TIDMFDBK
RNS Number : 2364X
Feedback PLC
20 February 2017
This announcement contains inside information as stipulated
under the Market Abuse Regulation (EU) No 596/2014 (MAR).
20 February 2017
Feedback plc
("Feedback", the "Company" or the "Group")
Interim Report for the six months ended 30 November 2016
Chairman's Statement
We are pleased to present the interim results for the six months
ended 30 November 2016. Revenue for the six months period was
GBP203,000 (2015: GBP225,000) and the loss after tax was GBP126,000
(2015: Loss GBP143,000). The loss before interest, tax and
amortisation was GBP115,000 (2015: Loss GBP132,000). The cash
balance at 30 November 2016 was GBP63,000 (30 November 2015:
GBP164,000).
As previously announced, we received a significant number of
purchase orders for TexRAD research versions during the period, the
majority of which were installed shortly before the period end.
Accordingly, these sales only made a modest contribution to revenue
in the period. We are continuing to install the remaining orders
and have received additional new orders from customers in Singapore
and Korea. We therefore expect there to be a substantial increase
in TexRAD-related revenue in the second half of the current
financial year and growth in our revenue for the year as a whole.
Cambridge Computed Imaging ("CCI") again performed steadily during
the period.
In November 2015 the Company announced that it had signed a
Memorandum of Understanding with Alliance Medical Group
("Alliance") with the intention of integrating Feedback's TexRAD
texture analysis software into Alliance's PET-CT lung cancer
imaging service. The Company has made good progress on a technical
solution that would allow the integration of TexRAD into Alliance's
network of PET/CT scanners in UK hospitals and a prototype version
has been demonstrated to potential users. An abstract was accepted
by the Radiological Society of North America (RSNA) for
presentation at its annual conference in November 2016 which
highlighted the results from the technical and clinical evaluation.
The next steps include applying for a CE mark for a medical device
which provides analysis of lung PET/CT images with added
prognostication through TexRAD. We hope to gain the CE mark before
the end of the current financial year. Thereafter the plan is to
expand our customer base significantly by developing relationships
with imaging hardware companies as well as Alliance to ensure wide
market access. This will be linked to a changed business model from
a one-off access fee to one of pay-per-use.
During the period Feedback announced a large-scale collaboration
with Future Processing Sp. z o.o. ("Future Processing"), a software
development service provider based in Gliwice, Poland to develop
medical imaging software. Feedback's assistance has resulted in
another successful EU grant application made by Future Processing.
The directors of Feedback consider that by CCI working jointly with
the Future Processing healthcare team, CCI's product portfolio can
be updated and improved and new products developed more rapidly
including further applications for TexRAD. The intention is for the
Company to agree formal licences for new software products to be
brought to market in 2017/18 under a shared revenue arrangement.
Under this collaboration with Future Processing, the Company is
currently making substantial savings in software development costs
although there could be some strategic advantage in re-establishing
some UK-based software development capability.
We are encouraged by the continued strong interest shown in
TexRAD and the number of research papers being published which
highlight its numerous potential applications, particularly in
areas such as liver, prostate and adrenal cancers. We are seeing
new opportunities in Asia to make further sales of TexRAD research
versions by partnering with companies with a strong local presence.
In addition to the TexRAD sales, Feedback is well placed to grow
its revenues through the collaboration with Future Processing and
the development of a CE marked product for analysis of lung PET/CT
images. After several years of relying on very limited resources we
have plans to invest in product development, regulatory and
marketing resource to step up our activity and take full advantage
of our very positive growth prospects. We are excited by the
developments in our marketplace in machine learning and artificial
intelligence applied to medical images. We have extensive
experience in machine learning and the prospects of combining
TexRAD with other companies' proprietary technologies could lead to
exciting opportunities.
Dr AJ Riddell
Chairman
Enquiries:
Feedback plc
Dr AJ Riddell - Chairman Tel: 01954 718072
Allenby Capital Limited (Nominated Adviser and Joint Broker)
David Worlidge / James Thomas / Graham Bell Tel: 020 3328
5656
Peterhouse Corporate Finance Ltd (Joint Broker)
Lucy Williams / Duncan Vasey Tel: 020 7469 0936
UNAUDITED INTERIM CONSOLIDATED INCOME STATEMENT
----------------------------------------------------------------- --------------
6 months 6 months Year to
to to 31 May
30 November 30 November 2016
2016 2015
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
Revenue 204 225 431
Cost of sales (5) (2) (7)
------------- ------------- --------------
Gross profit 199 223 424
Other operating expenses (329) (378) (677)
Total operating expenses (329) (378) (677)
------------- ------------- --------------
Operating loss (130) (155) (253)
Net finance income - - 1
------------- ------------- --------------
Loss before tax (130) (155) (252)
Tax credit 4 12 23
------------- ------------- --------------
Loss for the period
attributable to the
equity shareholders
of the parent
Loss on ordinary activities
after tax (126) (143) (229)
------------- ------------- --------------
Profit on disposal
of investments - - 45
------------- ------------- --------------
Other comprehensive
expense
Translation differences - - -
on overseas operations
Total comprehensive
expense for the period (126) (143) (184)
============= ============= ==============
Basic and diluted earnings
per share 2 (0.06p) (0.07p) (0.09p)
UNAUDITED INTERIM CONSOLIDATED STATEMENT OF CHANGES
IN EQUITY
--------------------------------------------------------------------------------------------------------
Share Share Capital Retained Translation Convertible Total
Capital Premium Reserve Earnings Reserve Debt
Option
Reserve
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 31
May 2015 477 1,409 300 (2,076) (210) 189 89
New shares issued 32 190 - - - - 222
Costs associated
with the raising
of funds - (7) - - - - (7)
Share option
and warrant
costs - - - 4 - - 4
Total comprehensive
expense for
the period - - - (143) - - (143)
--------- --------- --------- ---------- ------------ ------------ --------
Balance at 30
November 2015 509 1,592 300 (2,215) (210) 189 165
Total comprehensive
expense for - - - (36) - - -
the period
--------- --------- --------- ---------- ------------ ------------ --------
Balance at 31
May 2016 509 1,592 300 (2,251) (210) 189 129
New shares issued 38 151 - - - (189) -
Total comprehensive
expense for
the period - - - (126) - - (126)
--------- --------- --------- ---------- ------------ ------------ --------
Balance at 30
November 2016 547 1,743 300 (2,377) (210) - 3
========= ========= ========= ========== ============ ============ ========
UNAUDITED INTERIM CONSOLIDATED STATEMENT OF FINANCIAL
POSITION
-------------------------------------------------------------------------
30 November 30 November 31 May
2016 2015 2016
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
ASSETS
Non-current assets
Property, plant and
equipment 4 5 4
Intangible assets 97 125 111
Investments 1 5 1
102 135 116
------------ ------------ ----------
Current assets
Trade receivables 121 70 41
Other receivables 50 83 64
Cash and cash equivalents 63 164 106
------------ ------------ ----------
234 317 211
------------ ------------ ----------
Total assets 336 452 327
============ ============ ==========
EQUITY
Capital and reserves
attributable to the
Company's equity shareholders
Called up share capital 547 509 509
Share premium account 1,743 1,592 1,592
Capital reserve 300 300 300
Translation reserve (210) (210) (210)
Retained earnings (2,377) (2,215) (2,251)
------------ ------------ ----------
3 (24) (60)
Convertible debt option
reserve - 189 189
------------ ------------ ----------
Total equity 3 165 129
------------ ------------ ----------
LIABILITIES
Non-current liabilities
Deferred tax liabilities 10 24 20
------------ ------------ ----------
Current liabilities
Trade payables 67 43 22
Other payables 256 220 156
323 263 178
------------ ------------ ----------
Total liabilities 333 287 198
------------ ------------ ----------
Total equity and liabilities 336 452 327
============ ============ ==========
UNAUDITED INTERIM CONSOLIDATED STATEMENT OF CASH
FLOWS
-----------------------------------------------------------------------------
6 months 6 months Year
to to to
30 November 30 November 31 May
2016 2015 2016
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
Cash flows from operating
activities
Loss before tax (130) (155) (251)
------------- ------------- ----------
Adjustments for:
Share option and warrant costs - 4 8
Net finance income - - (1)
Depreciation and amortisation 23 23 46
(Increase)/Decrease in trade
receivables (80) 41 70
Decrease in other receivables 14 26 43
Increase/(Decrease) in trade
payables 46 3 (19)
Increase/(Decrease) in other
payables 98 (45) (110)
Corporation tax (5) - 10
------------- ------------- ----------
96 52 47
------------- ------------- ----------
Net cash used in operating
activities (34) (103) (204)
------------- ------------- ----------
Cash flows from investing
activities
Purchase of tangible fixed (1) - -
assets
Purchase of intangible assets (8) (6) (14)
Proceeds from sale of assets
held for resale - - 1
Purchase of share in joint
venture - (5) (2)
Proceed from sale of joint
venture - 46
Net cash used in investing
activities (9) (11) 31
------------- ------------- ----------
Cash flows from financing
activities
Net proceeds from share issues - 215 216
Net cash generated from financing
activities - 215 216
------------- ------------- ----------
Net (Decrease)/Increase in
cash and cash equivalents (43) 101 43
Cash and cash equivalents
at beginning of period 106 63 63
------------- ------------- ----------
Cash and cash equivalents
at end of period 63 164 106
============= ============= ==========
FEEDBACK PLC
NOTES TO THE UNAUDITED INTERIM REPORT
1 BASIS OF PREPARATION
The consolidated interim financial statements have been prepared
in accordance with the recognition and measurement principles of
International Financial Reporting Standards as endorsed by the
European Union ("IFRS") and expected to be effective for the year
ending 31 May 2017. The accounting policies are unchanged from the
financial statements for the year ended 31 May 2016.
The information set out in this interim report for the six
months ended 30 November 2016 does not comprise statutory accounts
within the meaning of section 434 of The Companies Act 2006. The
auditors' report on the full statutory accounts for the period
ended 31 May 2016 included an Emphasis of Matter paragraph in
regard to Going Concern. The accounts for the period ended 31 May
2016 have been filed with the Registrar of Companies.
This interim report was approved by the directors on 17 February
2017.
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.
6 months 6 months Year ended
to to 31 May 2016
30 November 30 November
2016 2015
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
Net loss attributable
to ordinary
equity holders (126) (143) (184)
============= ============== =============
Weighted average
number of ordinary
shares for
basic earnings
per share 203,733,005 203,355,562 203,514,709
Effect of dilution:
Share Options - - -
Warrants - - -
------------- -------------- -------------
Weighted average
number of ordinary
shares adjusted
for the effect
of dilution 203,733,005 203,355,562 203,514,709
============= ============== =============
Loss per share
(pence)
Basic and Diluted (0.06) (0.07) (0.09)
3 INTANGIBLE ASSETS
Software Customer Patents Goodwill Total
relationships
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Cost
At 31 May 2015 563 100 74 272 1,009
Additions - - 6 - 6
At 30 November 2015 563 100 80 272 1,015
Additions - - 8 - 8
--------- --------------- -------- --------- --------
At 31 May 2016 563 100 88 272 1,023
Additions - - 8 -
--------- --------------- -------- --------- --------
At 30 November 2016 563 100 96 272 1,031
--------- --------------- -------- --------- --------
Amortisation
At 31 May 2015 563 25 10 272 870
Charge for the period - 13 7 - 20
As at 30 November
2015 563 38 17 272 890
Charge for the period - 12 10 - 22
At 31 May 2016 563 50 27 272 912
Charge for the period - 13 9 - 22
--------- --------------- -------- --------- --------
At 30 November 2016 563 63 36 272 934
--------- --------------- -------- --------- --------
Net Book Value
At 30 November 2016 - 37 60 - 97
========= =============== ======== ========= ========
At 31 May 2016 - 50 61 - 111
========= =============== ======== ========= ========
At 30 November 2015 - 62 63 - 125
========= =============== ======== ========= ========
4 AVAILABILITY OF THE INTERIM REPORT
Copies of the report will be available from the Company's office
and also from the Company's website www.fbk.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR GGUCUPUPMGMM
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