(FDBK) Feedback

RNS Number : 5749H Feedback PLC 24 February 2010

Feedback plc ("Feedback" or the "Group")

Interim Report for the six months ended 30 November 2009

KEY POINTS

· Turnover £3.8m (2008 - £4.5m)
· Profit before tax £0.04m (2008 - £0.30m)
· Earnings per share 0.02p (2008 0.27p)
· Cash and Cash Equivalents £420k (2008 - £529k)

CHAIRMANS STATEMENT

The performance for the first half of the year was a considerable disappointment. The first quarter's trading showed some positive trends; however the second quarter witnessed a significant contraction in orders in both divisions which has continued to date.

The Instruments business was impacted both by a slowdown in orders from its overseas distributors coupled with deterioration in the UK market as school and universities slowed their spending. In addition the Data market also continued to soften as the market anticipated arrival of new terminals scheduled for March this year.

Despite these more challenging markets Feedback has maintained investment in new product development and a number of new product launches are planned for release during 2010 for both divisions. In addition significant spend has also been committed to a re-branding of the Company with the appointment of new corporate communication consultants. The initial results of this will be seen in March with the new look, logo and website scheduled for release that month. Continued additional spend is planned to support various new marketing initiatives.

Although current trading is showing some stability it is likely that the second half will prove as challenging as the first six months and, despite the board's positive expectation for new products, it is likely that the outcome for the full year will be behind that for the year ended May 2009.

Michael G Burt

Executive Chairman

23 February 2010

Enquiries:

Feedback Plc 01892 653322

Michael Burt

Executive Chairman

Charles Stanley Securities 020 7149 6000

Nominated Adviser & Broker

Russell Cook / Carl Holmes

UNAUDITED CONSOLIDATED INCOME STATEMENT

6 months to 6 months to Year to
30 November 2009 30 November 2008 31 May

£'000 £'000 £'000
Revenue 3,833 4,464 8,163
Cost of sales (2,119) (2,475) (4,568)

Gross profit 1,714 1,989 3,595

Other operating expenses (1,682) (1,716) (2,992)

Operating profit 32 273 603
Profit on sale of fixed asset 27 27

Finance costs 5 (2) (1)

Profit before tax 37 298 629

Tax (expense)/credit (12) (2) 18

Profit for the period attributable to the equity
shareholders of the parent 25 296 647

Other comprehensive income/(expense)

Translation differences on - 24 (68)

overseas operations

Total comprehensive income for the period

====== ====== ======
Basic earnings per share 2 0.02p 0.27p 0.59p
Diluted earnings per share 2 0.02p 0.27p 0.59p

All amounts relate to continuing operations.

UNAUDITED INTERIM CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

Share Share premium Capital redemption Retained earnings Total
Capital Service reserve
£'000 £'000 £'000 £'000 £'000
Balance at 31st May 2008 273 633 300 2,175 3,381

Total comprehensive income for
the period - - - 320 320

Balance at 30th November 2008 273 633 300 2,495 3,701

Total comprehensive income for
the period - - - 259 259

Balance at 31st May 2009 273 633 300 2,754 3,960

Total comprehensive income for
the period - - - 25 25

Balance at 30th November 2009 273 633 300 2,779 3,985

UNAUDITED CONSOLIDATED BALANCE SHEET

30 November 2009 30 November 2008 31 May

£'000 £'000 £'000

Non-current assets
Property, plant and equipment 1,566 1,555 1,577
Intangible assets 636 677 590
Deferred tax asset 313 316 313

2,515 2,548 2,480

Current assets
Inventories 1,212 1,130 1,334
Trade receivables 1,303 1,675 1,699
Other receivables 174 92 223
Cash and cash equivalents 420 529 269

3,109 3,426 3,525

Total assets 5,624 5,974 6,005
====== ====== ======

Non-current liabilities
Deferred tax liabilities 178 189 165

Current liabilities
Trade payables 712 791 745
Other payables 749 1,293 1,135

1,461 2,084 1,880

Total liabilities 1,639 2,273 2,045

Net assets 3,985 3,701 3,960
====== ====== ======

Capital and reserves attributable to the Company's equity shareholders
Called up share capital 273 273 273
Share premium account 633 633 633
Capital reserve 300 300 300
Retained earnings 2,779 2,495 2,754

Total equity 3,985 3,701 3,960
====== ====== ======

UNAUDITED CONSOLIDATED CASH FLOW STATEMENT

6 months to 6 months to Year to
30 November 2009 30 November 2008 31 May

£'000 £'000 £'000

Cash flows from operating activities
Profit before tax 37 298 629

Adjustments for:
Finance charges -
Depreciation and amortisation 212 248 511
Profit on disposal of tangible - (27) (27)

fixed assets
Foreign exchange difference 27 (68)
Decrease/(increase) in 122 129 (75)

inventories
Decrease/(increase) in trade 396 (268) (291)

receivables
Decrease in other receivables 49 157 25
(Decrease)/increase in trade (33) 186 140

payables
Decrease in other payables (386) (455) (613)

Net cash generated from 397 295 231

operating activities

Cash flows from investing activities
Interest received - - -
Purchase of tangible fixed (21) (134) (185)

assets
Proceeds from sale of tangible - 32 40

fixed assets
Purchase of intangible assets (225) (227) (379)

Net cash used in investing (246) (329) (524)

activities

Cash flows from financing activities
Interest paid - - (1)
Capital element of finance - (4) (4)

leases and rental payments

Net cash generated from - (4) (5)

financing activities

Net movement in cash and cash 151 (38) (298)

equivalents
Cash and cash equivalents at 269 567 567

beginning of period

Cash and cash equivalents at 420 529 269

end of period
======= ======= =======

NOTES TO THE UNAUDITED INTERIM REPORT

1. BASES OF PREPARATION

The consolidated interim financial statements have been prepared in accordance with the

recognition and measurement principles of International Financial Reporting Standards as endorsed

by the European Union ("IFRS") and expected to be effective at the year end of 31 May 2010, which

are mandatory for accounting periods beginning on or after 1 January 2009. The accounting policies

are unchanged from the financial statements for the year ended 31 May 2009.

The information set out in this interim report for the six months ended 30 November 2009 does not

comprise statutory accounts within the meaning of section 434 of The Companies Act 2006. The

results for the period ended 31 May 2009 are based on the published accounts for that period on

which the auditors gave a report which did not contain statements under section 498 of the

Companies Act 2006. The accounts for the period ended 31 May 2009 have been filed with the

Registrar of Companies.

This interim report was approved by the directors on 23 February 2. EARNINGS PER SHARE

The earnings per share for the six months ended 30 November 2009 is based on the Group profit on

ordinary activities after taxation of £24,000 (2008: £296,000) attributed to Ordinary Shares of

109,146,746 (2008: 109,146,746), being the weighted average number of shares in issue throughout

the year.

INDEPENDENT REVIEW REPORT TO FEEDBACK PLC

Introduction We have been engaged by the Company to review the condensed set of financial statements in the interim financial report for the six months ended 30 November 2009 which comprises the Consolidated Income Statement, the Consolidated Statement of Total Recognised Income and Expense, the Consolidated Balance Sheet, the Consolidated Cash Flow Statement and the Notes to the Unaudited Interim Report. We have read the other information contained in the interim financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.

This report, including the conclusion, has been prepared for and only for the Company for the purpose of meeting the requirements of the AIM Rules for Companies and for no other purpose. We do not, therefore, in producing this report, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.

Directors' Responsibilities The interim financial report, is the responsibility of, and has been approved by the directors. The directors are responsible for preparing and presenting the interim financial report in accordance with the AIM Rules for Companies.

As disclosed in note 1, the annual financial statements of the Group are prepared in accordance with International Financial Reporting Standards and International Financial Reporting Interpretations Committee ("IFRIC") pronouncements as adopted by the European Union. The condensed set of financial statements included in this interim financial report has been prepared in accordance with the measurement and recognition criteria of International Financial Reporting Standards and International Financial Reporting Interpretations Committee ("IFRIC") pronouncements, as adopted by the European Union.

Our Responsibility

Our responsibility is to express to the Company a conclusion on the condensed set of financial statements in the interim financial report based on our review.

Scope of Review

We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Auditing Practices Board for use in the United Kingdom. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the interim financial report for the six months ended 30 November 2009 is not prepared, in all material respects, in accordance with the measurement and recognition criteria of International Financial Reporting Standards and International Financial Reporting Interpretations Committee ("IFRIC") pronouncements as adopted by the European Union, and the AIM Rules for Companies.

haysmacintyre Chartered Accountants

Fairfax House

15 Fulwood Place

London

WC1V 6AY

23 February 2010

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