Feedback PLC (LON:FDBK) said it expects to benefit from “increasing demand” for its software solutions going forward, allowing it to grow repeating revenues and increase product visibility through its software-as-a-service (SaaS) model.
In a trading update for the year ended May 31, the medical imaging technology specialist said its performance during the period had “met management expectations” as it secured its first commercial contract for its flagship Bleepa product.
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While the year had been a difficult one for the healthcare sector due to the Coronavirus (COVID-19) pandemic, Feedback said the outbreak had demonstrated the need for its technology but also made it “very difficult to engage customers”.
However, as the UK’s National Health Service (NHS) emerged from the pandemic, the company said it is seeing “increased interest for Bleepa” and that the product is “well-positioned to recognise this increasing customer interest in its domestic market” as well as internationally in countries such as India.
As a result of its performance, the company expects revenues for the year to be around £0.28mln compared with £0.45mln the year before. However, the firm also said its balance sheet “remains strong” with net cash of £2.2mln at the end of May.
Feedback also said the move to Bleepa has seen the average value of contracts increasing, generating better margins, adding that it has already invoiced £0.12mln of revenue so far in its current financial year. The firm also said it expects revenues to grow as sales of Bleepa increased across the rest of the year.