REG - Feedback PLC - Half Year Trading Update

FeedbackAnnouncement

18/12/2024 07:00

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RNS Number : 4630Q  Feedback PLC  18 December 2024

Prior to publication, the information contained within this announcement was
deemed by the Company to constitute inside information as stipulated under the
Market Abuse Regulations (EU) No. 596/2014 ("MAR"). With the publication of
this announcement, this information is now considered to be in the public
domain.

 

 

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 2024 (the "Period").

 

 

Financial Highlights

Reported revenue for the Period is expected to be broadly flat at
approximately £0.4m (H1 2024: £0.4m), of which approximately 90% is from
Bleepa (H1 2024: 77%)

 

At the end of the Period the Company completed a successful upscaled
fundraising and retail offer, raising gross proceeds of approximately £6.1m
(£5.6m net proceeds). The funds are earmarked to drive growth through the
collaboration agreement with a large UK primary care partner (which was
announced on 19 September 2024), provide funding to roll out Bleepa for
Integrated Care Boards ("ICBs") under the Elective Recovery Fund ("ERF"), and
provide on-going working capital for the Group.

 

Cash and cash equivalents as at 30 November 2024 were c.£7.3m (30 November
2023: £5.4m). Approximately £5.1m in net proceeds from the fundraise was
received in the Period, with the remaining approximately £0.5m net proceeds
being received shortly after Period end.

 

 

Operational Highlights

During the Period the Company established key partnerships with a view to
strengthening its position within the ongoing Government drive to embed
digitisation as part of the broader focus on reducing wait lists and pressures
on the NHS. As such, the Company is positioned for a step change in commercial
prospects notably on the back of the ERF funding mechanism and Neighbourhood
Diagnostics Platform collaboration announced during the Period.

 

Elective Recovery Fund

Now that Diagnostic Enhanced Advice and Guidance ("DEAG") diversions achieved
through the Bleepa platform are eligible for reimbursement under the ERF, the
need for NHS capital funding is removed - any ICB or hospital in England can
utilise the ERF, by local agreement, to reimburse expenditure on Bleepa.

 

This has the potential to be highly significant for the Company - with an
indicative ICB contract expected to generate over approximately £2m per ICB,
per annum. While the current ERF programme is scheduled to run until 31 March
2025, central conversations indicate that the commonly held view is that
elective recovery is a key priority for the NHS into next year and beyond. The
Company is currently in active discussions with several ICBs and continues to
focus on converting the growing pipeline.

 

Neighbourhood Diagnostics

Feedback has also collaborated with a provider of primary care solutions to
create a Neighbourhood Diagnostics Platform ("NDP") with a focus on increasing
diagnosis and treatment in the community and the desire to shift to a digital
NHS with a Digital Health Record for each patient.

 

The Company has since entered into a memorandum of understanding with its
partner and an NHS Trust to implement a pilot, which will provide a reference
point for scaling opportunities of an optimised GP referral process and
subsequently the NDP. The aim is to provide a potential route to rapidly scale
the Bleepa solution through a pathway approach, enabling the Government's
vision of a digital-first, community centric healthcare system. This could
potentially redirect over 190m routine diagnostic tests per year to a
community setting, addressing a total addressable market worth £382m annually
(of which Feedback estimates its share to be worth approximately £191m).

 

 

Outlook

The Board believes that Bleepa is uniquely positioned to address one of the
key underlying challenges to NHS reform and is perfectly aligned with the
strategic aims of the Government, proposed NHS digitisation and a shift to
delivery of care in communities via a neighbourhood health service.
Importantly, the recent fundraising both enables the Company to build scale
for implementation and provides a runway for delivery.

 

Further to unlocking ERF reimbursement, the Company is encouraged by the
growing pipeline of opportunities and is actively pursuing engagements with
multiple ICBs with the expectation to convert some of these in Q1/Q2 next
year. ICB contracts remain the nearest term opportunity to build meaningful
revenues streams, however, conversations with central and national teams are
ongoing.

 

 

-Ends-

 

Enquiries:

 

 Feedback plc                                +44 (0) 20 3997 7634

 Tom Oakley, CEO                             IR@fbk.com (mailto:IR@fbk.com)

 Anesh Patel, CFO

 Panmure Liberum Limited (NOMAD and Broker)  +44 (0)20 7886 2500

 Emma Earl/Mark Rogers (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, with greater connectivity
across organisations.

 

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.

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