Pre Close Trading Update
13 April 2015
PRE-CLOSE TRADING UPDATE
Image Scan, (AIM: IGE) specialists in the field of real-time X-ray imaging for the Security and Industrial Inspection markets, today provides a pre-close trading update ahead of its interim results for the half year ended 31 March 2015.
- Sales of £860k at a gross margin of approximately 36% in the period resulted in a pre-tax trading loss of approximately £380k
- Research and Development expenditure more than doubled compared to H1 2013/14
- New range of portable X-ray systems under the name “Threatscan” to be launched at Counter Terror exhibition later this month
- Increasing deliveries of replacement X-ray generators
- First order received for new ultra-thin detector panel
- £450k of cash at the end of the period (2014: £25k)
The Company’s financial performance for the first half of the financial year reflected the delayed availability of a replacement portable x-ray generator, a situation rectified only in December 2014 when we announced our first customer deliveries. Sales of £860k were achieved with an improved gross margin on target at 36%. Although overhead costs have been managed carefully, a pre-tax trading loss of around £380k is expected.
The new portable generator is performing well and 8 systems were recently delivered to a government customer in India. In all, 15 of the new generators have been delivered to customers and further generators are on order from the supplier.
The Company’s research and development programme accelerated with a focus on the portable X-ray systems that form the core of the short term growth plan. Accordingly expenditure more than doubled over the comparable period last year.
The portable product range now comprises new detector panels, including the ultra-thin Threatscan LS1, a number of generator options and a completely new suite of control and analysis software. This new product range will meet the requirements for a wide range of portable x-ray customer groups. The Company received its first order for the Threatscan LS1. The complete new product range will be on display for the first time at the Counter Terror Exhibition at Olympia on 21st and 22nd April 2015.
The Company is in the process of building and delivering the 26 axis conveyor X-ray machines for which orders have been received over the last 7 months with customers from Botswana, Myanmar and Saudi Arabia, and has also built an industrial inspection system. Changes in a key customer’s budget priorities make it unlikely that any sales for the high value SVXI vehicle inspection systems will be made in this financial year.
Image Scan’s Chairman and Chief Executive, Bill Mawer, commented: “Order intake so far this year has been slow. However it is pleasing to see twelve months of hard work by our Research and Development team come to fruition with the launch of the important new portable systems. Initial responses from customers have been positive and we look forward to strong uptake as our sales team start demonstrating and trialling these systems around the world. I look forward to further recovery in the Company’s order intake in the second half of the financial year.”
For further information, please contact:
Image Scan Holdings plc Tel: +44 (0) 1509 817400
William Mawer, Chairman
Sarah Atwell-King, Company Secretary
Cantor Fitzgerald Europe Tel: +44 (0) 207 894 7000
Rick Thompson / David Foreman / Michael Reynolds (Corporate Finance)
David Banks / Tessa Sillars (Corporate Broking)
About Image Scan Holdings plc
Image Scan Holdings plc (AIM: IGE) is focused on the development and commercialisation of market leading real-time x-ray solutions for use in the global Security and Industrial inspection markets. The Company’s Security portfolio includes the Axis range of baggage inspection systems; the Threatscan range of portable bomb and suspect package detection systems; and SVXi, a small vehicle inspection system. The Industrial inspection solutions include the MDXi product range, cabinet x-ray systems for laboratories and production lines. The Company is now broadening its scope to look at other key applications where its technology can be adopted, such as in the Medical devices industry. The Company was founded in 1996 and joined AIM in 2002.
For further information on the Company, please visit: www.ish.co.uk – and for further information on its products, please visit: www.3dx-ray.com