been delivered to the Registrar of Companies.

 

 

There are no material events to report after the end of the reporting period.

 

This interim report was approved by the directors on 20 February 2023.

 

2.   Loss per share

 

Basic loss per share is calculated by reference to the loss on ordinary activities after taxation and on the weighted average number of shares in issue.

 

 

            

 6 months

ending

30 November

2023

(Unaudited)

£'000

            

 6 months

ending

30 November

2022

(Unaudited)

£'000

            

 12 months

ending

31 May

2023

(Audited)

£'000

 




Net loss attributable to ordinary equity holders

(1,936)

(1,368)

(2,918)





Weighted average number of ordinary shares for basic earnings per share

13,334,659

13,334,659

13,334,659

Effect of dilution:




Share Options

-

-

-

Warrants

-

-

-

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

13,334,659

13,334,659

13,334,659





Loss per share (pence)




Basic

(14.52)

(10.26)

(21.88)

Diluted

(14.52)

(10.26)

(21.88)

 



 

3.   Intangible assets

 

 

Software

development

Customer relationships

Intellectual Property

Goodwill

Total

 

£'000

£'000

£'000

£'000

£'000

Cost

 

 

 

 

 







At 31 May 2022

 4,405

 100

 198

 271

 4,974

Additions

 601

 -  

 -  

 -  

 601

At 30 Nov 2022

5,006

 100

 198

 271

 5,574

Additions

 625

 -  

-

 -  

 625

At 31 May 2023

5,631

 100

 198

 271

 6,200

Additions

 654

 -  

 -  

 -  

 654

At 30 Nov 2023

 6,285

 100

 198

 271

 6,854







Amortisation












At 31 May 2022

 1,171

 100

 143

 271

 1,685

Charge for the year

 382

 -  

 8

 -  

 390

At 30 Nov 2022

 1,553

 100

 151

 271

 2,075

Charge for the year

 399

 -  

 14

 -  

 413

At 31 May 2023

 1,952

 100

 165

 271

 2,489

Charge for year

 449

 -  

 5

 -  

454

At 30 Nov 2023

 2,401

 100

 170

 271

 2,943







Net Book Value

 






At 30 Nov 2023

3,884

 -  

 27

 -  

3,911







At 31 May 2023

 3,679

 -  

 32

 -  

3,711







At 30 Nov 2022

 3,453

 -  

 46

 -  

 3,499

 

4.   Segmental reporting

 

The Directors have determined that the operating segments based on the management reports which are used to make strategic decisions are medical imaging and head office. The trading activities of the Company solely relate to Medical Imaging and the Head Office covers the costs of running the parent company, Feedback Plc.

 


 

 

Six months ending 30 November 2023

Medical Imaging

Head Office

Total

 

 

£'000

£'000

£'000

Revenue





External


437

-

 437

Expenditure




 -  

Total (excluding depreciation and amortisation)

(1,510)

(555)

(2,065)

Depreciation and amortisation

(460)

-

(460)

Loss before tax


(1,533)

(555)

(2,088)

Tax credit


152

-

152






Balance sheet





Total assets


4,773

5,110

9,883

Total liabilities


(858)

(56)

(914)



3,915

5,054

8,969






Capital expenditure (all located in the UK)

(660)

-

(660)






The revenues from external customers in the six months ending 30 November 2023 are comprised of the following products Bleepa-CareLocker: £334k, Image Engineering license fees: £82k and legacy products (Cadran PACS and Texrad): £21k.

 

 

Six months ending 30 November 2022 (prior period)

 

Medical Imaging

Head Office

Total



£'000

£'000

£'000

Revenue





External


576

-

576

Expenditure





Total (excluding depreciation and amortisation)


(1,257)

(533)

(1,790)

Depreciation and amortisation


(396)

-

(396)

Loss before tax


(1,077)

(533)

(1,610)

Tax credit


242

-

242


Balance sheet

Total assets


4,407

8,617

13,024

Total liabilities


(651)

(3)

(654)



3,756

8,614

12,370






Capital expenditure (all located in the UK)


(614)

-

(614)






 

Reported segments' assets are reconciled to total assets as follows:

 

 

External revenue by

Non-current assets by

Total liabilities by

 

location of customer

location of assets

location of assets

 

            

 6 months

ending

30 November

2023

(Unaudited)

            

 6 months

ending

30 November

2022

(Unaudited)

            

 6 months

ending

30 November

2023

(Unaudited)

            

 6 months

ending

30 November

2022

(Unaudited)

            

 6 months

ending

30 November

2023

(Unaudited)

            

 6 months

ending

30 November

2022

(Unaudited)

 

£'000

£'000

£'000

£'000

£'000

£'000








United Kingdom

355

525

3,925

3,515

 914

 654

Europe

-

2

-

-

 -

 -

Rest of world

82

49

-

-

 -

 -

Total

437

576

3,925

3,515

 914

 654








 

 

5.   Availability of this report

 

A copy of this announcement is available from the Company's website, being https://fbkmed.com/feedback-plc/announcements/.

 

To receive a hard copy of the interim report, please contact Walbrook Ltd on 020 7933 8780 or feedbackplc@walbrookpr.com.

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

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