Feedback FY revenues slip amid 'difficult year' for healthcare sector

Medical imaging technology company Feedback said on Tuesday that full-year trading had met management expectations despite a decline in annual revenues, with the group securing its first commercial contract for its flagship product Bleepa despite 2020 being "a difficult year" for the healthcare sector.

Feedback stated that many of its customers had been "overwhelmed" by Covid-19, noting that on one hand the pandemic had "strongly demonstrated" the need for its technology but admitted it had also "made it very difficult" to engage customers who were "understandably focused" on initially treating acute patients and subsequently implementing the UK's national vaccine programme.

The AIM-listed group said it was now seeing "increased interest" for Bleepa as NHS organisations emerge from the acute Covid-19 response and were beginning to focus on solutions that could help them address "the growing backlog of elective and cancer care cases", as well as solutions that can facilitate "more robust communication" ahead of any further waves of the coronavirus.

Subject to completion of its audit, Feedback expects revenues for the year ended 31 May of approximately £280,000, down from £450,000 in the prior year but noted that it has now started to recognise revenue from its new Bleepa product line in the current financial year.

"Although sales have declined compared to the last financial year, largely as a result of the reduction in TexRAD sales, the move to Bleepa has also seen the average contract value increase, generating better margins per sale. This will enable the company to drive revenue going forward," said Feedback.

As of 1120 BST, Feedback shares were down 5.12% at 0.97p.