One AIM Listed Industrial Stock Trending on LSE  - Feedback PLC (FDBK)

  • Jul 29, 2020 BST
  • Team Kalkine
One AIM Listed Industrial Stock Trending on LSE  - Feedback PLC (FDBK)

Summary

  • The European banking watchdog asked the banks using the UK as a gateway to the EU to fully execute plans before a Brexit to serve the European Union
  • The Bank of England reported that the UK lenders approved 40,010 loans in June to buy homes. In May 2020, only 9,273 loans were approved.
  • Feedback PLC raised close to £5.27 million through placement shares and open offer.
  • Feedback PLC renewed contract with Royal Papworth Hospital NHS Foundation Trust.

Given the above-market condition, we would review a industrials stock - Feedback PLC (LON: FDBK). Based on 1- year performance, FDBK is down by about 40.75 percent (as on 29 July 2020 before the market close at 3:00 PM GMT+1). Let’s review the financial and operational performance to understand the stock better.

Feedback PLC (LON: FDBK) – Launched the product Bleepa®

Feedback PLC is a UK based company that provides software and systems used in medical imaging technology. The medical researchers, clinicians and radiologists use the Company’s products. The products of Feedback include TexRAD, CADRAN and Bleepa®. The Company is headquartered in London, and it is included in the FTSE AIM-All Share index. Total outstanding market capitalization of FDBK stood at around GBP 9.60 million.

Recent Events

  • 1 July 2020, the Company reported that it raised close to £5.27 million through placement shares and open offer. Feedback raised £5.05 million via placing 505,000,000 new shares on 15 June 2020, whereas raised £219,817 through the open offer of 21,981,769 shares. The new shares were issued at 1 pence per share. The funds would be used for the development of the product Bleepa®.
  • 1 June 2020, the Company received CE mark for Bleepa®, which confirms the use of Bleepa® as a Class 1 Medical Device.
  • 21 May 2020, Royal Papworth Hospital NHS Foundation Trust renewed the contract with Feedback. The contract renewal includes 14-months service of Cadran PACS to the trust for core medical imaging services use of Bleepa® as an upgrade to Cadran Web Viewer.

Bleepa® a newly launched product

Bleepa® is an instant messaging service that provides access to clinical-grade Picture Archiving and Communications System (PACS) images. The clinical grade images such as X-rays, CT and MRI scans can be viewed using the app on smartphones and tablets. Pennine Acute Hospitals NHS Trust and Royal Papworth Hospital NHS Foundation Trust are currently using CE marked Bleepa®. The app was launched at NHS Expo 2019 in September 2019 and recently achieved CE mark that would support in the commercialization of the product. The CE marking is compulsory under the UK and Europe law for products that are used to display digital patient images. The image viewer is used for the discussion meets, and MHRA has guided hospitals and clinicians to use medical devices with CE mark. MHRA with the CE mark would be at the user’s own risk, and the companies could be liable for civil claims for damages in case of any incident.

Interim Results for the six months (ended 30 November 2019) as reported on 18 February 2020

In H1 FY2020, the Company reported revenue of £269,000, which was up by 14 per cent year on year from £236,000 a year ago. The gross profit improved to £265,000 in H1 FY20 from £235,000 in H1 FY19. The loss before interest, tax and amortization was £684,000, whereas loss after tax was £603,000 in H1 FY20. The Company invested £301,000 in software development during the reported period. The Company launched the signature product Bleepa® in H1 FY20. The Group received a tax credit of £88,000 in H1 FY20. The Company reported a loss per share of 0.13 that was same as last year. As on 30 November 2019, the Company had cash balance of £1.9 million and total assets stood at £2.6 million as compared to £1.9 million as on 30 November 2018 . The cash flow from operating activities was £137,000.

Partnership with Imaging Engineering LLC

The Company entered a commercial partnership with Imaging Engineering LLC. Imaging Engineering is a US-based specialist technology provider that helps in the installation and reequipping of modernized fluoroscopy equipment. The Company completed the strategic review of the Cadran portfolio, under which it would offer core software to manage the Insight Essentials. The operation would include image capture through data management to the Digital Imaging and Communications in Medicine (DICOM) network. The product of the Company would focus on the extensive range Imaging Engineering initiative that would update the fluoroscopy equipment across the US, with an initial focus on 200 provider sites. The subsidiary of the Company would receive a license fee for every installation performed by Imaging Engineering. The Company does not have any commitment other than providing and maintaining software under this license.

Financial Summary for six months ended 30 November 2019

(Source: Company Website)

Share Price Performance Analysis

1-Year Chart as on July-29-2020, before the market close (Source: Refinitiv, Thomson Reuters)

Feedback PLC’s shares were trading at GBX 1.08, up by about 20 per cent from the last closing price (as on 29 July 2020 before the market close at 3:00 PM GMT+1). Stock 52-week High and Low were GBX 2.14 and GBX 0.30, respectively. The Company had a market capitalization of about £9.60 million. Trailing twelve months earning per share was negative 0.0029.

Business Outlook

The Company would focus on converting the NHS trusts to paying customers of product Bleepa®. The other key attention would be to work with strategic partners for developing growth opportunities. Feedback would also engage in the functionality development of Bleepa® for non-healthcare usage. It would expand the direct and indirect sale channels along with seeking international expansion opportunities. Feedback plans to expand Bleepa®’s footprint across the UK and abroad. The Company would engage in active communication with the Trusts and organizations that are unknowingly using uncertified tools for patient image viewing. The usage of uncertified devices exposes to civil claims. The Company would ensure the roll-out of the regulated communication platform.

 

 

 


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