The management of Feedback Plc, Crowborough, East Sussex, could offer little comfort as it slid into the red in the first half. On turnover down 6.7% at UKP4.2m, the group, which comprises companies that design, manufacture and market electronic, electrical and computer based equipment for education and industry, turned in a pre-tax loss of UKP328,000, against a profit last time of UKP179,900 for the six months to September 30. Feedback blamed the losses on the lower turnover and recent policy initiatives. These initiatives include the development of new products to redress the balance between manufactured and factored products at Feedback Instruments Plc. Profits and margins fell as business shifted from high-margin manufactured to lower margin factored products. However, the company does not expect to see any benefits from this investment in the current year. The results of the Feedback Data arm, provider of time management, access control and data collection equipment, were disappointing, particularly in its UK core business. Senior management changes have been made and the company has signed agreements with an unnamed US and Scandinavian company to broaden the scope of the UK company. All this has cost money, but the company is confident of the prospects. Start up costs were also incurred for a Feedback Data German subsidiary, though it did contribute to sales. In the US, staff cuts have been made at Feedback Inc and further measures are planned, though not divulged, if sales fail to improve. The interim dividend is held at a halfpenny; the results sent Feedback’s share price to a year low, off fourpence to 63p.
