FEEDBACK PLC — Interim / Quarterly Report 2015

Feb 13, 2015

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RNS Number : 8129E

Feedback PLC

13 February 2015

FEEDBACK PLC

Feedback plc

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

Interim Report for the six months ended 30 November 2014

Chairman's Statement

We are pleased to present the results for the six months ended 30 November 2014. This is the first set of results that includes the trading of the two medical imaging companies, Cambridge Computed Imaging Limited ('CCI') and TexRAD Limited, (TexRAD) acquired in May 2014.

Revenue for the six month period was £229,000 (2013: non trading) and the loss after tax was £219,000. (2013: loss of £471,000). The loss before interest, tax and amortisation was £138,000 (2013: Loss £471,000). The cash balance at 30 November 2014 was £268,000, (2013: £696,000) which was after the payment of certain overdue creditors totalling £189,000 owed by CCI.

During this period, significant progress has been made with CCI achieving ISO 13485, the International Standard relating to quality management systems for organisations involved in the manufacture of medical devices.

TexRAD has been granted a European patent. The Group continues to make progress towards the launch later this year of a commercial version of its TexRAD software for the pharmaceutical trials market which is expected to be achieved following 21 CFR 11 self certification in the second quarter of 2015. We will continue to work with our distributor to gain momentum in this market.

The FDA approval application for the Group's software systems has been a more difficult process than anticipated due to the new procedures. We anticipate that the application will be made during the second quarter of 2015.

The Group has invested in people over the period. Two new staff were appointed during the six months under review, with a further two joining before the year end to prepare the business for commercial sales of the products.

We continue to look to develop the Group's presence in the medical imaging sector through acquisitions and collaborations with research institutions. We can offer software systems and regulatory assistance for new medical imaging techniques which will assist the process of bringing them to market.

2015 is expected to be a year of transition for the Company as it moves from development to commercialisation with its TexRAD product.

Simon Barrell

Chairman

Enquiries:

Feedback plc
Simon Barrell Tom Charlton Trevor Brown Tel: 01954 718072
Sanlam Securities UK Limited (Nominated adviser)
Simon Clements/Virginia Bull Tel: 020 7628 2200

UNAUDITED CONSOLIDATED INCOME STATEMENT

		6 months to 30 November 2014	6 months to 30 November 2013	Year to 31 May 2014
		£'000	£'000	£'000
Revenue		229	-	7
Cost of sales		(42)	-	-
Gross profit		187	-	7
Other operating expenses		(415)	(114)	(314)
Costs associated with the acquisition of subsidiaries		-	-	(164)
Total operating expenses		(415)	(114)	(478)
Operating loss		(229)	(114)	(471)
Losses on disposal of discontinued operations		-	-	-
Finance costs		-	(8)	-
Loss before tax		(229)	(122)	(471)
Tax credit/(expense)		10	-	-
Loss for the period attributable to the equity shareholders of the parent Loss on ordinary activities after tax		(219)	(122)	(471)
Other comprehensive income/(expense)
Translation differences on overseas operations		-	(14)	(3)
Total comprehensive expense for the period		(219)	(136)	(474)
Basic and diluted earnings per share	2	(0.011p)	(0.09p)	(0.27p)

UNAUDITED INTERIM CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

	Share Capital	Share Premium	Capital Reserve	Retained Earnings	Translation Reserve	Convertible Debt Option Reserve	Total
	£'000	£'000	£'000	£'000	£'000	£'000	£'000
Balance at 31 May 2013	327	851	300	(510)	(207)	-	761
Total comprehensive income for the period	-	-	-	(122)	(14)	-	(136)
Balance at 30 November 2013	327	851	300	(632)	(221)	-	625
New shares issued	150	598	-	-	-	-	748
Costs associated with the raising of funds	-	(40)	-	-	-	-	(40)
Share option and warrant costs	-	-		14	-	-	14
Convertible debt raised in the year	-	-	-	-	-	189	189
Total comprehensive expense for the period	-	-	-	(349)	11	-	(338)
Balance at 31 May 2014	477	1,409	300	(967)	(210)	189	1,198
Share option and warrant costs	-	-	-	3	-	-	3
Total comprehensive income for the period	-	-	-	(219)	-	-	(219)
Balance at 30 November 2013	477	1,409	300	(1,183)	(210)	189	982

UNAUDITED CONSOLIDATED BALANCE SHEET

		30 November 2014	30 November 2013	31 May 2014
		£'000	£'000	£'000
## ASSETS
## Non-current assets
## Property, plant and equipment		6	-	1
## Intangible assets		839	-	848
		845	-	849
## Current assets
## Trade receivables		160	-	87
## Other receivables		73	17	121
## Cash and cash equivalents		268	696	874
		501	713	1,082
## Total assets		1,346	713	1,931
## EQUITY
## Capital and reserves attributable to the Company's equity shareholders
## Called up share capital		477	327	477
## Share premium account		1,409	851	1,409
## Capital reserve		300	300	300
## Translation reserve		(210)	(221)	(210)
## Retained earnings		(1,183)	(632)	(967)
		798	625	1,009
## Convertible debt option reserve		189	-	189
## Total equity		982	625	1,197
## LIABILITIES
## Non-current liabilities
## Deferred tax liabilities		70	-	80
## Current liabilities
## Trade payables		81	66	225
## Other payables		213	22	428
		294	88	653
## Total liabilities		364	88	733
## Net assets		1,346	625	1,931

UNAUDITED CONSOLIDATED CASH FLOW STATEMENT

	6 months to 30 November 2014	6 months to 30 November 2013	Year to 31 May 2014
	£'000	£'000	£'000
## Cash flows from operating activities
## Loss before tax	(229)	(122)	(471)
## Adjustments for:
## Cost of acquisition of subsidiaries	-		164
## Share option and warrant charges	3	-	-
## Finance charges	-	8	-
## Depreciation and amortisation	91	-	-
## Foreign exchange difference	-	(14)	3
## (Increase)/decrease in trade receivables	(72)	-	-
## Decrease/(increase) in other receivables	49	(2)	(80)
## (Decrease)/increase in trade payables	(145)	(36)	57
## Decrease in other payables	(217)	(412)	(155)
	(291)	(456)	(11)
## Net cash used in operating activities	(520)	(578)	(482)
## Cash flows from investing activities
## Purchase of tangible fixed assets	(6)	-	-
## Purchase of intangible assets	(80)	-	-
## Proceeds from sale of assets held for resale	-	940	940
## Cash received on purchase of subsidiaries	-	-	65
## Cash paid on acquisition of subsidiaries	-	-	(31)
## Cash on acquisition of subsidiaries including costs	-	-	(164)
## Net cash (used in)/generated from investing activities	(86)	940	810
## Cash flows from financing activities
## Interest paid	-	(8)	-
## Loan repayment	-	-	(245)
## Equity based loan received	-	-	189
## Net proceeds from share issue	-	-	260
## Net cash generated from financing activities	-	(8)	204
## Net movement in cash and cash equivalents	(606)	354	532
## Cash and cash equivalents at beginning of period	874	342	342
## Cash and cash equivalents at end of period	268	696	874

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 2015. The accounting policies are unchanged from the financial statements for the year ended 31 May 2014.

The information set out in this interim report for the six months ended 30 November 2014 does not comprise statutory accounts within the meaning of section 434 of The Companies Act 2006. The results for the period ended 31 May 2014 are based on the published accounts for that period on which the auditors gave a report which did not contain statements under section 498 of the Companies Act 2006.  The accounts for the period ended 31 May 2014 have been filed with the Registrar of Companies.

This interim report was approved by the directors on 13 February 2014.

2              LOSS PER SHARE

.      

Basic earnings per share is calculated by reference to the loss on ordinary activities after and on the weighted average of shares in issue.

		As at 30 November 2014	As at 30 November 2013	As at 31 May 2014
		£'000	£'000	£'000
Net loss attributable to ordinary equity holders		(219)	(122)	(471)
		As at 30 November 2014	As at 30 November 2013	As at 31 May 2014
Weighted average number of ordinary shares for basic earnings per share		190,746,746	130,946,746	132,912,773
Effect of dilution:
Share Options		-	-	-
Warrants		-	-	-
Weighted average number of ordinary shares adjusted for the effect of dilution		190,746,746	130,946,746	132,912,773
Loss per share (pence)
Basic		(0.11)	(0.09)	(0.35)

3              INTANGIBLE ASSETS

	Software	Customer relationships	Patents	Goodwill	Total
	£'000	£'000	£'000	£'000	£'000
Cost
At 31 May 2013	-	-	-	-	-
Additions	-	-	-	-	-
Disposed on sale of subsidiary	-	-	-	-	-
	-	-	-	-	-
At 30 November 2013
Additions	20	-	-	-	20
Acquired with subsidiary	415	100	41	272	828
At 31 May 2014	435	100	41	272	848
Additions	64	-	16	-	80
At 30 November 2014	499	100	57	272	928
Amortisation
At 31 May 2013	-	-	-	-	-
Charge for the period	-	-	-	-	-
	-	-	-	-	-
At 30 November 2013
Charge for the period	-	-	-	-	-
At 31 May 2014	-	-	-	-	-
Charge for the period	73	13	4	-	90
As at 31 November 2014	73	13	4	-	90
Net Book Value
30 November 2014	426	87	53	272	838
At 31 May 2014	435	100	41	272	848
At 30 November 2013	-	-	-	-	-

4              AVAILABILITY OF THE INTERIM REPORT

Copies of the report will be available from the Company's office and also from the Company's website www.fbk.com

This information is provided by RNS

The company news service from the London Stock Exchange

END

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