REG - Feedback PLC - Half-year Report
21/02/2024 07:00
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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
(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 +44 (0) 20 3997 7634
Tom Oakley, CEO IR@fbk.com (mailto:IR@fbk.com)
Anesh Patel, CFO
Panmure Gordon (UK) Limited (NOMAD and Broker) +44 (0)20 7886 2500
Emma Earl/Freddy Crossley (Corporate Finance)
Rupert Dearden (Corporate Broking)
Walbrook PR Ltd; Tel: 020 7933 8780 or feedbackplc@walbrookpr.com
(mailto: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)
(https://www.rcr.ac.uk/news-policy/policy-reports-initiatives/representing-your-voice-in-uk-parliaments/cdcs-unveiled-challenges-and-triumphs/)
.
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
(https://bleepa.com/bleepa-independent-evaluation-report)
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 6 months 12 months ending
ending ending 31 May
30 November 2023 30 November 2022 2023
(Unaudited) (Unaudited) (Audited)
£'000 £'000 £'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 30 November 2022 31
(Unaudited) (Unaudited) 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 6 months ending 12 months ending
30 November 30 November 31 May
2023 2022 2023
(Unaudited) (Unaudited) (Audited)
£'000 £'000 £'000
Cash flows from operating activities
Loss before tax (2,088) (1,610) (3,374)
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 6 months 12 months
ending ending ending
30 November 30 November 31 May
2023 2022 2023
(Unaudited) (Unaudited) (Audited)
£'000 £'000 £'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 Customer relationships Intellectual Property Goodwill Total
development
£'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 6 months 6 months 6 months 6 months 6 months
ending ending ending ending ending ending
30 November 30 November 30 November 30 November 30 November 30 November
2023 2022 2023 2022 2023 2022
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (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/
(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
(mailto:feedbackplc@walbrookpr.com) .
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