FEEDBACK PLC — Interim / Quarterly Report 2013

Feb 25, 2013

National Storage Mechanism | Additional information

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RNS Number : 5227Y

Feedback PLC

25 February 2013

FEEDBACK PLC

Feedback plc

("Feedback", the "Company" or the "Group")

Interim Report for the six months ended 30 November 2012

KEY POINTS

·      Turnover £0.97 million (2011 continuing operations - £0.99 million)

·      Loss before tax £0.29 million (2011 - Profit before tax £0.35 million)

·      Loss per share 0.22p (2011 - Earnings per share 0.30p)

Results for the first half of the year reflect the continuing challenge of restructuring the Group in tight market conditions whilst we remain bound by the constraints of the Group's working capital requirements.

Reducing overheads has been a primary concern and this led to a significant restructuring during the period under review - hardware development, production and certain customer support functions have now all been outsourced.

Against this challenging background, we have had some success with our strategy of focusing on the two markets that show the greatest promise and enhancing our hardware products with a more compelling software proposition through our cloud based Fastlane platform ("Fastlane"). In our established Access Control market, our commitment to providing a total service continues to generate sales and recurring maintenance income. In the Attendance market, our Nohmad product, now fully integrated with Fastlane, is being used by customers in the UK, Europe and Australasia and has been the key to opening new customer relationships.

After a period of considerable change, I'm pleased to report that current trading is showing signs of stabilising. However, we recognise the challenges and constraints within which we operate and we continue to explore all opportunities to maximise shareholder value and realise our strategic goals.

Nick Shepheard

Chairman and Chief Executive

25 February 2013

Enquiries:

Feedback plc
Nick Shepheard	Tel: 0845 3379 155
Merchant Securities Limited
Simon Clements	Tel: 020 7628 2200

UNAUDITED CONSOLIDATED INCOME STATEMENT

		6 months to 30 November 2012	6 months to 30 November 2011	Year to 31 May 2012
		£'000	£'000	£'000
Revenue		976	4,100	7,046
Cost of sales		(519)	(2,363)	(4,598)
Gross profit		457	1,737	2,448
Other operating expenses		(750)	(1,389)	(2,862)
Operating (loss)/profit		(293)	348	(414)
Losses on disposal of discontinued operations		-	-	(1,369)
Finance costs		(26)	-	(13)
(Loss)/profit before tax		(319)	348	(1,796)
Tax credit/(expense)		21	(1)	(23)
(Loss)/profit for the period attributable to the
equity shareholders of the parent		(298)	347	(1,819)
Other comprehensive income
Translation differences on overseas operations		-	9	10
Total comprehensive (expense)/income for the period		(298)	356	(1,809)
Basic and diluted (loss)/earnings per share	2	(0.22p)	0.30p	(1.47p)

UNAUDITED INTERIM CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

	Share	Share	Capital	Retained
	Capital	Premium	Reserve	Earnings	Total
	£000	£000	£000	£000	£000
Balance at 31 May 2011	273	633	300	1,443	2,649
Total comprehensive income for the period	54	218	-	356	628
Balance at 30 November 2011	327	851	300	1,799	3,277
Total comprehensive expense for the period	-	-	-	(2,165)	(2,165)
Balance at 31 May 2012	327	851	300	(366)	1,112
Total comprehensive income for the period	-	-	-	(298)	(298)
Balance at 30 November 2012	327	851	300	(664)	814

UNAUDITED CONSOLIDATED BALANCE SHEET

		30 November 2012	30 November 2011	31 May 2012
		£'000	£'000	£'000
## ASSETS
## Non-current assets
## Held for sale		1,050	-	1,050
## Property, plant and equipment		40	1,490	73
## Intangible assets		270	738	330
## Deferred tax asset		-	133	-
		1,360	2,361	1,453
## Current assets
## Inventories		280	1,468	316
## Trade receivables		404	1,265	343
## Other receivables		42	309	160
		726	3,042	819
## Total assets		2,086	5,403	2,272
## LIABILITIES
## Non-current liabilities
## Deferred tax liabilities		65	199	86
## Current liabilities
## Trade payables		229	707	228
## Other payables		709	776	688
## Bank overdrafts		269	444	158
		1,207	1,927	1,074
## Total liabilities		1,272	2,126	1,160
## Net assets		814	3,277	1,112
## EQUITY
## Capital and reserves attributable to the Company's equity shareholders
## Called up share capital		327	327	327
## Share premium account		851	851	851
## Capital reserve		300	300	300
## Retained earnings		(664)	1,799	(366)
## Total equity		814	3,277	1,112

UNAUDITED CONSOLIDATED CASH FLOW STATEMENT

	6 months to 30 November 2012	6 months to 30 November 2011	Year to 31 May 2012
	£'000	£'000	£'000
## Cash flows from operating activities
## (Loss)/profit before tax	(319)	348	(1,796)
## Adjustments for:
## Loss on disposal of subsidiary	-	-	802
## Impairment provision against property	-	-	274
## Finance charges	-	-	13
## Depreciation and amortisation	115	204	508
## Foreign exchange difference	-	9	(10)
## Decrease/(increase) in inventories	36	(438)	(310)
## (Increase)/decrease in trade receivables	(61)	(335)	212
## Decrease/(increase) in other receivables	118	(76)	42
## Decrease/(increase) in trade payables	1	(202)	(286)
## Decrease/(increase) in other payables	21	(41)	434
## Net cash used in operating activities	(89)	(531)	(117)
## Cash flows from investing activities
## Purchase of tangible fixed assets	-	(36)	(51)
## Purchase of intangible assets	(22)	(158)	(258)
## Net cash used in investing activities	(22)	(194)	(309)
## Cash flows from financing activities
## Interest paid	-	-	(13)
## Proceeds from issuance of ordinary shares	-	272	272
## Net cash generated from financing activities	-	272	259
## Net movement in cash and cash equivalents	(111)	(453)	(167)
## Cash and cash equivalents at beginning of period	(158)	9	9
## Cash and cash equivalents at end of period	(269)	(444)	(158)

FEEDBACK PLC

NOTES TO THE UNAUDITED INTERIM REPORT

1.         BASIS OF PREPARATION

The consolidated interim financial statements have been prepared in accordance with the recognition and measurement principles of International Financial Reporting Standards as endorsed by the European Union ("IFRS") and expected to be effective at the year end of 31 May 2013. The accounting policies are unchanged from the financial statements for the year ended 31 May 2012.

The information set out in this interim report for the six months ended 30 November 2012 does not comprise statutory accounts within the meaning of section 434 of The Companies Act 2006. The results for the period ended 31 May 2012 are based on the published financial statements for that period on which the auditors gave a report which did not contain statements under section 498 of the Companies Act 2006.  The financial statements for the period ended 31 May 2012 have been filed with the Registrar of Companies.

This interim report was approved by the directors on 25 February 2012.

2.         GOING CONCERN

The current situation and outlook cast significant doubt on the Group's ability to continue as a going concern. Based on current plans however, the Directors consider that the Group is a going concern and have prepared the interim financial statements on a going concern basis. The interim financial statements therefore do not include any adjustments that would result if the Group was unable to continue as a going concern. In the event the Group ceased to be a going concern, the adjustments would include writing down the carrying value of assets, including intangible assets and inventories, to their recoverable amount and providing for any further liabilities that might arise.

3.      EARNINGS PER SHARE

The earnings per share for the six months ended 30 November 2012 is based on the Group loss on ordinary activities after taxation of £298,000 (2011: Profit £347,000) attributed to the weighted average of 130,946,746 Ordinary Shares (2011: 130,946,746), being the weighted average number of shares in issue

INDEPENDENT REVIEW REPORT TO FEEDBACK PLC

Introduction

We have been engaged by the Company to review the condensed set of financial statements in the interim financial report for the six months ended 30 November 2012 which comprises the Consolidated Income Statement, the Consolidated Statement of Changes in Equity, the Consolidated Balance Sheet, the Consolidated Cash Flow Statement and the Notes to the Unaudited Interim Report.  We have read the other information contained in the interim financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.

This report, including the conclusion, has been prepared for and only for the Company for the purpose of meeting the requirements of the AIM Rules for Companies and for no other purpose.  We do not, therefore, in producing this report, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.

Directors' Responsibilities

The interim financial report, is the responsibility of, and has been approved by the directors.  The directors are responsible for preparing and presenting the interim financial report in accordance with the AIM Rules for Companies.

As disclosed in note 1, the annual financial statements of the Group are prepared in accordance with International Financial Reporting Standards and International Financial Reporting Interpretations Committee ("IFRIC") pronouncements as adopted by the European Union.  The condensed set of financial statements included in this interim financial report has been prepared in accordance with the measurement and recognition criteria of International Financial Reporting Standards and International Financial Reporting Interpretations Committee ("IFRIC") pronouncements, as adopted by the European Union.

Our Responsibility

Our responsibility is to express to the Company a conclusion on the condensed set of financial statements in the interim financial report based on our review.

Scope of Review

We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Auditing Practices Board for use in the United Kingdom.  A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures.  A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Emphasis of matter - Going concern

In forming our opinion, which is not modified, we have considered the adequacy of the disclosure made in note 2 to the interim financial statements concerning the Group and company's ability to continue as a going concern.  These conditions, along with the loss incurred in the period to date indicate the existence of a material uncertainty which may cast significant doubt about the Group's and Company's ability to continue as a going concern. The interim financial statements do not include the adjustments that would result if the Group and Company were unable to continue as a going concern.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the interim financial report for the six months ended 30 November 2012 is not prepared, in all material respects, in accordance with the measurement and recognition criteria of International Financial Reporting Standards and International Financial Reporting Interpretations Committee ("IFRIC") pronouncements as adopted by the European Union, and the AIM Rules for Companies.

haysmacintyre

Chartered Accountants

Fairfax House

15 Fulwood Place

London

WC1V 6AY

25 February 2013

This information is provided by RNS

The company news service from the London Stock Exchange

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