Final Results

 

TIDMFDBK 
 
RNS Number : 6715B 
Feedback PLC 
30 October 2009 
 
FEEDBACK PLC (the "Group") 
PRELIMINARY RESULTS FOR THE YEAR ENDED 31 MAY 2009 
 
 
Summary 
 
· Improved margins led to a 24% increase in Trading Profit to GBP603k 
despite a 15% fall in underlying Revenues 
· Gross operating margin improved from 5% to 7.4% 
· Strong cash focus with year end net cash balances of GBP269k 
· Ungeared Balance Sheet with Net Assets increasing to GBP3.9m 
· Significant investment into new Instruments product for 2010 
· New and extended range of Data terminals to be launched at 
CeBIT in March 2010 
 
 
Commenting on the results, Executive Chairman Michael Burt said: 
 
 
"In a difficult year we are pleased to have recorded a profitable outcome with a 
strengthened Balance Sheet. Although it was a year in which the Instruments 
business recorded a strong outcome on substantially maintained revenues the Data 
business was affected by weak markets which significantly affected customer 
confidence. 
 
 
Against this backdrop Feedback has committed significant new funds to both its 
businesses with Data in particular expected to benefit from new products and 
sharpened sales focus targeting, for the first time, all market segments. 
Instruments is also expected to gain from its new international partnerships and 
stronger sales focus particularly in traditional and new export markets." 
 
 
30 October 2009 
 
 
Enquiries: 
 
 
Michael Burt01892 653 322 
(Executive Chairman) 
Feedback plc 
 
 
Philip Davies / Carl Holmes                                        020 7149 6000 
Charles Stanley Securities 
(Nominated Adviser) 
  EXECUTIVE CHAIRMAN'S STATEMENT 
 
 
For the year ending 31 May 2009 Group Trading Profit improved from GBP485k to 
GBP603k, an increase of some 24%, which was achieved despite a reduction in 
turnover of 15% from GBP9.6m to GBP8.2m. The reduction in turnover was mainly 
contained within Feedback Data where the combination of weak markets and Far 
East imports significantly affected its business. The Board is taking action to 
address this situation. 
 
 
Notwithstanding the Revenue decline, the gross operating margin improved from 
5.0% to 7.4%. This was particularly encouraging and reflected the Board's 
actions in containing costs at all levels within the Group, together with a 
robust operating performance from Feedback Instruments, where further 
outsourcing led to a useful improvement in operating margins. 
 
 
During the year development expenditure in both Feedback Instruments and 
Feedback Data remained at a high level. In addition significant sums were 
expended on infrastructure, specifically a new Group IT system at a cost of some 
GBP190k, which is currently nearing installation. 
 
 
Apart from these financial commitments, focus was maintained on working capital 
management. As a result net cash at the end of the period amounted to GBP269k 
and this position still continues. Additionally the Balance Sheet has 
strengthened with Net Assets as at 31 May 2009 of GBP3.9m equivalent to 3.6 
pence per share. This does not include available group tax losses totalling 
GBP2.6m, still available against future profits. Since year end we have taken 
the opportunity to negotiate new additional committed working capital lines from 
our bankers on improved terms. 
 
 
Current trading is in line with the Board's expectations with some small signs 
of confidence returning, particularly in overseas markets. The UK however 
remains fragile and difficult particularly on the Data side where recovery is 
still some way off. 
 
 
Feedback Instruments Limited 
 
 
Instruments had a very active year. On a modest decline in revenues operating 
profits were significantly higher and a number of major contracts were awarded, 
particularly in Africa and the Middle East. 
 
 
For many countries in parts of the developing world secondary and university 
education of its citizens remains a high priority. Feedback Instruments 
continues to remain a recognised and important supplier of these needs. 
 
 
We continue to support and invest in our worldwide agent and distribution 
network with over 80 countries having a Feedback representative. 
 
 
Sales in the export market continue to prosper. The global recession has 
affected some traditionally strong markets in the Far East like Malaysia. 
However, business remains buoyant in the oil-producing countries, particularly 
in the Middle East. 
 
 
Saudi Arabia has especially seen Feedback's share of the market increase to a 
level not seen before. Libya has provided some good orders and, along with 
Nigeria and other African countries, has shown the significance of the 
continent. Plans are in place to target emerging economies around the World to 
increase our export sales. 
 
 
The UK market, however, is particularly difficult at this time; sales remain on 
target although slightly reduced with efforts being placed on providing other 
educational products through our existing channels. 
 
 
Feedback Incorporated 
 
 
Feedback Inc had a more encouraging year with revenues showing some stability 
and as a result of internal cost reductions an improved operating profit was 
achieved. The complete agent network was reviewed during the year and some 
changes made. Almost all states within the US are now covered by our agent 
network and a successful agent's conference was held in Raleigh Durham, North 
Carolina in March this year with a majority of our agents attending. A number of 
new products were shown and we have since seen an improvement in sales and 
enquiries, which should be helpful in achieving the stronger targets accepted by 
local management. 
 
 
Feedback Data Limited 
 
 
The slowdown in the UK has had a serious effect on the results of Feedback Data 
during the period. Operating profits were significantly reduced and current 
trading since the start of the new financial year has shown no signs of 
recovery. 
 
 
Demand for Data Capture Terminals, the Company's core business, was 
significantly weaker than anticipated and served to reinforce the strategy of 
developing related products for market sectors available outside the traditional 
core business area. The past lack of investment coupled with the economic 
downturn has highlighted the weaknesses of the Company's ageing Terminal range. 
This makes them less competitive in comparison to the multitude of Terminals now 
being offered to resellers from the Far East. 
 
 
On the Access Control side of the business lack of previous management focus on 
new customer sales led to a haemorrhaging of orders with few new sales, however, 
the Evolution Access Control solution is capable of being a class leader and new 
users have been enthusiastic as to its capabilities. As a consequence we will be 
re-launching Evolution as a branded product so that it competes more effectively 
in the market place. Much of the revenue from this side of the business has been 
generated from current users expanding their existing systems. To address this 
issue, new sales staff have been appointed and initial market reception has 
proved positive. 
 
 
Notwithstanding the weakness of trading, new investment in the Company by the 
Board has been committed and has resulted in the implementation of a strategy 
that will take Data into new business areas. It is hoped that these actions will 
strengthen its current market position. 
The first stages of this strategy have been implemented. An innovative Staff 
Monitoring System, the Nohmad, was unveiled to our resellers earlier in the 
year. The product's unique attributes generated an unprecedented amount of 
interest and has since attracted new resellers operating in areas which had 
previously been denied to us. In addition the product addressed pricing issues 
which had also affected sales. 
 
 
Interest in the product has not been restricted solely to our traditional 
resellers, but has also generated interest from a diverse cross section of 
industries including contract cleaning, logistics, mining and the auto industry. 
The imminent planned release of new variants of the Nohmad, including Biometric 
and Time Clock versions are being launched in November with a Proximity version 
in the first quarter of 2010. 
 
 
The sales team has recently been boosted by new staff who will sell the 
Evolution Access Control Product exclusively to end users. They will also manage 
all existing end user accounts and seek new security resellers. The Evolution 
product has matured over the last 18 months and is considered to be a 
competitive and comparable product in relation to those being offered by major 
players in the Access industry. It is believed that this side of the business is 
now well positioned for market expansion. 
The development of the next generation of product is well advanced. The products 
planned will share many common components and communication techniques and build 
costs will be reduced. The new range is designed to be at the forefront of 
market expectation in terms of design, price and technology. The entry model in 
particular is designed to meet pricing and specification issues in the volume 
market where foreign importers have made significant inroads. 
 
 
External industrial design consultants have been employed to assist in producing 
a distinctive 'product family' and provide a modern identity that will endure 
into the future. The designers will liaise with the Group's communications and 
branding consultants, to assist in the promotion of the product sets. The first 
products of the new range will launch at the CeBIT trade show in Hanover in 
March 2010. 
 
 
Our German subsidiary, Feedback GmbH, operated profitably during the period, but 
at lower levels. Pricing and product are still key issues but current 
developments are expected to address this. Additional effort is being put into 
broadening both our overseas reseller base and direct sales and we have been 
encouraged by early interest from the Middle East. 
 
 
Current Trading and Future Prospects 
 
 
The past year saw your company able to finally focus on trading issues without 
having to devote management time to legacy issues. Although we are still 
awaiting final clearance from the PPF with respect to the Feedback Defined 
Pension Scheme we are advised that this matter should be finally resolved 
towards the end of the current financial year. 
 
 
Feedback plc commenced the current trading year in a solid position with a 
strong asset position, cash in the bank and an order book only slightly reduced 
from that prevailing at the same time last year. June saw a very strong month 
for orders for Feedback Instruments, particularly from the Middle East, which 
took its order book to levels not seen for some time. 
 
 
The current position is also encouraging and a number of significant export 
contracts are likely to be awarded during the current financial year. The UK 
market, although weaker than previously anticipated, is showing signs of 
resilience and, with a refocused and more structured sales effort, we believe we 
will maintain our market position. 
 
 
In the current year Instruments should benefit from a number of new product 
launches. Additionally, new associations and partnerships have been formed with 
a number of major international educational companies, which will significantly 
extend our reach both in product and marketing terms and provide new routes to 
markets. The first portfolio of product for one partner is well advanced and 
will be offered to their supply chain before the end of the year. 
 
 
In support of these developments we are very pleased to welcome to the Board 
David Marks, Managing Director of Feedback Instruments who has been responsible 
for the improvement of Instruments performance. 
 
 
Feedback Data is still seeing tough markets for the reasons highlighted above. 
The launch of new products should be a significant help in arresting this 
position, although the benefit will not be seen, at the earliest, until the 
second half. 
 
 
As with Instruments, Data is looking to enter into partnership arrangements, 
particularly in overseas markets where new products have been well received and 
fresh opportunities will be available. In this respect a number of the 
Instrument's agents have indicated a willingness to become a Data partner which, 
although early days, is likely to bring new benefits. 
We now believe that we are able to focus on future opportunities to grow the 
business both organically and via acquisition. With an un-geared liquid Balance 
Sheet opportunities may arise which will be considered. At the same time there 
is still work to be done with the core divisions. Clearly, having now returned 
to profit, maintaining this position is mandatory. 
 
 
Towards year end, we were pleased to receive an extension to the planning 
consent on our site at Park Road to 2014. 
 
 
Your Board is well aware that shareholders have been without an ordinary 
dividend for a number of years and although it was not a consideration in the 
year under review it will be considered at the end of the current year if, as 
anticipated, a further profitable outcome is seen. 
 
 
I would also like to take this opportunity of thanking all the employees of the 
Group who without their dedication, loyalty and commitment the results seen 
would not have been possible. 
 
 
Michael G Burt 
Executive Chairman 
30 October 2009 
 
 
  CONSOLIDATED INCOME STATEMENT 
FOR THE YEAR ENDED 31 MAY 2009 
 
 
+----------------------------------+-----------------------+-----------------------+ 
|                                  |                  2009 |                  2008 | 
|                                  |                GBP000 |                GBP000 | 
+----------------------------------+-----------------------+-----------------------+ 
|                                  |                       |                       | 
+----------------------------------+-----------------------+-----------------------+ 
| REVENUE                          |                 8,163 |                 9,607 | 
+----------------------------------+-----------------------+-----------------------+ 
|                                  |                       |                       | 
+----------------------------------+-----------------------+-----------------------+ 
| Cost of Sales                    |               (4,568) |               (6,030) | 
+----------------------------------+-----------------------+-----------------------+ 
|                                  | --------------------- | --------------------- | 
+----------------------------------+-----------------------+-----------------------+ 
| GROSS PROFIT                     |                 3,595 |                 3,577 | 
+----------------------------------+-----------------------+-----------------------+ 
|                                  |                       |                       | 
+----------------------------------+-----------------------+-----------------------+ 
| Other Operating Expenses         |               (2,992) |                 3,092 | 
+----------------------------------+-----------------------+-----------------------+ 
|                                  |   ------------------- |   ------------------- | 
+----------------------------------+-----------------------+-----------------------+ 
| TRADING PROFIT                   |                   603 |                   485 | 
+----------------------------------+-----------------------+-----------------------+ 
|                                  |                       |                       | 
+----------------------------------+-----------------------+-----------------------+ 
| Write back of pension deficit    |                     - |                 6,294 | 
+----------------------------------+-----------------------+-----------------------+ 
|                                  |   ------------------- |   ------------------- | 
+----------------------------------+-----------------------+-----------------------+ 
| OPERATING PROFIT                 |                   603 |                 6,779 | 
+----------------------------------+-----------------------+-----------------------+ 
|                                  |                       |                       | 
+----------------------------------+-----------------------+-----------------------+ 
| Profit on sale of fixed asset    |                    27 |                    87 | 
+----------------------------------+-----------------------+-----------------------+ 
| Reorganisation cost              |                     - |                 (479) | 
+----------------------------------+-----------------------+-----------------------+ 
| Gain on cancellation of loan     |                     - |                   402 | 
+----------------------------------+-----------------------+-----------------------+ 
|                                  |   ------------------- |   ------------------- | 
+----------------------------------+-----------------------+-----------------------+ 
|                                  |                   630 |                 6,789 | 
+----------------------------------+-----------------------+-----------------------+ 
|                                  |                       |                       | 
+----------------------------------+-----------------------+-----------------------+ 
| Net interest                     |                   (1) |                   (5) | 
+----------------------------------+-----------------------+-----------------------+ 
|                                  |   ------------------- |   ------------------- | 
+----------------------------------+-----------------------+-----------------------+ 
| Profit on ordinary activities    |                   629 |                 6,784 | 
| before taxation                  |                       |                       | 
+----------------------------------+-----------------------+-----------------------+ 
|                                  |                       |                       | 
+----------------------------------+-----------------------+-----------------------+ 
| Tax credit                       |                    18 |                   398 | 
+----------------------------------+-----------------------+-----------------------+ 
|                                  |   ------------------- |   ------------------- | 
+----------------------------------+-----------------------+-----------------------+ 
| Profit for the year attributable |                   647 |                 7,182 | 
| to the equity shareholders of    |                       |                       | 
| the Company                      |                       |                       | 
+----------------------------------+-----------------------+-----------------------+ 
|                                  |             ========= |             ========= | 
+----------------------------------+-----------------------+-----------------------+ 
|                                  |                       |                       | 
+----------------------------------+-----------------------+-----------------------+ 
| PROFIT PER SHARE (pence)         |                       |                       | 
+----------------------------------+-----------------------+-----------------------+ 
|                                  |                       |                       | 
+----------------------------------+-----------------------+-----------------------+ 
| Basic and diluted                |                  0.59 |                  9.25 | 
+----------------------------------+-----------------------+-----------------------+ 
|                                  |             ========= |             ========= | 
+----------------------------------+-----------------------+-----------------------+ 
| Diluted and diluted              |                  0.55 |                  0.62 | 
+----------------------------------+-----------------------+-----------------------+ 
|                                  |             ========= |             ========= | 
+----------------------------------+-----------------------+-----------------------+ 
 
 
Turnover and operating profit are derived from continuing activities. 
 
 
 
 
 
 
  CONSOLIDATED BALANCE SHEET 
AT 31 MAY 2009 
 
 
+------------------------------+-------------------+-------------------+-------------------+-------------------+ 
|                              |                 2009                  |                 2008                  | 
+------------------------------+---------------------------------------+---------------------------------------+ 
|                              |            GBP000 |            GBP000 |            GBP000 |            GBP000 | 
+------------------------------+-------------------+-------------------+-------------------+-------------------+ 
| ASSETS                       |                   |                   |                   |                   | 
+------------------------------+-------------------+-------------------+-------------------+-------------------+ 
| Non-current assets           |                   |                   |                   |                   | 
+------------------------------+-------------------+-------------------+-------------------+-------------------+ 
| Property, plant and          |                   |             1,577 |                   |             1,459 | 
| equipment                    |                   |                   |                   |                   | 
+------------------------------+-------------------+-------------------+-------------------+-------------------+ 
| Intangible assets            |                   |               590 |                   |               668 | 
+------------------------------+-------------------+-------------------+-------------------+-------------------+ 
| Deferred tax asset           |                   |               313 |                   |               316 | 
+------------------------------+-------------------+-------------------+-------------------+-------------------+ 
|                              |                   | ----------------- |                   | ----------------- | 
+------------------------------+-------------------+-------------------+-------------------+-------------------+ 
|                              |                   |             2,480 |                   |             2,443 | 
+------------------------------+-------------------+-------------------+-------------------+-------------------+ 
| Current assets               |                   |                   |                   |                   | 
+------------------------------+-------------------+-------------------+-------------------+-------------------+ 
| Inventories                  |             1,334 |                   |             1,259 |                   | 
+------------------------------+-------------------+-------------------+-------------------+-------------------+ 
| Trade receivables            |             1,699 |                   |             1,408 |                   | 
+------------------------------+-------------------+-------------------+-------------------+-------------------+ 
| Other receivables            |               223 |                   |               248 |                   | 
+------------------------------+-------------------+-------------------+-------------------+-------------------+ 
| Cash and cash equivalents    |               269 |                   |               567 |                   | 
+------------------------------+-------------------+-------------------+-------------------+-------------------+ 
|                              | ----------------- |                   | ----------------- |                   | 
+------------------------------+-------------------+-------------------+-------------------+-------------------+ 
|                              |                   |             3,525 |                   |             3,482 | 
+------------------------------+-------------------+-------------------+-------------------+-------------------+ 
|                              |                   | ----------------- |                   | ----------------- | 
+------------------------------+-------------------+-------------------+-------------------+-------------------+ 
| Total assets                 |                   |             6,005 |                   |             5,925 | 
+------------------------------+-------------------+-------------------+-------------------+-------------------+ 
|                              |                   | ----------------- |                   | ----------------- | 
+------------------------------+-------------------+-------------------+-------------------+-------------------+ 
| LIABILITIES                  |                   |                   |                   |                   | 
+------------------------------+-------------------+-------------------+-------------------+-------------------+ 
| Non-current liabilities      |                   |                   |                   |                   | 
+------------------------------+-------------------+-------------------+-------------------+-------------------+ 
| Deferred tax liabilities     |                   |               165 |                   |               187 | 
+------------------------------+-------------------+-------------------+-------------------+-------------------+ 
|                              |                   |                   |                   |                   | 
+------------------------------+-------------------+-------------------+-------------------+-------------------+ 
| Current liabilities          |                   |                   |                   |                   | 
+------------------------------+-------------------+-------------------+-------------------+-------------------+ 
| Trade payables               |               745 |                   |               605 |                   | 
+------------------------------+-------------------+-------------------+-------------------+-------------------+ 
| Other payables               |             1,135 |                   |             1,748 |                   | 
+------------------------------+-------------------+-------------------+-------------------+-------------------+ 
| Borrowings                   |                 - |                   |                 4 |                   | 
+------------------------------+-------------------+-------------------+-------------------+-------------------+ 
|                              | ----------------- |                   | ----------------- |                   | 
+------------------------------+-------------------+-------------------+-------------------+-------------------+ 
|                              |                   |             1,880 |                   |             2,357 | 
+------------------------------+-------------------+-------------------+-------------------+-------------------+ 
|                              |                   | ----------------- |                   | ----------------- | 
+------------------------------+-------------------+-------------------+-------------------+-------------------+ 
| Total liabilities            |                   |             2,045 |                   |             2,544 | 
+------------------------------+-------------------+-------------------+-------------------+-------------------+ 
|                              |                   | ----------------- |                   | ----------------- | 
+------------------------------+-------------------+-------------------+-------------------+-------------------+ 
| TOTAL NET ASSETS             |                   |             3,960 |                   |             3,381 | 
+------------------------------+-------------------+-------------------+-------------------+-------------------+ 
|                              |                   |          ======== |                   |          ======== | 
+------------------------------+-------------------+-------------------+-------------------+-------------------+ 
| EQUITY                       |                   |                   |                   |                   | 
+------------------------------+-------------------+-------------------+-------------------+-------------------+ 
| Capital and reserves         |                   |                   |                   |                   | 
| attributable to the          |                   |                   |                   |                   | 
| Company's equity             |                   |                   |                   |                   | 
| shareholders                 |                   |                   |                   |                   | 
+------------------------------+-------------------+-------------------+-------------------+-------------------+ 
| Called up share capital      |                   |               273 |                   |               273 | 
+------------------------------+-------------------+-------------------+-------------------+-------------------+ 
| Share premium account        |                   |               633 |                   |               633 | 
+------------------------------+-------------------+-------------------+-------------------+-------------------+ 
| Capital reserve              |                   |               300 |                   |               300 | 
+------------------------------+-------------------+-------------------+-------------------+-------------------+ 
| Retained earnings            |                   |             2,754 |                   |             2,175 | 
+------------------------------+-------------------+-------------------+-------------------+-------------------+ 
|                              |                   | ----------------- |                   | ----------------- | 
+------------------------------+-------------------+-------------------+-------------------+-------------------+ 
| TOTAL EQUITY                 |                   |             3,960 |                   |             3,381 | 
+------------------------------+-------------------+-------------------+-------------------+-------------------+ 
|                              |                   |          ======== |                   |          ======== | 
+------------------------------+-------------------+-------------------+-------------------+-------------------+ 
|                              |                   |                                                           | 
+------------------------------+-------------------+-------------------+-------------------+-------------------+ 
 
 
 
 
 
 
  CONSOLIDATED CASH FLOW STATEMENT 
FOR THE YEAR ENDED 31 MAY 2009 
 
 
+----------------------------------------+-------------------+-------------------+----------------+--+----------------+--+ 
|                                        |                 2009                  |                 2008                  | 
+----------------------------------------+---------------------------------------+---------------------------------------+ 
|                                        | GBP000            | GBP000            | GBP000            | GBP000            | 
+----------------------------------------+-------------------+-------------------+-------------------+-------------------+ 
|                                        |                   |                   |                   |                   | 
+----------------------------------------+-------------------+-------------------+-------------------+-------------------+ 
| Cash flows from operating activities   |                   |                   |                   |                   | 
+----------------------------------------+-------------------+-------------------+-------------------+-------------------+ 
| Profit before tax                      |                   |               629 |                   |             6,784 | 
+----------------------------------------+-------------------+-------------------+-------------------+-------------------+ 
| Adjustments for:                       |                   |                   |                   |                   | 
+----------------------------------------+-------------------+-------------------+-------------------+-------------------+ 
| Finance charges                        |                 - |                   |                 5 |                   | 
+----------------------------------------+-------------------+-------------------+-------------------+-------------------+ 
| Depreciation and amortisation          |               511 |                   |               568 |                   | 
+----------------------------------------+-------------------+-------------------+-------------------+-------------------+ 
| Impairment of intangible fixed assets  |                 - |                   |               132 |                   | 
+----------------------------------------+-------------------+-------------------+-------------------+-------------------+ 
| Profit on disposal of tangible fixed   |              (27) |                   |              (87) |                   | 
| assets                                 |                   |                   |                   |                   | 
+----------------------------------------+-------------------+-------------------+-------------------+-------------------+ 
| Foreign exchange difference            |              (68) |                   |             (140) |                   | 
+----------------------------------------+-------------------+-------------------+-------------------+-------------------+ 
| Increase in inventories                |              (75) |                   |              (80) |                   | 
+----------------------------------------+-------------------+-------------------+-------------------+-------------------+ 
| (Increase)/decrease in trade           |             (291) |                   |                91 |                   | 
| receivables                            |                   |                   |                   |                   | 
+----------------------------------------+-------------------+-------------------+-------------------+-------------------+ 
| Decrease/(increase) in other           |                25 |                   |              (21) |                   | 
| receivables                            |                   |                   |                   |                   | 
+----------------------------------------+-------------------+-------------------+-------------------+-------------------+ 
| Increase in trade payables             |               140 |                   |                82 |                   | 
+----------------------------------------+-------------------+-------------------+-------------------+-------------------+ 
| (Decrease)/increase in other payables  |             (613) |                   |               141 |                   | 
+----------------------------------------+-------------------+-------------------+-------------------+-------------------+ 
| Pension contributions paid             |                 - |                   |              (35) |                   | 
+----------------------------------------+-------------------+-------------------+-------------------+-------------------+ 
| Share option charge                    |                 - |                   |                10 |                   | 
+----------------------------------------+-------------------+-------------------+-------------------+-------------------+ 
| Pension written back                   |                 - |                   |           (6,294) |                   | 
+----------------------------------------+-------------------+-------------------+-------------------+-------------------+ 
| Loan written back                      |                 - |                   |             (403) |                   | 
+----------------------------------------+-------------------+-------------------+-------------------+-------------------+ 
|                                        | ----------------- |                   | ----------------- |                   | 
+----------------------------------------+-------------------+-------------------+-------------------+-------------------+ 
|                                        |                   |             (398) |                   |           (6,031) | 
+----------------------------------------+-------------------+-------------------+-------------------+-------------------+ 
|                                        |                   | ----------------- |                   | ----------------- | 
+----------------------------------------+-------------------+-------------------+-------------------+-------------------+ 
| Net cash generated in operating        |                   |               231 |                   |               753 | 
| activities                             |                   |                   |                   |                   | 
+----------------------------------------+-------------------+-------------------+-------------------+-------------------+ 
|                                        |                   |                   |                   |                   | 
+----------------------------------------+-------------------+-------------------+-------------------+-------------------+ 
| Cash flows from investing activities   |                   |                   |                   |                   | 
+----------------------------------------+-------------------+-------------------+-------------------+-------------------+ 
| Interest received                      |                 - |                   |                10 |                   | 
+----------------------------------------+-------------------+-------------------+-------------------+-------------------+ 
| Purchase of tangible fixed assets      |             (185) |                   |           (1,453) |                   | 
+----------------------------------------+-------------------+-------------------+-------------------+-------------------+ 
| Proceeds from sale of tangible fixed   |                40 |                   |               992 |                   | 
| assets                                 |                   |                   |                   |                   | 
+----------------------------------------+-------------------+-------------------+-------------------+-------------------+ 
| Purchase of intangible assets          |             (379) |                   |             (416) |                   | 
+----------------------------------------+-------------------+-------------------+-------------------+-------------------+ 
|                                        | ----------------- |                   | ----------------- |                   | 
+----------------------------------------+-------------------+-------------------+-------------------+-------------------+ 
| Net cash used in investing activities  |                   |             (524) |                   |             (867) | 
+----------------------------------------+-------------------+-------------------+-------------------+-------------------+ 
|                                        |                   |                   |                   |                   | 
+----------------------------------------+-------------------+-------------------+-------------------+-------------------+ 
| Cash flows from financing activities   |                   |                   |                   |                   | 
+----------------------------------------+-------------------+-------------------+-------------------+-------------------+ 
| Issue of ordinary shares               |                 - |                   |             1,820 |                   | 
+----------------------------------------+-------------------+-------------------+-------------------+-------------------+ 
| Interest paid                          |               (1) |                   |              (15) |                   | 
+----------------------------------------+-------------------+-------------------+-------------------+-------------------+ 
| Capital element of finance leases and  |               (4) |                   |              (12) |                   | 
| rental payments                        |                   |                   |                   |                   | 
+----------------------------------------+-------------------+-------------------+-------------------+-------------------+ 
| Payments made to Pension Protection    |                 - |                   |        (1,200) |                   | 
| Fund                                   |                   |                   |                |                   | 
+----------------------------------------+-------------------+-------------------+----------------+-------------------+ 
|                                        | ----------------- |                   | ----------------- |                   | 
+----------------------------------------+-------------------+-------------------+-------------------+-------------------+ 
| Net cash (used)/generated from in      |                   |               (5) |                   |               593 | 
| financing activities                   |                   |                   |                   |                   | 
+----------------------------------------+-------------------+-------------------+-------------------+-------------------+ 
|                                        |                   | ----------------- |                   | ----------------- | 
+----------------------------------------+-------------------+-------------------+-------------------+-------------------+ 
|                                        |                   |                   |                   |                   | 
+----------------------------------------+-------------------+-------------------+-------------------+-------------------+ 
| Net (decrease)/increase in cash and    |                   |             (298) |                   |               479 | 
| cash equivalents                       |                   |                   |                   |                   | 
+----------------------------------------+-------------------+-------------------+-------------------+-------------------+ 
| Cash and cash equivalents at beginning |                   |               567 |                   |                88 | 
| of year                                |                   |                   |                   |                   | 
+----------------------------------------+-------------------+-------------------+-------------------+-------------------+ 
|                                        |                   | ----------------- |                   | ----------------- | 
+----------------------------------------+-------------------+-------------------+-------------------+-------------------+ 
| Cash and cash equivalents at end of    |                   |               269 |                   |               567 | 
| year                                   |                   |                   |                   |                   | 
+----------------------------------------+-------------------+-------------------+-------------------+-------------------+ 
|                                        |                   |          ======== |                   |          ======== | 
+----------------------------------------+-------------------+-------------------+----------------+--+----------------+--+ 
 
 
 
 
  NOTES TO THE FINANCIAL STATEMENTS 
 
 
1.    The information in this announcement, which was approved by the Board of 
Directors on 29 October 
 

           2009, does not comprise statutory 
accounts for the years ended 31 May 2008 or 31 May 2009. The 
 
statutory accounts for the year ended 31 May 2008 have been delivered to the 
Registrar of Companies 
 

           and those for the year ended 31 May 2009 
will be delivered to the Registrar of Companies following 
 

           the 
Company's Annual General Meeting. The auditors have reported on these accounts, 
their reports 
 

           were unqualified and did not contain statements 
under s.498(2) or (3) of the Companies Act 2006. The 
 
information contained in this statement does not constitute statutory accounts 
within the meaning of 
 

           section 434 of the Companies Act 2006. 
 
 
The Report and Accounts will be posted to shareholders on 3 November 2009 and 
the Annual General Meeting will be held at 11.00 am on 27 November 2009.  Copies 
will be available from the Company at Park Road, Crowborough East Sussex TN6 
2QR, England and will be available to download from the Company's website 
www.feedback.plc.uk. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2.    SEGMENTAL REPORTING 
 
The turnover, result before taxation and net assets of the Group are 
attributable to one business segment, the design, manufacture and sale of 
electronic and computer peripheral equipment for industry and education. 
 
 
Analysis by geographical market 
 
 
+--+--------------------+-------------------+-------------------+-------------------+-------------------+-------------------+-------------------+-------------------+-------------------+ 
|  |                    |               Turnover                |        Pre tax (loss)/profit          |      Assets       |    Liabilities    |      Assets       |    Liabilities    | 
+--+--------------------+---------------------------------------+---------------------------------------+-------------------+-------------------+-------------------+-------------------+ 
|  |                    |              2009 |              2008 |              2009 |              2008 |              2009 |              2009 |              2008 |              2008 | 
+--+--------------------+-------------------+-------------------+-------------------+-------------------+-------------------+-------------------+-------------------+-------------------+ 
|  |                    |            GBP000 |            GBP000 |            GBP000 |            GBP000 |            GBP000 |            GBP000 |            GBP000 |            GBP000 | 
+--+--------------------+-------------------+-------------------+-------------------+-------------------+-------------------+-------------------+-------------------+-------------------+ 
|  |                    |                   |                   |                   |          Restated |                   |          Restated |                   |          Restated | 
+--+--------------------+-------------------+-------------------+-------------------+-------------------+-------------------+-------------------+-------------------+-------------------+ 
|  | By origin          |                   |                   |                   |                   |                   |                   |                   |                   | 
+--+--------------------+-------------------+-------------------+-------------------+-------------------+-------------------+-------------------+-------------------+-------------------+ 
|  | United Kingdom     |             7,197 |             8,557 |               307 |               396 |             5,556 |           (1,334) |             5,436 |           (2,483) | 
+--+--------------------+-------------------+-------------------+-------------------+-------------------+-------------------+-------------------+-------------------+-------------------+ 
|  | Continental Europe |               314 |               362 |               271 |               150 |               270 |             (644) |               324 |              (13) | 
+--+--------------------+-------------------+-------------------+-------------------+-------------------+-------------------+-------------------+-------------------+-------------------+ 
|  | United States      |               652 |               688 |                51 |                21 |               179 |              (67) |               165 |              (48) | 
+--+--------------------+-------------------+-------------------+-------------------+-------------------+-------------------+-------------------+-------------------+-------------------+ 
|  | Exceptional items  |                 - |                 - |                 - |             6,217 |                 - |                 - |                 - |                 - | 
+--+--------------------+-------------------+-------------------+-------------------+-------------------+-------------------+-------------------+-------------------+-------------------+ 
|  |                    | ----------------- | ----------------- | ----------------- | ----------------- | ----------------- | ----------------- | ----------------- | ----------------- | 
+--+--------------------+-------------------+-------------------+-------------------+-------------------+-------------------+-------------------+-------------------+-------------------+ 
|  |                    |             8,163 |             9,607 |               629 |             6,784 |             6,005 |           (2,045) |             5,925 |           (2,544) | 
+--+--------------------+-------------------+-------------------+-------------------+-------------------+-------------------+-------------------+-------------------+-------------------+ 
|  |                    |         ========= |         ========= |         ========= |         ========= |         ========= |         ========= |         ========= |         ========= | 
+--+--------------------+-------------------+-------------------+-------------------+-------------------+-------------------+-------------------+-------------------+-------------------+ 
 
 
All capital expenditure incurred by the Group was in the United Kingdom. 
 
 
+--+-----------------------------------------+--------------------+--------------------+ 
|  |                                         |               2009 |               2008 | 
|  |                                         |             GBP000 |             GBP000 | 
+--+-----------------------------------------+--------------------+--------------------+ 
|  |          Turnover by destination        |             GBP000 |             GBP000 | 
+--+-----------------------------------------+--------------------+--------------------+ 
|  |          United Kingdom                 |              3,119 |              3,899 | 
+--+-----------------------------------------+--------------------+--------------------+ 
|  |          Rest of Europe                 |                700 |              1,545 | 
+--+-----------------------------------------+--------------------+--------------------+ 
|  |          Americas                       |                929 |              1,115 | 
+--+-----------------------------------------+--------------------+--------------------+ 
|  |          Africa                         |                929 |                172 | 
+--+-----------------------------------------+--------------------+--------------------+ 
|  |          Middle East                    |              1,257 |              1,410 | 
+--+-----------------------------------------+--------------------+--------------------+ 
|  |          Far East                       |              1,229 |              1,466 | 
+--+-----------------------------------------+--------------------+--------------------+ 
|  |                                         | ------------------ | ------------------ | 
+--+-----------------------------------------+--------------------+--------------------+ 
|  |                                         |              8,163 |              9,607 | 
+--+-----------------------------------------+--------------------+--------------------+ 
|  |                                         |          ========= |          ========= | 
+--+-----------------------------------------+--------------------+--------------------+ 
 
 
 
 
 
 
 
 
3.    PROFIT PER SHARE 
 
 
Basic earnings per share is calculated by reference to the profit on ordinary 
activities after taxation of GBP647,000 (2008: GBP7,182,000) and on the weighted 
average of 109,146,746 (2008: 77,628,244) shares in issue. 
 
 
The calculation of diluted earnings per share is based on the profit on ordinary 
activities after taxation and the diluted weighted average of 109,163,193 
(2008: 77,628,244). 
 
 
Adjusted EPS figures based on trading profit have been included for information 
purposes. The adjusted earnings per share has been calculated by reference to 
the trading profit of GBP603,000 (2008: GBP485,000) and on the weighted average 
109,146,746 (2008: 77,628,244) shares in issue. 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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