REG - Feedback PLC - Half Year Trading Update

FeedbackAnnouncement

19/12/2023 07:15

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RNS Number : 2191X  Feedback PLC  19 December 2023

Feedback plc

 

Half Year Trading Update

 

Feedback plc (AIM: FDBK, "Feedback" or the "Company"), the clinical
infrastructure specialist, announces a trading update for the six months to 30
November 2023 (the "Period").

 

Financial Highlights

 

Reported revenue for the Period will be c.£0.44m (H1 2023: £0.57m), down
approximately 24%. 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. Management expects Bleepa-CareLocker solutions to drive revenue
growth going forward as the Company continues to demonstrate the technical
improvements, time, and efficiency savings that its products can provide to
customer sites.

 

Cash and cash equivalents as at 30 November 2023 were £5.37m (30 November
2022: £9.23m).

 

Operational Highlights & Current Trading

 

Community Diagnostics Centres

 

As announced today, the Company is conducting a series of pilot programmes of
Community Diagnostic Centre ("CDC") care pathways funded by a combined award
of £300,000. The Company has directly contracted with the individual NHS
organisations hosting the pilot sites utilising funds locally disbursed for
this purpose under NHS England's ("NHSE"), Community Diagnostic Centre
Programme.

 

The pilot contract awards follow the successful CDC pilot at Queen Victoria
Hospital ("QVH") and seeks to replicate the positive impact data seen;
reinforcing the case for subsequent funding of a pathway approach to UK CDC
delivery in subsequent years, which are central to Government ambitions to cut
NHS wait times. The Pilot sites are Amersham CDC ("Amersham") in
Buckinghamshire and a pan regional pilot across Buckinghamshire, Oxfordshire
and Berkshire ICS ("BOB ICS").

 

Feedback has also secured a second, paid extension to its contract with QVH
worth £225k for a further six-months to 30 June 2024. Further to previous
announcements, the Trust launched a replacement procurement process in
November 2023 which is expected to complete by March 2024. Feedback is
participating in this replacement procurement process, which follows the
abandonment of the Trust's previous procurement (as per the announcement dated
04 April 2023).

 

Northern Care Alliance

 

The Company also continues to demonstrate the benefits of Bleepa in the NHS
beyond the CDC setting. In October, an independent study found the Northern
Care Alliance cut its inpatient referral times by three quarters using Bleepa
to manage its inpatient referrals. The review estimates that the collective
time savings could free up £7.7 million over the next five years if adopted
across the whole Greater Manchester ICB footprint.

 

India

 

The Board remains confident in the long-term prospects of the Indian market,
which offers significant scale. In the Period, the Company was successfully
granted an import license for Bleepa as a registered medical device in India
and its new in-country Managing Director, Rohit Singh, continues to explore
potential market opportunities with various government organisations and large
hospital chains.

 

Bleepa

 

The latest version of Bleepa, v1.6, is currently undergoing final testing
prior to release. Key additional features 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. This version will
be rolled out to customers in the new year and is anticipated to greatly
improve the value proposition to NHS customers in particular as we look to
growing sales in H2.

 

 

Outlook

 

The Company has performed well during an extremely challenging trading
environment; large amounts of NHS digitisation funding has been pulled to meet
the increased salary packages awarded to frontline clinicians following the
strikes, which has placed a number of digital projects in jeopardy across the
system. However, we have seen continued focus on the CDC programme, which
remains a key area of strategic investment for the NHS and has led to the
recent award of funding to expand the Bleepa-CareLocker pilot programme around
pathway enablement. Bleepa-CareLocker has been recognised as having the
potential to supercharge the CDC initiative, helping to leverage the
diagnostic capacity generated by the CDCs to drive clinical pathways and
reduce waitlists. The additional pilot funding and the continued investment by
the NHS in the CDC programme, gives the Board confidence that Feedback is well
aligned to the key areas of NHS strategic priority and will therefore be less
affected by the wider redirection of digital funding.

 

During the Period the sales team was expanded, 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, and the
benefits can already be seen. The Company has also entered into a series of
early stage conversations with potential strategic partners seeking to supply
the CDC programme and NHS Trusts, presenting a potentially attractive route to
market, and a means of bolstering the technical capabilities of
Bleepa-CareLocker to address the needs of a wider stakeholder group.

 

Future sales of Bleepa-CareLocker are now greatly supported by the
availability of good quality evidence, which now provides a very compelling
value proposition to both clinicians and to NHS finance teams. In an NHS
environment where there are growing waitlists, staff shortages and increasing
funding pressures, a solution that slashes wait times, without requiring
additional clinical staff and is cash releasing to the system, presents a very
attractive solution. As such, the Board believes that the Company is optimally
positioned and stands to do well in the coming year as NHS organisations seek
solutions with proven evidence of impact against these key areas. Given rising
interest in Bleepa across the NHS, the Board is optimistic about an increase
in sales in 2024 and currently anticipates revenues for the full year to be in
line with market expectations.

 

-Ends-

 

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, the veterinary
market and private healthcare providers and its highly scalable Software as a
Service ("SaaS")-based revenue model is expected to provide increasing levels
of visibility as the Company grows its customer base.

 

 

 

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