Feedback PLC Trading update (7659C)
03 Oktober 2018 - 8:00AM
UK Regulatory
TIDMFDBK
RNS Number : 7659C
Feedback PLC
03 October 2018
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014. Upon the
publication of this announcement via Regulatory Information
Service, this inside information is now considered to be in the
public domain
3 October 2018
Feedback plc
Trading update - commercial progress and US market strategy
Cambridge, 3 October 2018: Feedback plc (AIM: FDBK, "Feedback"
or the "Company"), the specialist medical imaging technology
company, announces a trading update for the year ended 31 May 2018
and the period to 30 September 2018. The Company is seeing
improving trading conditions following a year of structural change
and investment.
Highlights
-- Placing in March 2018 raised GBP440,000 before expenses, from new and existing investors
-- Signed world-wide non-exclusive distributorship with GE Healthcare in April 2018
-- Two year contract renewal with Papworth Hospital, Cambridge, UK for Cadran archiving system agreed in April 2018
-- First order through GE Healthcare received in August 2018
-- Samsung Medical Centre order for TexRAD received in September 2018, following distribution agreement with ISG
Korea in June 2017
-- Sales for the year ended 31 May 2018 up 51% to GBP771k (2017: GBP508k) as a result of investment in recruitment
and training
-- Sales in first quarter of current financial year up 100% to GBP236k (Q1 2018: GBP117k) driven by international
sales
Financial Update
In the year to 31 May 2018, Feedback invoiced sales of GBP771k,
a 51% increase on the previous year (FY 2017: GBP508k), leading to
recognised revenue in the year of GBP458k (FY 2017: GBP466k). This
51% increase in invoiced sales is a result of the Company's
investment in its employees with training and recruitment of four
new hires. The associated recruitment, restructuring and other
costs have meant that the Company's operating loss has risen to
GBP750k (FY 2017: GBP300k). However, the investment has led to
significant improvement in sales performance and anticipated long
term growth.
This improved sales performance has continued into the first
quarter of the current financial year, with a 100% increase in
invoiced sales of both TexRAD and Cadran product licences in the
first quarter to GBP236k, compared to GBP117k in the first quarter
of FY 2018. International sales accounted for most of this growth,
increasing by over 200%. Importantly, this has been achieved with
improved cost control in this financial year. Feedback's prudent
accounting policy is to spread the income from its software licence
and support sales over the duration of the contract, usually one to
two years. The Company's balance sheet contains a deferred revenue
asset to reflect this.
Board and Structural Changes
In the year to 31 May 2018, Feedback announced significant board
and structural changes. Prof Tim Irish joined as non-executive
director and Trevor Brown resigned in June 2017. David Crabb joined
as Chief Executive Officer in February 2018 and Lindsay Melvin
joined as Chief Financial Officer in March 2018.
In April 2018, subsidiary companies Cambridge Computed Imaging
and TexRAD Ltd merged to become Feedback Medical Ltd with Mike
Hayball and Balaji Ganeshan stepping down from the plc board to be
directors of Feedback Medical Ltd. At the same time Dr Alex Menys
resigned as non-executive director and was replaced by Simon
Sturge. Prof Rory Shaw was appointed medical director of Feedback
Medical Ltd in June 2018. In July 2018 David Crabb resigned and Dr
Alastair Riddell moved from non-executive to Executive
Chairman.
The search for a new Chief Executive Officer is ongoing.
However, following this reorganisation, Feedback now has the
structure and expertise within the senior management team to enable
it to maximise the opportunities and commercial momentum it is
seeing.
Outlook
Feedback is seeing considerable sales growth potential in the
near to mid-term, especially in Asia. In order to enable it to also
address the huge potential in the US market for the mid to long
term, the Company has initiated plans for regulatory approval of
TexRAD with the US FDA including 510k as medical device and CFR
Chapter 21 part 11 compliance for use in clinical trials of drug
candidates for FDA marketing approval.
Feedback's strategic business plan is focused on capitalising on
the considerable investments made to date and it has identified
additional staffing required to deliver future major growth. The
Board believes that, along with the Company's existing cash and
cash equivalents, it has sufficient capital to fund its near term
obligations. The Company is considering additional funding for its
mid-term working capital requirements and to deliver on its
longer-term growth opportunities and plans to raise the additional
capital through public or private financings and/or partnering
opportunities.
Dr Alastair Riddell, Executive Chairman of Feedback,
commented:
"This has been a year of transition for Feedback into an
integrated medical imaging solutions company, with talented staff
and an experienced management team. As a result of the investment
in our employees, we are seeing improved sales momentum throughout
the business, demonstrated by the number and size of orders coming
through and in the high calibre international distributors we are
now working with."
-Ends-
Enquiries:
Feedback plc +44 (0)1954 718072
Alastair Riddell, Executive Chairman IR@fbk.com
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 +44 20 3815 8880
Broker)
Patrick Claridge / John Howes +44 (0)20 7457 2020
feedbackplc@instinctif.com
Instinctif Partners
Rozi Morris/ Deborah Bell/ Phillip Marriage
Notes to editors
About Feedback plc
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 Medical works
with customers globally from headquarters in the internationally
renowned scientific hub of Cambridge, UK. Its proprietary
technologies are TexRAD(R) , the quantitative texture analysis tool
and Cadran, a picture archiving communication system (PACS). For
more information, see www.fbk.com
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END
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