18th Feb 2020 10:54
(Alliance News) - Feedback PLC on Tuesday reported a widened loss in the first half as the company's expenses rose sharply on a shift in strategy.
For the six months to November 30, the medical imaging technology firm recorded a pretax loss of GBP691,000, widened from a GBP407,000 loss seen in the same period the year before.
Revenue was up 14% year-on-year to GBP269,000 from GBP236,000, but Feedback's operating expenses rose 49% to GBP956,000 from GBP642,000.
The rise in expenses was attributed to the company launching its new flagship product, Bleepa - a clinical messaging app. Feedback also noted it has completed a strategic review of its Cadran imaging device portfolio.
"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," Chief Executive Tom Oakley said.
He continued: "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. We believe that Bleepa has the potential to revolutionise the way clinicians are able to communicate with each other and advance treatment of their patients, quickly."
Looking ahead, Feedback said its new strategy is expected to generate higher recurring revenue, as it moves away from a traditional software sales model towards a software as a service model.
"We believe the new strategy and subsequent development of Bleepa has transformed the company," Feedback said.
The company said the results from its Bleepa pilot study should be available in the coming months, which it hopes to convert into "meaningful contracts".
"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," Oakley added.
Shares in Feedback were 5.3% lower in London on Tuesday at 0.81 pence each.
By Paul McGowan; paulmcgowan@alliancenews.com
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