Feedback PLC (AIM:FDBK) said in its interim results that the full-year outlook is expected to be ahead of market expectations.
The company, which has developed a toolkit of clinical communications apps, said its decision to switch its strategic focus to its Bleepa product line is paying off, with revenues in the six months to the end of November up 9% on the same period of 2020 at £179,000 (2020: £165,000), despite revenues from legacy products such as Cadran and Texrad declining.
“Taking into account this progress with Bleepa and renewal of a significant legacy product contract in December 2021, trading for the full year is expected to be ahead of market expectations,” the company revealed.
Operating expenses increased by 25% in the reporting period to £1.36mln from £1.08mln, primarily due to increased headcount to drive the development and rollout of Bleepa.
As a result, the underlying loss (excluding depreciation and amortisation) widened to £1.03mln from £916,000 the year before.
The gross margin fell to 67% from 99% in the corresponding period of 2020 as the group increased its operational team ahead of the anticipated growth in revenues, and due to one-off costs in the period related to the installation and integration of Bleepa and Bleepa Boxes at a new customer; such costs are typically incurred in the first year of a customer contract only.
Cash at the end of November stood at £11.4mln, up from £3.8mln a year earlier after the group’s oversubscribed placing in November.
“In 2021 we achieved sales of our clinical communication platform Bleepa in both the NHS and veterinary sectors, confirming the value proposition of our technology. Building on this success we have further evolved our product offering to help us deliver this mission while maintaining our sales focus into individual NHS Trusts and expanding our focus to capture benefits of asynchronous communication to regional care delivery,” said Tom Oakley, the chief executive officer of Feedback.
"Following our oversubscribed equity raise in late November we now have a robust balance sheet that will allow us to take on these key opportunities in the NHS and in India simultaneously. Both opportunities are substantial and are generating a number of partnership opportunities, as proven by the post-period partnership with AWS [Amazon Web Services] and developments in Orissa and Sussex ICS. We look forward to a busy H2 as we deliver initial pilots for both opportunities and build towards commercial contracts in these large addressable markets. We remain extremely excited about our prospects with trading for the full year expected to be ahead of market expectations,” he added.