Final Results

Feedback PLC
09 August 2005


                                Feedback Plc

              Preliminary Results for the year ended 31 March 2005



Chairman's Statement


I am pleased to report that the operating profit, before reorganisation costs
and SSAP 24 pension charge, for the year ended 31 March 2005 of £97,000 shows a
very marked improvement when compared with a loss of £965,400 in the previous
year (of which £487,100 related to our continuing activities). The balance of
the loss for the year after taxation of £668,300 was caused by re-organisation
costs of £139,300, provision for the contributions due to the now closed defined
benefits pension fund of £627,000, net interest payable of £38,200, but we did
receive a refund of corporation tax of £39,200 in the period.


The past few years have been a very difficult period for the company as has been
explained in previous statements.  Many issues have been identified and decisive
corrective actions have been taken.  We have endeavoured to keep you informed of
these in last year's accounts and AGM and at the Extraordinary Meeting which was
held on 24 March 2005.


Considerable savings have been made across the Group and there has been a
significant reduction in staff at all levels. This has not only resulted in more
efficient working practices but has allowed greater communication throughout the
company and a more focused sense of purpose.


In February of this year the Occupational Pensions Regulatory Authority (Opra)
agreed to an extension of the period in which the company could address the
serious shortfall in the funding of the now closed defined benefit pension
scheme.  Although the deficit is great, it is under control and manageable so
long as the company trades profitably going forward and generates sufficient
cash.


The sale has been agreed, subject to planning permission, of the company's main
business premises in Crowborough. Other suitable facilities in the same area
have been identified and would allow all the company's UK operations to be
located on one site.



Feedback Data Limited


This company together with its German subsidiary produced a healthy profit
primarily due to the reduction in operating costs which were enjoyed during the
year.


UK based business derived from the sale of Data Terminals, which remains the
core business, was maintained and there was a small increase in the turnover
generated by the technical support team who not only provide technical after
sales service but also perform survey and installation work.  Access Control
continues to be an interesting market with significant potential for growth.


The new IP Data Terminal, which was launched during the previous financial year,
is gaining acceptance in the market and new enhancements, primarily involved
with the use and control of the collected data over the internet, will
strengthen its position. Strategic new developments will increase the company's
penetration in Access Control and it is anticipated that turnover can be
improved without any significant increase in costs.


The German subsidiary, which addresses the European market, had a satisfactory
year. Efforts are being made to improve its penetration of this marketplace and
to increase the number of resellers promoting the products.



Feedback Instruments Limited


This was another very difficult year although improvements were forthcoming
during the last quarter.


In recent years operating costs had increased while the underlying turnover was
decreasing. Too much emphasis had been put on large contracts, with detriment to
core business. There was a lack of strategic direction and too few new
developments. The management structure was changed during the year and the
company was restructured which has resulted in a more clearly defined sense of
purpose.


Performance in the UK was below expectations although there was a large amount
of interest.  Of particular note in the home market is the performance of the
distributed line of products from the USA which addresses the secondary school
market and performed above expectations during the second half of the year.


A conscious effort was made to redefine the company's strategy to the overseas
agents which has begun to pay dividends. Significant business was won in Asia
and the Middle East and the underlying list of realistic prospects is more
encouraging than it has been for some time.


The final shipments were made to fulfil the contract to provide equipment for
the College of the North Atlantic in Qatar, as mentioned last year, and after
protracted negotiations full payment was received. This was a difficult contract
which was not as profitable as had been hoped but the facility in Qatar is
excellent and will provide a superb reference point in this very important
region.


New products are being developed and a new management software package, which
enables assessment and tracking of students within a laboratory, has been
successfully launched.  A new Sales and Marketing Director from within the
industry has recently joined the company and this, together with a distinct
increase in underlying business in recent months, instils more optimism for the
future.



Feedback Incorporated


After the small loss last year it is very pleasing to report that this company
returned to profitability. Despite the weak dollar, margins were maintained and
the new management structure, together with reduced operating costs, enabled
this excellent performance.


A number of significant orders were won both directly and through
representatives and prospects continue to be healthy. New products from Feedback
Instruments and other principals will assist the company and it is planned to
increase the number of direct sales personnel during the coming year.



Current Trading and Future Prospects


The first three months of this Financial Year have started reasonably well,
carrying on from the upturn in business, at Feedback Instruments in particular,
towards the end of the previous year. The reduction   in costs referred to
previously has begun to produce benefits and a new pricing policy has helped the
company to improve margins.


This upturn in business has been achieved without winning any exceptionally
large orders, although there are a number under negotiation. The recent efforts
to enhance the background business are beginning to provide results and the
order book is improving.


Funding the pension deficit continues to be a significant drain on resources
even with the assistance of the Opra determination. It is imperative that the
company returns to consistent and high profitability so that the situation can
be managed.


There is a real determination within the management to ensure the Group's
success and in many ways the business is now better focused to address the
challenges that lie ahead.          I am most grateful to the management team
and staff for all their efforts.





D. H. Harding                                                10 August 2005
Chairman


Enquiries:


David Sawyer                                                 01892 653322
Feedback plc



Philip Davies                                                020 7953 2000
Charles Stanley & Co. Limited






Consolidated Profit and Loss Account
Year ended 31 March 2005

                                                    Total            2004                2004            Total
                                                     2005      Continuing        Discontinued             2004
                                                               operations          operations       (restated)
                                                               (restated)

                                                     £000            £000                £000             £000

TURNOVER                                          9,179.2         9,219.1               543.8          9,762.9

Cost of Sales                                   (6,238.4)       (6,193.2)               (8.0)        (6,201.2)

Gross profit                                      2,940.8         3,025.9               535.8          3,561.7

Other Operating Expenses                        (3,610.1)       (4,395.0)           (1,014.1)        (5,409.1)


Operating profit/(loss) before reorganisation
costs and SSAP 24 pension charge                     97.0         (487.1)             (478.3)          (965.4)

Reorganisation costs                              (139.3)               -                   -                -

Additional SSAP 24 pension charge                 (627.0)         (882.0)                   -          (882.0)


Operating loss                                    (669.3)       (1,369.1)             (478.3)        (1,847.4)

Loss on sale of trade                                   -                                   -          (365.5)

Interest payable                                   (38.2)                                               (24.3)

LOSS ON ORDINARY                                  (707.5)                                            (2,237.2)
ACTIVITIES BEFORE TAXATION

Tax on loss on ordinary activities                   39.2                                                 28.7

LOSS ON ORDINARY                                  (668.3)                                            (2,208.5)
ACTIVITIES AFTER TAXATION

Dividends (non-equity)                            (104.9)                                              (100.2)

RETAINED LOSS FOR THE YEAR                        (773.2)                                            (2,308.7)


LOSS PER SHARE (pence)
Basic                                              (6.41)                                              (19.27)
Diluted                                            (6.41)                                              (19.27)


The results for 2005 relate to continuing
operations.





Consolidated Balance Sheet
at 31 March 2005
                                                       2005                                 2004
                                              £000                 £000              £000                 £000
Fixed assets

Tangible assets                                                   526.3                                  598.9

Current assets

Stocks                                     1,210.7                                1,692.4
Debtors                                    1,753.6                                4,019.2
Cash at bank and in hand                     760.4                                -

                                           3,724.7                                5,711.6


Creditors: amounts falling due
within one year

Borrowings                                  (64.4)                                (206.7)
Other creditors                          (1,669.6)                              (2,916.9)

                                         (1,734.0)                              (3,123.6)

Net current assets                                              1,990.7                                2,588.0

Total assets less current liabilities                           2,517.0                                3,186.9

Creditors: amounts falling due
after more than one year
Borrowings                                                      (561.5)                                (657.0)

Provisions for liabilities and charges                        (1,031.0)                                (882.0)

Net assets                                                        924.5                                1,647.9


CAPITAL AND RESERVES
Called up share capital                                         2,038.8                                2,042.7
Share premium account                        383.7                                  379.8
Revaluation reserve                          379.7                                  369.4
Capital reserve                              299.9                                  299.9
Dividend reserve                             125.3                                   41.9
Profit and loss account                  (2,302.9)                              (1,485.8)

Total reserves                                                (1,114.3)                                (394.8)

Shareholders' funds                                               924.5                                1,647.9

Included within shareholders' funds is an amount of £955,700 
( 2004  -  £880,000 ) in respect of non-equity interests.


Approved by the Board of Directors on 9                            D. J. Sawyer
August 2005                                                        Director




Consolidated Cash Flow Statement
Year ended 31 March 2005

                                                               2005                          2004
                                                        £000             £000         £000                £000

Net cash inflow/(outflow)  from operating activities                    964.7                        (1,010.4)
Returns on investments and servicing of finance

Other interest paid                                   (38.2)                        (24.3)
Non-equity dividends paid                                  -                        (42.3)

Net cash outflow from returns on investments
and servicing of finance                                               (38.2)                           (66.6)

Corporation tax recovered                                                28.7                               -

Capital expenditure and financial investment

Purchase of tangible fixed assets                     (23.2)                        (61.0)

Sale of tangible fixed assets                            0.7                           3.4

Net cash outflow from capital expenditure
and financial investment                                               (22.5)                           (57.6)

Acquisitions and disposals

Net consideration from sale of trade                                        -                           334.0


Financing

New loan advanced by director                              -                        572.7

Repayments of bank and other loans                    (30.0)                       (243.0)

Capital elemnet of finance leases
and rental payments                                   (29.6)                         (5.7)


Net cash (outflow)/inflow from financing                   -           (59.6)                            324.0

Increase / (decrease) in cash in the year                               873.1                          (476.6)




Earnings per share


1. Basic earnings per share for the year ended 31 March 2005 is based on the
Group loss on ordinary activities after taxation and preference dividends of
773,200 (2004  - loss of £2,308,700) attributed to 2005 - 12,057,060 Ordinary
Shares, being the weighted average number of shares in issue throughout the year
(2003 - 11,981,854).

The diluted earnings per share is calculated allowing for the full conversion of
the Preference Shares.  However, in accordance with Financial Reporting Standard
14, as these conversions would not have a dilutive effect, the earnings per
share figure remains the same.


2. The financial information for the year ended 31 March 2004 is extracted from
the Group'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 2005 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 Monday 26 September  2005.




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