Feedback FY revenues seen higher despite NHS contract delays

22nd May 2024 10:55

(Sharecast News) - Clinical infrastructure specialist Feedback said on Wednesday that full-year revenues were seen higher and that underlying losses had narrowed but warned that certain NHS procurement processes had been "more protracted".

Feedback said revenues were expected to be roughly £1.2m, approximately 15% higher year-on-year, while LBITDA was pegged to improve in comparison to market expectations, despite slower-than-anticipated revenue growth in FY24, as it continues to optimise its cost base.

The AIM-listed group noted that procurement processes for novel technologies, such as its Bleepa asset, had been protracted when compared to the replacement of existing similar services where NHS procurement and funding was "relatively more straightforward".

Feedback also said it had been nurturing "a number of commercial opportunities" with national and regional NHS organisations, which it had hoped to convert during the year ended 31 May. However, financial and operational pressures facing the NHS delayed a number of these strategic conversations and consequently, it now believes that these larger NHS opportunities will likely mature during the upcoming financial year.

Chief executive Dr Tom Oakley said: "Despite a delay in some of our larger national and regional NHS opportunities we have delivered revenue growth in FY2024 and optimised our cost base.

"Based on information currently available to us we anticipate that new funding streams will land in the system that will enable us to progress with our wider pipeline of opportunity and build on the fantastic foundation that we have built to date, and we are therefore expecting these opportunities to convert to contract and be recognised within FY2025 revenue."

As of 1050 BST, Feedback shares were down 8.16% at 67.50p.

Reporting by Iain Gilbert at Sharecast.com