Year End Trading Update

RNS Number : 0924B

Feedback PLC

08 June 2021

 

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

Year End Trading Update

London, 08 June 2021 : Feedback plc (AIM: FDBK, "Feedback" or the "Company"), the specialist medical imaging technology company, provides a trading update for the year ended 31 May 2021.

Trading during the period met management expectations, with the Company securing its first commercial contract for its flagship product Bleepa. During the period, the Company continued to develop the product to include key features such as photocapture which led directly to the award of this commercial contract. The Company has also developed capabilities in cloud hosting to enable more cost effective delivery and scalability.

Importantly, Bleepa became the only clinical communication platform to be appointed to the national NHSx Clinical Communications Framework with a CE mark as a Class 1 Medical Device for medical imaging display.

During the financial year Feedback Medical Ltd. was successfully re-certified as a medical device manufacturer with ISO 13485 accreditation for its manufacturing processes, additionally achieving ISO 27001 accreditation for data security and data management along with Cyber Essential Plus accreditation for cyber security and DCB0129 clinical safety and risk management certification. The emphasis on quality and regulatory compliance is a clear differentiator for the Company and its products.

2020 was a difficult year for the healthcare sector with many of our customers being overwhelmed by COVID-19. On one hand COVID-19 has strongly demonstrated the need for our leading technology but it has also made it very difficult to engage customers who were understandably focused on initially treating acute patients and subsequently implementing the national vaccine programme. We are now seeing increased interest for Bleepa as NHS organisations emerge from the acute COVID-19 response and begin to focus on solutions that can help them address the growing backlog of elective and cancer care cases, as well as solutions that can facilitate more robust communication ahead of any further waves of COVID-19. Bleepa is now well positioned to recognise this increasing customer interest in its domestic market.

The performance of Bleepa during the pandemic is also beginning to be recognised in international markets and has been supported by recent Department of International Trade missions to India. The Company is actively responding to this interest and has invested in a presence on the ground in India to help convert a growing pipeline of opportunities, though these efforts have recently slowed due to the recent surge of COVID-19 in India.

The Company's balance sheet remains strong, and unaudited net cash as at 31 May 2021 was £2.2 million (31 May 2020: £0.7 million). Subject to completion of the audit, the Company expects revenue for the financial year ended 31 May 2021 to be approximately £0.28 million (FY20: £0.45 million). The reduction in revenue stems from the realisation of the previously anticipated decline in TexRAD sales which formed the basis of the investment in Bleepa and the pivot in corporate strategy in 2019. Importantly, the Company has now started to recognise revenue from its new Bleepa product line in the current financial year. Although sales have declined compared to the last financial year, largely as a result of the reduction in TexRAD sales, the move to Bleepa has also seen the average contract value increase, generating better margins per sale. This will enable the Company to drive revenue going forward. The Company has already invoiced £0.12million of revenue to be recognised during the current financial year in accordance with the Company's accounting policies and the Directors expect revenues to grow as sales of Bleepa increase during the rest of the financial year.

Outlook

The Company remains focused on increasing revenue generating opportunities and addressing a wide range of markets both domestically and internationally for Bleepa. While it continues to be a core target, management is excited by the increasing number of prospects and leads both in and outside of the NHS and has a strong pipeline of opportunity. There is a growing requirement for remote solutions and Bleepa leads at the forefront of the market. Management expects to benefit from increasing demand for its solutions enabling it to grow repeat revenues and benefit from increasing visibility afforded by its Software as a Service model.

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Enquiries:

Feedback plc Tom Oakley, CEO Lindsay Melvin, CFO	[phone] [e-mail]
Allenby Capital Limited (Nominated Adviser) David Worlidge / Vivek Bhardwaj	[phone]
Peterhouse Capital Limited (Joint Broker) Lucy Williams / Duncan Vasey	[phone]
Stanford Capital Partners Limited (Joint Broker) Patrick Claridge / John Howes	[phone]
Walbrook PR Ltd	Tel: [phone] or [e-mail]
Paul McManus/Nick Rome/Nicholas Johnson	07980 541 893 or 07748 325 236 or 07884 664 686

Notes to Editors

Feedback plc (AIM: FDBK) is a medical imaging technology business. Its core product, Bleepa, is a revolutionary medical imaging communications app, providing an easy-to-use, high quality tool to enable remote and secure communications between front-line clinicians and teams. Importantly, it is the only CE marked medical imaging communications platform on the NHSx clinical communications tools framework. Bleepa has unparalleled functionality for everyday practice and can be accessed from any internet-connected device, enabling control of patient cases when on the go. 

Its highly scalable Software as a Service ("SaaS")-based revenue model will provide increasing levels of visibility as the Company grows its customer base. With a growing distribution base and technology in place, the focus is on leveraging key relationships in order to drive sales both in the UK and internationally to all forms of care providers. As a fully certified medical device, Bleepa aims to disrupt the medical imaging communications market and, importantly, increase the accuracy and speed of clinical review.

 

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