Feedback's revenue rises as it expands in Asia

Software company Feedback, which specialises in medical imaging tools, reported a rise in revenue while losses after tax narrowed as it expands its texture analysis software in Asia.

For the year ended 31 May, revenue increased 13% to £431,454, compared to last year while loss after tax narrowed by 83.5% to £183,156.

Cash as at the end of May was £105,673, up 67% from last year, while cash at 13 October was £94,629. Cash generation was been better than anticipated reflecting payments from customers in respect of purchase orders before revenue is recognised.

Cambridge Computed Imaging business performed steadily during the year as it continued to serve established customers.

Revenue from the research version of TexRAD, texture analysis software was higher than the previous year, while in line with expectations, there was a reduction in new purchase orders for TexRAD research versions during the year although there was interest from research institutions looking to obtain grant funding.

The company has also signed agreements with companies in Japan and South Korea to explore further selling opportunities in these markets for TexRAD research versions.

In November 2015 the company signed a memorandum of understanding with Alliance Medical Group to integrating Feedback's TexRAD texture analysis software into Alliance's PET-CT lung cancer imaging service for use in hospitals with the next step applying for a CE European certification.

During the year the company formed two joint venture companies, Stone Checker Software, which the company sold 50% to Free Association Books in May for £45,000, and Prostate Checker to develop solutions where routine medical images can provide useful information for clinicians.

Chairman Dr Alistair Riddell said: “The high level of purchase orders for TexRAD research versions which have been received after the year end should lead to a substantial increase in revenue in the second half of the 2016/17 year and growth in revenue for the year as a whole.

“We believe there will be opportunities to make further sales of TexRAD research versions in China by partnering with a company with a strong local presence. We are also considering other business relationships which could increase sales of TexRAD research versions in other territories. In addition to the TexRAD sales, Feedback now has the opportunity to grow its revenues through the collaboration with Future Processing and the development of a CE marked product for analysis of lung PET/CT images. We will look at investing in product development, regulatory and marketing resource to support our very positive growth prospects.”

Shares in Feedback were up 4% to 1.95p at 0905 BST.