Shares in Feedback PLC (AIM:FDBK) dropped 20% on Monday after the clinical infrastructure specialist warned of delayed contract wins and lower revenue, blaming upheaval in NHS funding structures.
The AIM-listed company expects to report revenue of around £900,000 for the year to 31 May, down from £1.18 million a year earlier.
It pointed to the merger of NHS England with the Department of Health and Social Care, a government drive to cut operational costs by 50%, and the replacement of the Elective Recovery Fund with fixed budgets for Integrated Care Boards as sources of near-term uncertainty.
Despite the challenges, Feedback said it remains well funded, with £6.6 million in cash and investments following a fundraising in late 2024.
It also expects its licensing model to benefit from more flexible contracting arrangements. The company continues to advance discussions with a growing number of NHS organisations and sees strong longer-term opportunities.
In early trading, the shares were off 3.5p at 14p.