TIDMFDBK
RNS Number : 9954Q
Feedback PLC
02 November 2021
Prior to publication, the information contained within this
announcement was deemed by the Company to constitute inside
information as stipulated under the Market Abuse Regulations (EU)
No. 596/2014 ("MAR"). With the publication of this announcement,
this information is now considered to be in the public domain.
Feedback plc
Full Year Results to 31 May 2021
Bleepa(TM) gains momentum with new contracts and
collaborations
London, UK, 2 November 2021 - Feedback plc (AIM: FDBK,
"Feedback" or the "Company"), the specialist clinical communication
company , announces its audited results for the 12 months to 31 May
2021.
Operational highlights
-- First direct commercial contract for Bleepa with the Royal Berkshire NHS Foundation
-- Significant progression in developing Bleepa's offering, scalability and security:
o Appointment to the NHSx Clinical Communications Procurement
Framework post CE mark, confirming use of Bleepa as a Class 1
Medical Device
o Addition of new key features including photocapture and
document capture
o Receipt of further accreditation and certification -
highlighting quality of Bleepa
o NHS Data Security and Protection Toolkit compliant
o Cyber Essentials and Cyber Essentials Plus accreditations used
by the NHS
-- Strengthening of the Board through appointment of Philipp Prince as non-executive director
-- Recruitment of marketing specialists both in the UK and India
to expediate commercial strategy
Financial highlights
-- Revenue was GBP0.29 million (2020: GBP0.45 million),
reflecting the planned move away from legacy products
-- Operating loss increased to GBP2.06 million (2020: GBP1.42
million), reflecting headcount expansion to accelerate growth, and
due to the planned decrease in legacy product revenues
-- Shareholder's equity (net assets) increased to GBP5.27
million as at 31 May 2021 (2020: GBP1.77 million)
-- Strong cash balance of GBP2.22 million as at 31 May 2021 (31 May 2020: GBP0.73m)
-- Successfully raised GBP5.27 million (before expenses) in July 2020
Post period highlights
-- Launch of CareLocker, a revolutionary patient-centric cloud
architecture to underly the Bleepa platform
-- First non-NHS commercial contract, with CVS Group, one of the
UK's leading providers of integrated veterinary services
highlighting Bleepa's commercial scope outside of NHS
-- Expansion of potential revenue streams through broadening
market access and commercial discussions with third parties:
o MOU with Qure.ai to pilot Bleepa for use in tuberculosis
screening in India
o MOU with Quest to expand its existing teleradiology service by
enabling direct case discussion between requesting clinicians and
reporting radiologists
o MOU with Sussex Integrated Care System (Sussex ICS) to conduct
a pilot study with Queen Victoria Hospital NHS Foundation Trust as
one of the UK's Community Diagnostic Centre ("CDC") exemplar
sites
o Appointed to national NHS AI procurement framework
-- UKCA mark, the post-Brexit UK regulatory certification
o Bleepa believed to be the only CE and UKCA marked clinical
imaging and communication platform on the NHSx Clinical
Communications Procurement Framework, the NHS CDC initiative and
NHS AI procurement framework
-- Addition of ISO27001 and UK Medical Device Certification
(UKCA) to its regulatory portfolio, maintaining a competitive
barrier against competitors
-- Launch of Bleepa on Apple Store and Google Play
-- Announced the launch of an accelerated book build today for a
placing to raise a minimum of GBP10 million (before expenses)
Dr Tom Oakley, CEO of Feedback, said: "The Company made
significant progress during the period - increasing both Bleepa's
functionality and routes to market, laying the foundations to
deliver strategic commercial opportunities - and, importantly,
generating initial revenues for the platform, highlighting
commercial viability within the UK and beyond.
"We are well positioned to address a number of key growth
opportunities within both our domestic and international markets.
Our technology is perfectly aligned with the stated objectives of
key government initiatives such as the CDC programme and
re-launched NHSx Clinical Communications Procurement Framework. The
addition of Bleepa Box and CareLocker have assisted in
repositioning the Company into the clinical communications and
medical data storage space enabling us to offer a comprehensive
digital solution to frontline clinical needs that is scalable,
secure and cost effective. Feedback enters 2022 with a strong
pipeline of opportunities in multiple market segments and a
competitive edge, from both a technological and regulatory
perspective, that will make it difficult for competitors to follow
and looks forward to a strong year ahead and to building upon the
huge progress made to date."
The Company's Annual Report and Accounts for the year ended 31
May 2021 will be posted to shareholders in due course, and will be
available on the Company's website
(https://fbkmed.com/feedback-plc/reports-and-presentations/).
-Ends-
Enquiries:
Feedback plc +44 (0)1954 718072
Tom Oakley, CEO IR@fbk.com
Lindsay Melvin, CFO
Panmure Gordon (UK) Limited (NOMAD
and Broker)
Emma Earl/Freddy Crossley (Corporate
Finance)
Rupert Dearden (Corporate Broking) +44 (0)20 7886 2500
Walbrook PR Ltd Tel: 020 7933 8780 or feedbackplc@walbrookpr.com
Paul McManus/Nick Rome/Nicholas 07980 541 893 or 07748 325 236
Johnson or 07884 664 686
Notes to Editors
Feedback plc (AIM: FDBK) is a pioneer of regulated clinical
communication products. Its core product, Bleepa, is a
revolutionary medical imaging communications app, providing an
easy-to-use, high quality tool to enable remote and secure
communications between front-line clinicians and teams.
Importantly, it is the only CE marked medical imaging
communications platform on the NHSx clinical communications tools
framework. Bleepa has unparalleled functionality for everyday
practice and can be accessed from any internet-connected device,
enabling control of patient cases when on the go.
Its highly scalable Software as a Service ("SaaS") based revenue
model will provide increasing levels of visibility as the Company
grows its customer base. With a growing distribution base and
technology in place, the focus is on leveraging key relationships
in order to drive sales both in the UK and internationally to all
forms of care providers. As a fully certified medical device,
Bleepa aims to disrupt the medical imaging communications market
and, importantly, increase the accuracy and speed of clinical
review.
Chairman's Statement
Foundations laid to deliver strategic opportunities for
growth
"Whilst Covid-19 has presented a challenge for healthcare across
the board, Feedback seized the opportunity to work with a handful
of NHS sites during the pandemic to support frontline staff whilst
honing its products. It was a privilege to see Bleepa making such a
difference to clinicians during this time, enabling remote working
during quarantine and beyond, ensuring that their expertise was
still available to guide colleagues who remained on the frontline.
Through this experience, Bleepa has been able to prove its value
and enhance its proposition, and we are now well positioned to
advance opportunities for digital adoption within the NHS and
beyond."
Feedback has made great strides during the past year, achieving
its first Bleepa contract in March of this year with the Royal
Berkshire NHS Foundation Trust, less than two years from the
conception of Bleepa. This is an incredible story for a medical
device at any time, let alone during a global pandemic, and is
testament to the quality of the product and the clinical need for
this solution, further validated through Bleepa's CE and UKCA mark
as a medical device.
During the year the Company has refined its product offering,
leveraging the extensive user feedback afforded by our close
working relationship with our clinical partner Pennine Acute
Hospitals NHS Trust. This saw Bleepa expand its functionality to
include formal electronic referrals between specialties,
photocapture and clinical document management and the development
of integration capabilities with a number of core hospital systems
such as Patient Administration Systems (PAS), Electronic Patient
Records (EPR) and Laboratory Information Management Solutions
(LIMS). These developments enabled Bleepa to deliver a
comprehensive suite of capabilities right into the hands of
frontline clinicians, allowing them to perform their work from one
application. Essentially Bleepa moved beyond communication to
become an EPR-lite that also incorporated diagnostic imaging.
This enhanced functionality has positioned Bleepa as a tool that
can be used for effective remote working in any location, a theme
that we took to the next level when we achieved our first non-NHS
contract with the equine division of CVS Group. Imaging of horses
is typically done in remote stables without WiFi but there is often
the need for timely advice and guidance by specialists for the vet
that is with the animal. We developed a store and forward
technology, called the Bleepa Box, that enables images to be
acquired and pushed over a mobile network to Bleepa, where they can
then be reviewed by a specialist and a discussion started, all
whilst still at the animal's side. The requirement to share imaging
from rural locations is not restricted to equine veterinary
practice and this capability has opened a number of opportunities
for the Company such as in the delivery of rural imaging for
tuberculosis (TB) screening services in India.
Bleepa now delivers the sort of functionality that is required
for delivering care across regions and providers, making it the
ideal solution to provide the right digital infrastructure to
clinical initiatives such as the NHS CDC initiative in the UK, a
GBP10bn programme to move diagnostic provision from hospital
settings closer to patients in the community in order to provide
additional system capacity to help address the post Covid-19
elective care backlog. This opportunity required the development of
a cloud-based architecture that would enable Bleepa to scale across
provider sites and facilitate the centralisation of data around
patients so that the same data could be made available to all
providers in a region or nationally. The result is our proprietary
patient-centric cloud - CareLocker. CareLocker positions the
Company for growth across geography, enabling us to bid for larger
regional contracts. It also sees us transition into an exciting new
sector - medical data management.
Feedback is rapidly evolving to capture a number of sizeable and
timely opportunities across multiple markets and locations. This is
a company set for growth and the journey is just getting
underway.
Rory Shaw
Non-executive Chairman
01 November 2021
CEO's statement
Enabling clinicians to make better decisions faster, through
asynchronous collaboration and access to data
"As a company, our mission is to enable clinicians to make
better decisions faster and we believe that requires two things,
connection to colleagues and easy access to meaningful patient
data. Since its conception this has been exactly how Bleepa was
designed - to connect teams around their patients and to display
the data they need in the right clinical quality. Building on this
foundation, we have expanded Bleepa's use to suit more clinical
settings, including the veterinary sector, enhanced by our recently
launched Bleepa Box technology. Now we are looking at how our
products can help regional and national care systems to deliver
their visions of connected care and the data structures that are
required to enable these to be realised at scale. Bleepa already
centralised multisystem data around individual patients, it was
only one step further to then store that data in a patient-centric
way, through CareLocker, enabling data to move with a patient
rather than be tied to provider settings. In combination Bleepa,
CareLocker and Bleepa Box enable truly global care from anywhere
and unlock a new generation of flexible care delivery for both
clinicians and their patients."
We cannot talk about this year without mentioning Covid-19,
which has been a force that has dominated the focus of our
customers, partners, team and families. It has created great
pressures on the healthcare system and highlighted many gaps that
are in desperate need of support, none more so than in the digital
systems upon which our clinicians rely and the ever increasing need
to deliver care in a more flexible way across multiple provider
settings. Covid-19 also changed the way that we work, this affected
everyone, including clinicians, and forced new ways of remote
working that would previously never have been explored by the
healthcare sector. Some of these changes cannot be undone,
clinicians have seen a new way of practicing and, even more
importantly, have recognised the benefits that this may hold for
their patients. The technologies that benefitted the system during
Covid-19 may also be needed in order to help address the challenges
that are left in its wake, namely the growing care backlog and the
stark reality of workforce shortages. Going forward healthcare
systems globally need more efficient ways of working and an ability
to deliver care flexibly across geography and provider settings.
They need our technology.
Recognising the changing needs of our customers, we have
invested in developing our products so that they can deliver
improved functionality across a range of clinical pathways and can
be scaled seamlessly across provider settings. For individual
clinical teams this has meant integrating with a range of hospital
systems that contain the patient data that they need in order to
make effective decisions remotely. For regional providers, this has
meant looking at new ways of storing the data that we are
processing so that it is available to clinicians at different
physical sites, who previously would not have been able to access
the information, culminating in the development of CareLocker - our
patient-centric cloud database. The combination of Bleepa as an
application and CareLocker as a supporting data infrastructure
uniquely enables us to facilitate entire care pathways across
provider settings. We have become the digital infrastructure, the
digital glue, that has the ability to connect primary, secondary
and emerging care settings such as the CDCs around individual
patient pathways, allowing them to efficiently deal with elective
care pathways and the associated care backlog.
Bleepa's asynchronous communication is also changing the ways
that multidisciplinary team (MDT) meetings are delivered. MDTs
traditionally bring a range of specialists together to review
diagnostic investigations and make treatment decisions for
patients, usually in person but during Covid often over video call.
This model of decision making is very inefficient and expensive
because it requires all of the specialists to block out a specific
time - time better spent doing clinical work. Often MDTs are
organised before all the information is available and because cases
can only be discussed at these meetings, patients have to wait for
the next available slot to be heard. Bleepa facilitates cases to be
discussed flexibly in and around existing clinical work, as and
when clinical results are ready for review, removing these time-
and case-delaying constraints. Due to Bleepa's ability to display
relevant data around the patient, clinicians can make these
decisions on the go through our mobile application. The
asynchronous model of MDTs is a key workforce change that will
drive clinical efficiencies and better enable providers to address
care backlogs.
We have also developed fringe technologies that extend our
applications beyond traditional care settings, such as store and
forward technology in our Bleepa Box solution that enables images
such as X-rays to be acquired in any location and pushed over a
mobile network to Bleepa for clinical review and onward management.
This technology stemmed from our veterinary customers but has
already led to opportunities in India where we can facilitate the
acquisition of chest X-rays in rural settings and their subsequent
reporting as part of the national TB screening programme, both by
radiologists and by the AI technologies of our partner Qure.ai. AI
is the next iteration of our mission to drive better, faster
clinical decisions. It is a group of technologies that supports
clinical decision making and holds huge promise in addressing
workforce shortages at a system level. These technologies require
access to the clinical teams to deploy them into care pathways and
the patient data needed to feed their algorithms. Bleepa is the
perfect deployment partner for AI technologies because it holds
both the relationship with the clinical end user and can facilitate
access to the required clinical data for processing. We are working
with a growing number of AI partners and see this as a great
opportunity to support our clinical customers to access the best
tools available.
Our products are the embodiment of our underlying mission,
bringing together clinicians, data and the latest technologies to
enable clinicians to make better decisions faster for their
patients. As a result, we are rapidly becoming a company that
enables care to be delivered from anywhere for anyone.
Trading during the period continued to meet management
expectations, with the Company securing its first commercial
contract for its flagship product Bleepa with the NHS, and,
post-period, a contract with CVS to enter the veterinary
market.
The Company completed an equity fundraise of GBP5.3 million
(before expenses) in July 2020. Importantly, we strengthened our
marketing team and hired an integration specialist in order to help
increase the speed of roll out. Furthermore, investment into our
infrastructure and operating platform has laid the foundations for
product enhancements, making Bleepa more attractive to a wider
audience. Post period, on 2 November 2021, the Company announced an
accelerated bookbuild to raise a minimum of GBP10 million (before
expenses) with closing of the placing expected on the same day.
Subject to closing, the placing is conditional on shareholder
approval at the forthcoming Annual General Meeting. This funding
will enable the Company to focus investment on sales, product
development and geographic expansion.
Our agile approach to innovation means that we are embarking on
multiple stages in parallel, at pace, to realise our vision as
quickly and effectively as possible for our customers and provide
value for our shareholders.
OPERATIONAL REVIEW
Bleepa
Bleepa is the essential tool for remote, secure communications
between clinicians and teams to securely view and discuss patient
cases, at the touch of a button.
Bleepa is our flagship clinical imaging-based communications
platform using asynchronous communication channels built around
individual patient pathways, into which we bring medical data (that
is otherwise stored in disparate siloed systems) that allows
medical staff to securely view and discuss high-quality,
medical-grade images across both mobile and desktop devices. Bleepa
enables clinical teams to access the colleagues they need and the
data they need to make better decisions faster and is a frontline
tool that clinicians can use for almost any aspect of their
day-to-day work.
-- Bleepa is the only CE and UKCA marked clinical imaging and
communication platform on the NHSx Clinical Communications
Procurement Framework, the NHS CDC initiative and NHS AI
procurement framework
-- Enables sharing of patient images such as X-ray, CT, MRI or
ultrasound at a standard approved for clinical review (DICOM),
alongside instant-messaging-based case discussion to make more
informed decisions faster, enabling safer patient care
-- Photocapture module enables clinicians to acquire clinical
images of patients, such as in-field medical photographs of skin
lesions or wounds
-- Document capture to encapsulate additional patient
information, ECG and blood test results within the patient record
from which to share and discuss with colleagues
-- Facilitates clinical referrals and treatment decisions within
a hospital, between hospitals and pan-regionally offering truly
networked care as well as enable smoother and swifter transfer from
one medical team to another, from referral to decision, treatment
and exit
-- Accessed from any internet-connected device, Bleepa maintains
control of patient cases remotely and creates secure networks with
all the information and functionality needed for clinicians to
manage workloads more effectively
-- Zero footprint ensures that no patient data is stored locally
on the device used to access the service, providing greater
security
A study conducted at Pennine Acute Hospitals NHS Trust in 2020
analysed use of Bleepa in the respiratory and gastroenterology
teams and concluded:
-- Bleepa reduced the average time from point of referral to
clinician review from 2.1 days to 0.4 days and time taken to access
clinical information needed from 5.47 minutes to 1.04 minutes,
saving 4.43 minutes per referral
-- Bleepa completely automated the referral process, digitising
patient records and reducing required administrative time
-- Based on the nearly 7,000 referrals performed in the study,
Bleepa demonstrated an estimated saving of 36.3 weeks of clinical
time per annum if the study was expanded across other
specialities
Bleepa is now installed in five sites across four NHS trusts
with one of the Trusts converting to a contract during the year. It
is the only communication platform on the NHSx Clinical
Communication Procurement Framework to incorporate a certified
DICOM image display for clinical image review. The display of
digital patient images for any diagnostic purpose is a medical
device function under the prevailing legislation and any product
that performs this function must be appropriately certified as a
medical device. Bleepa is the only communication platform to be
appropriately certified for medical image display, holding both CE
and UKCA marks. The product is manufactured using an ISO13485 and
ISO27001 compliant Integrated Management System and has achieved
Cyber Essentials and Cyber Essentials Plus security
accreditation.
Post-period, in September 2021, Bleepa was awarded a place on
the NHS national AI procurement framework: The Provision of
Artificial Intelligence (A.I), Imaging and Radiotherapy Equipment,
Associated Products and Diagnostic Imaging. The Company has
developed a Bleepa AI module that enables clinicians to include
third party AI tools of their choosing within the app to assist
with the diagnostic interpretation of medical imaging studies such
as X-rays, CT scans and MRIs. The framework will allow NHS
organisations to buy the Bleepa AI solution as a platform for AI
tool deployment, allowing them to meaningfully engage with any
number of AI tools knowing that there is one common route for
deployment into their clinical setting. The Company intends to
additionally charge the AI companies a deployment fee through the
platform.
Post-period, in June 2021, Bleepa completed a comprehensive
evaluation and is now available for clinicians to download on all
devices through the Apple App Store and Google Play. Access through
the Apple App Store and Google Play will make it easier to roll out
Bleepa at customer sites as clinicians will now be able to download
the app directly to their own devices.
CareLocker
Building the right digital infrastructure for patient care
CareLocker is a new proprietary and patient-centric cloud
architecture that supports Bleepa's functionality whilst
simultaneously creating patient-specific records of care episodes.
CareLocker will enable Bleepa to deliver care across provider
settings in a secure and scalable way.
CareLocker provides secure and GDPR-compliant patient-centric
cloud data stores: containers that store medical data at an
individual patient level. With this proprietary architecture,
patient data can be secured at the individual level, with access
control even to subsets of a patient's data. CareLocker offers
opportunities for improved storage optimisation making it more cost
effective than traditional storage architectures. Most importantly,
CareLockers can be built on a patient-by-patient basis, allowing
organisations to transition to a cloud architecture as patients
enter care pathways rather than having to undertake the mass data
migrations usually associated with cloud transitions.
As a clinical tool Bleepa integrates with multiple hospital
systems and centralises relevant clinical data around specific
patient episodes, presenting it together to clinical teams to
accelerate decision making capabilities through the platform. This
data includes lab results, structured reports, ECGs and most
importantly medical images which are uniquely displayed through
Bleepa's regulated DICOM viewer. Having centralised data around a
patient CareLocker provides a patient-centric way of storing that
data as a de-centralised record of that care episode that can then
be made available to any care setting through open APIs such as
FHIR.
Bleepa Box
Bleepa box is a small tablet device that connects to imaging
machines in order to securely push images to Bleepa over a mobile
network from remote locations. Images are downloaded from the
imaging machine onto the Bleepa Box then automatically pushed to
Bleepa. The clinician can then review the images on Bleepa using
the Bleepa Box and can make onward referrals or start a
conversation with a specialist about the case there and then. The
capability of remote image acquisition has far-reaching
applications in rural care delivery, war zones and humanitarian
responses.
Building partnerships to deliver strategic commercial
opportunities
A key element to both gaining a strong reputation, and thereby
market traction, is our strategy to partner with companies that can
advance Bleepa's recognition through complementary technologies, a
broader distribution network or introduction into new clinical
settings. The Company is currently in discussion with a number of
potential partners, all of which have the potential to create new
opportunities for Bleepa, from providing partnership in the CDCs,
TB screening or access to new hospitals, to potential entry into
new geographical markets such as India, Ireland and Africa.
Agreements such as these often require pilot studies and a
negotiation period as we gain understanding of how the two parties
can work together. So far, we have announced three new partnerships
and are exploring how Bleepa can bring value to these new and
future collaborations in emerging markets.
Axial 3D
As the first AI company that Feedback partnered with, Axial 3D's
technology enables 3D visualisation of specific pathologies or
organs for use in surgical planning, these images can also be sent
for 3D printing if a physical model is required. Bleepa and Axial
3D are hoping to bring 3D visualisation into the asynchronous MDT
process hosted by Bleepa. Covid has delayed a real-world deployment
of this solution, however the companies believe that this solution
will help to improve surgical outcomes and will be necessary in the
efforts to address the elective care backlog by driving faster
patient recovery and enabling shorter surgical procedures,
improving system efficiency and outcomes.
Quest
Quest is an Indian company providing teleradiology services to a
number of customers across India, Africa and the Middle East. It is
anticipated that Bleepa will support their existing customer base
by providing easier access to DICOM images for reporting, and
enhanced ability to display Quest-generated reports at customer
sites and the facilitation of two-way conversation between their
reporting radiologists and referring clinicians. The companies will
jointly look for new customers and it is hoped that Quest will
propose the joint solution to their existing customer base.
Qure.ai
Qure.ai has developed world-leading AI diagnostic imaging tools
in a number of clinical areas including chest pathology such as TB,
Covid and lung cancer and head pathology such as brain tumours and
stroke. Feedback is working with Qure.ai in a number of clinical
settings to explore deploying their tools into clinical pathways.
The initial focus of our partnership is in deploying Qure.ai's
technology in the TB screening pathway in India where Feedback is
facilitating rural image acquisition through the Bleepa Box;
clinical pathway management with Bleepa, through which the AI tool
is deployed; and subsequent storage of the clinical record in
CareLocker.
Growing presence across multiple markets
NHS
Feedback has been working with the NHS for over 20 years across
our legacy and new product lines. The NHS remains a core customer
group for the Company and a source of near-term revenue
opportunities. In March 2021, we announced Bleepa had been awarded
a one-year contract across a number of targeted clinical settings
with the Royal Berkshire NHS Foundation Trust. The contract funding
has been drawn down from the NHSx National Clinical Communication
Procurement Framework. Adding to our ongoing contracts at The Royal
Oldham Hospital, part of the Pennine Acute Hospitals NHS Trust.
As outlined previously in this report, there are emerging
opportunities for the Company in the context of the GBP10bn CDC
programme and the re-launched NHSx Clinical Communications
Procurement Framework with the revised budget of GBP125m. Forty new
CDCs are set to open across England in the first wave, in a range
of settings and will begin providing services over the next six
months. The Company will pursue both CDC regional contracts and NHS
hospital trust-level contracts through the framework in parallel.
It is anticipated that adoption in the CDC setting will also
promote opportunities to provide Bleepa to the hospital trusts for
their inpatient teams who will be used to using Bleepa for regional
case discussion.
Post-period, in October 2021, we entered into a MOU to conduct a
pilot study with Queen Victoria Hospital NHS Foundation Trust
providing CDC services with Sussex ICS as one of the UK's CDC
exemplar sites. It is anticipated that the pilot will identify the
specification for bespoke development to meet the core CDC system
needs of Sussex ICS. Bleepa will provide a digital clinical
communication platform to allow these investigations to be
captured, associated with a specific patient journey and presented
to clinicians in both primary and secondary care settings for
review, discussion and planning onward management. The pathway
record will then be stored centrally using Feedback's
patient-specific CareLocker infrastructure to ensure its onward
availability to all care settings. The pilot is expected to run
until March 2022 targeting CDC pathways in specific clinical areas
such as respiratory and cardiology. It is anticipated that more
pathways will be added as the pilot progresses with the ultimate
aim of agreeing contractual terms for a commercial roll-out to
CDCs. As one of the first CDC sites to be launched in the UK, this
pilot is expected to act as a blueprint model for how CDCs can be
delivered.
In addition, we have turned our focus to providing solutions to
a range of territories, all of which have slightly different
requirements and potential revenue models. The importance here is
in ensuring that we are able to offer attractive solutions that can
be implemented quickly and easily within existing entities.
Veterinary services
Post-period, Feedback entered the veterinary services market
with the announcement of our first commercial contract with the
equine division of CVS Group. This is our first contract in the
veterinary imaging market which is growing at a compound annual
growth rate of 6.7% and is estimated to be worth GBP2.2bn in the UK
alone. In veterinary services, critical decisions are often made by
vets out in the field. Bleepa can liberate vets from the current
lengthy and physical process of having to acquire an X-ray at a
client's premises, then drive back to their practice to upload the
image onto a computer and share it with a specialist for
advice.
CVS Group had piloted the Bleepa solution for eight months prior
to appointing Bleepa as its clinical communications platform for
its equine division, leading to the development of the Bleepa Box
technology. Bleepa is currently being rolled out across 20 of CVS
Group's equine practices, from which we hope to expand. We are now
looking for opportunities with other veterinary clients in the UK
and internationally.
International markets
Bleepa's selection as a World Innovation Summit for Health
(WISH) 2020 Innovation Booster and to participate in the
Digitalhealth.London 2020 Accelerator Programme provided further
welcome endorsements. Participation as an Innovation Booster at
WISH 2020, an event to showcase our technology to the Middle
Eastern market, provided an opportunity for the Company to exhibit
Bleepa to some of the world's leading health experts, health
ministers, decision-makers, and investors.
India
India represents a huge opportunity for the Company and its
technology. Bleepa provides the perfect digital infrastructure for
image sharing across regions and, in combination with the Bleepa
Box, will enable the meaningful expansion of clinical services to
rural areas within India.
Bleepa was selected by Healthcare UK, part of the Department for
International Trade (DIT), to join a virtual healthcare mission to
India, providing further recognition of its functionality and
potential market reach. India is key to our international expansion
and, following the successful event, we have now employed a
specialist based in India to aid our entry into this large and
untapped market.
Post-period, we announced a new partnership with Qure.ai, an AI
solution provider developing decision support tools for medical
imaging professionals, with an initial focus on enabling TB
screening services to rural locations. We are also looking at how
Bleepa's CareLocker can be used to create care records for patients
coming through the system that will enable the creation of citizen
health records in line with the National Digital Health Mission
(NDHM) of the Indian Government, a programme that could see
CareLocker become the trusted data store of a number of Indian
citizens, with Bleepa as the preferred clinical interface into this
data store.
Private partnership
Our focus to date has been on developing partnerships with
private companies to establish either a reseller or co-seller
agreement in order to help us sell the product more cost
effectively than through direct sales. We are also actively
pursuing direct contracts with private healthcare providers with
the view of using Bleepa to support their clinical communication to
drive pathway efficiencies and to support the curation of their
clinical records through CareLocker.
Military
Bleepa and Bleepa Box have clear applications in remote image
acquisition and clinical communication in a military setting. The
Company is exploring a number of channels to military customers who
we believe will greatly benefit from the secure platform that our
technology provides.
Legacy products
As previously reported TexRAD sales have continued to decline in
line with expectations, and in line with our strategy we have
reduced the resourcing of this product to a minimum. Cadran
continues to be employed in current contracts across a number of
trusts, however, with the focus turning towards cloud-based
services, we anticipate a slowdown in these contracts in the
future. Bleepa and CareLocker have evolved from these high-quality
legacy products and as business continues to move to more
cloud-based systems, we are confident that Bleepa and CareLocker
offer pioneering digital solutions.
FINANCIAL REVIEW
2021 2020
GBP million GBP million
------------------------------------------ ------------ ------------
Revenue 0.29 0.45
Operating expenses (2.32) (1.86)
Operating loss (2.06) (1.42)
Cash outflows from operating activities (2.03) (0.79)
Cash outflows from investing activities (1.44) (0.88)
Cash & cash equivalents end of period 2.22 0.73
Intangible assets 2.68 1.30
Contract liabilities (income in advance) 0.12 0.30
Net assets 5.27 1.77
Revenue for the year ended 31 May 2021 reduced 36% to GBP0.29
million (2020: GBP0.45 million) due to the planned reduction of
TexRAD and Cadran sales, as the Company diverted resources towards
Bleepa. First Bleepa revenues were achieved in the final quarter of
the financial year, and the focus on Bleepa versus legacy products
has also seen the average contract value increase, a trend which is
expected to continue as further Bleepa sales are made.
Operating expenses increased 25% to GBP2.32 million (2020:
GBP1.86 million), primarily due to increased headcount to drive the
development and deployment of Bleepa, and to pursue new
opportunities. Operating loss increased to GBP2.06 million (2020:
GBP1.42 million).
Cash outflows from operating activities of GBP2.03 million
(2020: GBP0.79 million) primarily represent customer receipts,
staff costs and supplier payments. The increase in cash outflows
from operating activities is due to the increase in operating loss,
working capital movements, and a R&D tax credit refund of
GBP0.33 million being received post-period in June 2021, whereas
the prior financial year benefitted from a R&D tax credit
refund of GBP0.25 million being received during the year. Cash
outflows from investing activities increased 63% to GBP1.44 million
(2020: GBP0.88 million) and is primarily composed of software
development expenditures with Future Processing, which increased in
line with our focus on product enhancement linked to market
opportunities. The Group's cash position as at 31 May 2021 was
GBP2.22 million (31 May 2020: 0.73 million), an increase of GBP1.49
million over the prior year due to proceeds from the fundraise in
July 2020.
Intangible assets increased by GBP1.38 million to GBP2.68
million (2020: GBP1.30 million), primarily representing the
capitalised software development expenditures. Contract liabilities
(or deferred income) was GBP0.12 million (2020: GBP0.30 million)
and represents income received in advance as at 31 May 2021, which
will be released to the income statement as revenue over the
forthcoming financial year. Net assets increased to GBP5.27 million
(2020: GBP1.77 million) as at 31 May 2021.
Strengthening the Board
In July 2020, Philipp Prince joined the Board as an independent
non-executive director, bringing strong capital markets and PLC
experience to the Company. Given his background, he further
strengthens the Board's ability to deliver a strong growth platform
for Bleepa.
We are a dynamic and innovative company, and I would like to
thank the employees for their commitment and hard work, resulting
in new contacts, product upgrades; to the Board for the consistent
guidance and to our shareholders for the continued support in
creating a strong and bright future for Feedback.
Outlook
The Company made significant progress during the period -
increasing both Bleepa's functionality and routes to market laying
the foundations to deliver strategic commercial opportunities -
and, importantly, generating initial revenues for the platform,
highlighting commercial viability within the UK and beyond.
We are well positioned to address a number of key growth
opportunities within both our domestic and international markets,
as outlined in this report. Our technology is perfectly aligned
with the stated objectives of key government initiatives such as
the CDC programme and re-launched NHSx Clinical Communications
Procurement Framework. The addition of Bleepa Box and CareLocker
have assisted in repositioning the Company into the clinical
communications and medical data storage space enabling us to offer
a comprehensive digital solution to frontline clinical needs that
is scalable, secure and cost effective. Feedback enters 2022 with a
strong pipeline of opportunities in multiple market segments and a
competitive edge, from both a technological and regulatory
perspective, that will make it difficult for competitors to follow
and looks forward to a strong year ahead and to building upon the
huge progress made to date.
Dr Tom Oakley
Chief Executive Officer
01 November 2021
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEARED 31 MAY 2021
Note 2021 2020
GBP GBP
----------------------------- ---------------------- ------------------ -----------------
Revenue 4 287,415 449,983
Cost of sales (25,024) (1,866)
Gross profit 262,391 448,117
Other operating expenses 5 (2,322,518) (1,863,180)
Operating loss 6 (2,060,127) (1,415,063)
Net finance income 7 281 606
Loss before taxation (2,059,846) (1,414,457)
Tax credit 9 440,333 327,000
Loss after tax attributable
to the equity shareholders
of the Company (1,619,513) (1,087,457)
Total comprehensive expense
for the year (1,619,513) (1,087,457)
------------------------------- ---------------------- ------------------ -----------------
Loss per share (pence)
Basic and diluted 11 (0.16) (0.22)
------------------------------- ---------------------- ------------------ -----------------
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEARED 31 MAY 2021
GROUP Share Share Capital Retained Translation Share Total
Capital Premium Reserve Earnings Reserve option
Reserve
GBP GBP GBP GBP GBP GBP GBP
At 31 May 2019 933,209 3,776,854 299,900 (4,115,649) (209,996) 261,300 945,618
Total comprehensive
loss for the year - - - (1,087,457) (1,087,457)
New shares issued 416,667 1,583,333 - - - - 2,000,000
Costs of new shares
issued - (138,905) - - - - (138,905)
Share options lapsed - - - 92,141 - (92,141) -
Share-based payments - - - - - 50,000 50,000
---------------------- ---------- ---------- ---------- ------------ ------------ ---------- ------------
Total transactions
with owners 416,667 1,444,428 - 92,141 - (42,141) 1,911,095
At 31 May 2020 1,349,876 5,221,282 299,900 (5,110,965) (209,996) 219,159 1,769,256
---------------------- ---------- ---------- ---------- ------------ ------------ ---------- ------------
Total comprehensive
loss for the year - - - (1,619,513) - - (1,619,513)
New Shares issue 1,317,454 3,952,363 - - - - 5,269,817
Costs of new shares
issued - (313,566) - - - - (313,566)
Share-based payments - - - - - 162,615 162,615
---------------------- ---------- ---------- ---------- ------------ ------------ ---------- ------------
Total transactions
with owners 1,317,454 3,638,797 - - - 162,615 5,118,866
At 31 May 2021 2,667,330 8,860,079 299,900 (6,730,478) (209,996) 381,774 5,268,609
---------------------- ---------- ---------- ---------- ------------ ------------ ---------- ------------
COMPANY Share Share Retained Share Total
Capital Premium Earnings option
Reserve
GBP GBP GBP GBP GBP
---------------------- ---------- ---------- ---------- ------------ ------------ ---------- ------------
At 31 May 2019 933,209 3,776,854 (4,515,814) 223,159 417,408
Total comprehensive
loss for the year - - (1,956,671) - (1,956,671)
New shares issued 416,667 1,583,333 - - 2,000,000
Costs of new shares
issued - (138,905) - - (138,905)
Share options lapsed 54,000 (54,000) -
Share-based payments - 50,000 50,000
---------------------- ---------- ---------- ---------- ------------ ------------ ---------- ------------
Total transactions
with owners 416,667 1,444,428 54,000 (4,000) 1,911,095
At 31 May 2020 1,349,876 5,221,282 (6,418,485) 219,159 371,832
---------------------- ---------- ---------- ---------- ------------ ------------ ---------- ------------
Total comprehensive
loss for the year - - (437,373) - (437,373)
New shares issued 1,317,454 3,952,363 - - 5,269,817
Costs of new shares
issued - (313,566) - - (313,566)
Share-based payments - 162,615 162,615
---------------------- ---------- ---------- ---------- ------------ ------------ ---------- ------------
Total transactions
with owners 1,317,454 3,638,797 - 162,615 5,118,866
At 31 May 2021 2,667,330 8,860,079 (6,855,858) 381,774 5,053,325
---------------------- ---------- ---------- ---------- ------------ ------------ ---------- ------------
CONSOLIDATED BALANCE SHEET
FOR THE YEARED 31 MAY 2021
2020
2021
Notes GBP GBP
----------------------------------- ------ ------------ ------------
Assets
Non-current assets
Property, plant and equipment 13 13,773 11,830
Intangible assets 14 2,681,641 1,296,784
----------------------------------- ------ ------------
2,695,414 1,308,614
----------------------------------- ------ ------------ ------------
Current assets
Trade and other receivables 15 138,042 129,877
Corporation tax receivable 767,120 326,787
Cash and cash equivalents 2,220,862 732,650
----------------------------------- ------ ------------ ------------
3,126,024 1,189,314
----------------------------------- ------ ------------ ------------
Total assets 5,821,438 2,497,928
----------------------------------- ------ ------------ ------------
Equity
Capital and reserves attributable
to the Company's equity
shareholders
Called up share capital 18 2,667,330 1,349,876
Share premium account 18 8,860,079 5,221,282
Capital reserve 18 299,900 299,900
Translation reserve 18 (209,996) (209,996)
Share option expense reserve 18 381,774 219,159
Retained earnings 18 (6,730,478) (5,110,965)
----------------------------------- ------ ------------ ------------
Total equity 5,268,609 1,769,256
----------------------------------- ------ ------------ ------------
Liabilities
------------
Current liabilities
Trade and other payables 16 548,836 718,788
----------------------------------- ------ ------------
548,836 718,788
----------------------------------- ------ ------------ ------------
Non-current liabilities
Contract liabilities 16 3,993 9,884
----------------------------------- ------ ------------ ------------
3,993 9,884
----------------------------------- ------ ------------ ------------
Total liabilities 552,829 728,672
----------------------------------- ------ ------------ ------------
Total equity and liabilities 5,821,438 2,497,928
----------------------------------- ------ ------------ ------------
The financial statements were approved and authorised for issue
by the Board of Directors on 01 November 2021 and were signed below
on its behalf by:
Prof Rory Shaw
Chairman
COMPANY BALANCE SHEET
FOR THE YEARED 31 MAY 2021
2021 2020
Notes GBP GBP
----------------------------------- ------ ------------ --------------------
Assets
Non-current assets
Investments 12 - -
----------------------------------- ------ ------------ --------------------
- -
----------------------------------- ------ ------------ --------------------
Current assets
Other receivables 15 99,906 27,538
Loans to subsidiary companies 2,998,240 -
Cash and cash equivalents 2,020,688 473,809
----------------------------------- ------ ------------ --------------------
5,118,834 501,347
----------------------------------- ------ ------------ --------------------
Total assets 5,118,834 501,347
----------------------------------- ------ ------------ --------------------
Equity
Capital and reserves attributable
to the Company's equity
shareholders
Called up share capital 18 2,667,330 1,349,876
Share premium account 18 8,860,079 5,221,282
Share option expense reserve 18 381,774 219,159
Retained earnings 18 (6,855,858) (6,418,485)
Total equity 5,053,325 371,832
----------------------------------- ------ ------------ --------------------
Liabilities
----------------------------------- ------ ------------ --------------------
Current liabilities
Trade and other payables 16 65,509 129,515
Total liabilities 65,509 129,515
----------------------------------- ------ ------------ --------------------
Total equity and liabilities 5,118,834 501,347
----------------------------------- ------ ------------ --------------------
The Company's loss for the year was GBP437,373 (2020:
GBP1,906,671)
The financial statements were approved and authorised for issue
by the Board of Directors on 01 November 2021 and were signed below
on its behalf by:
Prof R Shaw
Chairman
CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEARED 31 MAY 2021
2021 2020
GBP GBP
------------------------------------------ ------------ ------------
Cash flows from operating activities
Loss before tax (2,059,846) (1,414,457)
------------------------------------------ ------------ ------------
Adjustments for:
Net finance income (281) (606)
Depreciation and amortisation 48,755 30,277
Share based payment expense 162,615 50,000
Decrease/(Increase) in trade receivables 72,614 103,063
Decrease in other receivables (80,779) 11,921
Increase in trade payables 77,915 88,886
Increase/(Decrease) in other payables (253,759) 95,258
Corporation tax received - 249,011
------------------------------------------ ------------ ------------
Total adjustments 27,080 627,810
------------------------------------------ ------------ ------------
Net cash used in operating activities (2,032,766) (786,647)
------------------------------------------ ------------ ------------
Cash flows from investing activities
Purchase of tangible fixed assets (16,083) (7,189)
Purchase of intangible assets (1,419,472) (875,950)
Net finance income received 281 606
------------------------------------------
Net cash used in investing activities (1,435,274) (882,533)
------------------------------------------ ------------ ------------
Cash flows from financing activities
Net proceeds of share issue 4,956,252 1,861,095
------------------------------------------ ------------ ------------
Net cash generated from financing
activities 4,956,252 1,861,095
------------------------------------------ ------------ ------------
Net increase/(decrease) in cash
and cash equivalents 1,488,212 191,915
Cash and cash equivalents at beginning
of year 732,650 540,735
Cash and cash equivalents at end
of year 2,220,862 732,650
------------------------------------------ ------------ ------------
COMPANY CASH FLOW STATEMENT
FOR THE YEARED 31 MAY 2021
2021 2020
GBP GBP
--------------------------------------- ------------ ------------
Cash flows from operating activities
Loss before tax (437,373) (1,906,671)
--------------------------------------- ------------ ------------
Adjustments for:
Net finance income (281) (606)
Provision against intercompany
receivable 59,913 1,267,998
Share based payment expense 102,702 (8,000)
Increase in other receivables (72,367) (1,266,405)
Decrease in trade payables (19,709) 5,619
Decrease/ (Increase) in other
payables (44,299) 59,476
------------
Total adjustments 25,959 58,082
--------------------------------------- ------------ ------------
Net cash used in operating activities (411,414) (1,840,589)
--------------------------------------- ------------ ------------
Cash flows from investing activities
Loans to subsidiary companies (2,998,240) -
Net finance income 281 606
--------------------------------------- ------------ ------------
Net cash generated from investing
activities (2,997,959) 606
--------------------------------------- ------------ ------------
Cash flows from financing activities
Net proceeds of share issue 4,956,252 1,861,095
--------------------------------------- ------------
Net cash generated from financing
activities 4,956,252 1,861,095
--------------------------------------- ------------ ------------
Net increase in cash and cash
equivalents 1,546,879 21,112
Cash and cash equivalents at
beginning of year 473,809 452,697
--------------------------------------- ------------ ------------
Cash and cash equivalents at
end of year 2,020,688 473,809
--------------------------------------- ------------ ------------
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEARED 31 MAY 2021
1. General information
The Company is a public limited company limited by shares,
domiciled in the United Kingdom and incorporated under registered
number 00598696 in England and Wales. The Company's registered
office is Health Foundry, Canterbury House, 1 Royal Street, London
SE1 7LL.
The Company is quoted on AIM, a market operated by the London
Stock Exchange. These Financial Statements were authorised for
issue by the Board of Directors on 01 November 2021.
The information set out in this announcement does not constitute
the Company's full statutory accounts for the year ended 31 May
2021. Statutory accounts for 2021 will be delivered to the
Registrar of Companies in due course. The auditor has reported on
those accounts; their report was (i) unqualified, (ii) did not
include a reference to any matters to which the auditor drew
attention by way of emphasis without qualifying their report and
(iii) did not contain a statement under section 498 (2) or (3) of
the Companies Act 2006.
2. Adoption of the new and revised International Financial Reporting Standards
The Company has adopted all of the new or amended Accounting
Standards and Interpretations issued by the International
Accounting Standards Board (IASB) that are mandatory for the
current reporting period.
The following new and revised Standards and Interpretations are
relevant to the company, but the Company has not early adopted
these new standards. The Directors do not anticipate that the
adoption of these standards will have a material impact on the
reported results of the Company:
- IAS 1 amendment - Presentation of Financial Statements -
Disclosure of Accounting Policies (Amendments to IAS 1 and IFRS
Practice Statement 2)
- IAS 8 amendment - Accounting Policies, Changes in Accounting
Estimates and Errors - Definition of Accounting Estimates
- IAS 12 amended - Income Taxes - Deferred Tax related to Assets
and Liabilities arising from a Single Transaction.
- IAS 16 amended - Property, Plant and Equipment - Proceeds before Intended Use
- IAS 37 amended - Provisions, Contingent Liabilities and
Contingent Assets - Onerous Contracts-Cost of Fulfilling a
Contract
- IFRS 3 amended - Business Combinations - Updating a Reference to the Conceptual Framework
3. Significant accounting policies
(a) Basis of preparation
These financial statements have been prepared in accordance with
international accounting standards in conformity with the
requirements of the Companies Act 2006. 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 2021 and 2020 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. Investments
in subsidiary companies are held at cost less impairment.
(c) Going Concern
The Group held GBP2,220,862 of cash and cash equivalents at 31st
May 2021. However, it incurred a net loss of GBP1,619,513 and had a
net cash outflow of GBP2,032,766 from operating activities for the
year, which are matters which may indicate a material uncertainty
about the Group's ability to continue as a going concern. However,
on 2 November 2021, the Company announced an accelerated bookbuild
to raise a minimum of GBP10 million (before expenses) with closing
of the placing expected on the same day. Subject to closing, the
placing is conditional on shareholder approval at the forthcoming
Annual General Meeting. Prior to announcement, having made relevant
enquiries, the Directors were satisfied that the Company's brokers
had received sufficient non-binding indications for the placing to
provide the Company with adequate cash resources for at least the
next twelve months to November 2022. The Directors believe that all
resolutions required to execute the placing will be successfully
approved at the annual general meeting as a matter of course, with
proceeds to be received shortly thereafter. The Directors updated
and reviewed the Group's business plan and cash flow forecasts on
the basis that the placing is approved at the annual general
meeting. These cash resources will be used to provide working
capital, enable continued product development and international
expansion. If further resources are required, the directors
consider, that although future equity fundraising can never be
guaranteed, the group's recent history of successful fundraising
means it likely that the group will be able to raise further
finance through future equity issues. 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.
(d) Intangible assets
Intangible assets are carried at cost less accumulated
amortisation and accumulated impairment losses. An intangible asset
acquired as part of a business combination is recognised outside
goodwill if the asset is separable or arises from contractual or
other legal rights and its fair value can be reliably measured.
The significant intangible asset cost related to external
software development of products which are integral to the trade of
the Group's medical imaging products.
Amortisation and impairment charges are recognised in other
operating expenses in the income and expenditure account. Internal
development costs are not capitalised but written off during the
year in which the expenditure is incurred.
The carrying value of intangible assets which are not yet being
amortised because they are not yet available for use are reviewed
for impairment annually. The carrying value of intangible assets
which are currently being amortised are reviewed for impairment
when there is an indication that they may be impaired. Impairment
losses are recognised in other operating expenses in the income and
expenditure account.
Costs incurred on development projects (relating to the design
and testing of new or improved products) are recognised as
intangible assets when it is probable that the project will be a
success, considering its commercial and technological feasibility,
and costs can be measured reliably. Only external software
development expenditure is capitalised. Internal research
expenditure is written off in the year in which it is incurred.
Other development expenditure is recognised as an expense as
incurred. Intangible assets that have a finite useful life and that
have been capitalised are amortised on a straight line basis as
follows:
Intangible asset Useful economic life
Intellectual Property 5 years
Customer relationships 4 years
Software development 5 years
Intellectual Property primarily relates to patent and trademark
application costs. Software development costs capitalised in the
year relate to products and product improvements which are yet to
be ready for use. They are not yet amortised.
(e) Valuation of Investments
Investments held as non-current assets are stated at cost less
provision for impairment.
(f) Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at
call with banks, other short-term highly liquid investments with
original maturities of three months or less, and bank overdrafts.
When used, bank overdrafts are shown within borrowings in current
liabilities on the balance sheet.
(g) Goodwill
Business combinations on or after 1 April 2006 are accounted for
under IFRS 3 using the acquisition method. Any excess of the cost
of business combinations over the Group's interest in the net fair
value of the identifiable assets, liabilities and contingent
liabilities is recognised in the balance sheet as goodwill and is
not amortised.
After initial recognition, goodwill is not amortised but is
stated at cost less accumulated impairment loss, with the carrying
value being reviewed for impairment, at least annually and whenever
events or changes in circumstance indicate that the carrying value
may be impaired.
For the purposes of impairment testing, goodwill is allocated to
the related cash generating units monitored by management. Where
the recoverable amount of the cash generating unit is less than its
carrying amount, including goodwill, an impairment loss is
recognised in the statement of comprehensive income.
(h) Property, plant and equipment
All property, plant and equipment is stated at historical cost
less depreciation. Depreciation on other assets is provided on cost
or valuation less estimated residual value in equal annual
instalments over the estimated lives of the assets. The rates of
depreciation are as follows:
Computer and office equipment 10 - 50% p.a.
Gains and losses on disposals are determined by comparing the
proceeds with the carrying amount and are recognised in the income
statement.
(i) Foreign currency
Transactions denominated in foreign currencies are translated
into sterling at the rates ruling at the date of the transactions.
Monetary assets and liabilities denominated in foreign currencies
at the balance sheet date are translated at the rates ruling at
that date. These translation differences are dealt with in the
income statement.
(j) Revenue recognition
Sales transactions include software installation, software
licenses, scientific and software support and consultancy. Revenue
is measured at the fair value of the contractually agreed
consideration received or receivable and represents amounts
receivable for services provided in the normal course of business,
net of VAT. The Group recognises revenue when the amount of revenue
can be reliably measured; when it is probable that future economic
benefits will flow to the entity; and when specific criteria have
been met for each of the company's activities, as described below.
The sales invoice is raised when the customer's purchase order is
received, and the debt is typically payable within 30-60 days of
the invoice date. In practice the debt is paid when the software
installation has been completed. There are no obligations for
returns, refunds or warranties.
Revenue relating to software consultancy and similar services is
recognised as the services are performed and completed. The invoice
is recognised on a linear basis over the duration of the
contract.
Revenue relating to the sale of software licences or associated
support services is recognised over the contractual period to which
the licence relates or the duration of the support contract.
Revenue recognised from the sale of TexRAD software and related
scientific support services are recognised over the estimated
duration of the Group's involvement in a customer's project which
is considered to represent its performance obligation. There are no
explicit performance obligations as such but a clear understanding
that the Group will provide the support required as agreed when the
sale was made.
The difference between the amount of revenue from contracts with
customers recognised and the amount invoiced on a particular
contract is included in the statement of financial position as
contract liabilities. Normally, the full contract value is invoiced
when the customer's purchase order is received. Cash payments
received as a result of this advance billing are not representative
of revenue earned on the contract as revenues are recognised over
the duration of the contract (typically twelve months). Contract
liabilities which are expected to be recognised within one year are
included within current liabilities. Contract liabilities which are
expected to be recognised after one year are included within
non-current liabilities.
(k) Pension Costs
The Group operated a defined contribution pension scheme during
the year. The pension charge represents the amounts payable by the
Group to the scheme in respect of that year.
(l) Taxation
The tax credit represents the sum of the current tax credit and
deferred tax credit.
The tax currently payable is based on taxable profit for the
period. Taxable profit differs from net profit as reported in the
income statement because it excludes items of income or expense
that are taxable or deductible in other years and it further
excludes items that are never taxable or deductible. The Group's
liability for current tax is calculated by using tax rates that
have been enacted or substantively enacted by the balance sheet
date.
Deferred tax is the tax expected to be payable or recoverable on
differences between the carrying amount of assets and liabilities
in the financial statements and the corresponding tax bases used in
the computation of taxable profit, and is accounted for using the
balance sheet liability method. Deferred tax liabilities are
recognised for all taxable temporary differences and deferred tax
assets are recognised to the extent that it is probable that
taxable profits will be available against which deductible
temporary differences can be utilised. Such assets and liabilities
are not recognised if the temporary difference arises from the
initial recognition of goodwill or from the initial recognition
(other than in a business combination) of other assets and
liabilities in a transaction which affects neither the tax profit
nor the accounting profit.
Deferred tax liabilities are recognised for taxable temporary
differences arising on investments in subsidiaries, except where
the Group is able to control the reversal of the temporary
difference and it is probable that the temporary difference will
not reverse in the foreseeable future. Deferred tax is calculated
at the tax rates that are expected to apply to the period when the
asset is realised or the liability is settled based upon tax rates
that have been enacted or substantively enacted by the balance
sheet date. Deferred tax is charged or credited in the income
statement, except when it relates to items credited or charged
directly to equity, in which case the deferred tax is also dealt
with in equity.
(m) Financial instruments
Financial assets
Financial assets are measured at amortised cost, fair value
through other comprehensive income (FVTOCI) or fair value through
profit or loss (FVTPL). The measurement basis is determined by
reference to both the business model for managing the financial
asset and the contractual cash flow characteristics of the
financial asset. The group's financial assets comprise of trade and
other receivables and cash and cash equivalents.
Trade receivables
Trade receivables are measured at amortised cost and are carried
at the original invoice amount less allowances for expected credit
losses. Expected credit losses are calculated in accordance with
the simplified approach permitted by IFRS 9, using a provision
matrix applying lifetime historical credit loss experience to the
trade receivables. The expected credit loss rate varies depending
on whether, and the extent to which, settlement of the trade
receivables is overdue and it is also adjusted as appropriate to
reflect current economic conditions and estimates of future
conditions. For the purposes of determining credit loss rates,
customers are classified into groupings that have similar loss
patterns. The key drivers of the loss rate are the aging of the
debtor, the geographic location and the company sector (public vs
private). When a trade receivable is determined to have no
reasonable expectation of recovery it is written off, firstly
against any expected credit loss allowance available and then to
the income statement. For trade receivables, which are reported
net, such provisions are recorded in a separate provision account
with the loss being recognised in the consolidated statement of
comprehensive income Subsequent recoveries of amounts previously
provided for or written off are credited to the income
statement.
Cash and cash equivalents
Cash and cash equivalents comprise cash at hand and deposits
with maturities of three months or less.
Financial liabilities
The Group's financial liabilities consist of trade payables and
other financial liabilities. Financial liabilities are classified
as measured at amortised cost or FVTPL. A financial liability is
classified as FVTPL if it is held-for trading, it is a derivative
or it is designated as such on initial recognition. Other financial
liabilities are subsequently measured at amortised cost using the
effective interest method. Interest expense is recognised in profit
or loss.
(n) Employee share options and warrants
The Group has applied the requirements of IFRS 2 Share-based
Payment.
The Group has issued equity-settled share-based payment
transactions to certain employees and previously issued warrants to
the vendors of the acquired subsidiary, TexRAD Limited.
Equity-settled share-based payment transactions are measured at
fair value at the date of grant. The fair value determined at the
grant date of equity-settled share-based payments is expensed on a
straight-line basis over the vesting period, based on the Group's
estimate of shares that will eventually vest. Fair value is
measured by use of the Black Scholes option pricing model. The
expected life used in the model has been adjusted, based on
management's best estimate, for the effect of non-transferability,
exercise restrictions, and behavioural considerations.
(o) Key areas of judgement
The preparation of financial statements requires the Board of
Directors to make estimates and judgments that affect reported
amounts of assets, liabilities, revenues and expenses. These
estimates and judgements are based on historical experience and
various other assumptions that management and the Board of
Directors believe are reasonable under the circumstances, the
results of which form the basis for making judgments about the
carrying value of assets and liabilities that are not readily
apparent from other sources. The key areas of judgement are:
-- Intangible assets - Patent and trademark applications are
included at cost less amortisation and impairment. Other intangible
assets including development costs are recognised only when it is
probable that a project will be a success. There is a risk
therefore that a project previously assessed as likely to be
successful fails to reach the desired level of commercial or
technological feasibility. Where there is no probable income to be
generated from these assets an estimation of the carrying value and
the impairment of the intangible assets and development costs,
including goodwill, has been made.
-- Fair value measurement - share options and warrants issued
included in the Group's and Company's financial statements require
measurement at fair value. The calculation of fair values requires
the use of estimates and judgements.
-- Revenue recognition-revenue on the sale of TexRAD software
and provision of related scientific support services is recognised
over the expected duration of the group's involvement in customer's
projects as the group's staff contribute significant support,
analysis and input to those customers using TexRAD software for
research purposes. Judgement based on past experience is used to
determine the expected duration of involvement over which income
should be deferred and recognised however the duration of the
group's involvement may vary from expectations.
4. Segmental reporting
The Directors have determined that the operating segments based
on the management reports which are used to make strategic
decisions are medical imaging and head office. The trading
activities of the Company solely relate to Medical Imaging and the
Head Office covers the costs of running the parent company,
Feedback PLC.
Year ended 31 May 2021 Medical Imaging Head Office Total
GBP GBP GBP
---------------------------------- ------------------ ------------ ------------
Revenue
External 287,415 - 287,415
Expenditure
External (excluding depreciation
and amortisation) (1,546,183) (752,323) (2,298,506)
Depreciation and amortisation (48,755) - (48,755)
----------------------------------- ------------------
Loss before tax (1,307,523) (752,323) (2,059,846)
----------------------------------- ------------------ ------------ ------------
Balance sheet
External Assets 3,700,845 2,120,593 5,821,438
External Liabilities (487,308) (65,521) (552,829)
----------------------------------- ------------------ ------------ ------------
3,213,537 2,055,072 5,268,609
---------------------------------- ------------------ ------------ ------------
Capital expenditure (all located
in the UK) (1,435,554) - (1,435,554)
----------------------------------- ------------------ ------------ ------------
Year ended 31 May 2020 Medical Imaging Head Office Total
GBP GBP GBP
---------------------------------- ------------------ ------------ ------------
Revenue
External 449,983 - 449,983
Expenditure
External (1,233,767) (630,673) (1,864,440)
----------------------------------- ------------------ ------------ ------------
Loss before tax (783,784) (630,673) (1,414,457)
----------------------------------- ------------------ ------------ ------------
Balance sheet
External Assets 1,996,581 501,347 2,497,928
External Liabilities (599,157) (129,515) (728,672)
----------------------------------- ------------------ ------------ ------------
1,397,424 371,832 1,769,256
---------------------------------- ------------------ ------------ ------------
Capital expenditure (all
located in the UK) 883,139 - 883,139
----------------------------------- ------------------ ------------ ------------
Reported segments' assets are reconciled to total assets as
follows:
External revenue Non-current assets Total liabilities
by by
location of customer location of assets location of
assets
----------------------- ------------------------------- ---------------------
2021 2020 2021 2020 2021 2020
GBP GBP GBP GBP GBP GBP
------------------- -------- ------------- ------------------- ---------- --------- ----------
United Kingdom 217,394 229,073 2,695,414 1,308,614 552,829 728,672
Europe 5,364 57,073 - - - -
Rest of the world 64,657 163,837 - - - -
------------------- -------- ------------- ------------------- ---------- --------- ----------
Total 287,415 449,983 2,695,414 1,308,614 552,829 728,672
------------------- -------- ------------- ------------------- ---------- --------- ----------
GBP227,000 of revenue recognised in the current year was
recorded in contract liabilities in the prior year.
Major customers
During the year ended 31 May 2021, the Group generated
GBP153,000 (2020: GBP172,000) of revenue from one customer in the
United Kingdom, which is equal to 53% (2020: 35%) of total Group
revenues in the year.
5. Other operating expenses
2021 2020
GBP GBP
------------------------------- ---------- ----------
Administrative costs:
Employment and other costs 2,273,763 1,832,987
Amortisation and depreciation
costs 48,755 30,193
---------------------------------- ----------
2,322,518 1,863,180
------------------------------- ---------- ----------
6. Operating loss
2021 2020
GBP GBP
------------------------------------------------ ------- -------
This is stated after charging
Depreciation and amortisation
Owned assets 14,140 1,530
Amortisation of intangible
assets 34,615 28,663
Provision for doubtful debts 266 28,000
Foreign exchange differences 24,573 14,646
Auditors' remuneration
Audit of parent company and group financial
statements 10,000 10,000
Audit of subsidiaries 6,800 7,000
7. Net finance income
2021 2020
GBP GBP
Interest received 281 606
---------------------- ----- -----
281 606
------------------- ----- -----
8. Directors and employees
2021 2020
Average Average
Number of employees
Selling and distribution 1 2
Administration 11 4
Research and development 6 6
-------------------------------------- ---------- ----------
18 12
---------------------------------- ---------- ----------
2021 2020
GBP GBP
Staff costs
Wages and salaries 1,033,975 882,197
Social security costs 121,736 95,085
Payments to defined contribution
pension scheme 108,796 81,499
Share based payment expense 162,615 50,000
1,427,122 1,108,781
---------------------------------- ---------- ----------
The value of all elements of remuneration received by each
Director in the year was as follows:
Year ended 31 May 2021: Salary Fees Pension Benefits Total
in Kind
GBP GBP GBP GBP GBP
------------------------------- -------- ------- -------- --------- --------
Executive Directors
T Oakley (including GBP30,000
performance bonus) 168,334 - - - 168,334
L Melvin 59,280 - 6,672 825 66,777
Non-Executive Directors
R Shaw - 5,000 - - 5,000
T Irish(1) - 25,000 - - 25,000
S Sturge - - - - -
A Denning 25,000 - - - 25,000
P Prince (appointed 15
July 2020)(2) - 21,875 - - 21,875
------------------------------- -------- ------- -------- --------- --------
Total 252,614 51,875 6,672 825 311,986
------------------------------- -------- ------- -------- --------- --------
1. T Irish was paid consultancy fees through an agreement with Pembrokeshire Retreats Limited.
2. P Prince was paid consultancy fees through an agreement with NAM Financial.
During the year, retirement benefits under money purchase
pension schemes were accruing to 1 director (2020: 1)
The value of all elements of remuneration received by each
Director in the prior year was as follows:
Year ended 31 May 2020 Salary Fees Pension Benefits Total
in Kind
GBP GBP GBP GBP GBP
------------------------------- --------- ------- -------- ---------- ---------
Executive Directors
T Oakley (including GBP40,000
performance bonus) 170,000 - - - 170,000
L Melvin 59,240 - 6,671 711 66,622
A Riddell (1 June 2019
- 29 August 2019)(1) - 8,500 - - 8,500
Non-Executive Directors
R Shaw (appointed 29 August
2019) 30,000 - - - 30,000
T Irish(2) - 25,000 - - 25,000
S Sturge - - - - -
A Riddell (29 August -
18 November 2019)(1) - 10,168 - - 10,168
A Denning (appointed 3
February 2020) 8,333 - - 8,333
------------------------------- --------- ------- -------- ---------- ---------
Total 259,240 52,001 6,671 711 318,623
------------------------------- --------- ------- -------- ---------- ---------
1. A Riddell was paid consultancy fees through an agreement with AJR & Associates limited.
2. T Irish was paid consultancy fees through an agreement with Pembrokeshire Retreats Limited.
During the year, retirement benefits under money purchase
pension schemes were accruing to 1 director (2019: 2)
The following share options were outstanding as at 31 May 2021
for the Directors. Further information is provided in Note 18.
2021 2020
Number Number
R Shaw 7,800,000 7,800,000
L Melvin 4,300,000 4,300,000
T. Oakley 22,830,829 9,332,081
S Sturge 2,500,000 2.500,000
9. Taxation on loss
2021 2020
GBP GBP
----- ------------------------------------------------- -------------- ------------
(a) The tax credit for the year:
UK Corporation tax (439,589) (327,000)
-------------------------------------------------- ---- -------------- ------------
Current tax credit (439,589) (327,000)
Adjustments in respect of prior periods (744) -
(440,333) (327,000)
------------------------------------------------------- -------------- ------------
(b) Tax reconciliation
Loss before tax (2,059,846) (1,414,457)
-------------------------------------------------- ---- -------------- ------------
Loss at the standard rate of corporation
tax in the UK of 19% (2018 - 19%) (391,371) (268,747)
Effects of:
Fixed asset differences (5,872) -
Expenses non-deductible for tax purposes 37,558 8,916
Other permanent differences 118 -
Additional deduction for R&D expenditure (325,572) (242,737)
Surrender of tax losses for R & D
tax credit refund 136,424 102,458
Adjustments to tax charge in respect (744) -
of previous periods
Deferred tax not recognised 332,069 128,605
Adjusting opening and closing deferred
tax to average rate (222,943) (55,495)
-------------------------------------------------- ---- --------------
Tax charge for the year (440,333) (327,000)
-------------------------------------------------- ---- -------------- ------------
(c) Factors which may affect future tax
charges
In view of the tax losses carried forward there is a deferred
tax amount of approximately GBP928,928 (2020: GBP596,000)
which has not been recognised in these Financial Statements.
This contingent asset will be realised when the Group makes
sufficient taxable profits in the relevant company.
(d) Deferred tax - company
In view of the tax losses carried forward there is a deferred
tax amount of approximately GBP838,906 (2020: GBP584,000)
which has not been recognised in these Financial Statements.
This contingent asset will be realised when the Company
makes sufficient taxable profits.
10. Results of Feedback Plc
As permitted by Section 408 of the Companies Act 2006, the
income and expenditure account of the parent company is not
presented as part of these financial statements. The Company's loss
for the financial year is GBP437,373 (2020: GBP1,906,671)
11. Loss per share
Basic loss per share is calculated by reference to the loss on
ordinary activities after taxation of GBP1,619,513 (2020:
GBP1,087,457) and on the weighted average of 1,023,499,123 (2020:
498,854,027) shares in issue.
2021 2020
GBP GBP
Net loss attributable to
ordinary equity holders (1,619,513) (1,087,457)
------------------------------ -------------- ------------
2021 2020
----------------------------- -------------- ------------
Weighted average number of
ordinary shares for basic
earnings per share 1,023,499,123 498,854,027
Effect of dilution:
Share Options - -
Warrants - -
----------------------------- -------------- ------------
Weighted average number of
ordinary shares adjusted
for the effect of dilution 1,023,499,123 498,854,027
------------------------------ -------------- ------------
Loss per share (pence)
Basic (0.16) (0.22)
Diluted (0.16) (0.22)
------------------------------ -------------- ------------
There is no dilutive effect of the share options and warrants as
the dilution would be negative.
12. Investments
Share in Shares Total
Group undertakings in joint
venture
GBP GBP GBP
----------------------------------- -------------------- ---------- ----------
Company
Cost
At 31 May 2019 2,334,455 1,000 2,335,455
Addition (see note below) 46,000 - 46,000
----------------------------------- -------------------- ---------- ----------
At 31 May 2020 2,380,455 1,000 2,381,455
----------------------------------- -------------------- ---------- ----------
Addition (see note below) 59,913 - 59,913
As at 31 May 2021 2,440,368 1,000 2,441,368
----------------------------------- -------------------- ---------- ----------
Provision for impairment
At 31 May 2019 2,334,455 1,000 2,334,455
Additional impairment included
in operating expenses (see note
below) 46,000 46,000
At 31 May 2020 2,380,455 1,000 2,381,455
Additional impairment included
in operating expenses (see note
below) 59,913 - 59,913
----------------------------------- -------------------- ---------- ----------
At 31 May 2021 2,440,368 1,000 2,441,368
----------------------------------- -------------------- ---------- ----------
Net Book Value
At 31 May 2021 - - -
----------------------------------- -------------------- ---------- ----------
At 31 May 2020 - - -
----------------------------------- -------------------- ---------- ----------
All of the above investments are unlisted
The directors have made full provision against the cost of
investment in the subsidiaries due to the net liabilities shown in
the subsidiary financial statements. The additions in the current
and prior year are related to options in Feedback Medical Limited
which would be satisfied with Feedback Plc shares if/when they are
exercised
Particulars of principal subsidiary companies during the year,
all the shares of which being beneficially held by Feedback Plc,
were as follows:
Company Activity Country of incorporation Proportion of Shares
and operation held
--------------------- ---------------- ------------------------- ---------------------
Feedback Black Dormant England 100%
Box Company Limited Ordinary GBP1
Brickshield Limited Dormant England 100%
Ordinary GBP1
Bleepa Limited Dormant England 100%
Ordinary GBP2
Feedback Medical Medical Imaging England 100%
Limited A Ordinary GBP1
100% B Ordinary 1p
TexRAD Limited Medical Imaging England 100%
Ordinary 1p
--------------------- ---------------- ------------------------- ---------------------
TexRAD Limited is owned 100% by virtue of a direct holding by
Feedback plc of 91% and an indirect holding via Feedback Medical
Ltd of 9%.
All the subsidiary companies have been included in these
consolidated financial statements. Each subsidiary's registered
office is Health Foundry, Canterbury House, 1 Royal Street, London
SE1 7LL.
13. Property, plant and equipment
Computer
Equipment Total
Group GBP GBP
--------------------- ------------------ -------
Cost
At 31 May 2019 23,233 23,233
Additions 7,189 7,189
---------------------- ------------------
At 31 May 2020 30,422 30,422
Additions 16,082 16,083
---------------------- ------------------ -------
As 31 May 2021 46,504 46,505
---------------------- ------------------ -------
Depreciation
At 31 May 2019 17,062 17,062
Charge for the year 1,530 1,530
---------------------- ------------------ -------
At 31 May 2020 18,592 18,592
Charge for the year 14,140 14,140
---------------------- ------------------ -------
At 31 May 2021 32,732 32,732
---------------------- ------------------
Net Book Value
At 31 May 2021 13,773 13,773
---------------------- ------------------ -------
At 31 May 2020 11,830 11,830
---------------------- ------------------ -------
14. Intangible assets
Software Customer Intellectual Goodwill Total
development relationships Property
Group GBP GBP GBP GBP GBP
Cost
At 31 May 2019 1,038,070 100,000 154,420 271,415 1,563,905
Additions 865,035 - 10,915 - 875,950
Re-class (22,000) - 22,000 - -
--------------------- ------------- --------------- ------------- ------------ ----------
At 31 May 2020 1,881,105 100,000 187,335 271,415 2,439,855
Additions 1,419,472 - - - 1,419,472
Re-class (30,904) - 30,904 -
--------------------- ------------- --------------- ------------- ------------ ----------
At 31 May 2021 3,269,673 100,000 218,239 271,415 3,859,327
--------------------- ------------- --------------- ------------- ------------ ----------
Amortisation
At 31 May 2019 645,516 100,000 97,477 271,415 1,114,408
Impairment charge - - - - -
Amortisation charge
for year - - 28,663 - 28,663
--------------------- -------------
At 31 May 2020 645,516 100,000 126,140 271,415 1,143,071
Impairment charge - - - - -
Amortisation charge
for year - - 34,615 - 34,615
--------------------- -------------
At 31 May 2021 645,516 100,000 160,755 271,415 1,177,686
--------------------- ------------- --------------- ------------- ------------ ----------
Net Book Value
At 31 May 2021 2,624,157 - 57,484 - 2,681,641
--------------------- ------------- --------------- ------------- ------------ ----------
At 31 May 2020 1,235,589 - 61,195 - 1,296,784
--------------------- ------------- --------------- ------------- ------------ ----------
15. Trade and other receivables
Group Company
2021 2020 2021 2020
-------- -------- ------- -------
GBP GBP GBP GBP
---------------------------- -------- -------- ------- -------
Amounts falling due within
one year
Trade receivables 26,946 99,560 - -
Other receivables 65,263 7,648 65,209 7,648
Prepayments 45,833 22,669 34,697 19,890
138,042 129,877 99,906 27,538
---------------------------- -------- -------- ------- -------
16. Trade and other payables
Group Company
2021 2020 2021 2020
-------- -------- ------- --------
GBP GBP GBP GBP
--------------------------------- -------- -------- ------- --------
Amounts falling due within
one year
Trade payables 197,340 119,424 491 20,227
Other payables 39,575 8,490 - 6,672
Other taxes and social security 22,645 165,667 13,701 52,082
Accruals 174,151 135,101 51,317 50,534
Contract liabilities 115,125 290,107 - -
--------------------------------- -------- -------- ------- --------
548,836 718,789 65,509 129,515
--------------------------------- -------- -------- ------- --------
Amounts falling due after
one year
--------------------------------- -------- -------- ------- --------
Contract liabilities 3,993 9,884 - -
--------------------------------- -------- -------- ------- --------
Neither the Group or the Company have any borrowings and so
there are no changes in liabilities arising from financing
activities.
17. Financial instruments
The Group's overall risk management programme seeks to minimise
potential adverse effects on the Group's financial performance.
The Group's financial instruments comprise cash and cash
equivalents and various items such as trade payables and
receivables that arise directly from its operations. The Group is
exposed through its operations to the following financial
risks:
-- Credit risk
-- Foreign currency risk
-- Liquidity risk
-- Cash flow interest rate risk
-- Reliance on one major customer
Fair value Hierarchy
The Group uses the following hierarchy for determining and
disclosing the fair value of financial instruments by valuation
technique:
-- Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities
-- Level 2: other techniques for which all inputs that have a
significant effect on the recorded fair value are observable,
either directly or indirectly
-- Level 3: techniques that use inputs that have a significant
effect on the recorded fair value that are not based on observable
market data
The share options and warrants issued by the group during the
current year and prior years were valued under level three above as
noted in note 18 below.
In common with all other businesses, the Group is exposed to
risks that arise from its use of financial instruments. This note
describes the Group's objectives, policies and processes for
managing those risks. Further quantitative information in respect
of these risks is presented throughout these financial
statements.
There have been no substantive changes in the Group's exposure
to financial instrument risks and consequently the objectives,
policies and processes are unchanged from the previous period.
The Board has overall responsibility for the determination of
the Group's risk management policies. The objective of the Board is
to set policies that seek to reduce the risk as far as possible
without unduly affecting the Group's competitiveness and
effectiveness. Further details of these policies are set out
below:
Credit risk
The Group is exposed to credit risk primarily on its trade
receivables, which are spread over a range of countries, a factor
that helps to dilute the concentration of the risk. Group policy,
implemented locally, is to assess the credit risk of each new
customer before entering into binding contracts. Each customer
account is then reviewed on an ongoing basis (at least once a year)
based on available information and payment history.
The Group applies the IFRS 9 simplified approach to measuring
expected credit losses which uses a lifetime expected credit loss
allowance for all trade receivables. The provision for credit
losses on trade receivables is based on an expected credit loss
model that calculates the expected loss applicable to the
receivable balance over its lifetime.
Each debt was reviewed in detail, reviewing correspondence and
customer engagement and a view was taken on which debts should be
provided for and which debts should be realised. No additional
allowance for expected credit losses has been recognised during the
year (2020: GBP18,000), due to the Group's customers primarily
being the NHS, for which the risk of default has been assessed to
be immaterial.
The Group holds no collateral. It has a minimal risk policy with
funds held following fund raises so it holds the cash with
mainstream UK banks.
The carrying amount of financial assets represents the maximum
credit exposure. The maximum exposure to credit risk at the
reporting date is:
Financial assets held at
amortised cost
Group Company
2021 2020 2021 2020
---------- ---------- ---------- ------------
GBP GBP GBP GBP
--------------------------------- ---------- ---------- ---------- ------------
Trade and other receivables 138,042 129,877 99,906 27,538
Loans to subsidiary companies - - 2,998,240 -
Cash and cash equivalents 2,220,862 732,650 2,020,688 473,809
--------------------------------- ---------- ---------- ---------- ------------
2,358,904 862,527 5,118,834 501,347
--------------------------------- ---------- ---------- ---------- ------------
Analysis of trade receivables
30 days 60 days 90 days
Total Current past due past due past due
GBP GBP GBP GBP GBP
---------------- --------------- ---------- ---------- ---------- ----------
Group
2021 26,946 - 26,946 - -
2020 99,560 4,959 - 22,513 72,088
Company
2021 - - - - -
2020 - - - - -
Foreign currency risk
Foreign exchange transaction risk arises when the Group enters
into transactions denominated in a currency other than the
functional currency. Foreign currency amounts generated from
trading are converted back to sterling and required foreign
currency amounts for suppliers will be converted from sterling and
the use of forward currency contracts is considered. However, the
Group does not currently use any forward contracts.
The Group's main foreign currency risk is the short-term risk
associated with accounts receivable and payable denominated in
currencies that are not the subsidiaries' functional currency. The
risk arises on the difference in the exchange rate between the time
invoices were raised/received and the time invoices were
settled/paid.
The following table shows the net assets, stated in pounds
sterling, exposed to exchange rate risk that the Group and Company
had at 31 May 2021
Group Company
2021 2020 2021 2020
GBP GBP GBP GBP
-------------------- -------- -------- ----- -----
Trade Receivables 26,946 99,560 - -
As at 31 May 2021 GBP10,557 of Feedback Medical's net trade
receivables are denominated in foreign currency. A 5% increase/fall
in exchange rates would lead to a profit/loss of GBP503. The
foreign currencies are US dollars and Euros. The Directors do not
generally consider it necessary to enter into derivative financial
instruments to manage the exchange risk arising from its
operations, but from time to time where the Directors consider
foreign currencies are weak and it is known that there would be a
requirement to purchase those currencies, forward arrangements may
be entered into. There were no outstanding forward currency
arrangements as at 31 May 2021 or at 31 May 2020.
Liquidity risk
Cash flow forecasting is performed for both the Group and in the
operating entities of the Group. Rolling forecasts of the Group's
liquidity requirements are monitored to ensure it has sufficient
cash to meet operational needs.
Financial liabilities measured Group Company
at amortised cost
------------------ --------------
2021 2020 2021 2020
-------- -------- ----- -------
GBP GBP
Trade and other payables 236,915 127,914 491 26,899
---------------------------------- -------- -------- ----- -------
The following are maturities of financial liabilities, including
estimated contracted interest payments.
Carrying amount Contractual 6 months
GBP cash flow or less
GBP GBP
Group
2021 236,915 236,915 236,915
2020 127,914 127,914 127,914
Company
2021 491 491 491
2020 26,899 26,899 26,899
--------- ---------------- ------------ ---------
Cash flow interest rate risk
The Group presently has no substantial interest rate risk
exposure.
Capital under management
The Group considers its capital to comprise its ordinary share
capital, share premium, capital reserve, and accumulated retained
earnings.
The Group's objectives when managing the capital are:
-- To safeguard the Group's ability to remain a going concern.
-- To maximise returns for shareholders in order to meet capital
requirements and appropriately adjust the capital structure, the
Group may issue new shares, dispose of assets to pay down debt,
return capital to shareholders and vary dividend payments.
There have been no changes to the group's capital management
objectives in the year, and there have been no changes to the
group's exposure to financial instrument risk in the year.
18. Share capital and reserves
Allotted, called up and
fully paid ordinary shares
of 0.25 pence each:
Number Number
----------------------------------- -------------- ------------
As at start of period (01 June) 539,949,917 373,283,250
Issued during year 526,981,769 166,666,667
----------------------------------- -------------- ------------
As at end of period (31 May) 1,066,931,686 539,949,917
----------------------------------- -------------- ------------
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.
During the year, the Company had the following share options in
issue:
Grant No. options Granted Lapsed No. options Exercise Exercisable
Date as at 31 in year in year as at 31 price period
May 2020 May 2021 (pence)
----------- ------------ ----------- ---------- ------------ --------- ---------------
21 May 21 May 15 -
14(1) 2,400,000 - 2,400,000 1.25 19 May 24
21 May 21 May 15 -
14(1) 4,000,000 - 4,000,000 3.00 19 May 24
21 May 21 May 15 -
14(1) 4,000,000 - 4,000,000 5.00 19 May 24
26 June 26 June 18 -
18(2) 2,500,000 - 2,500,000 1.86 26 June 28
26 June 01 March 19
18(3) 2,800,000 - 2,800,000 1.86 - 26 June 28
26 June 01 March 19
18(3) 2,800,000 - 2,800,000 1.86 - 26 June 28
09 April 09 April 19
19(2) 9,332,081 - 9,332,081 1.09 - 09 April 29
23 April 01 June 20 -
20(4) 19,000,000 1,500,000 17,500,000 1.20 24 April 30
06 August 20
06 August - 06 August
20(5) - 13,498,748 - 13,498,748 1.20 30
46,382,081 13,948,748 1,500,000 58,830,829
----------- ------------ ----------- ---------- ------------ --------- ---------------
1. Options vest in full on the anniversary of the date of grant
2. Options vest immediately upon date of grant.
3. Options vest in full on 01 March 19.
4. Options vest over three years as to one-third on 01 June 20,
one-third on 01 June 21, and one-third on 01 June 22
5. Options vest over three years as to one-third on 06 August
20, one-third on 06 August 21, and one-third on 06 August 22
Share options are valued using the Black-Scholes option pricing
model and no performance conditions are included in the fair value
calculations.
For the options granted on 23 April 2020, the following
assumptions were made for valuation purposes:
-- Risk-free rate: 0.29% based on the ten-year UK gilt
-- Expected volatility: 124.32% based on annualised daily historical volatility
-- Option period: Ten years
-- Estimated fair value of each option at measurement date: GBP0.01
For the options granted on 6 August 2020, the following
assumptions were made for valuation purposes:
-- Risk-free rate: 0.21% based on the ten-year UK gilt
-- Expected volatility: 48.22% based on annualised daily historical volatility
-- Option period: Ten years
-- Estimated fair value of each option at measurement date: GBP0.01
The following table illustrates the number and weighted average
exercise prices of, and movements in, share options during the
year:
Number Weighted average
exercise price
------------------------ -------------------
2021 2020 2021 2020
----------- ----------- --------- --------
Pence Pence
------------------------ ----------- ----------- --------- --------
Outstanding at 01 June 46,832,081 34,632,081 1.77 2.10
Granted in year 13,498,748 19,000,000 1.20 1.20
Lapsed in year 1,500,000 6,800,000 1.20 1.86
------------------------ ----------- ----------- --------- --------
Outstanding at 31 May 58,830,829 46,832,081 1.66 1.77
------------------------ ----------- ----------- --------- --------
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.
Number of warrants
At 31 May Granted Exercised At 31 Exercise Exercisable
2020 May 2021 price period
(pence)
----------- -------- ---------- ----------- ---------------- ------------
19/05/16 to
4,200,000 - - 4,200,000 1.25 19/05/24
19/05/17 to
18,200,000 - - 18,200,000 3.00 19/05/24
---------------- ------------
22,400,000 - - 22,400,000
----------- -------- ---------- ----------- ---------------- ------------
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 GBP
Retained earnings
* All other net gains and losses and transactions with
owners not recognised elsewhere
Share Option Reserve * Fair value of share options issued
19. Pensions
The Company operated a defined contribution scheme during the
year and the assets of the scheme are held separately from those of
the Group in an independently administered fund. The pension cost
represents contributions payable and amounted to GBP108,796 (2020:
GBP81,499). A balance of GBP9,660 (2020: GBP8,491) was payable at
the year end.
20. Related party transactions
Key management personnel
Refer to note 8 for detail on directors' remuneration.
The Directors interests in shares of the Company are contained
in the Directors' Report
21. Post balance sheet events
On 2 November 2021, the Company announced an accelerated
bookbuild to raise a minimum of GBP10 million (before expenses)
with closing of the placing expected on the same day. Subject to
closing, the placing is conditional on shareholder approval at the
forthcoming Annual General Meeting.
22. Ultimate controlling party
There is no ultimate controlling party.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
FR LFLLBFFLZFBD
(END) Dow Jones Newswires
November 02, 2021 03:00 ET (07:00 GMT)
Feedback (LSE:FDBK)
Historical Stock Chart
Von Jun 2024 bis Jul 2024
Feedback (LSE:FDBK)
Historical Stock Chart
Von Jul 2023 bis Jul 2024
