TIDMFDBK
RNS Number : 2743D
Feedback PLC
18 February 2020
Feedback plc
Interim Results for the six months to 30 November 2019
Forging a leading position in the mobile medical communications
market
London, UK, 18 February 2020 - Feedback plc (AIM: FDBK,
"Feedback" or the "Company"), the specialist medical imaging
technology company, announces its unaudited results for the six
months to 30 November 2019.
Operational highlights (including post period-end)
-- Completion of Strategic Review drives focus on Cadran portfolio
-- Development and launch of new flagship product, Bleepa(TM)
-- Revolutionary new app enables clinicians to review medical grade images on devices
- Allows clinician-to-clinician communications to enable better
and faster treatment for patients
- Launched at NHS Expo in September 2019 to strong interest from
clinicians and healthcare professionals
- First pilot study underway with Pennine Acute Hospitals NHS
Trust with positive early indications that average time to
inpatient referral has more than halved due to Bleepa(TM)
- Secure and GDPR compliant for patient data
-- TexRAD continues to be sold within the research setting through third party distributors
-- Post-period: Cadran licence agreement with Imaging
Engineering to support installation and refitting of modernised
fluoroscopy equipment across US
-- Strengthened Board
- Prof. Rory Shaw became Chairman when Alastair Riddell stepped down
- Post-period: Appointment of Adam Denning, Former Assistant
Technical Advisor to Bill Gates, as Non-Executive Director
Financial summary
-- Recognised revenue for the six-month period up 14% to GBP269k (H1 2018: GBP236k)
-- Loss after tax for the six-month period of GBP603k (H1 2018:
loss GBP369k) due to recruitment to service new opportunities and
launch the Company's flagship product, Bleepa(TM)
-- Increased investment in software development to GBP301k (H1 2018: GBP106k)
-- Loss before interest, tax and amortisation for the six-month
period of GBP684k (H1 2018: loss GBP400k)
-- Cash at 30 November 2019 was GBP1.53m (30 November 2018:
GBP1.37m) following the equity fundraise in August 2019, raising
GBP2m before expenses
Dr Tom Oakley , C EO of Feedback, commented:
"We have deliberately changed the Company's strategy to focus on
the Cadran portfolio and transition into the emerging mobile
medical market; this strategy is already bearing fruit.
"During the past six months, we completed the development of our
new flagship product, Bleepa(TM). Following its launch in September
at the NHS Expo, we have received significant interest and entered
our first Pilot study within an NHS setting, from which early
indications show great promise. We believe that Bleepa(TM) has the
potential to revolutionise the way clinicians are able to
communicate with each other and advance treatment of their
patients, quickly.
"Further evidence of the new strategy gaining traction is our
first commercial contract of the Cadran platform outside of the
NHS. With growing momentum and the strengthening of our Board with
the appointment of Adam Denning, 2020 is looking to be a promising
year for Feedback."
Enquiries:
Feedback plc +44 (0)1954 718072
Rory Shaw, Chairman IR@fbk.com
Tom Oakley, CEO
Lindsay Melvin, CFO
Allenby Capital Limited (Nominated Adviser)
David Worlidge / Asha Chotai +44 (0)20 3328 5656
Peterhouse Corporate Finance Ltd (Joint Broker)
Lucy Williams / Duncan Vasey +44 (0)20 7469 0936
Stanford Capital Partners Limited (Joint
Broker)
Patrick Claridge / John Howes +44 20 3815 8880
Instinctif Partners +44 (0)20 7457 2020
Melanie Toyne-Sewell / Phillip Marriage feedbackplc@instinctif.com
About Feedback plc - www.fbk.com
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 has launched Bleepa(TM) , a new secure, encrypted
medical communication app for clinicians accessible through
smartphones, tablets and desktops that facilitates rapid clinical
messaging and review of medical grade imaging for all members of a
clinical team, directly from a hospital Picture Archiving and
Communications System (PACS). For more information on Bleepa(TM) ,
see www.bleepa.com .
Chairman and Chief Executive's Statement
The first six months of the financial year has seen great change
within Feedback. Following the appointment of Dr Tom Oakley as CEO
in February 2019, the Company took the opportunity to complete a
strategic review to assess its assets and determine the best of use
of Company funds to create value for shareholders.
The outcome of the strategic review has prioritised the Cadran
portfolio where the Company sees the greatest opportunity for
growth. Cadran is Feedback's established Picture Archiving and
Communications System (PACS) which facilitates the review of
medical imaging studies by clinicians. It is a progressive and
rigorously tested Class 1 medical device with a longstanding legacy
of service at NHS institutions.
Prior to the introduction of Bleepa(TM), it was only possible to
view medical grade images on desktop computers and discuss them by
telephone. According to BMJ Innovations, 97% of hospital doctors
routinely use WhatsApp to communicate about patients(1) (.) This
increasing trend for clinicians to use personal devices to discuss
patient care and make clinical decisions is more convenient and
efficient than traditional methods of clinical communication. This
has raised concerns that images shared over these modalities are
not of sufficient quality to make clinical decisions and sharing
data in this way breaches data protection legislation, leaving
hospitals and individual staff open to the risk of litigation.
Feedback has added a dedicated, encrypted messaging function to
its existing Cadran technology to create Bleepa(TM), the leading
mobile communication application on the market capable of sharing
clinical grade medical imaging directly from a hospital PACS to
mobile devices.
Bleepa(TM)
In July 2019, Feedback announced the launch of its new flagship
product, Bleepa(TM), a revolutionary clinical messaging app, as the
Company's first step to establish a leading role in the mobile
medical communication market.
Bleepa(TM) is an innovative new app which allows medical staff
to securely view and discuss high quality medical grade images on
mobile devices directly from the hospital's PACS. Bleepa(TM) can
display any type of image including X-rays, CTs, MRIs and
ultrasound studies allowing users to easily scroll through image
slices and annotate areas of interest. Questions can be asked
alongside annotations and submitted into the chat where they can be
securely reviewed by colleagues at the swipe of a finger, with
instant access to the original image.
The Directors believe Bleepa(TM) has the potential to be the
leading medical communication tool on the market and are confident
it will become a CE marked medical device.
In September 2019, Feedback unveiled Bleepa(TM) for the first
time to over 6,000 conference delegates at NHS Expo in Manchester,
where it received strong interest from clinicians and professionals
across both public and private hospitals, within the UK and
internationally.
In November 2019, Feedback initiated its first pilot study for
Bleepa (TM) with Pennine Acute Hospitals NHS Trust in Manchester.
The study, which is now underway, is being carried out initially by
Dr Georges Ng Man Kwong's team who receive respiratory requests for
specialist review of inpatients from other clinical teams. The
study, which went live during December will last for approximately
three months and will assess how Bleepa (TM) supports the workflow
of cross team referrals. It is anticipated that a number of
additional clinicians from various specialities will be involved in
the study and key endpoints will examine the system benefits of
Bleepa (TM) deployment. The quality of data, user experience and
impact on patient care are the focus of the study with pre and post
benchmarks executed and scheduled.
Early indications from a small cohort in this study show great
promise. Initial findings demonstrate Bleepa(TM) has more than
halved the average referral time and enabled 60% of cases to be
dealt with entirely through Bleepa(TM) without the need for the
clinical team to take any action other than to discuss each case
through Bleepa(TM). If this trend continues, this study will
clearly demonstrate Bleepa(TM) capabilities to enable faster
clinical decision making between team members wherever they are,
accelerate and improve patient care, whilst reducing the burden on
already overladen clinical staff.
TexRAD(R)
As announced at the AGM in November 2019, the strategic review
of the TexRAD medical image analysis technology reached the
conclusion that although TexRAD remains a leading tool in the field
of Radiomics further clinical data is required to support a US FDA
submission and move TexRAD into frontline clinical delivery where
the true opportunity for the technology lies. This additional data
is provided by independent studies at academic institutions and
therefore the timing of data supplied is outside the Company's
control. Further investment in the product has been put on hold
until a supporting evidence base materialises.
Included in Feedback overheads for the six-month period ended 30
November 2019 were costs totalling GBP53k (2018: GBPnil) relating
to TexRAD product enhancements and in developing the Indian market.
However, TexRAD invoiced sales for the period totalled GBP128k
(2018: GBP209k) and so these development costs together with direct
selling and customer support costs meant that TexRAD was a
loss-making division for the period. In response to this position,
the Board took the decision to continue selling TexRAD to academic
customers solely through third party distributors on a commission
only basis and to reduce the internal cost base associated with
TexRAD sales. This led to the redundancy of the Global Business
Development Director role and the exit of Dr Balaji Ganeshan from
the company. Dr Ganeshan ceased to be a director of Feedback
Medical Limited on 18 February 2020.
The Company will continue to sell TexRAD within the research
community through third party distributors and assess any future
opportunities that may arise for the TexRAD platform.
Building commercial partnerships
The Company's focus on the Cadran platform extends beyond its
flagship product, Bleepa(TM), with the potential to utilise the
software capabilities of the Cadran system to enable potential
partners to upgrade and manage their existing imaging systems.
Post-period, in January 2020, Feedback announced a commercial
partnership with Imaging Engineering LLC, a US-based specialist
technology provider, to support the installation and refitting of
modernised fluoroscopy equipment across the US. Fluoroscopy is a
form of dynamic X-ray capture which enables real time, moving
patient imaging and is commonly used for a number of imaging
investigations within gastroenterology, orthopaedics and
interventional radiology.
Utilising the Cadran platform, Feedback will provide the core
software to manage the entire system for the "Insight Essentials"
product, from image capture through data management to DICOM
(Digital Imaging and Communications in Medicine) networking.
Feedback's software will enable a wide-ranging Imaging Engineering
initiative to update fluoroscopy equipment across the United
States, with an initial focus on 200 provider sites. Under the
terms of the agreement, Feedback Medical, Feedback's plc's wholly
owned subsidiary, will receive a licence fee for each installation
performed by Imaging Engineering and has no commitment beyond
providing and maintaining the software under this licence.
The Company believes there are similar opportunities to help
companies modernise their existing equipment that require minimal
labour resource from Feedback. These opportunities have the
potential to bring additional revenue streams without distraction
from the core focus of the business.
Strengthening the Board
The appointment of Tom Oakley as CEO earlier in the year has set
Feedback on a new and exciting course at the forefront of the
digital revolution in medical communication.
Following the news of Alastair Riddell's wish to retire in
August 2019, Rory Sha w became Chairman in November 2019, following
his role as Medical Director of Feedback Medical Limited. During
his tenure, Alastair guided Feedback to realise the potential of
its proprietary technology and has left the Company with a bright
and promising future.
Post-period, in February 2020, Adam Denning joined the Company
as non-executive director. As former assistant technical adviser to
Bill Gates with 25 years of experience at Microsoft, he brings
extensive software delivery skills to Feedback.
Financial review
In the six months to 30 November 2019, recognised revenue in the
period increased 14% to GBP269k (H1 2018: GBP236k). Loss after tax
increased to GBP603k (H1 2018: loss GBP369k) due to higher cost
base following the recruitment programme to service new
opportunities and the launch of the Company's flagship product,
Bleepa(TM). Loss before interest, tax and amortisation was GBP684k
(H1 2018: loss GBP400k). During the period, Feedback invested
GBP301k with Future Processing on software development of
Bleepa(TM) (H1 2018: GBP106k). This intangible asset will be
amortised against future income streams stemming from this
investment. The tax credit reflects the research and development
tax credit available to Feedback Medical.
Feedback continues to focus on rigorous cost control, with
existing overheads kept well monitored. Cash at 30 November 2019
was GBP1.5 3m (30 November 2018: GBP1.37m) following the equity
fundraise in August 2019, raising GBP2m before expenses.
Current trading and outlook
The repositioning of Cadran marks a shift away from a
traditional software sales model towards a SaaS (software as a
service) model which is anticipated to generate higher recurring
revenues for the Company and position it to capture the emerging
mobile medical communications market.
We believe the new strategy and subsequent development of
Bleepa(TM) has transformed the Company. With our first pilot study
underway, momentum for Bleepa continues to build. In the coming
months we will receive the results of the pilot study and
anticipate others to follow, which we aim to convert into
meaningful contracts. Cadran also offers the opportunity to develop
software management partnerships that will provide a supporting
revenue stream to enable further development of the platform. Our
new focus will enable the Company to drive forward and secure a
position as a leader in mobile medical communications.
Dr T Oakley, CEO
Prof R Shaw, Chairman
(1) O'Sullivan DM, O'Sullivan E, O'Connor M, et al WhatsApp Doc?
BMJ Innovations 2017;3:238-239.
UNAUDITED INTERIM STATEMENT OF COMPREHENSIVE INCOME
Notes unaudited unaudited audited
Six months Six months Year to
to to 31 May
30 November 30 November 2019
2019 2018 GBP'000
GBP'000 GBP'000
Revenue 269 236 563
Cost of sales (4) (1) (5)
------------- ------------- ---------
Gross profit 265 235 558
Other operating expenses (956) (642) (1,690)
Operating loss (691) (407) (1,132)
Net finance income - - 1
------------- ------------- ---------
Loss on ordinary activities before
taxation (691) (407) (1,131)
Tax credit 88 38 159
------------- ------------- ---------
Loss on ordinary activities
after tax attributable to the
equity shareholders of the Company (603) (369) (972)
------------- ------------- ---------
Total comprehensive loss for
the period (603) (369) (972)
------------- ------------- ---------
LOSS PER SHARE (pence)
Basic and diluted 2 (0.13) (0.13) (0.29)
------------- ------------- ---------
UNAUDITED INTERIM CONSOLIDATED STATEMENT OF CHANGES IN
EQUITY
Share Share Capital Retained Translation Share Total
Capital Premium Reserve Earnings Reserve Option
Reserve
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 1 June 2018 704 2,714 300 (3,143) (210) - 365
New Shares issued 229 1,146 - - - - 1,375
Costs associated
with the raising
of funds - (83) - - - - (83)
Total comprehensive
expense for the
period - - - (369) - - (369)
--------- --------- --------- ---------- ------------ --------- --------
At 30 November
2018 933 3,777 300 (3,512) (210) - 1288
Share option
expense reserve - - - (261) - 261 -
Total comprehensive
expense for the
period - - - (342) - - (342)
--------- --------- --------- ---------- ------------ --------- --------
At 31 May 2019 933 3,777 300 (4,115) (210) 261 946
New Shares issued 417 1583 - - - 2,000
Costs associated
with the raising
of funds - (139) - - - (139)
Total comprehensive
expense for the
period - - - (603) - (603)
--------- --------- --------- ---------- ------------ --------- --------
At 30 November
2019 1,350 5,221 300 (4,718) (210) 261 2,204
--------- --------- --------- ---------- ------------ --------- --------
UNAUDITED INTERIM CONSOLIDATED STATEMENT OF FINANCIAL
POSITION
unaudited unaudited audited
30 November 30 November 31 May
2019 2018 2019
GBP'000 GBP'000 GBP'000
Notes
ASSETS
Non-current assets
Property, plant and equipment 11 6 6
Intangible assets 3 753 276 450
----------------------
764 282 456
---------------------- ------------- ---------
Current assets
Trade receivables 144 190 203
Other receivables 18 13 41
Corporation tax receivable 247 129 249
Cash and cash equivalents 1,526 1,367 541
---------------------- ------------- ---------
1,935 1,699 1,034
Total assets 2,699 1,981 1,490
---------------------- ------------- ---------
EQUITY
Capital and reserves
attributable to the Company's
equity shareholders
Called up share capital 1,350 933 933
Share premium account 5,221 3,777 3,777
Capital reserve 300 300 300
Translation reserve (210) (210) (210)
Share option expense
reserve 261 - 261
Retained earnings (4,718) (3,512) (4,115)
---------------------- ------------- ---------
T otal equity 2,204 1,288 946
---------------------- ------------- ---------
Current liabilities
Trade payables 143 106 31
Other payables 346 390 467
----------------------
489 496 498
Non-current liabilities
Other payables 6 197 46
---------------------- ------------- ---------
Total liabilities 495 693 544
----------------------
TOTAL EQUITY AND LIABILITIES 2,699 1,981 1,490
---------------------- ------------- ---------
UNAUDITED INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS
unaudited unaudited audited
Six months Six months Year
to 30 November to 30 November to 31 May
2019 2018 2019
GBP'000 GBP'000 GBP'000
Cash flows from operating activities
Loss before tax (691) (407) (1,131)
---------------- ---------------- -----------
Adjustments for:
Depreciation and amortisation 7 7 107
Net finance income - - (1)
Share-based payment expense - - 261
Decrease/(Increase) in trade
receivables 58 (102) (115)
Decrease in other receivables 13 32 2
Increase in trade payables 111 49 9
Decrease in other payables (143) (46) (153)
Corporation tax received 91 38 38
---------------- ---------------- -----------
137 (22) 148
---------------- ---------------- -----------
Net cash used in operating activities (554) (429) (983)
Cash flows from investing activities
Purchase of tangible fixed assets (12) - (3)
Purchase of intangible assets (310) (128) (398)
Net finance income received - - 1
Net cash used in investing activities (322) (128) (400)
---------------- ---------------- -----------
Cash flows from financing activities
Net proceeds of share issue 1,861 1,292 1,292
---------------- ---------------- -----------
Net cash generated from financing
activities 1,861 1,292 1,292
---------------- ---------------- -----------
Net increase/(decrease) in cash
and cash equivalents 985 735 (91)
Cash and cash equivalents at
beginning of period 541 632 632
Cash and cash equivalents at
end of period 1,526 1,367 541
---------------- ---------------- -----------
NOTES TO THE UNAUDITED INTERIM REPORT
1. BASIS OF PREPARATION
The accounting policies are unchanged from the financial
statements for the year ended 31 May 2019.
The information set out in this interim report for the six
months ended 30 November 2019 does not comprise statutory accounts
within the meaning of section 434 of the Companies Act 2006. The
accounts for the year ended 31 May 2019 have been filed with the
Registrar of Companies.
This interim report was approved by the directors on 17 February
2020.
2. LOSS PER SHARE
Basic earnings per share are calculated by reference to the loss
on ordinary activities after and on the weighted average number of
shares in issue.
unaudited unaudited audited
Six months to Six months to Year to
30 November 30 November 31 May
2019 2018 2019
GBP'000 GBP'000 GBP'000
Net loss attributable
to ordinary equity
holders (603) (369) (973)
--------------- --------------- --------------
Six months to Six months to Year to
30 November 30 November 31 May
2019 2018 2019
Weighted average number
of ordinary shares
for basic earnings
per share 449,131,065 281,616,584 333,151,019
Effect of dilution:
Share Options - - -
Warrants - - -
--------------- --------------- --------------
Weighted average number
of ordinary shares
adjusted for the effect
of dilution 449,131,065 281,616,584 333,151,019
--------------- --------------- --------------
Loss per share (pence)
Basic (0.13) (0.13) (0.29)
Diluted (0.13) (0.13) (0.29)
---------------
3. INTANGIBLE ASSETS
Software Customer Patents Goodwill Total
relationships
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Cost
At 31 May 2018 652 100 142 272 1,166
Additions 106 - 22 - 128
--------------- --------------- -------- --------- --------
At 30 November
2018 758 100 164 272 1,294
Additions/(Disposals) 280 - (10) 270
--------------- --------------- -------- --------- --------
At 31 May 2019 1,038 100 154 272 1,564
Additions 301 - 9 - 310
--------------- --------------- -------- --------- --------
At 30 November
2019 1,339 100 163 272 1,874
--------------- --------------- -------- --------- --------
Amortisation
At 31 May 2018 563 100 77 272 1,012
Charge for the
period - - 6 - 6
--------------- --------------- -------- --------- --------
As at 30 November
2018 563 100 83 272 1,018
Charge for the
period 82 - 14 - 96
--------------- --------------- -------- --------- --------
At 31 May 2019 645 100 97 272 1,114
Charge for the
period - - 7 - 7
--------------- --------------- -------- --------- --------
At 30 November
2019 645 100 104 272 1,121
--------------- --------------- -------- --------- --------
Net book Value
At 30 November
2019 694 - 59 - 753
--------------- --------------- -------- --------- --------
At 31 May 2019 393 - 57 - 450
--------------- --------------- -------- --------- --------
At 30 November
2018 195 - 81 - 276
--------------- --------------- -------- --------- --------
4. AVAILABILITY OF THE INTERIM REPORT
Copies of the report will be available from the Company's
registered office at Health Foundry, Canterbury House, 1 Royal
Street, London SE1 7LL and also from the Company's website
www.fbk.com.
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END
IR MZGMZMNFGGZZ
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