REG - Feedback PLC - Interim Results
10/02/2022 07:00
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RNS Number : 2235B Feedback PLC 10 February 2022
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
Interim Results for the six months ended 30 November 2021
Investment in product suite driving significant international growth
opportunities
London, 10 February 2022: Feedback plc (AIM: FDBK, "Feedback" or the
"Company"), the specialist clinical communication company, announces its
unaudited results for the six months to 30 November 2021 (the "Period").
Operational Highlights
· Expansion of routes to market with launches of CareLocker and
Bleepa Box
o Estimated total addressable market for product suite in excess of £10
billion globally
· Increased commercialisation both within the NHS and through
non-NHS channels
o Significant increase in revenues - reflecting initial Bleepa sales and
highlighting strength of the Company's refocused business model
· Endorsement of technology through international MOUs and pilot
schemes
o Further enhancing growth opportunities and underpinning increased reach
with new partners including Qure.ai, Quest and Sussex Integrated Care System
(Sussex ICS)
· Appointment of Anesh Patel as Chief Financial Officer and Company
Secretary
Financial Highlights
· Revenue increased 9% to £179k (H1 2021: £165k), driven by the
initial commercialisation of Bleepa
· Operating loss increased to £1,238k (H1 2021: £918k),
reflecting increased investment in product development, commencement of
software development amortisation and increased headcount
o EBITDA loss increased to £1,033k (H1 2021: £916k)
· Oversubscribed placing and open offer raising £11.2m in November
2021 - providing funding to support accelerated revenue growth
· Cash as at 30 November 2021 was £11.4m (30 November 2020:
£3.8m)
Post period highlights
· Strong progress towards use of Bleepa and CareLocker in
tuberculosis screening opportunity in India:
o Partnership with Amazon Web Services to support cloud-based TB screening
programme for rural communities in India
o Bleepa solution recently deployed at a pilot hospital site in Orissa,
India, ahead of schedule, overtaking our plans to undertake a pilot in
Rajasthan (which continue in parallel)
o Aiming for the first TB screening patient to use the service imminently,
proving the application in the real world, with a view to establishing further
partnership and contractual discussions
· Expanded the rollout of Bleepa at Pennine Acute Hospitals NHS
Trust (now part of the Northern Care Alliance or "NCA") to include two
hospitals and c.900 clinicians (versus 359 at H1 2020)
· Completed the technical Minimum Viable Product ("MVP") deployment
of Bleepa and CareLocker with Sussex ICS for our patient specific community
diagnostic centre ("CDC") pathway
o Near-term target for the first patients going through the pathway, proving
the infrastructure solution in the real world and enabling the first GP led
asynchronous Multi-Disciplinary Team ("MDT") pathway in the history of the NHS
· Onboarded 400+ CVS users onto Bleepa, across 20 equine veterinary
practices with the Company supplying 40 Bleepa Boxes for remote image
acquisition - importantly this highlights the value of Bleepa and Bleepa Boxes
outside of the hospital setting
· Full year outlook expected to be ahead of market expectations
Analyst Briefing, 9:30am Today
A briefing for Analysts will be held at 9:30am GMT this morning. Analysts
interested in attending should contact Walbrook PR by emailing
feedbackplc@walbrookpr.com (mailto:feedbackplc@walbrookpr.com) or by calling
020 7933 8780.
Dr Tom Oakley, CEO of Feedback, said: "Our mission is to enable clinicians to
make faster, more informed decisions for patients at any location, in a
regulated/approved environment. In 2021 we achieved sales of our clinical
communication platform Bleepa in both the NHS and veterinary sectors,
confirming the value proposition of our technology. Building on this success
we have further evolved our product offering to help us deliver this mission
while maintaining our sales focus into individual NHS Trusts and expanding our
focus to capture benefits of asynchronous communication to regional care
delivery.
"Following our oversubscribed equity raise in late November we now have a
robust balance sheet that will allow us to take on these key opportunities in
the NHS and in India simultaneously. Both opportunities are substantial and
are generating a number of partnership opportunities, as proven by the post
period partnership with AWS and developments in Orissa and Sussex ICS. We look
forward to a busy H2 as we deliver initial pilots for both opportunities and
build towards commercial contracts in these large addressable markets. We
remain extremely excited about our prospects with trading for the full year
expected to be ahead of market expectations."
Further information on Feedback and its products can be found on the Company's
website: https://fbkmed.com/feedback-plc/ (https://fbkmed.com/feedback-plc/)
-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)
Paul McManus/Nick Rome/Nicholas Johnson 07980 541 893 or 07748 325 236 or 07884 664 686
About Feedback
Feedback plc is a specialist clinical communications business, with a mission
to improve the efficiency and quality of communications for frontline
clinicians and hospitals with a key focus on building solutions that enhance
access to high quality patient data.
Feedback has developed a toolkit of clinical communications apps. Its core,
regulatory approved product is Bleepa, a revolutionary medical imaging app
enabling remote and secure communications between frontline clinicians and
teams. CareLocker is a revolutionary GDPR compliant patient-centric cloud
architecture - its proprietary technology enables an easy route to creation
and mobilisation of individual healthcare records. Bleepa Box is a specialist
tool to enable image transfer from remote settings to the Bleepa platform over
mobile networks.
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.
Feedback plc
Chairman and Chief Executive's Statement
We are delighted to report that despite the difficult trading conditions
generated by COVID-19 the Company's strategic shift to focus on the Bleepa
product line has resulted in a 9% uplift in revenues for the first half of the
year. Taking into account this progress with Bleepa and renewal of a
significant legacy product contract in December 2021, trading for the full
year is expected to be ahead of market expectations.
Feedback's focus on the regulated provision of medical imaging services,
within the wrapper of clinical communication and workflows, maintains our
competitive advantage and unique customer value, leveraging our 20-year
heritage of medical device development and clinical know how.
The Company has made good progress in developing our product lines to meet a
number of large emerging opportunities in the NHS and India, through the
creation of our patient centric cloud storage, CareLocker, and the Bleepa Box
for remote image upload. Our readiness to pursue these opportunities enabled
us to undertake an £11.2m fundraise at the end of the period in order to
scale the team to deliver our products to market. The Company will use this
capital to expand our sales and business development team alongside key
technical appointments in the area of cloud architecture and cyber security
and invest further in the technology. This expansion will enable us to pursue
these exciting opportunities in parallel, maximising returns for shareholders.
In addition to expanding the team we are identifying key strategic partners
who can help to scale the products and realise our market opportunities in a
number of settings. We believe that partnering represents our most
cost-effective route to market and we have already announced a number of
partnerships such as with Qure.ai, Quest Teleradiology, Sussex ICS and most
recently AWS. We will continue to develop this partnership vertical in order
to deliver maximum shareholder value through the realisation of the fastest
and most efficient route to market.
The Company is now well positioned to embrace a growing number of at scale
market opportunities.
Business strategy
Our mission is to enable clinicians to make the best decisions for their
patients, faster and from anywhere. We do this by facilitating secure clinical
communication around individual patients and present clinical data into that
conversation to enhance the decision making process, most notably medical
imaging. This core value proposition allows us to connect clinical teams
around individual patient workflows, across provider settings, making us an
enabling digital infrastructure for regional and national healthcare
programmes, alongside our core proposition to individual hospitals.
COVID-19 pressures have led to a growing elective care backlog in the NHS;
addressing this problem requires new connected ways of working across regions
and provider settings, including the launch of new community diagnostic
centres, (CDCs) for which Bleepa provides a unique enabling digital
infrastructure. Pursuing these larger centralised regional contracts
represents a more efficient route to market than addressing sales to
individual hospitals and will allow us to onboard many more clinical users in
one go. It also highlights our ability to move into market segments that our
competitors are unable to serve, given their lack of patient centric
architecture and inability to display medical images within a regulatory
compliant viewer. This highly topical opportunity is well funded by central
government and a key priority for the NHS which will enable us to raise the
Company's profile whilst delivering key services to our customers.
The launch of CareLocker and the Bleepa Box have enabled Feedback to truly
address remote clinical working requirements, equipping us to deliver both the
CDC opportunity in the NHS, TB screening in rural locations in India and also
in veterinary care with CVS Group, which has so far onboarded 400+ users onto
Bleepa, across 20 equine veterinary practices. TB is an endemic disease in
India and has seen a resurgence during the COVID-19 pandemic, making it a core
health priority for the Indian Government. Given the prevalence of the disease
in rural areas and the difficulties with providing digital health services in
this setting, the Bleepa product suite will be a key enabler of expanding TB
screening services to hard-to-reach areas across India. Bleepa Box will
securely transmit medical imaging to a patient's secure CareLocker cloud store
where it will be available to dedicated clinicians and the latest AI
technology for rapid diagnosis. This opportunity is heavily supported by the
UK Department of International Trade who are helping us to engage with local
partners and government contract holders.
Both these opportunities are currently in the pilot stages with key strategic
partners. We are pleased to report that we have completed the initial
technical deployments for both pilots ahead of schedule and expect to have
patients come through the pathways for both opportunities in short order.
Initial results are expected in H1 2022, preceding subsequent commercial
traction. We are running both opportunities in parallel given the financial
support from the recent placing and open offer.
With the revenue growth of 9% during the period being driven by Bleepa sales,
we hope to soon realise the business transition to Bleepa becoming the
revenue-dominant product line. This reporting period has seen the first
private pilot-to-contract win for Bleepa with CVS, setting a precedent that we
hope to follow for both the CDC and India opportunities.
The value of Bleepa has now been greatly enhanced by the creation of
CareLocker as a patient centric cloud architecture that enables the Bleepa
platform to scale and be accessed remotely. This product combination has
unlocked significant growth potential and enabled the company to deliver pan
regional systems and engage with the emerging CDC opportunity in the NHS.
Following its appointment to the NHS AI Procurement framework, ISO27001 and UK
Medical Device Certification (UKCA), the Company believes that the product is
the only CE and UKCA marked clinical imaging and communication platform on the
NHSx Clinical Communications Procurement Framework, the NHS CDC initiative and
NHS AI procurement framework. The foundations for scalability in private
applications have also been reinforced through the addition of Bleepa to the
Apple App Store and Google Play.
Our customer focused development has allowed us to problem solve for our
existing customers whilst also generating case studies for our applications in
other markets, such as with the Bleepa Box which was developed for CVS and is
now an essential component of our value proposition to remote TB screening.
The Company is developing a track record for leveraging our technological
solutions to customer problems and recognising their value to parallel market
segments, ensuring that we maximise our revenue potential from multiple
streams for any development work that we undertake. As a result, we are seeing
increasing numbers of commercialisation opportunities and routes to market to
match the scalability of the growing product suite.
For some of our customers there is an expectation of pilots ahead of a
commercial purchase and therefore the award of MOUs and pilot opportunities
are key precursors to our eventual commercial success. This requires the
Company to deploy its products at risk in many settings utilising the funds
raised, thus enabling us to move at speed and to realise the CDC and India
opportunities, deploying the product in order to stimulate commercial
discussions on the basis of real world evidence, evidence that we shall soon
have following the first patient journeys facilitated by our technology. Given
the boost of this recent fundraise and with further investment in these
product lines, the Company is set for greater scalability as commercial
viability continues to be demonstrated. We have significantly expanded the
rollout of Bleepa across the NCA with the target of converting this pilot to a
revenue generating contract in the relatively near term.
The Company continues to see revenues from our legacy product lines (Cadran
and Texrad) however these are soon to be overtaken by Bleepa sales as the
realisation of the current strategy comes into effect.
Board Changes
The Company was delighted to welcome Anesh Patel as our new CFO during the
period. Anesh brings a wealth of experience to the Company with a focus on
driving both revenue growth and operational efficiencies that will serve the
company well as we strive to meet our incredible potential. The Company wishes
to thank Lindsay Melvin who retired from the CFO role in November 2021 after
many years of service. During the period the board also bid farewell to Simon
Sturge, who stepped down as a non-executive director in order to pursue a
number of opportunities in the Pharma space.
Financial Review
Revenue in the six months ended 30 November 2021 increased by 9% to £179k (H1
2021: £165k), driven by the initial commercialisation of Bleepa, with total
revenues from legacy products (Cadran and Texrad) being below the same period
in the prior year.
Total sales value (a non IFRS measure, representing the value of total
invoices raised) in the Period was £246k (H1 2021: £33k), an increase of
654% on H1 2021 as a higher proportion of sales in the prior financial year
were made in the second half. Revenue is recognised over the life of a
customer contract (typically 12 months for both Bleepa and legacy product
support services).
Gross margin fell to 67% (H1 2021: 99%) as the Group increased its operational
team ahead of the anticipated growth in revenues, and due to one-off costs in
the Period related to the installation and integration of Bleepa and Bleepa
Boxes at a new customer, with such costs typically being incurred in the first
year of a customer contract only.
Operating expenses increased 25% to £1,357k (H1 2021: £1,082k), primarily
due to increased headcount to drive the development and rollout of Bleepa, and
an amortisation charge of £202k (H1 2021: nil) primarily related to
capitalised software development, following the commencement of Bleepa sales.
Excluding depreciation and amortisation, EBITDA loss (non-IFRS) increased 13%
to £1,033k (H1 2021: £916k).
The Group invested a further £599k (H1 2021: £684k) in capitalised software
development and IP, primarily related to product enhancements and new feature
development to increase the attractiveness of its product suite and to meet
customer demand. Following the successful fundraise which closed immediately
prior to the Period end, the Group's cash position as at 30 November 2021 was
strong at £11,423k (30 November 2020: £3,776k, 31 May 2021: £2,221k),
providing the Company with the capital required to deliver its growth
projects.
Outlook
These results reflect the incredible work that the team has put into the
products and customer deployments throughout the period. Our strategy of
embedding with customers and rapidly developing the products following
customer feedback has allowed us to refine the value proposition of our
products and create a product suite that appeals to a wide range of customers
and sectors. These developments stand to address priority areas including the
NHS and India. We are pleased to report that we have installed our solutions
ahead of schedule for initial pilot schemes in both the CDC and TB screening
opportunities and hope to soon be in a position to have patients through the
live systems with a view to realising significant commercial value in due
course. The strong momentum achieved during the first half highlights the
strength of our relationships and our ecosystem of partners and is expected to
result in revenue for the full year being ahead of market expectations.
With a healthy cash position post the November raise we are ready to move at
pace to recognise our numerous commercial growth opportunities and we look
forward to reporting on our success.
Dr Tom Oakley
Chief Executive Officer
Professor Rory Shaw
Non-Executive Chairman
10 February 2022
Consolidated Statement of Comprehensive Income (unaudited)
For the six months ending 30 November 2021
Note 6 months 6 months 12 months ending
ending ending 31 May
30 November 2021 30 November 2020 2021
(Unaudited) (Unaudited) (Audited)
£'000 £'000 £'000
Revenue 179 165 287
Cost of sales (60) (1) (25)
Gross profit 119 164 262
Other operating expenses (1,357) (1,082) (2,323)
Operating loss (1,238) (918) (2,060)
Net finance income 0 - 0
Loss before taxation (1,238) (918) (2,060)
Tax credit 175 195 440
Loss after tax attributable to the equity shareholders of the Company (1,063) (723) (1,620)
Total comprehensive expense for the year (1,063) (723) (1,620)
Loss per share (pence)
Basic and diluted 2 (0.10) (0.07) (0.16)
Consolidated Statement of Changes in Equity (unaudited)
As at 30 November 2021
GROUP Share Capital Share Premium Capital Reserve Retained Earnings Translation Reserve Share option Reserve Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000
At 31 May 2020 1,350 5,221 300 (5,111) (210) 219 1,769
Total comprehensive loss for the year - - - (1,620) - - (1,620)
New shares issued 1,318 3,952 - - - - 5,270
Costs of new shares issued - (314) - - - - (314)
Share-based payments - - - - - 163 163
Total transactions with owners 1,318 3,639 - - - 163 5,119
At 31 May 2021 2,667 8,860 300 (6,730) (210) 382 5,269
Total comprehensive loss for the year - - - (1,063) - - (1,063)
New shares issued 4,000 7,200 - - - - 11,200
Costs of new shares issued - (708) - - - - (708)
Share-based payments - - - - - 24 24
Total transactions with owners 4,000 6,492 - - - 24 10,516
At 30 November 2021 6,667 15,352 300 (7,793) (210) 406 14,722
Consolidated Statement of Financial Position (unaudited)
As at 30 November 2021
30 November 2021 30 November 2020 31 May
(Unaudited) (Unaudited) 2021
(Audited)
Note £ £ £
Assets
Non-current assets
Property, plant and equipment 11 26 14
Intangible assets 3 3,079 1,979 2,682
3,090 2,005 2,695
Current assets
Trade and other receivables 62 94 138
Corporation tax receivable 614 522 767
Cash and cash equivalents 11,423 3,776 2,221
12,099 4,392 3,126
Total assets 15,189 6,397 5,821
Equity
Capital and reserves attributable to the Company's equity shareholders
Called up share capital 6,667 2,667 2,667
Share premium account 15,352 8,860 8,860
Capital reserve 300 300 300
Translation reserve (210) (210) (210)
Share option expense reserve 406 219 382
Retained earnings (7,793) (5,834) (6,730)
Total equity 14,722 6,002 5,269
Liabilities
Current liabilities
Trade and other payables 463 395 549
463 395 549
Non-current liabilities
Contract liabilities 4 - 4
4 - 4
Total liabilities 467 395 553
Total equity and liabilities 15,189 6,397 5,821
Consolidated Statement of Cash Flow
For the six months ending 30 November 2021
6 months ending 6 months ending 12 months ending
30 November 30 November 31 May
2021 2020 2021
(Unaudited) (Unaudited) (Audited)
£'000 £'000 £'000
Cash flows from operating activities
Loss before tax (1,238) (918) (2,060)
Adjustments for:
Net finance income (0) - (0)
Depreciation and amortisation 205 2 49
Share based payment expense 24 - 163
Decrease/(increase) in trade receivables (60) 100 73
Decrease/(increase) in other receivables 136 (64) (81)
Increase / (decrease) in trade payables (95) 61 78
Increase / (decrease) in other payables 10 (395) (254)
Corporation tax received 328 - -
Total adjustments 547 (297) 27
Net cash used in operating activities (691) (1,214) (2,033)
Cash flows from investing activities
Purchase of tangible fixed assets - (14) (16)
Purchase of intangible assets (599) (684) (1,419)
Net finance income received 0 - 0
Net cash used in investing activities (599) (698) (1,435)
Cash flows from financing activities
Net proceeds of share issue 10,492 4,956 4,956
Net cash generated from financing activities 10,492 4,956 4,956
Net increase/(decrease) in cash and cash equivalents 9,202 3,044 1,488
Cash and cash equivalents at beginning of period 2,221 733 733
Cash and cash equivalents at end of period 11,423 3,776 2,221
Notes to the Unaudited Interim results for the six months to 30 November 2021
1. Basis of preparation
The accounting policies applied are consistent with those applied in the most
recent consolidated annual report and accounts for the year ended 31 May 2021.
The information set out in this interim report for the six months ended 30
November 2021 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 2021 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 09 February 2022.
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
2021 2020 2021
(Unaudited) (Unaudited) (Audited)
£'000 £'000 £'000
Net loss attributable to ordinary equity holders (1,063) (723) (1,620)
Weighted average number of ordinary shares for basic earnings per share 1,075,674,855 971,380,047 1,023,499,123
Effect of dilution:
Share Options - - -
Warrants - - -
Weighted average number of ordinary shares adjusted for the effect of dilution 1,075,674,855 971,380,047 1,023,499,123
Loss per share (pence)
Basic (0.10) (0.07) (0.16)
Diluted (0.10) (0.07) (0.16)
3. Intangible assets
Software Customer relationships Intellectual Property Goodwill Total
development
£'000 £'000 £'000 £'000 £'000
Cost
At 31 May 2020 1,881 100 187 271 2,440
Additions 653 - 31 - 684
At 30 November 2020 2,534 100 218 271 3,124
Additions 735 - 0 - 735
At 31 May 2021 3,269 100 218 271 3,858
Additions 594 - 5 - 599
At 30 November 2021 3,863 100 223 271 4,458
Amortisation
At 31 May 2020 646 100 126 271 1,143
Amortisation charge - - 2 - 2
At 31 November 2020 646 100 128 271 1,145
Amortisation charge - - 33 - 33
At 31 May 2021 646 100 161 271 1,178
Amortisation charge 191 - 11 - 202
At 30 November 2021 837 100 172 271 1,380
Net Book Value
At 30 November 2021 3,027 - 52 - 3,079
At 31 May 2021 2,624 - 57 - 2,682
At 30 November 2020 1,889 - 90 - 1,979
4. 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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