Feedback plc (AIM: FDBK, “Feedback” or the “Company”), the specialist medical imaging technology company, announces a trading update for the year ended 31 May 2018 and the period to 30 September 2018.
Cambridge, 3 October 2018 -- Feedback plc (AIM: FDBK, “Feedback” or the “Company”), the specialist medical imaging technology company, announces a trading update for the year ended 31 May 2018 and the period to 30 September 2018. The Company is seeing improving trading conditions following a year of structural change and investment.
Highlights
- Placing in March 2018 raised £440,000 before expenses, from new and existing investors
- Signed world-wide non-exclusive distributorship with GE Healthcare in April 2018
- Two year contract renewal with Papworth Hospital, Cambridge, UK for Cadran archiving system agreed in April 2018
- First order through GE Healthcare received in August 2018
- Samsung Medical Centre order for TexRAD® received in September 2018, following distribution agreement with ISG Korea in June 2017
- Sales for the year ended 31 May 2018 up 51% to £771k (2017: £508k) as a result of investment in recruitment and training
- Sales in first quarter of current financial year up 100% to £236k (Q1 2018: £117k) driven by international sales
Financial Update
In the year to 31 May 2018, Feedback invoiced sales of £771k, a 51% increase on the previous year (FY 2017: £508k), leading to recognised revenue in the year of £458k (FY 2017: £466k). This 51% increase in invoiced sales is a result of the Company’s investment in its employees with training and recruitment of four new hires. The associated recruitment, restructuring and other costs have meant that the Company’s operating loss has risen to £750k (FY 2017: £300k). However, the investment has led to significant improvement in sales performance and anticipated long term growth.
This improved sales performance has continued into the first quarter of the current financial year, with a 100% increase in invoiced sales of both TexRAD® and Cadran product licences in the first quarter to £236k, compared to £117k in the first quarter of FY 2018. International sales accounted for most of this growth, increasing by over 200%. Importantly, this has been achieved with improved cost control in this financial year. Feedback’s prudent accounting policy is to spread the income from its software licence and support sales over the duration of the contract, usually one to two years. The Company’s balance sheet contains a deferred revenue asset to reflect this.
Board and Structural Changes
In the year to 31 May 2018, Feedback announced significant board and structural changes. Prof Tim Irish joined as non-executive director and Trevor Brown resigned in June 2017. David Crabb joined as Chief Executive Officer in February 2018 and Lindsay Melvin joined as Chief Financial Officer in March 2018.
In April 2018, subsidiary companies Cambridge Computed Imaging and TexRAD Ltd merged to become Feedback Medical Ltd with Mike Hayball and Balaji Ganeshan stepping down from the plc board to be directors of Feedback Medical Ltd. At the same time Dr Alex Menys resigned as non-executive director and was replaced by Simon Sturge. Prof Rory Shaw was appointed medical director of Feedback Medical Ltd in June 2018. In July 2018 David Crabb resigned and Dr Alastair Riddell moved from non-executive to Executive Chairman.
The search for a new Chief Executive Officer is ongoing. However, following this reorganisation, Feedback now has the structure and expertise within the senior management team to enable it to maximise the opportunities and commercial momentum it is seeing.
Outlook
Feedback is seeing considerable sales growth potential in the near to mid-term, especially in Asia. In order to enable it to also address the huge potential in the US market for the mid to long term, the Company has initiated plans for regulatory approval of TexRAD® with the US FDA including 510k as medical device and CFR Chapter 21 part 11 compliance for use in clinical trials of drug candidates for FDA marketing approval.
Feedback’s strategic business plan is focused on capitalising on the considerable investments made to date and it has identified additional staffing required to deliver future major growth. The Board believes that, along with the Company’s existing cash and cash equivalents, it has sufficient capital to fund its near term obligations. The Company is considering additional funding for its mid-term working capital requirements and to deliver on its longer-term growth opportunities and plans to raise the additional capital through public or private financings and/or partnering opportunities.
Dr Alastair Riddell, Executive Chairman of Feedback, commented:
“This has been a year of transition for Feedback into an integrated medical imaging solutions company, with talented staff and an experienced management team. As a result of the investment in our employees, we are seeing improved sales momentum throughout the business, demonstrated by the number and size of orders coming through and in the high calibre international distributors we are now working with.”
- ENDS -
Enquiries:
Feedback plc
Alastair Riddell, Executive Chairman
Lindsay Melvin, CFO
Allenby Capital Limited (Nominated Adviser)
David Worlidge / Asha Chotai
Peterhouse Corporate Finance Ltd (Joint Broker)
Lucy Williams / Duncan Vasey
Stanford Capital Partners Limited (Joint Broker)
Patrick Claridge / John Howes
Instinctif Partners
Rozi Morris/ Deborah Bell/ Phillip Marriage
+44 (0)1954 718072
IR@fbk.com
+44 (0)20 3328 5656
+44 (0)20 7469 0936
+44 20 3815 8880
+44 (0)20 7457 2020
feedbackplc@instinctif.com
Notes to editors
About Feedback plc
Feedback plc (AIM: FDBK) is a specialist medical imaging technology company providing innovative software and systems, through its fully-owned trading subsidiary, Feedback Medical Limited. Its products advance the work of radiologists, clinicians and medical researchers by improving workflows and giving unique insights into diseases, particularly cancer. Feedback Medical works with customers globally from headquarters in the internationally renowned scientific hub of Cambridge, UK. Its proprietary technologies are TexRAD®, the quantitative texture analysis tool and Cadran, a picture archiving communication system (PACS). For more information, see www.fbk.com
