Feedback plc (LON:FDBK) is the topic of conversation with Co-fund manager, Gervais Williams of Miton UK Microcap Trust plc as part of a wide-ranging interview on small-cap investments in his UK investment trust.
DirectorsTalk asked:
Feedback plc looks like a promising healthcare stock. It expanded its sales force and is confident about winning sales for its Bleepa product in both the UK and more recently in India. What are your thoughts on the company?
Gervais Williams commented:
They’ve been doing trials so this is a way really of doctors within NHS hospitals and other hospitals, sharing data, sharing medical images of other patients and specifically, sometimes this is done without sufficient safety in terms of the data security.
So, this is a secure system and we are getting a few trials coming through. Sussex NHS have done that trial and there’s a second trial going on now. If anything, I think we’d like to see more trials. They haven’t done as many trials as we would like to see. The Indian trial is coming through, but they are very upbeat about bringing new customers on board.
I think the product itself is quite good. Clearly, at this stage, it’s a very, very small market cap of about £9 million so we’re expecting more news. We think the valuation is low, as with many other small micro caps.
So, we think the risk reward ratio is there and we think it’s doing something which is not just helpful in terms of reducing risk for the patients, but ultimately something which could roll out if it succeeds, just like we’ve seen with Ondo InsurTech (LON:ONDO), in quite a big way going forward.
Feedback plc is a specialist medical imaging technology company providing innovative software and systems through our fully owned trading subsidiary, Feedback Medical Limited.
