TIDMFDBK
RNS Number : 9068W
Feedback PLC
07 February 2012
7 February 2012
Feedback plc
("Feedback", the "Company" or the "Group")
Interim Report for the six months ended 30 November 2011
KEY POINTS
-- Turnover GBP4.1 million (2010 - GBP3.6 million)
-- Profit before tax GBP0.35 million (2010 - loss GBP0.12 million)
-- Earnings per share 0.30p (2010 - loss 0.13p)
Executive Chairman's Statement
In a challenging trading environment we have made good progress
against our key objectives of returning the Group to growth and
profitability.
Turnover has increased to GBP4.1 million, up 13% on the
equivalent period last year. Profit before tax of GBP348,000
includes the release of a legacy stock provision of GBP402,000,
without which the Group's like-for-like operations would have
delivered a break-even result. Bank overdrafts were GBP444,000
(2010: cash and cash equivalents GBP379,000) which were higher than
management's expectations primarily due to the one-off costs
associated with restructuring the existing business, start-up
expenses for the new Black Box division and the necessary
investment in business systems and raw materials needed to manage
and meet increased demand.
Our order intake and pipeline have benefited from increased
sales focus and attention to account management. The improvements
in business systems, which have been in process for a number of
years, are now fully operational and, along with restructuring the
pre-production operations, have allowed us to take better control
of throughput resulting in shorter lead times and more accurate
production planning.
In our Data business we remain pleased with the strength of our
relationships with existing partners and are encouraged by our
ability to create differentiation and attract new customers with
our Nohmad product line. We continue to invest heavily in product
development and account management.
Our Black Box business commenced operations in June 2011 with a
strategy to develop and build data-centric electronics products for
our customers' markets. Initial products have now been launched and
we look forward to reporting on further progress in the second half
of the year.
Order intake for the period in our Instruments business is up by
over 20% compared with the previous year. However, the slow pace at
which some international education projects progress means we
continue to suffer the legacy effect of previous years'
under-investment in sales activity. In the US, Feedback Inc. has
reviewed its sales agents, replaced a number, and strengthened our
business in key East and West coast markets.
Our UK and International markets remain difficult to predict in
both their general economies and our specific areas of activity but
we are now better positioned to take advantage of opportunities as
and when they arise.
The external environment apart, we have made fundamental changes
to the way in which the Group operates and our turnaround has
started. We recognise the challenges of the markets within which we
operate and we continue to explore all opportunities to maximise
shareholder value whilst realising our strategic goals.
Nick Shepheard
Chairman and Chief Executive
7 February 2012
For further information contact:
Feedback plc Tel: 01892 653
322
Nick Shepheard
Merchant Securities Limited (Nominated Adviser and Broker)
Simon Clements/Lindsay Mair Tel: 020 7628
2200
UNAUDITED CONSOLIDATED INCOME STATEMENT
6 months 6 months Year to
to to 31 May
30 November 30 November 2011
2011 2010
GBP'000 GBP'000 GBP'000
Revenue 4,100 3,618 6,308
Cost of sales (2,363) (2,070) (3,969)
------------- ------------- -------------
Gross profit 1,737 1,548 2,339
Other operating expenses 2 (1,389) (1,662) (3,170)
------------- ------------- -------------
Operating profit/(loss) 348 (114) (831)
Finance costs - (4) (9)
------------- ------------- -------------
Profit/(loss) before tax 348 (118) (840)
Tax expense (1) (18) (22)
------------- ------------- ------------
Profit/(loss) for the period
attributable to the
equity shareholders of the parent 347 (136) (862)
Other comprehensive income/(expense)
Translation differences on overseas
operations 9 (14) (36)
------------- ------------- -------------
Total comprehensive income/(expense)
for the period 356 (150) (898)
====== ====== ======
Basic and diluted earnings per
share 3 0.30p (0.13)p (0.79)p
UNAUDITED INTERIM CONSOLIDATED STATEMENT OF CHANGES IN
EQUITY
Share Share Capital Retained
Capital Premium Reserve Earnings Total
GBP000 GBP000 GBP000 GBP000 GBP000
Balance at 31 May 2010 273 633 300 2,341 3,547
Total comprehensive income
for the period - - - (150) (150)
----------- ------------ ----------- ------------- -------------
Balance at 30 November 2010 273 633 300 2,191 3,397
Total comprehensive expense
for the period - - - (748) (748)
----------- ------------ ----------- ------------- -------------
Balance at 31 May 2011 273 633 300 1,443 2,649
Total comprehensive income
for the period 54 218 - 356 628
----------- ------------ ----------- -------------- -------------
Balance at 30 November 2011 327 851 300 1,799 3,277
====== ====== ====== ======= ======
UNAUDITED CONSOLIDATED BALANCE SHEET
30 November 30 November 31 May
2011 2010 2011
GBP'000 GBP'000 GBP'000
ASSETS
Non-current assets
Property, plant and equipment 1,490 1,600 1,505
Intangible assets 738 775 732
Deferred tax asset 133 156 134
------------- ------------- -------------
2,361 2,531 2,371
------------- ------------- -------------
Current assets
Inventories 1,468 1,100 1,030
Trade receivables 1,265 1,020 930
Other receivables 309 149 233
Cash and cash equivalents - 379 9
------------- ------------- -------------
3,042 2,648 2,202
------------- ------------- -------------
Total assets 5,403 5,179 4,573
====== ====== ======
LIABILITIES
Non-current liabilities
Deferred tax liabilities 199 217 198
------------- ------------- ------------
Current liabilities
Trade payables 707 924 909
Other payables 776 641 817
Bank overdrafts 444 - -
------------- ------------- ------------
1,927 1,565 1,726
------------- ------------- ------------
Total liabilities 2,126 1,782 1,924
------------- ------------- ------------
Net assets 3,277 3,397 2,649
====== ====== ======
EQUITY
Capital and reserves attributable
to the Company's equity
shareholders
Called up share capital 327 273 273
Share premium account 851 633 633
Capital reserve 300 300 300
Retained earnings 1,799 2,191 1,443
------------- ------------- ------------
Total equity 3,277 3,397 2,649
====== ====== ======
UNAUDITED CONSOLIDATED CASH FLOW STATEMENT
6 months 6 months Year to
to to 31 May
30 November 30 November 2011
2011 2010
GBP'000 GBP'000 GBP'000
Cash flows from operating activities
Profit/(loss) before tax 348 (118) (818)
Adjustments for:
Finance charges - 4 -
Depreciation and amortisation 204 188 565
Foreign exchange difference 9 (13) (36)
(Increase)/decrease in inventories (438) 200 270
(Increase)/decrease in trade receivables (335) 559 956
(Increase)/decrease in other receivables (76) 26 (8)
Decrease in trade payables (202) (35) (357)
Decrease in other payables (41) (225) (111)
-------------- -------------- --------------
Net cash (used in)/generated from
operating activities (531) 586 461
-------------- -------------- --------------
Cash flows from investing activities
Interest received - - -
Purchase of tangible fixed assets (36) (35) (98)
Purchase of intangible assets (158) (193) (370)
-------------- -------------- --------------
Net cash used in investing activities (194) (228) (468)
-------------- -------------- --------------
Cash flows from financing activities
Interest paid - (4) (9)
Proceeds from issuance of ordinary 272 - -
shares
-------------- -------------- --------------
Net cash generated from financing
activities 272 (4) (9)
-------------- -------------- --------------
Net movement in cash and cash equivalents (453) 354 (16)
Cash and cash equivalents at beginning
of period 9 25 25
-------------- -------------- --------------
Cash and cash equivalents at end
of period (444) 379 9
======= ======= =======
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
at the year end of 31 May 2012. The accounting policies are
unchanged from the financial statements for the year ended
31 May 2011.
The information set out in this interim report for the six
months ended 30 November 2011 does not comprise statutory
accounts within the meaning of section 434 of The Companies
Act 2006. The results for the period ended 31 May 2011 are
based on the published accounts for that period on which
the auditors gave a report which did not contain statements
under section 498 of the Companies Act 2006. The accounts
for the period ended 31 May 2011 have been filed with the
Registrar of Companies.
This interim report was approved by the directors on 7 February
2012.
2. SIGNIFICANT EVENTS
Profit before tax of GBP348,000 includes the release of a
legacy stock provision of GBP402,000. Management consider
the release of the provision appropriate following investment
in the Group's stock and production management systems which
have improved stock reporting.
3. EARNINGS PER SHARE
The earnings per share for the six months ended 30 November
2011 is based on the Group profit on ordinary activities
after taxation of GBP347,000 (2010: loss GBP136,000) attributed
to the weighted average of 130,946,746 Ordinary Shares (2010:
109,146,176), being the weighted average number of shares
in issue
4. SHARE ISSUE
During the period the Group issued 21,800,000 new ordinary 0.25
pence shares at a subscription price of 1.25 pence per share to
certain Directors of the group, Institutional and other
investors.
Following the issuance of 10,158,755 of the shares to Directors,
the Directors have the following shareholdings:
No. of Subscription Shareholding Percentage holding
Shares following Admission of enlarged issued
share capital
David Barton (Non-executive
Director) 2,621,204 15,744,871 12.02
John Westcott (Non-executive
Director) 1,537,551 5,999,287 4.58
Nick Shepheard (Executive
Chairman) 5,000,000 5,000,000 3.82
Mark Bird (Group Sales Director) 1,000,000 1,000,000 0.76
INDEPENDENT REVIEW REPORT TO FEEDBACK PLC
Introduction
We have been engaged by the Company to review the condensed set
of financial statements in the interim financial report for the six
months ended 30 November 2011 which comprises the Consolidated
Income Statement, the Consolidated Statement of Changes in Equity,
the Consolidated Balance Sheet, the Consolidated Cash Flow
Statement and the Notes to the Unaudited Interim Report. We have
read the other information contained in the interim financial
report and considered whether it contains any apparent
misstatements or material inconsistencies with the information in
the condensed set of financial statements.
This report, including the conclusion, has been prepared for and
only for the Company for the purpose of meeting the requirements of
the AIM Rules for Companies and for no other purpose. We do not,
therefore, in producing this report, accept or assume
responsibility for any other purpose or to any other person to whom
this report is shown or into whose hands it may come save where
expressly agreed by our prior consent in writing.
Directors' Responsibilities
The interim financial report, is the responsibility of, and has
been approved by the directors. The directors are responsible for
preparing and presenting the interim financial report in accordance
with the AIM Rules for Companies.
As disclosed in note 1, the annual financial statements of the
Group are prepared in accordance with International Financial
Reporting Standards and International Financial Reporting
Interpretations Committee ("IFRIC") pronouncements as adopted by
the European Union. The condensed set of financial statements
included in this interim financial report has been prepared in
accordance with the measurement and recognition criteria of
International Financial Reporting Standards and International
Financial Reporting Interpretations Committee ("IFRIC")
pronouncements, as adopted by the European Union.
Our Responsibility
Our responsibility is to express to the Company a conclusion on
the condensed set of financial statements in the interim financial
report based on our review.
Scope of Review
We conducted our review in accordance with International
Standard on Review Engagements (UK and Ireland) 2410, "Review of
Interim Financial Information Performed by the Independent Auditor
of the Entity" issued by the Auditing Practices Board for use in
the United Kingdom. A review of interim financial information
consists of making enquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other
review procedures. A review is substantially less in scope than an
audit conducted in accordance with International Standards on
Auditing (UK and Ireland) and consequently does not enable us to
obtain assurance that we would become aware of all significant
matters that might be identified in an audit. Accordingly, we do
not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that
causes us to believe that the condensed set of financial statements
in the interim financial report for the six months ended 30
November 2011 is not prepared, in all material respects, in
accordance with the measurement and recognition criteria of
International Financial Reporting Standards and International
Financial Reporting Interpretations Committee ("IFRIC")
pronouncements as adopted by the European Union, and the AIM Rules
for Companies.
haysmacintyre
Chartered Accountants
Fairfax House
15 Fulwood Place
London
WC1V 6AY
7 February 2012
This information is provided by RNS
The company news service from the London Stock Exchange
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