RNS
Feedback PLC

Feedback PLC - Final Results: Revenue up 23%

RNS Number : 9921Q
Feedback PLC
24 October 2019
 

 

Feedback plc

 

Final Results for the year to 31 May 2019: Revenue up 23%

 

Cambridge, UK, 24 October 2019 - Feedback plc (AIM: FDBK, "Feedback" or the "Company"), the specialist medical imaging technology company, announces its full year results for the year to 31 May 2019.

 

Operational highlights (including post period end)

●      Partnership agreement with software development partner, Future Processing, in January 2019

●      Appointment of Dr Tom Oakley as CEO in April 2019

●      Strategic review of Cadran completed, TexRAD review underway

●      Development and launch of Bleepa, a new secure, encrypted medical communication app for clinicians, based on Cadran technology

●      TexRAD achieved new contracts from Korea and the USA.

 

Financial summary (including post period end)

●      Reported revenue up 23% to £563,092 (FY2018: £458,389) driven from existing product lines

●      Loss before tax of £1.13 million (FY2018: £0.75) due to changes in accounting practices and increased investment in staff as the Company gears up to deliver its new products and strategic direction

●      Equity fundraises in November 2018 and August 2019 raised total of £3.375m before expenses, from new and existing investors

●      Healthy cash balance as at 31 May 2019

 

Dr Tom Oakley, CEO of Feedback plc, commented:

 

"This has been a transformational year for Feedback and we believe that we have the technology and strategy to make a meaningful change in the medical imaging and communications market. Following successful fundraises, we are well positioned to continue to build our team and capabilities to support the roll-out of Bleepa, both in the UK and further afield. We look forward to driving further future growth from this significant opportunity."

 

Enquiries:

 

Feedback plc

Tom Oakley, CEO

Lindsay Melvin, CFO

 

+44 (0)1954 718072

IR@fbk.com

Allenby Capital Limited (Nominated Adviser)

David Worlidge / Asha Chotai

 

+44 (0)20 3328 5656

Peterhouse Capital Ltd (Joint Broker)

Lucy Williams / Duncan Vasey

 

+44 (0)20 7469 0936

Stanford Capital Partners Limited (Joint Broker)

Patrick Claridge / John Howes

 

Instinctif Partners

Rozi Morris / Phillip Marriage

+44 20 3815 8880

 

 

+44 (0)20 7457 2020

feedbackplc@instinctif.com

 

 

About Feedback plc

Feedback plc (AIM: FDBK) is a specialist medical imaging technology company providing innovative software and systems, through its fully-owned trading subsidiary, Feedback Medical Limited. Its products advance the work of radiologists, clinicians and medical researchers by improving workflows and giving unique insights into diseases, particularly cancer.

 

Feedback has launched Bleepa, a new secure, encrypted medical communication app for clinicians accessible through smartphones, tablets and desktops that facilitates rapid clinical messaging and review of medical grade imaging for all members of a clinical team, directly from a hospital Picture Archiving and Communications System (PACS). For more information on Bleepa, see www.bleepa.com 

 

 

Chairman's Statement

 

In my last report of November 2018, I indicated that we had increased our efforts to recruit a new CEO.
I recruited Dr Tom Oakley in December, initially to undertake a comprehensive review of all of our TexRAD publications and Cadran's potential. His thorough professional and clinical analysis of these and the conclusions reached convinced both of us of the merits of him assuming the role of CEO for Feedback Medical Ltd in February 2019. The clinical review evolved into a strategic business review and directional change. Tom demonstrated very quickly his vision, commercial awareness and management drive and the Board was pleased to promote him to being CEO of Feedback plc in April 2019.

 

He has galvanised the operational team and focused efforts on the development and commercial launch of Bleepa, an evolution from Cadran. This exciting new product that is set to transform the group's potential for accelerated growth, was announced in July 2019. It will provide a secure platform for instant sharing via mobile devices by medical staff of clinical grade images and medical information that meets GDPR requirements.

 

Alongside the major management and strategic directional changes occurring during the period, commercial progress has continued. Revenue for the year ended 31 May 2019 was £563,092, an increase of 23% over the previous year (£458,389) after a flat year the year before. The loss before tax for the year ended 31 May 2019 was £1.13 million compared to £0.75 million in the prior year. TexRAD achieved new contracts from Korea and the USA. TexRAD Lung, the CE Marked clinical development of TexRAD research, was evaluated in two major pilot studies during the year which yielded important technical information that will assist future developments for its clinical utility. A strategic review by the CEO of TexRAD and its potential has commenced, with results to follow in the next few months.

 

On quality, we were pleased to announce a retention of our ISO 13485:2016 certification in November 2018, a mark of our continued focus on high standards.

 

The placing in November 2018 of £1.375 million enabled the appointment of a new CEO and other key hires. It also triggered the formal signing of our agreement with Future Processing, our software development partner in Poland, in January 2019. The dedicated resource we have been able to call on has been instrumental in progressing Bleepa to launch readiness in September 2019. Post year end, however, it was clear that to achieve the successful launch and market penetration of Bleepa more investment was required and Tom Oakley led the fundraise in August 2019 raising £2 million from existing and new investors, including institutional investors.

 

At the end of August 2019, we announced the appointment of Professor Rory Shaw as Deputy Chairman following his successful role as Medical Director of Feedback Medical Ltd. He will subsequently become Chairman following my retirement after the AGM. As I come to the end of more than three years as Chairman of Feedback plc I have to acknowledge the significant challenges we faced in bringing about the means to develop the full potential of the products that the founders of Cambridge Computed Imaging and TexRAD created. This required a strengthening of the board with industry experience, rationalising the corporate structure, securing adequate investment and the injection of new ideas and energy from our new CEO. He and Professor Shaw have demonstrated real synergy of ideas and enthusiasm in unlocking the possibilities for our technology. They now have the means to transform those ideas into commercial return for the Company and our shareholders.

 

Dr AJ Riddell

Chairman

23 October 2019

 

 

Financial summary

 

In the year to 31 May 2019, the recognised turnover increased by 23% over the previous year. 40% of the turnover is attributable to one customer. Overheads, especially employment costs, have increased in the year due to gearing up to deliver the new strategic direction as outlined below.

 

In line with International Financial Reporting Standards, Feedback's accounting policy is to spread the income from its software licence and support sales over the duration of the contract, usually one to two years. The Group's balance sheet contains a significant deferred revenue liability to reflect this.

 

In November 2018, the Company raised £1.375 million before expenses, by way of a placing and subscription of 91,666,666 new Ordinary Shares at a price of 1.5 pence per share with new and existing investors. The proceeds of this fundraise were invested in developing products and enhancing existing products, developing new markets for TexRAD - TexRAD now has customers in Portugal, Romania, Belgium, and the Czech-Republic.

 

In August 2019, the Company raised £2 million, before expenses, by way of a placing and subscription of 166,666,667 new Ordinary Shares at a price of 1.2 pence per share with new and existing investors. The proceeds from this fundraise will be invested to develop the innovative Bleepa product for UK and Worldwide usage as announced to shareholders in July 2019.

 

Operational cash flows have been satisfactory and reflect customer payments for new purchases and contracts before the periods in which the revenue is recognised. The share issue in November 2018 provided a healthy cash balance at the financial year end and has financed an acceleration in product development expenditure leading to increased intangible assets.

 

Operational review

 

Feedback Medical

Feedback Medical (FM Ltd) develops and sells Group's proprietary technologies - TexRAD, the quantitative texture analysis platform and Cadran, a Picture Archiving and Communication System (PACS).

 

TexRAD

The main focus on research and development has been creating products associated with Cadran technology. However, the Group has also been developing the Grey Level Co-Occurrence Matrix (GLCM) enhancement to its existing product range. This was finally achieved post year end. During the year, Feedback Medical's TexRAD product had sales in new countries including Portugal, Romania, Belgium and Czech-Republic.

 

Cadran

Cadran is Feedback's established Picture Archiving and Communications System (PACS) which facilitates the review of medical imaging studies by clinicians. TexRAD is typically installed on the Cadran picture archiving platform. Cadran PACS technology provides storage and display of medical images throughout a hospital. It has been used successfully at the Royal Papworth Hospital for over 15 years and a further two-year support contract renewal for the Cadran platform was announced in April 2018. During the year the Group successfully project managed the PACS migration from the Papworth Hospital site to the new Addenbrooke's site. Cadran is also installed in a number of NHS sites in the East of England.

 

The Cadran platform has significant potential to bring a competitive product offering to new global markets especially in developing economies. Cadran products can support the storage and viewing needs of individual clinicians right up to mid-scale hospital departments and specialist centres. It is a progressive and rigorously tested Class 1 medical device with a longstanding legacy of service at NHS institutions, such as the Royal Papworth Hospital. However, it is currently positioned in a competitive market that shows little opportunity for future growth.

 

Cadran's innovative features, such as the ability to view clinical grade medical images flexibly on mobile and personal devices, allow it to be repositioned to meet the needs of an emerging medical communications market, particularly in medical imaging.  The potential to improve the efficiencies and lives of medical professionals and patients alike, through more flexible, secure and accurate tools utilising the highest standards in global mobile communications.

 

According to an article in BMJ Innovations, 97% of hospital doctors routinely use WhatsApp to communicate about patients*. There is an increasing trend for clinicians to use personal devices to discuss patient care and make clinical decisions, as it is more convenient and efficient than traditional methods of clinical communication. Medical images are often shared as part of these chats as photos of computer screens, and do not meet diagnostic clinical standards. This raises a number of concerns with regard to safety of patient data, breaches of GDPR and the ability to make safe clinical decisions without using clinical grade medical images.

 

By incorporating a dedicated, encrypted messaging function to Feedback's existing Cadran technology, The Company has created a medical communication device capable of sharing clinical grade medical imaging directly from a hospital PACS to mobile devices, ensuring the safe handling of patient data and facilitating a secure means of communication for clinicians.

 

The repositioning of Cadran marks a shift away from a traditional software sales model towards a SaaS (software as a service) model which is anticipated to generate considerably higher recurring revenues for the Group and lead to a new phase of growth. With over 15 million doctors globally, Cadran is uniquely positioned to set new standards in this emerging, sizeable, medical communications market.

 

Having undertaken a period of market research alongside NHS clinicians, the Group has invested in the product enhancement of Cadran, and launched a new product, Bleepa, in September 2019. This rapid turnaround is possible because the core technical features of the product are already established within Cadran and required minimal enhancement by the Company's outsourced development partner, Future Processing.

 

Based on Feedback's Cadran technology, Bleepa is a secure, encrypted medical communication tool accessible through smartphones, tablets and desktops that facilitates rapid clinical messaging and review of medical grade imaging for all members of a clinical team, directly from a hospital Picture Archiving and Communications System (PACS). Bleepa enables faster clinical decision making between team members wherever they are, accelerating and improving patient care. Bleepa addresses growing concerns about these messaging platforms not meeting diagnostics clinical standards and regarding patient data protection. Continued use of non-specialist communication tools could leave both hospitals and individual clinical users significantly exposed and therefore open to the risk of litigation.

 

* O'Sullivan DM, O'Sullivan E, O'Connor M, et al WhatsApp Doc? BMJ Innovations 2017;3:238-239.

 

R&D progress

 

Feedback recognises the potential in developing new products from its existing technologies and expertise within software and machine learning. It is working closely with existing customers to identify unmet needs. To increase its software development capabilities the Group is continuing and expanding its collaboration with Future Processing to develop new imaging software products.

 

Last year Feedback started to capitalise development costs for writing off against income generated in future accounting periods. The Directors carefully consider what elements of this development expenditure will generate future economic benefits. This is based upon customer feedback on new products and product enhancements. This policy has continued during the current year.

 

Current trading and future developments

 

The Group's revised strategy was announced to shareholders in July 2019 and a fundraise was completed in August 2019. The new product, Bleepa was launched at the Health and Care Innovation Expo in Manchester in early September 2019. This has generated considerable interest and the Company is presently arranging demos to a number of potential customers and is planning to pilot Bleepa as soon as potential customers are ready. A number of opportunities overseas are also being explored.

 

 

Principal risks and uncertainties

 

Economic and market risks

 

FM Ltd is in the medical imaging market. The market is fragmented and the future success of the business is dependent on the ability of Feedback Medical to secure new and renew current contracts. These contracts are often with Government supported organisations and the timing of these can be dependent on market conditions. The Group's dependence on the award or renewal of contracts means that its revenue stream is not constant and has the potential to be particularly irregular. The outcome of Brexit is unlikely to affect existing trading arrangements so is anticipated to l have little impact on the Group.

 

Regulatory approval

 

The development, evaluation and marketing of the Group's products and ongoing research and development activities are subject to regulation by governments and regulatory agencies in all territories within which the Group intends to market its products (whether itself or through a partner) and there can be no assurance that any of the Group's products will successfully complete the trial process or that regulatory approvals to market these products will ultimately be obtained. Failure to obtain regulatory approvals for its products could threaten the Group's ability to trade in the long term.

 

The time taken to obtain regulatory approval varies between territories and there can be no assurance that any of the Group's products will be approved in any territory within the timescale envisaged by the Board, or at all, and this may result in a delay, or make impossible, the commercial exploitation of the Group's products. Furthermore, each regulatory authority may impose its own requirements and may refuse to grant, or may require additional data before granting an approval, even though the relevant product may have been approved by another country's authority.

 

If regulatory approval is obtained, products will be subject to continual review and there can be no assurance that such approvals will not be withdrawn or restricted. Changes in applicable legislation or regulatory policies, or discovery of problems with products may result in the imposition of restrictions on sale, including withdrawal of the product from the market, or may otherwise have an adverse effect on the Company's business and/or revenue streams. The Group's ISO accreditation (ISO 13845 2016) was renewed in November 2018.

 

Product Development Risk

 

The Group capitalises development costs where there is an expectation that commercially successful products will be developed. The products in development may cost more and/or take longer to develop than the current estimates. It is possible that commercially successful products may not be developed. The Board monitors progress on product development on a regular basis and discusses with potential customers their requirements to mitigate this risk. The new Bleepa   is both innovative and unique but further iterations will be required to be produced quickly to ensure that Bleepa   retains this position.

 

Liquidity


Management of liquidity risk has concentrated on the maintenance of appropriate credit lines and funding sources to ensure adequate cash resources for the Company's operations. The Group was successful in raising additional cash through share issues in both 2018 and 2019 to enable it to achieve its strategy. The Board regularly monitors the cash position of the Group and ongoing cash requirements. The Board believes the Group is likely to have access to adequate cash resources from a combination of operational cash generation and, if necessary, obtaining further equity finance from the financial markets to support its corporate world strategy.

 

Credit Risk

 

The Group's credit risk is primarily attributable to its cash and cash equivalents and trade receivables. The credit risk on other classes of financial assets is considered insignificant. Credit risk is managed through credit review and approval processes for new customers and ongoing review of each customer's credit history.

 

Other Risks

 

There is a risk that existing and new customer relationships will not lead to the income currently forecast (especially, as noted above, from new products currently in development). As with other technology businesses, the Group is reliant on a small number of highly skilled staff.

 

Post Balance Sheet Events

 

On 29 August 2019, the Company raised £2 million via the issue of 166,666,667 new ordinary share at a price of 1.2 pence per share.  Bleepa Limited was incorporated on 24 July 2019 to protect the Bleepa product name pending the announcement to shareholders on 26 July 2019.

 

Key Performance Indicators

 

During the year the Company maintained its cash position as a key performance indicator. The consolidated cash balance at 31 May 2019 was £540,735 (2018 £632,285). Given the rapidly changing business profile of the Group, the Board are developing key performance indicators to assess performance. These will evolve as sales of Bleepa   emerge.

By Order of the Board on 23 October 2019 and signed on its behalf

 

Dr A J Riddell

Independent Auditors' Report

 

Opinion

We have audited the financial statements of Feedback PLC ("Feedback") for the year ended 31 May 2019 which comprise the group statement of comprehensive income, the group and parent company balance sheets, the group and parent company statements of changes in equity, the group and parent company cash flow statements and the notes to the financial statements, including its significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and International Financial Reporting Standards (IFRSs) as adopted by the European Union.

 

In our opinion, the financial statements:

 

●     give a true and fair view of the state of the group's and of the parent company's affairs as at 31 May 2019 and of the group's loss for the year then ended;

●     have been properly prepared in accordance with IFRSs as adopted by the European Union; and

●     have been prepared in accordance with the requirements of the Companies Act 2006

 

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard as applied to SME listed entities, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

 

Material uncertainty related to going concern

We draw attention to the Note 3c in the financial statements, which indicates that the group incurred a net loss of £973,109 and had a net cash outflow of £983,191 from operating activities during the year ended 31 May 2019.  As stated in Note 3c, these facts, along with other matters disclosed in Note 3c indicate that a material uncertainties exist that may cast significant doubt on the Group's ability to continue as a going concern. Our opinion is not modified in respect of this matter.

 

Key audit matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current period and include the most significant assessed risks of material misstatement (whether or not due to fraud) we identified, including those which had the greatest effect on: the overall audit strategy, the allocation of resources in the audit; and directing the efforts of the engagement team. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

 

Key audit matter

Our response

Fraud and error in revenue recognition

 

For the Feedback PLC group the principal revenue recognition risk is the risk of overstatement through non-deferral of income which should be deferred as the criteria for recognition have yet to be met.

 

This year the group must also apply IFRS 15 for the first time.

 

 

Fraud and error in revenue recognition

We reviewed the group's material revenue streams to consider whether revenue is recognised and treated appropriately, and in accordance with IFRS. 

 

Our review included an assessment of revenue recognition policies, including the use of judgements and substantive testing of revenue recognised in the year, and deferred revenue.

 

Additionally we reviewed the recognition and recoverability of trade receivables at the year-end to assess the validity of their recognition and carrying values as at 31 May 2019.

 

 

Intangible assets - Capitalised development costs

 

During the year the group has significantly increased its investment in product development as it seeks to bring to market a new product based on its existing technology.

 

IAS 38 sets out the recognition criteria that development costs must meet before being capitalised. There is a risk that if the group's development expenditure does not these requirements, intangible assets will be overstated.

 

 

Intangible assets - Capitalised development costs

We reviewed development cost additions to supporting invoices and documentation received from those third-party developers employed to develop the group's products. 

 

The rationale for recognition of these costs was discussed with management, and the products for which items had been capitalised assessed against the recognition criteria of IAS 38 by reference to supporting evidence.

 

 

Our application of materiality

The scope and focus of our audit was influenced by our assessment and application of materiality.  We define materiality as the magnitude of misstatement that could reasonably be expected to influence the readers and the economic decisions of the users of the financial statements. We use materiality to determine the scope of our audit and the nature, timing and extent of our audit procedures and to evaluate the effect of misstatements, both individually and on the financial statements as a whole.

 

Due to the nature of the group and its operations we considered pre-tax trading results to be the main focus for the readers of the financial statements, accordingly this consideration influenced our judgement of materiality.  Based on our professional judgement, we determined materiality for the group to be £20,000, based on 2.25% of the draft pre-tax net loss of the group.  For the parent company, £9,000 is used as materiality being approximately 2% of the net assets at the year end.  This level is considered appropriate given the status of the company and its role within the group which is that of a parent holding company bearing administrative expenses.

 

Based on our risk assessments and our assessment of the overall control environment, our judgement was that performance materiality (i.e. our tolerance for misstatement in an individual account or balance) for the group was 75% of materiality, namely £15,000.  The equivalent figure for the parent company was set at £6,750

 

We agreed to report to the Audit Committee all audit differences more than £1,000, as well as differences below that threshold that, in our view, warranted reporting on qualitative grounds. We also reported to the Audit Committee on disclosure matters that we identified when assessing the overall presentation of the financial statements.

 

An overview of the scope of our audit

As Feedback is a group comprising three trading entities based in Cambridge the scope of our work was the audit of the financial statements of the group and the individual financial statements of the subsidiaries. Our audit strategy was developed by using our audit planning process to obtain an updated understanding of the group, its activities, developments in the year and its control environment.  Our audit testing was informed by this understanding of the group and accordingly was designed to focus on areas where we assessed there to be the most significant risks of material misstatement.

 

During the audit we performed specifically designed audit tests on significant transactions, balances and disclosures.  Our testing included a review of systems and controls relevant to our audit and our approach was primarily based around substantive audit tests and analytical review.

 

To maintain and reinforce our knowledge of the group and the risks it faces we met with management prior to the audit planning process.  This information gathering process continued throughout the audit process, as we reassessed and re-evaluated audit risks where necessary and amended our approach accordingly.

 

Other information

The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor's report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

 

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

 

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

●     the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

●     the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.

 

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

●     adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

●     the parent company financial statements are not in agreement with the accounting records and returns; or

●     certain disclosures of directors' remuneration specified by law are not made; or

●     we have not received all the information and explanations we require for our audit.

 

Responsibilities of directors

As explained more fully in the directors' responsibilities statement set out on page 8, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

 

In preparing the financial statements, the directors are responsible for assessing the group and parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or parent company or to cease operations, or have no realistic alternative but to do so.

 

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

 

A further description of our responsibilities for the audit of the financial statements is located on the FRC's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

 

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an Auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Laura Mott (Senior Statutory Auditor) 
For and on behalf of Haysmacintyre LLP, Statutory Auditors
10 Queen Street Place                                                                                                                                
London  EC4R 1A
23 October 2019                    

                                                                                                                                                                                           

STATEMENT OF COMPREHENSIVE INCOME

 

 

 

 

 

Notes

2019

£

2018

£

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

 

4

563,092

458,389

 

 

 

 

 

 

Cost of sales

 

 

 

(4,896)

(16,083)

 

 

 

 

 

 

Gross profit

 

 

 

558,196

442,306

 

 

 

 

 

 

Other operating expenses

 

 

5

(1,690,052)

(1,190,159)

 

 

 

 

 

 

 

 

 

 

 

 

Operating loss

 

 

6

(1,131,856)

(747,853)

 

 

 

 

 

 

Net finance income

 

 

7

1,283

59

 

 

 

 

 

 

Loss on ordinary activities before taxation

 

 

 

(1,130,573)

(747,794)

 

 

 

 

 

 

Tax credit

 

 

9

157,464

117,007

 

 

 

 

 

 

 

Loss on ordinary activities after tax

 

 

 

 

 

attributable to the equity shareholders of the Company

 

 

 

(973,109)

(630,787)

 

 

 

 

 

 

Total comprehensive expense for the year

 

 

 

 

(973,109)

 

(630,787)

 

 

 

 

 

 

Loss per share (pence)

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted

 

 

11

(0.29)

(0.25)

 

 

 

 

 

 

 

 

 

 

 

 

 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

 

 

GROUP

Share Capital

Share Premium

Capital Reserve

Retained Earnings

Translation Reserve

Convertible Debt Option Reserve

Total

 

£

£

£

£

£

£

£

 

 

 

 

 

 

 

 

At 31 May 2017

615,167

2,376,033

299,900

(2,511,753)

(209,996)

-

569,351

 

 

 

 

 

 

 

 

New shares issued

  88,875

355,500

-

-

-

-

444,375

 

 

 

 

 

 

 

 

Costs associated with the

raising of funds

 

(17,600)

-

-

-

-

(17,600)

 

 

 

 

 

 

 

 

Total comprehensive expense for the year

-

 

-

 

-

 

(630,787)

 

              -

 

              -

 

(630,787)

 

 

 

 

 

 

 

 

 

At 31 May 2018

704,042

2,713,933

299,900

(3,142,540)

(209,996)

-

365,339

 

 

 

 

 

 

 

 

New Shares issued

 

229,167

1,145,833

-

-

-

-

1,375,000

Costs associated with the

raising of funds

 

-

(82,-912)

-

-

-

-

(82,912)

Share option expense reserve

 

-

-

-

(261,300)

-

261,300

-

Total comprehensive expense for the year

-

-

-

(711,809)

-

-

(711,809)

 

 

 

 

 

 

 

 

At 31 May 2019

933,209

3,776,854

299,900

(4,115,649)

(209,996)

261,300

945,618

 

 

CONSOLIDATED BALANCE SHEET

 

 

 

 

2019

2018

 

 

 

£

£

ASSETS

 

 

 

 

Non-current assets

 

 

 

 

Property, plant and equipment

 

 

6,428

6,560

Intangible assets

 

 

449,497

154,416

 

 

 

455,925

160,976

Current assets

 

 

 

 

 

 

 

 

 

Trade and other receivables

 

 

493,446

261,862

Cash and cash equivalents

 

 

540,735

632,285

 

 

 

1,034,181

894,147

 

 

 

 

 

Total assets

 

 

1,490,106

1,055,123

 

 

 

 

 

 

 

 

 

 

Equity

 

 

 

 

Capital and reserves attributable to the Company's equity shareholders

 

 

 

 

Called up share capital

 

 

933,209

704,042

Share premium account

 

 

3,776,854

2,713,933

Capital reserve

 

 

299,900

299,900

Translation reserve

 

 

(209,996)

(209,996)

Share option expense reserve

 

 

261,300

-

Retained earnings

 

 

(4,115,649)

(3,142,540)

Total equity

 

 

945,618

365,339

 

 

 

 

 

Liabilities

 

 

 

 

Deferred tax liabilities

 

 

-

-

 

 

 

-

-

Current liabilities

 

 

 

 

 

 

 

 

 

Trade and other payables

 

 

498,342

500,859

 

 

 

 

 

 

 

 

498,342

500,859

 

 

 

 

 

 

Liabilities due after more than one year

 

 

 

 

Other payables

 

 

46,146

188,925

 

 

 

 

 

Total liabilities

 

 

544,488

689,784

 

 

 

 

 

Total equity and liabilities

 

 

1,490,106

1,055,123

 

The financial statements were approved and authorised for issue by the Board of Directors on 23October 2019 and were signed below on its behalf by:

Dr A J Riddell

Chairman

 

CONSOLIDATED CASH FLOW STATEMENT

 

 

 

2019

2018

 

£

£

 

 

 

Cash flows from operating activities

 

 

Loss before tax

(1,130,573)

(747,794)

Adjustments for:

 

 

 

 

 

Net finance income

(1,283)

(59)

Depreciation and amortisation

106,781

57,143

Share based payment expense

261,300

-

Increase in trade receivables

(114,323)

(38,318)

Decrease in other receivables

2,248

1,523

Increase/(Decrease) in trade payables

8,870

(11,546)