Final Results

Feedback PLC
17 July 2002


                                  Feedback plc

              Preliminary Results for the year ended 31 March 2002



Chairman's Statement



I reported at the interim stage that the Group's trading had been adversely
affected by market conditions prevailing following the events of 11 September
2001.  At that time, I indicated that whilst prospects and quotation levels
remained positive, the timing of the potential business was even more difficult
to predict than it had been in the past.


In the event, the Group made a loss for the year of £593,000 of which £516,000
had been incurred by September 2001.


In arriving at this figure, £66,200 of exceptional redundancy costs have been
charged in the second half year.  Group turnover of £8,762,000 was some 6% lower
than the previous year with exports accounting for 55% of shipments compared
with over 60% in the previous year. This was due almost entirely to lower levels
of export business at Feedback Instruments Limited.


On a more positive note, the Group announced at the end of January that it had
taken full ownership of TekniCAL Limited.  As a wholly owned subsidiary of the
Group, it allows for more effective strategic and operational management of the
Company than was possible under the previous joint venture partnership.  It has
already resulted in a more coherent software development strategy to the benefit
of the Group.  I have previously described TekniCAL as both a major opportunity
and challenge for the Group and, whilst it made losses during the year under
review, the investment in both development and marketing carried out places
TekniCAL in a strong position in the e-learning market, which is set to develop
rapidly over the next few years.



Feedback Instruments Limited



Feedback Instruments experienced what can only be described as a very
frustrating year.  In a year when the level of potential export business was
considered to be extremely high, the effects of 11 September were felt
throughout the Company's major export markets.  As a result the Company
experienced delays in closing major project business which led to a significant
shortfall in anticipated shipments in the second half year.  I would emphasise,
however, that this business was generally deferred not lost and many of the
projects are still active.


The improvement in UK business seen in the previous year continued into the year
under review, reflecting the additional marketing and sales investment made in
the important domestic market.


The Company continued to invest in product development, both hardware and
software.  Integration of the Company's Discovery software with the TekniCAL
Virtual Campus system was completed allowing greater flexibility for its
products using on-line delivery methods. This important step allows managed
learning on laboratory hardware equipment at every level of integration, from
stand-alone computers through local area networks to Intranet and Internet
systems.  This places the Company in a unique position in the delivery of
technical education with indications from the market that the Company has the
right products and is well placed to exploit this position in the years to come.



TekniCAL Limited



In the year under review, there was a significant improvement in business in the
final quarter.  This followed the release in the Autumn of Government funding to
the UK Further Education Sector for the purchase of virtual learning systems.


The Company continued to invest in both the development of its e-learning
product range and strategic partnerships.  In addition to the further education
and university sectors, the Company now supplies products to the schools market
and the corporate and public sector.  Through partnerships with a number of
prestigious organisations the Company has opened up these additional routes to
market.  The market for e-learning continues to evolve with both local and
national government placing increased emphasis on larger regional broadband
provision for delivery of services across the Internet.  The Company, through
its strategic partnerships, is well placed to take advantage of the
opportunities available.





Feedback Incorporated



This Company had another very encouraging year despite the downturn in the
American economy and delays caused by the tragic events during September.



Turnover was broadly in line with the previous year although, due primarily to
the product mix of sales, profits were reduced.  The Company did, however, carry
forward a significant order book to the current financial year.



Efforts made over the last two years to reorganise the Company's representatives
network, which complement the direct sales force, are proving successful.  This
allows greater penetration of the market over a wider geographical area than
previously and this, together with refocusing the sales activity on core
products from other Group companies, continues to be a successful strategy.
Progress was made in introducing the product range to the Industrial Training
market and products recently released from both Feedback Instruments and
TekniCAL will enhance the Company's position.



Feedback Data Limited



The Company operated profitably in the year under review, although turnover was
lower than in the previous year.  This reflected the slow down in the UK
manufacturing sector.



The German subsidiary, operating on a reduced cost base following last years
management restructuring, operated profitably and continues to handle all
European business, excluding the UK market.



The Company continued to develop new hardware and software products in the broad
data capture market to create direct sales opportunities outside of its
traditional data capture terminal market where products are typically sold
through the Company's Value Added Reseller channel.



The range of Access Control equipment has been further enhanced and the Staff
Scheduling and Rostering System launched in the year has attracted business from
the service sector, leisure industry and care homes.  I mentioned at the Interim
stage that the Company had launched a low cost innovative product designed to
record temperatures in fridges, freezers and chiller cabinets.  This product has
been well received in the food and catering industry and is being sold and
promoted in a wide range of applications.



The Company continues with its strategy of developing data capture related
products intended to broaden both its product range and market sectors outside
the traditional core data capture terminal market.  This strategy will be
satisfied by a mixture of internally developed products and complementary third
party solutions which should lead to higher average sales values and a broader
appeal within the market.



Current Trading and Future Prospects



Our experience since the year end is that the situation existing towards the end
of last year is still prevailing.  There is great interest in our products and
substantial business is anticipated, but there is a degree of sluggishness in
the actual placing of orders by customers.


The Directors believe that because of the technical excellence and forward
looking relevance of our products, we are well placed in the market and are
optimistic for the Group's prospects.



Dividend

Your Board is not recommending that a dividend be paid on the ordinary shares.



General

In a year when it has been necessary to reduce costs and implement a redundancy
programme, I would like to thank all Staff for their efforts on behalf of the
Group.



D.H. Harding

Chairman



17 July 2002


Consolidated Profit and Loss Account

Year ended 31 March 2002


                                                 Continuing      Acquisition        Total           Total
                                                 Operations
                                                          2002             2002          2002              2001
                                                          £000             £000          £000              £000

Turnover: Group and share of joint venture             8,709.4            198.8       8,908.2           9,543.9
Less: Share of joint venture's turnover              ( 146.2 )                -     ( 146.2 )         ( 223.2 )
Group Turnover                                         8,563.2            198.8       8,762.0           9,320.7
Cost of Sales                                      ( 4,751.6 )         ( 20.0 )   ( 4,771.6 )        ( 5,320.5)

Gross profit                                           3,811.6            178.8       3,990.4           4,000.2
Other operating expenses                           ( 4,144.8 )        ( 153.1 )   ( 4,297.9 )        ( 3,612.4)

Operating (loss)/profit                              ( 333.2 )             25.7     ( 307.5 )             387.8
Share of operating (loss) of joint venture           ( 301.9 )                -     ( 301.9 )         ( 380.9 )

(Loss)/profit on ordinary activities before          ( 635.1 )             25.7     ( 609.4 )               6.9
interest and tax
Net interest receivable/(payable)                                                        16.4           ( 6.8 )

(Loss)/profit on ordinary activities before                                         ( 593.0 )               0.1
taxation
Tax on (loss)/profit on ordinary activities                                               5.2             192.1

(Loss)/profit on ordinary activities after                                          ( 587.8 )             192.2
taxation
Dividends (non-equity)                                                                ( 97.7)          ( 99.7 )

Retained (loss)/profit for group and its                                            ( 685.5 )              92.5
share of joint venture

(Loss)/earnings per share (pence)
Basic                                                                                 ( 5.7 )               0.8
Diluted                                                                               ( 5.7 )               0.8




Consolidated Balance Sheet
at 31 March 2002


                                                             2002                                2001
                                                    £000                £000             £000            £000

Fixed assets
Intangible assets                                                      695.2                                -
Tangible assets                                                        607.7                            582.7

                                                                     1,302.9                            582.7

Current assets
Stocks                                           1,810.3                              1,958.6
Debtors                                          3,305.5                              4,191.5
Cash at bank and in hand                           365.3                                628.6

                                                 5,481.1                              6,778.7

Creditors: amounts falling due
within one year
Borrowings                                     ( 264.6 )                             ( 85.1 )
Other creditors                              ( 2,319.7 )                          ( 2,546.6 )

                                             ( 2,584.3 )                          ( 2,631.7 )

Net current assets                                                   2,896.8                          4,147.0

Total assets less current                                            4,199.7                          4,729.7
liabilities
Creditors: amounts falling due after
more than one year
Borrowings                                                         ( 338.6 )                        ( 152.5 )

Provisions for liabilities and
charges

Share of gross assets                                  -                                110.3
Share of gross liabilities                             -                   -          (344.1)         (233.8)

                                                                     3,861.1                          4,343.4

CAPITAL AND RESERVES
Called up share capital                                              2,055.2                          2,057.7
Share premium account                               24.8                                 24.8
Revaluation reserve                                268.8                                268.8
Capital reserve                                    299.9                                299.9
Other reserve                                      342.5                                340.0
Profit and loss account                            869.9                              1,352.2

Total reserves                                                       1,805.9                          2,285.7

Shareholders' funds                                                  3,861.1                           4343.4



Included within shareholders' funds is an amount of £777,447 ( 2001 -  £770,814)
in respect of non-equity interests.



Consolidated Cash Flow Statement

Year ended 31 March 2002


                                                                   2002                        2001
                                                             £000          £000            £000         £000

Net cash (outflow)/inflow from operating activities                   ( 204.0 )                         72.3

Returns on investments and servicing of finance
Interest received                                            19.0                          10.1
Interest paid                                             ( 2.6 )                      ( 16.9 )
Non equity dividends paid                                ( 86.6 )                      ( 89.5 )

Net cash outflow from returns on investments and                       ( 70.2 )                     ( 96.3 )
servicing of finance

                                                                      ( 274.2 )                     ( 24.0 )

Corporation tax recovered                                                  17.5                         39.6

Capital expenditure and financial investment
Purchase of tangible fixed assets                        ( 90.1 )                     ( 152.7 )
Sales of tangible fixed assets                               17.9                          16.4

Net cash outflow from capital expenditure and                          ( 72.2 )                    ( 136.3 )
financial investment

Acquisitions and disposals
Purchase of subsidiary undertaking                      ( 135.0 )                             -
Net overdraft acquired with subsidiary                  ( 165.0 )                             -

Net cash outflow from acquisitions and disposals                      ( 300.0 )                            -

Net cash outflow before management of liquid                          ( 628.9 )                    ( 120.7 )
resources and financing

Management of liquid resources
Treasury deposit                                                          450.0                        550.0

Financing
New bank loan advanced                                      250.0                             -
Repayments of bank and other loans                       ( 30.0 )                      ( 30.0 )
Capital element of finance leases                            17.8                      ( 12.2 )
and rental payments

Net cash inflow/(outflow) from financing                                  237.8                     ( 42.2 )

Increase in cash in the year                                               58.9                        387.1




NOTES:



1. Earnings per share



Basic earnings per share for the year ended 31 March 2002 is based on the Group
loss on ordinary activities after taxation and preference dividends of £685,500
(2001 - profit £92,500) attributed to 11,902,989 Ordinary Shares, being the
weighted average number of shares in issue throughout the year (2001 -
11,691,933).  The diluted earnings per share, based on the same earnings
numerator, is calculated allowing for both the full conversion of the Preference
Shares and the full exercise of outstanding share options. However, in
accordance with Financial Reporting Standard 14, as neither of these conversions
have a dilutive effect the earnings per share figure remains unaltered.



2. The financial information for the year ended 31 March 2001 is extracted from
the Groups's financial statements to that date which received an unqualified
auditors' report and have been filed with the registrar of companies. The
financial information for the year ended 31 March 2002 is extracted from the
Group's financial statements to that date which received an unqualified
auditors' report and will be filed with the registrar of companies.



3. The Report and Accounts will be posted to shareholders in due course and the
Annual General Meeting will be held at 11.00am on 30 August 2002.


Enquires:           Mr Roger Barnett

                        Group Managing Director

                        Feedback plc

                        Tel: [phone]



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