First-half losses widen as Feedback shifts focus

(Sharecast News) - Medical imaging technology company Feedback released its unaudited results for the six months ended 30 November, reporting a 14% improvement in recognised revenue to £0.27m.

The AIM-traded firm said its loss after tax for the period totalled £0.6m, widening from £0.37m, which the board put down to recruitment to service new opportunities and launch its flagship product, 'Bleepa'.

It reported increased investment in software development at £0.3m, up from £0.11m, and said its loss before interest, tax and amortisation widened to £0.68m from £0.4m year-on-year.

Cash as at 30 November stood at £1.53m, compared to £1.37m, following the equity fundraise in August, which raised £2m before expenses.

On the operational front, Feedback said the completion of its strategic review in the period drove focus on the Cadran portfolio, and it also highlighted the development and launch of its new flagship product, Bleepa.

It said the new app enabled clinicians to review medical grade images on devices, and allowed clinician-to-clinician communications, in a bid to enable "better and faster" treatment for patients.

The product was launched at the NHS Expo in September, to what the firm described as "strong interest" from clinicians and healthcare professionals.

It said the first pilot study was now underway with Pennine Acute Hospitals NHS Trust, with positive early indications that average time to inpatient referral had more than halved with Bleepa.

Feedback said it was "secure" and GDPR-compliant in terms of patient data.

The company said its 'TexRAD' product was still being sold within the research setting through third party distributors.

Post-period end, the firm completed a Cadran licence agreement with Imaging Engineering to support installation and refitting of modernised fluoroscopy equipment across the United States.

It also strengthened its board, with Rory Shaw becoming chairman as Alastair Riddell stepped down.

Also since the period ended, the company appointed Adam Denning, a former assistant technical advisor to Bill Gates, as a non-executive director.

"We have deliberately changed the company's strategy to focus on the Cadran portfolio and transition into the emerging mobile medical market; this strategy is already bearing fruit," said chief executive officer Tom Oakley.

"During the past six months, we completed the development of our new flagship product, Bleepa.

"Following its launch in September at the NHS Expo, we have received significant interest and entered our first pilot study within an NHS setting, from which early indications show great promise."

Dr Oakley said the company believed Bleepa had the potential to "revolutionise" the way clinicians were able to communicate with each other, and advance treatment of their patients quickly.

"Further evidence of the new strategy gaining traction is our first commercial contract of the Cadran platform outside of the NHS.

"With growing momentum and the strengthening of our board with the appointment of Adam Denning, 2020 is looking to be a promising year for Feedback."

At 1403 GMT, shares in Feedback were flat at 0.85p.