Feedback FY16 Loss Narrows; Shares Rise

By Philip Waller

LONDON--Shares in medical image processing group Feedback PLC (FDBK.LN) rose 13% in early London trade Wednesday after the company posted a sharply narrower fiscal 2016 pretax loss, and said it is considering partnerships in China and elsewhere.

For the year ended May 31 the company made a pretax loss of 251,219 pounds ($308,502), compared with a loss of GBP1.2 million a year earlier on revenue that climbed to GBP431,454, from GBP381,970.

Shares at 0740 GMT are up 0.13 pence, or 6.6%, at 2 pence, having peaked at 2.14 pence earlier in the session. However, shares are currently down 27% over the past 12 months.

Revenue recognized from sales of research versions of its Texrad product was higher than in the previous year, although there was an expected reduction in new purchase orders, the company said.

However, Feedback said it received a high level of orders after the year-end from cancer research institutions, which it said should lead to substantially higher revenue in the second half of the fiscal 2017 year and growth in revenue for the year as a whole.

"We believe there will be opportunities to make further sales of Texrad research versions in China by partnering with a company with a strong local presence," Chairman Alastair Riddell said.

"We are also considering other business relationships which could increase sales of Texrad research versions in other territories."

Write to Philip Waller at [e-mail]

(END) Dow Jones Newswires

October 19, 2016 04:18 ET (08:18 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.