3 Further Reasons to add Feedback #FBDK to your Watchlist - Vox Markets

3 Further Reasons to add Feedback #FBDK to your Watchlist

The content of this blog (or content associated with it) is not intended as investment advice. The author holds an interest in the company mentioned. Please do your own research.

Feedback Plc #FDBK
Share Price: 1.45p
Market Capitalisation: £3.58m

Feedback plc is a specialist medical imaging technology company. It develops software and systems that provide innovative techniques and improved workflows for practitioners involved in medical research and treating patients.

TexRAD®, the Company’s patented quantitative image texture analysis technology, has the potential to assist clinicians in diagnosis, prognosis and treatment of patients with cancer and is currently installed in over 40 of the world’s leading research institutions across Europe, North America, Asia and Australia.

The Cadran platform provides a suite of medical imaging tools for decision support. The Cadran range includes the picture archiving communication system (PACS) to provide decision support for scan analysis, diagnostic workstations which provide secure remote access to view scans on demand, and products to securely share and transport patient data.

To read my previous blog on Feedback


On 14th February Feedback announced the appointment of David Crabb as Chief Executive Officer.

Dr Alastair Riddell, Chairman of Feedback plc, said:

“I am delighted that Feedback has attracted a highly experienced executive to complement the strong technical and regulatory expertise within the Company. Under David’s leadership, we are well-positioned to leverage our pioneering technology to create evidence-based imaging software, arming clinicians with innovative tools to improve patient outcomes.”

Of course time will tell but David Crabb looks like a good fit for Feedback.

His last appointment was with a software company, Cambridge Online Systems. He was the managing director and according to Feedback’s RNS David, “delivered strong growth from a loss-making organisation to one with top-quartile financial results and was voted as one of the “Sunday Times Top 100 Companies to work for” in two consecutive years.”

David also worked at recruitment consultants where he held the following positions:

Client Service Director at de Poel
Operations Manager at Manpower
Director at Parkhouse (now Ranstad – the world’s second-largest HR service provider)
Sales Director at Adecco (the largest temp staffing firm in the world and a Fortune Global 500 company)

I would suggest a background in IT / software, sales and recruitment would be a very decent combination to, not only, help promote and expand Feedback’s footprint but also recruit people who can too.

David Crabb, Chief Executive Officer of Feedback plc, on his appointment:

“I am impressed with the platform technologies and domain expertise at Feedback. The medical imaging and diagnostics market is a dynamic, fast-paced environment where disruptive technologies are very much needed. The opportunity is not without its challenges, as with all pioneering development but as a small, ambitious company, which has experienced both acquisition and organic growth, there is significant opportunity to optimise and expand Feedback’s operations. Our long-term vision is to lead global innovation in quantitative medical imaging analysis – I believe we have strong foundations to position ourselves at the forefront of this important field and I am looking forward to refining our strategy over the coming months.

David has also written a book, “The Magic Formula: The ramblings of a madman or sound Leadership guidance“, for those people, “progressing from management into a Leadership role, or aspiring to do so. It is not intended to be a definitive guide to Leadership, more of a personal journey shared to help others learn from someone who has led business transformation, changes and produced successful outcomes”.

Feedback will be David first full time position since his book was published, in March 2017. It should give him a good opportunity to put into practice what he has published.

On 26th February Feedback released their Interim Results for the period ending 30th November 2017.

  • Revenue for the six-month period £228,874 (2016: £203,000)
  • Loss after tax for the six-month period £348,079 (2016: loss £126,000)

Even though revenue grew by 12.7% compared to their previous period, this level of revenue (for a company currently valued at £3.6m) is never going to blow the doors off.

I would hope their target revenue be 10 times this.

Having said this, when looking at these results, one has to be aware that these are historical figures and don’t reflect what is going on within the company at the moment. Especially as a significant milestone was achieved at the end of this accounting period, namely the CE Mark release of TexRAD® on 20th November. This allows them to sell this software in clinical settings and achieve a more commercial return.

This CE Mark, “will expedite TexRAD®’s clinical use in the treatment of lung cancer across the EU, expand its market presence and support the Company’s ongoing commercial discussions for the technology”, according to Dr Alastair Riddell, Chairman.

Also encouraging is this comment in the release:

“We have seen an increase in purchase orders for TexRAD® from leading medical institutions in South Korea and we are receiving significant interest in China, underpinned by the exclusive distributor agreements signed during the period. We anticipate that the benefits of these agreements will be seen in the full financial year. We also see strong demand for TexRAD® in India having increased our presence in this market.”


The current share price of Feedback is at a 12 month low, which is surprising considering what they’ve achieved in the last year.

It’s also a little illogical when you consider the share price shot up from this level to 5p back in March 2017 after it announced it had signed, “a Letter of Intent with a leading global medical imaging company which would make TexRAD Lung available for purchase on its diagnostic imaging solutions platform.”

This letter of  intent was pretty much signed on the anticipation of them achieiving, “intended distribution arrangements” as a results of them securing the CE Mark, which they did in November. The share price didn’t react positively to them gaining the CE Mark, at all!


In short, the answer to this is, selling pressure.

On the 8th June 2017 the company announced that Trevor Brown, “resigned as a Non-Executive Director of Feedback, with immediate effect, in order to allow the Company to move rapidly to the next stage in its development and to devote more time to his other business interests.”

On 26th April 2016 Trevor held 55,089,111 shares which was 22.39% of the entire issued share capital of the company.

On the 1st March Feedback announced that, “it has been advised by Trevor Brown that following recent share sales, he is now beneficially interested in 23,689,111 ordinary shares of 0.25p each, representing 9.61% of the issued ordinary shares of the Company.”

This means Trevor Brown has sold 31,400,000 shares from April 2017 to March 2018. At an average price of 2.5p. This is £785,000 or 42 times the average daily volume. Selling a quarter of the value of a small cap company in under a year exerts a huge amount of downward pressure on the share price.

As I stated in my previous blog, “I have no idea whether Trevor Brown intends to sell his entire holding but what I do know is this, the selling will not go on indefinitely and when it ends the share price will bounce, especially if the company continues to release positive news from one of the many collaborations or agreements they’ve announced in the last few years.”

I would add to this, the further the share price goes down, due to the selling, the more aggressively it will bounce when this overhead pressure desists, especially as the company continue to positively develop their products as they have been.

With the CE Marked release of TexRAD® lung and now the appointment of David Crabb as CEO, 2018 is just the start of Feedback’s commercial journey.

Up until now Feedback has only been licencing out research versions of their TexRAD® lung software but with the CE Mark, the leading global medical imaging company they signed a letter of intent with and Alliance Medical Group they’ve signed a Memorandum of Understanding with can now make TexRAD® Lung available for purchase on their imaging solutions platform worldwide. This will enable easy access to TexRAD Lung for hundreds of potential users around the world on a subscription basis.

I wouldn be very surprised if a follow on contract with one of these companies is not announced sometime this year.

The CE Mark for TexRAD® Lung also paves the way for new products, from Feedback, in particular liver cancer and chronic obstructive pulmonary disease (COPD), as announced in their interims.

Add to this the increase in purchase orders from leading medical institutions in South Korea, significant interest in China and strong demand in India, the benfits of which, will be seen in the full financial year” and 2018 could turn out to be a very exciting year for Feedback.


The content of this blog (or content associated with it) is not intended as investment advice. The author holds an interest in the company mentioned. Please do your own research.


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