TIDMFDBK
RNS Number : 7227V
Feedback PLC
07 November 2017
This announcement contains inside information as stipulated
under the Market Abuse Regulation (EU) No 596/2014 (MAR).
Feedback plc
("Feedback", the "Company" or the "Group")
Final results for the year ended 31 May 2017
Notice of Annual General Meeting
Feedback plc (AIM: FDBK), the specialist medical imaging
technology company, announces its final results for the year ended
31 May 2017.
Operational highlights (including post-period end)(1)
-- Letter of Intent for TexRAD(R) Lung signed with a leading global medical imaging company
-- Exclusive TexRAD(R) distributor agreements signed in China and Korea
-- Prototype integration solution for TexRAD(R) demonstrated to Alliance Medical Group
-- CCI collaboration with Future Processing Sp. z o.o. to develop medical imaging software
-- Significant TexRAD(R) research interest including 19
presentations at RSNA annual conference
-- Certification received by CCI for ISO 13485:2016 quality management standard compliance
-- CE marked release of TexRAD(R) Lung expected by the end of November 2017
Financial highlights (including post-period end)
-- Completion of a placing of 27,272,727 new ordinary shares of
0.25p each in the Company at a price of 2.75 pence per share to
raise a total of GBP750,000 (gross) in April 2017
-- Revenue for the year GBP465,885 (2016: GBP431,454)
-- Loss after tax for the year GBP266,003 (2016: loss GBP183,156)
-- Loss before interest, tax and amortisation was GBP252,750 (2016: loss GBP206,523)
-- Cash as at 31 May 2017 was GBP696,811 (31 May 2016: GBP105,673)
1. Cambridge Computed Imaging Limited ("CCI") is a wholly owned subsidiary of Feedback plc.
Dr Alastair Riddell, Chairman at Feedback plc, said: "We
delivered solid operational progress during the period and the
increased international sales exposure is particularly encouraging.
Our technical and regulatory team have been working diligently on
the delivery of a CE marked release of TexRAD(R) Lung. We are
acutely aware that this development has taken longer than
originally expected, however we are confident that our rigorous
regulatory review will pave the way for new products and therefore
maximise the potential for TexRAD(R) 's clinical use worldwide. We
remain focused on applying our leading research expertise to the
clinical setting to drive future revenue growth and would like to
thank our shareholders, customers and partners for their continued
support."
Notes to editors
About Feedback plc
Feedback plc is a specialist medical imaging technology company.
It develops software and systems that provide innovative techniques
and improved workflows for practitioners involved in medical
research and treating patients. TexRAD(R) , the Company's patented
quantitative image texture analysis technology, has the potential
to assist clinicians in diagnosis, prognosis and treatment of
patients with cancer and is currently installed in over 40 of the
world's leading research institutions across Europe, North America
and Asia. The Cadran platform provides a suite of medical imaging
tools for decision support. The Cadran range includes the picture
archiving communication system (PACS) to provide decision support
for scan analysis, diagnostic workstations which provide secure
remote access to view scans on demand, and products to securely
share and transport patient data. Visit www.fbk.com.
For further information, please contact:
Feedback plc Tel: 01954 718072
Dr Alastair Riddell, Chairman hello@fbk.com
Lara Mott, Investor Relations
Allenby Capital Limited (Nominated Tel: 020 3328
Adviser and Joint Broker) 5656
David Worlidge / James Thomas
Northland Capital Partners Ltd Tel: 020 3861
(Joint Broker) 6625
Patrick Claridge / David Hignell
Peterhouse Corporate Finance Tel: 020 7469
Ltd (Joint Broker) 0936
Lucy Williams / Duncan Vasey
Chairman's statement
FINANCIAL PROGRESS
In the year ended 31 May 2017, the Group incurred a loss after
tax of GBP266,003 (2016: loss GBP183,156) on revenue of GBP465,885
(2016: GBP431,454). The results show a continuation in revenue
growth as more customers around the world adopt TexRAD(R) and
Cadran products and associated support services. On 26 April 2017,
we announced the completion of a placing of 27,272,727 new Ordinary
Shares at a price of 2.75 pence per share to raise a total of
GBP750,000 (before expenses). A proportion of the net proceeds from
the share issue has been invested in product development, sales and
marketing with the balance being utilised for general working
capital purposes. This accelerated expenditure, including investing
in the team and external activities, has contributed to the
increase in the loss during the period, however the Directors
expect that the benefits of this investment will be seen in the
current financial year. Operational cash generation has been
satisfactory and reflects customer payments for new purchases and
contracts before the periods in which the revenue is recognised.
The share issue, net of costs, has contributed to a healthy cash
balance at the end of the year.
OPERATIONAL PROGRESS
As previously announced, Feedback's subsidiary company,
Cambridge Computed Imaging Ltd ("CCI") is working towards a CE
marked release of "TexRAD(R) Lung" for the clinical application of
TexRAD(R) in the diagnosis, prognosis and treatment of lung cancer.
CE marking is a claim by a medical device manufacturer that a
product meets the essential requirements of the Medical Device
Directive, which outlines the safety and performance requirements
for medical devices in the European Union. TexRAD(R) Lung will be a
"software only" medical device providing additional information for
the interpretation of computerised tomography (CT) and positron
emission tomography (PET) scans.
Feedback is committed to offering its customers the highest
quality service across all areas of its business, and therefore
compliance with international quality management standards is of
paramount importance. CCI received certification for its compliance
with the ISO 13485:2016 quality management standard in September
2017. In May 2017, Feedback announced that CCI had identified
enhancements to improve the performance of TexRAD(R) which will
further support the wider clinical application of the TexRAD(R)
technology. Since then, CCI has successfully prepared a "release
candidate" version of TexRAD(R) Lung, incorporating over 60 risk
control measures to address the 50 potential clinical risk
scenarios identified within the product. This in now in the final
stages of testing, with an anticipated CE marked release by the end
of November 2017.
On 30 March 2017, as part of the intended distribution
arrangements, CCI signed a letter of intent with a leading global
medical imaging company which would make TexRAD(R) Lung available
for purchase on its diagnostic imaging solutions platform. This
would, in due course, enable easy access to TexRAD(R) Lung for
hundreds of potential users around the world on a subscription
basis. We look forward to continuing our ongoing discussions with
this company and other leading imaging companies to broaden the
range of potential routes to market for clinical versions of
TexRAD(R) .
Post-period end, CCI signed exclusive distributor agreements
with Korea Computer Motion ISG ("Korea ISG") in June 2017 and Boya
Digital Technology (Beijing) Co. Ltd. ("Boya") in July 2017 for
sales and distribution of TexRAD(R) in South Korea and the People's
Republic of China, respectively.
These agreements represent a significant step in expanding
TexRAD(R) sales to meet the fast-growing demand in Asian markets.
By successfully identifying and engaging with distributors who are
experts in the local market, we can leverage the TexRAD(R) brand to
help build a regional sales pipeline. Over the first few months of
these agreements, joint marketing and promotional activities have
been well-received, we have seen an increase in purchase orders for
TexRAD(R) from leading medical institutions in South Korea and we
are receiving significant interest in China.
In September 2016, we announced that we have developed a
technical solution with Alliance Medical Group ("Alliance") that
would allow the integration of TexRAD(R) into Alliance's network of
PET/CT scanners in UK hospitals. A prototype version has been
demonstrated to potential users and an abstract was presented at
the Radiological Society of North America (RSNA) annual conference
in November 2016. The poster, entitled "PET/CT in Lung Cancer: An
Automated Imaging Tool for Decision Support", highlighted results
from a preliminary study which suggests that an automated PET/CT
lung cancer tool may standardise clinical performance whilst
allowing access to quantitative texture analysis to improve
prognostication and fit within clinical workflow. We continue to
work closely with Alliance on the future integration of TexRAD(R)
Lung.
In March 2017, the Company announced that CCI was finalising
arrangements for the secure transfer of patient data from Papworth
Hospital NHS Foundation Trust to the new Cambridge Biomedical
Campus which was expected to open in April 2018. Papworth Hospital
has since extended the timeframe to September 2018 and therefore
preparation for the transfer of the extensive archive of medical
images is ongoing.
RESEARCH AND DEVELOPMENT PROGRESS
In July 2016, we 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. The collaboration will entail a
substantially increased development team working on new products
and the sharing of intellectual property and future revenues. We
believe that by CCI working jointly with the Future Processing
healthcare team, CCI's existing product portfolio can be improved
and new products developed more rapidly including further
applications for TexRAD(R) . The collaboration is fully underway
and both teams are working towards agreeing formal licences for new
software products to be brought to market in 2018.
We continue to receive significant TexRAD(R) research interest
from prestigious institutions worldwide which has resulted in
multiple articles in leading publications. In September 2016,
University College London ("UCL") published a retrospective study
of 67 prostate cancer patients which demonstrated that TexRAD(R)
analysis of multi-parametric MRI images may be able to identify the
presence of clinically significant prostate cancers in the
transition zone and therefore could potentially assist in
optimising prostate radiologists' workflow. In November 2016, we
attended the 102(nd) Scientific Assembly and Annual Meeting of the
Radiological Society of North America (RSNA 2016); the premier
global event for radiologists. We had a strong presence at RSNA
2016, with 19 scientific paper presentations featuring TexRAD(R)
analysis, further emphasising the significance of our technology
across the healthcare industry. Further information on the papers
presented at RSNA 2016 can be found at
https://rsna2016.rsna.org/program/.
Post-period end in October 2017, our customer at the
International University of Health and Welfare Hospital in Tochigi,
Japan published article featuring TexRAD(R) analysis in liver
cancer. The paper, entitled "Impact of hepatocellular carcinoma
heterogeneity on computed tomography as a prognostic indicator" was
published in the Nature affiliated journal; Scientific Reports. We
also sponsored the American British Course in Neuroradiology in
Mumbai, India in October 2017, which included a lunch-time
symposium presentation on brain texture analysis using TexRAD(R)
technology. These research activities continue to support the
potential future clinical application of TexRAD(R) in these other
disease indications.
In 2015, we announced the incorporation of a 50:50 joint venture
company, Prostate Checker Ltd, with QUIBIM S.L. ("QUIBIM"). The
Board has concluded that a joint venture vehicle is no longer
required for the collaboration. The Company continues to work
closely with QUIBIM to develop a specific application of TexRAD(R)
texture analysis for the computer assisted detection and diagnosis
of prostate cancer.
BOARD AND ORGANISATION
Tom Charlton stepped down as a director on 30 May 2017 in order
to devote more time to his other investment activities. Post-period
end, on 8 June 2017, we announced that Trevor Brown resigned as a
non-executive Director in order to allow the Company to move
rapidly to the next stage in its development. On behalf of the
Board, I thank both Tom and Trevor for their invaluable support of
the Company following its readmission in 2014 which has enabled it
to achieve considerable progress to date.
To further support the Company's growth strategy, Tim Irish
joined the Board on 8 June 2017 as Non-Executive Director. Tim is a
Professor of Practice at Kings College London as well as a board
member of Bournemouth University. He joined the board of the
National Institute for Health and Care Excellence (NICE) in April
2015 and became its Senior Independent Director in May 2017. Tim
has worked in the life sciences industry for 30 years. His career
has spanned global health technology companies across Europe and
North America, including GSK, GE and Philips the latter two in
senior positions responsible for medical imaging. Tim also
currently holds a number of non-executive positions in health and
technology related entities.
I would also like to recognise and thank the Group's employees
for the outstanding contribution they have made. Having completed
the placing in April 2017, we are in strong position to continue to
build and invest in a leading team to deliver our objectives.
STRATEGY AND OUTLOOK
Upon delivery of the first CE marked release of TexRAD(R) by the
end of November 2017, our ambition is to leverage our leading
research, image processing and analysis expertise to position
TexRAD(R) technology for routine clinical use to drive future
revenue growth. We look forward to continuing our ongoing
discussions with leading imaging companies to broaden the range of
potential routes to market for clinical versions of TexRAD(R) . Our
existing and future distributor agreements will continue to support
the Company's international expansion, ensuring that our technology
continues to be used by the world's leading institutions to
expedite research in this important field. With pioneering
technology platforms and strong industry trends, we believe the
Group is ideally placed to deliver continued growth.
Dr A J Riddell
Chairman
6 November 2017
STATEMENT OF COMPREHENSIVE INCOME FOR THE YEARED 31 MAY 2017
Note 2017 2016
GBP GBP
REVENUE 465,885 431,454
Cost of sales (11,007) (7,438)
----------- -----------
GROSS PROFIT 454,878 424,016
Other income 150
Other operating expenses (755,960) (676,596)
OPERATING LOSS (300,932) (252,580)
Net finance income 5 1,361
----------- -----------
Loss on ordinary
activities before
taxation (300,927) (251,219)
Tax credit 34,924 23,063
----------- -----------
LOSS ON ORDINARY
ACTIVITIES AFTER
TAX (266,003) (228,156)
----------- -----------
Profit on disposal
of investment - 45,000
----------- -----------
Loss for the year
attributable to the
equity shareholders
of the Company (266,003) (183,156)
Other comprehensive
income
Translation differences - -
on overseas operations
----------- -----------
Total comprehensive
expense for the year (266,003) (183,156)
=========== ===========
LOSS PER SHARE (pence)
Basic and diluted 4 (0.11) (0.09)
=========== ===========
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEARED 31
MAY 2017
Share Share Capital Retained Translation Convertible Total
Capital Premium Reserve Earnings Reserve Debt
Option
Reserve
GBP GBP GBP GBP GBP GBP GBP
At 1 June 2015 476,867 1,409,334 299,900 (2,076,483) (209,996) 189,000 88,622
New shares issued 32,318 190,382 222,700
Costs associated
with the
raising of funds (6,580) (6,580)
Share option
and warrant
costs - - - 8,163 - - 8,163
Total comprehensive
expense for
the year - - - (183,156) - - (183,156)
--------- ---------- --------- ------------ ------------ ------------ -----------
At 31 May 2016 509,185 1,593,136 299,900 (2,251,476) (209,996) 189,000 129,749
New Shares issued 105,982 833,018 - - - (189,000) 750,000
Costs associated
with the
raising of funds - (50,121) - - - - (50,121)
Share option
and warrant
costs - - - 5,726 - - 5,726
Total comprehensive
expense for
the year - - - (266,003) - - (266,003)
--------- ---------- --------- ------------ ------------ ------------ -----------
At 31 May 2017 615,167 2,376,033 299,900 (2,511,753) (209,996) - 569,351
========= ========== ========= ============ ============ ============ ===========
CONSOLIDATED BALANCE SHEET AT 31 MAY 2017
2017 2016
Notes GBP GBP
ASSETS
Non-current assets
Property, plant and
equipment 5 4,109 3,639
Intangible assets 6 80,235 110,747
Investments - 1,000
------------ ------------
84,344 115,386
Current assets
Trade receivables 49,982 40,894
Other receivables 7 62,328 63,910
Cash and cash equivalents 696,811 105,673
------------ ------------
809,121 210,477
Total assets 893,465 325,863
============ ============
EQUITY
Capital and reserves
attributable to the
Company's equity
shareholders
Called up share capital 9 615,167 509,185
Share premium account 2,376,033 1,593,136
Capital reserve 299,900 299,900
Translation reserve (209,996) (209,996)
Retained earnings (2,511,753) (2,251,476)
------------ ------------
569,351 (59,251)
Convertible debt
option reserve - 189,000
TOTAL EQUITY 569,351 129,749
LIABILITIES
Deferred tax liabilities 4,250 19,378
------------ ------------
4,250 19,378
Current liabilities
Trade payables 68,948 21,546
Other payables 8 250,916 155,190
319,864 176,736
------------ ------------
Total liabilities 324,114 196,114
------------ ------------
TOTAL EQUITY AND
LIABILITIES 893,465 325,863
============ ============
CONSOLIDATED CASH FLOW STATEMENT FOR THE YEARED 31 MAY 2017
2017 2016
GBP GBP
Cash flows from operating
activities
Loss before tax (300,927) (251,219)
---------- ----------
Adjustments for:
Share option costs 5,726 8,163
Net finance income (5) (1,361)
Depreciation and amortisation 48,182 46,052
Impairment of investment 1,000 -
(Increase)/decrease in
trade receivables (9,087) 69,976
(Increase)/decrease in
other receivables (36,246) 42,402
Decrease/(increase) in
trade payables 47,400 (18,852)
(Increase)/decrease in
other payables 95,728 (109,772)
Corporation tax received 57,624 9,506
---------- ----------
210,322 46,114
---------- ----------
Net cash used in operating
activities (90,605) (205,105)
Cash flows from investing
activities
Purchase of tangible fixed
assets (2,941) (104)
Purchase of intangible
assets (15,200) (13,860)
Net finance income received 5 1,361
Proceeds from sale of
joint venture - 46,000
Purchase of shares in
joint ventures - (2,000)
Net cash (used by)/generated
from investing activities (18,136) 31,397
Cash flows from financing
activities
Net proceeds of share
issue 699,879 216,120
---------- ----------
Net cash generated from
financing activities 699,879 216,120
---------- ----------
Net increase in cash and
cash equivalents 591,138 42,412
Cash and cash equivalents
at beginning of year 105,673 63,261
Cash and cash equivalents
at end of year 696,811 105,673
========== ==========
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEARED 31 MAY 2017
1. General information
The Company is a public limited company domiciled in the United
Kingdom and incorporated under registered number 00598696 in
England and Wales. The Company's registered office is Unit 5,
Grange Park, Broadway, Bourn, Cambridgeshire, CB23 2TA.
The Company is listed on AIM of the London Stock Exchange. These
Financial Statements were authorised for issue by the Board of
Directors on the 6 November 2017.
While the financial information included in this preliminary
announcement has been prepared in accordance with International
Financial Reporting Standards (IFRSs), this announcement does not
itself contain sufficient information to comply with IFRSs. The
Group has also published full financial statements that comply with
IFRSs available on its website and to be circulated shortly.
The financial information set out in the announcement does not
constitute the company's statutory accounts for the years ended 31
May 2017 or 2016. The financial information for the year ended 31
May 2016 is derived from the statutory accounts for that year,
which were prepared under IFRSs, and which have been delivered to
the Registrar of Companies.
The financial information for the year ended 31 May 2017 is
derived from the audited statutory accounts for the year ended 31
May 2017 on which the auditors have given an unqualified report,
that did not contain a statement under section 498(2) or 498(3) of
the Companies Act 2006 and included the following paragraphs:
"Emphasis of matter - Going Concern
In forming our opinion, which is not modified, we have
considered the adequacy of the disclosures made in Note 3c of the
accounting policies regarding the group and parent company's
ability to continue as a going concern. The group incurred a loss
of GBP266,003 in the year and may need to obtain further finance
during the next twelve months which has not yet been obtained.
These factors, along with the matters explained in note 3c of the
accounting policies indicate the existence of a material
uncertainty which may cast a significant doubt about the group and
the company's ability to continue as a going concern.
The financial statements do not include the adjustments that
would result if the group and company were unable to operate as a
going concern."
The statutory accounts will be delivered to the Registrar of
Companies following the Company's annual general meeting.
2. Adoption of new and revised International Financial Reporting Standards
No new International Financial Reporting Standards ("IFRS"),
amendments or interpretations became effective in the year ended 31
May 2017 which had a material effect on this financial
information.
At the date of approval of this financial information, the
following IFRS Standards and Interpretations, which have not been
applied in these Financial Statements, were in issue but not yet
effective. These new Standards, Amendments and Interpretations are
those in issue but not yet effective which are expected to apply to
the Group and are effective for accounting periods beginning on or
after the dates shown below:
IFRS Standards and Interpretations issued (and EU adopted) but
not yet effective:
Mandatory for accounting periods commencing on or after 1
January 2017:
-- Amendments to IAS 12 - Recognition of Deferred Tax Assets for Unrealised Losses
-- Amendments to IAS 7 - Disclosure Initiative
-- Annual improvements to IFRS Standards 2014-2016 Cycle
Mandatory for accounting periods commencing on or after 1
January 2018:
-- IFRS 9 - Financial Instruments
-- IFRS 15 - Revenue from Contracts with Customers
-- IFRIC Interpretation 22 - Foreign Currency Transactions and Advance Consideration
Mandatory for accounting periods commencing on or after 1
January 2019:
-- IFRS 16 - Leases
Date of implementation in the European Union not yet known:
-- IFRS 14 - Regulatory Deferral Accounts
The Group has not early adopted these amended standards and
interpretations. The Directors do not anticipate that the adoption
of these standards and interpretations will have a material impact
on the reported results.
3. SIGNIFICANT ACCOUNTING POLICIES
(a) Basis of preparation
These financial statements have been prepared in accordance with
those IFRS standards and IFRIC interpretations issued and effective
or issued and early adopted as at the time of preparing these
statements. The policies set out below have been consistently
applied to all the years presented.
No separate income statement is presented for the parent Company
as provided by Section 408, Companies Act 2006.
(b) Basis of consolidation
The Group financial statements consolidate the financial
statements of Feedback plc and its subsidiaries (the "Group") for
the years ended 31 May 2017 and 2016 using the acquisition
method.
The financial statements of subsidiaries are prepared for the
same reporting year as the parent company, using consistent
accounting policies. All inter-company balances and transactions,
including unrealised profits arising from them, are eliminated.
Subsidiaries are fully consolidated from the date on which control
is transferred to the Group and cease to be consolidated from the
date on which control is transferred out of the Group.
(c) Going Concern
On 26 April 2017 the Company raised a total of GBP750,000
(before expenses) through a placing to both invest further in the
product development and sales and marketing of TexRAD, Feedback's
patented quantitative imaging software, and also for general
working capital purposes.
Having updated the Group's formal business plan the Directors
consider that the Group and the Company are likely to have access
to adequate cash resources for at least the next twelve months,
from both existing cash balances and by obtaining further equity
finance from the financial markets, or alternative funding, if
required to enable continued product development and international
expansion. Although this further finance has not yet been obtained,
the Directors are confident that adequate additional finance will
be forthcoming should it be required. Accordingly, the Directors
believe that the Group and Company are a going concern and have
therefore prepared the financial statements on a going concern
basis.
4. LOSS PER SHARE
Basic earnings per share is calculated by reference to the loss
on ordinary activities after taxation of GBP266,003 (2016:
GBP183,156) and on the weighted average of 232,879,771 (2016:
203,514,709) shares in issue.
As at 31 As at
May 2017 31 May
2016
GBP GBP
Net loss attributable
to ordinary equity
holders (266,003) (183,156)
============ ============
As at 31 As at
May 2017 31 May
2016
Weighted average
number of ordinary
shares for basic
earnings per share 232,879,771 203,514,709
Effect of dilution:
Share Options - -
Warrants - -
------------ ------------
Weighted average
number of ordinary
shares adjusted
for the effect
of dilution 232,879,771 203,514,709
============ ============
Loss per share
(pence)
Basic (0.11) (0.09)
Diluted (0.11) (0.09)
There is no dilutive effect of the share options and warrants as
the dilution would be negative.
5. PROPERTY, PLANT AND EQUIPMENT
Plant
and
Equipment Total
GBP GBP
Cost of valuation
At 31 May 2015 10,773 10,773
Additions 104 104
At 31 May 2016 10,877 10,877
Additions 2,941 2,941
---------- -------
As 31 May 2017 13,818 13,818
========== =======
Depreciation
At 31 May 2015 3,858 3,858
Charge for the year 3,380 3,380
---------- -------
At 31 May 2016 7,238 7,238
Charge for the year 2,471 2,471
---------- -------
At 31 May 2017 9,709 9,709
Net Book Value
At 31 May 2017 4,109 4,109
========== =======
At 31 May 2016 3,639 3,639
========== =======
At 31 May 2015 6,915 6,915
========== =======
6. INTANGIBLE ASSETS
Software Customer Patents Goodwill Total
relationships
GBP GBP GBP GBP GBP
Cost
At 31 May 2015 563,099 100,000 74,498 271,415 1,009,012
Additions - - 13,860 - 13,860
--------- --------------- -------- --------- ----------
At 31 May 2016 563,099 100,000 88,358 271,415 1,022,872
Additions - - 15,200 - 15,200
--------- --------------- -------- --------- ----------
At 31 May 2017 563,099 100,000 103,558 271,415 1,038,072
========= =============== ======== ========= ==========
Amortisation
At 31 May 2015 563,099 25,000 9,940 271,415 869,454
Charge for the
year - 25,000 17,671 - 42,671
At 31 May 2016 563,099 50,000 27,611 271,415 912,125
Charge for the
year - 25,000 20,712 - 45,712
At 31 May 2017 563,099 75,000 48,323 271,415 957,837
========= =============== ======== ========= ==========
Net Book Value
At 31 May 2017 - 25,000 55,235 - 80,235
========= =============== ======== ========= ==========
At 31 May 2016 - 50,000 60,747 - 110,747
========= =============== ======== ========= ==========
At 31 May 2015 - 75,000 64,558 - 139,558
========= =============== ======== ========= ==========
In accordance with the accounting policies and IFRS the
Directors have assessed the carrying value of the intangible
assets. In the year ended 31 May 2015, the Directors took the
prudent decision to write down the carrying value of the software
development costs in the balance sheet in order to meet the
requirements of IFRS. During the years ended 31 May 2017 and 2016
all similar development costs have been expensed as the provisions
of IFRS have not been met. However the Directors believe the
Group's technology has great potential and this write down does not
reflect their commercial assessment of the value of the Group's
intellectual property. Expenditure on software development is being
written off as incurred until the provisions of IFRS are met. The
customer lists and patents are deemed to have ongoing value to the
Group.
7. OTHER RECEIVABLES
2017 2016
GBP GBP
Amounts falling due
within one year
Other receivables 18,396 8,684
Corporation tax recoverable 16,318 37,828
Prepayments 27,614 17,398
------- -------
62,328 63,910
======= =======
8. OTHER PAYABLES
2017 2016
GBP GBP
Amounts falling due
within one year
Other payables 5,534 4,885
Other taxes and social
security 7,033 15,386
Accruals 69,827 31,750
Deferred income 168,522 103,169
-------- --------
250,916 155,190
======== ========
9. SHARE CAPITAL AND RESERVES
2017 2016
GBP GBP
Authorised and issued
share capital
Ordinary shares of
0.25 pence each 615,167 509,185
============ ============
Allotted, called
up and fully paid
share capital:
Number Number
As at 1 June 2016 203,673,857 190,746,746
Issued 42,392,727 12,927,111
------------ ------------
As at 31 May 2017 246,066,584 203,673,857
------------ ------------
Share Options
Share options are granted to directors and employees. Options
are conditional on the employee completing a specific length of
service (the vesting period). The options are exercisable from the
end of the vesting period and lapse after ten years after the grant
date. The Group has no legal or constructive obligation to
repurchase or settle the options in cash.
Share options are valued using the Black-Scholes option pricing
model and no performance conditions are included in the fair value
calculations. The risk free rate was 1.64%. The expected volatility
is based on historical volatility over the last two years and is
estimated to be 25%. The average share price during the year was
1.85 pence. During the year the Company had the following share
options in issue:
Number of options
At 1 Lapsed Exercised At 31 Exercise Exercise
June May 2017 price date
2016 (pence)
21/05/14
2,400,000 - - 2,400,000 1.25 to19/05/24
21/05/15
4,000,000 - - 4,000,000 3.00 to19/05/24
21/05/15
4,000,000 - - 4,000,000 5.00 to19/05/24
10,400,000 - - 10,400,000
=========== ======= ========== ===========
All share options vest one year after the grant date. Each
option can only be exercised from one year after the grant date to
ten years after the date of grant.
Warrants
Warrants were issued to the vendors of TexRAD Limited at the
time of acquisition. The warrants are exercisable from the end of
the vesting period and lapse ten years after the grant date. The
Group has no legal or constructive obligation to repurchase or
settle the warrants in cash.
Warrants are valued using the Black-Scholes pricing model and no
performance conditions are included in the fair value calculations.
The risk free rate was 1.64%. The expected volatility is based on
historical volatility over the last two years and is estimated to
be 25%. The average share price during the year was 1.85 pence.
During the year the Company had in existence the following
warrants:
Number of warrants
At 1 Granted Cancelled At 31 Exercise Exercise
June May 2017 price date
2016 (pence)
19/05/16
4,550,000 - - 4,550,000 1.25 to 19/05/24
19/05/17
18,200,000 - - 18,200,000 3.00 to 19/05/24
22,750,000 - - 22,750,000
=========== ======== ========== ===========
Reserves
The nature and purpose of each reserve within equity is as
follows:
Share premium Amount subscribed for share
capital in excess of nominal
value.
Capital reserve Reserve on consolidation of
subsidiaries
Translation reserve Gains and losses on the translation
of overseas operations into
G
Retained earnings All other net gains and losses
and transactions with owners
not recognised elsewhere
Convertible debt Amount of proceeds on issue
option reserve of convertible debt relating
to the equity component of
the debt.
10. NOTICE OF ANNUAL GENERAL MEETING ("AGM") AND AVAILABILITY OF
REPORT AND FINANCIAL STATEMENTS
The Company hereby announces that its AGM will be held at the
offices of Mills & Reeve LLP at 4th Floor, 24 Monument St,
London EC3R 8AJ at 3.00 p.m. on 30 November 2017.
The Company's Annual Report and Financial Statements for the
year ended 31 May 2017 are expected to be posted to shareholders,
along with the Notice of AGM, on 7 November 2017 and will be
available thereafter at the Company's registered office, Unit 5
Grange Park, Broadway, Bourn, Cambridgeshire CB23 2TA and on its
website: http://www.fbk.com/category/financial-reports/
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR LQLLBDFFZFBK
(END) Dow Jones Newswires
November 07, 2017 02:00 ET (07:00 GMT)
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