Pre Close Trading Update and Contract Win
09 October 2014
The Board of Image Scan, manufacturers of X-ray imaging systems for the Security and Industrial Inspection markets, provides a pre close trading update for the year ended 30 September 2014.
While the Company reported a steady performance in the first half of the year with a loss before taxation of £36,000 on improved sales, the second half has been disappointing. As highlighted at the half year and more recently in the 8 September announcement, the performance in the second half was very much contingent on availability of a new X-ray generator for the Company’s portable X-ray systems to replace a unit that was no longer available. While development of the new generator has progressed through the prototype stages and the first production model is currently in testing in Image Scan’s facility, customer deliveries have been delayed until November 2014. The Company’s product development investment also increased against prior year, reflecting the increased focus on new R&D projects under the new Board. The nuclear contract has continued to generate costs, though the key milestones of customer acceptance and delivery to the end user’s site were achieved. Outstanding work relates only to the final system commissioning and delivery of a training course.
Accordingly, the Board anticipates revenue for the year ended 30 September 2014 at £2.3m (2013: £2.5m), and a loss before tax of approximately £500k (2013: £342k). The Company ended the year with a positive cash balance of £938k which includes the net share issue proceeds of £844k.
Considerable progress has been made in the product development programmes that will provide the foundation for the future growth of the business. Important milestones have been reached in projects developing new X-ray generators, detector panels and control software.
Demonstration of the new portable products to customers will start at the Milipol security exhibition in Qatar which starts on the 20th of this month and in customers facilities in Asia and the Middle East thereafter.
The market reach of the Company is being extended with orders received from Vietnam, Myanmar and Thailand, which are all new territories.
Additionally, the Company is close to finalising a partnership that will give it proper access to important markets in North and South America for the first time. A further announcement will be made in due course.
Image Scan’s Chairman and CEO Bill Mawer commented: “To be reporting a loss in my first six months as Chairman is disappointing. However in those first six months we have made real progress in the renewal and extension of our product range and in broadening our market access. As these new products become available and as we start working in the new markets in the early part of the next financial year I expect to see sales of our core portable X-ray systems recover and then grow strongly.”
The Company is also pleased to announce that it has received a £250,000 contract for multiple Axis check point X-ray systems to be deployed at entrance and exit points for a prestigious new, high security site in Saudi Arabia.
For further information, please contact:
Image Scan Holdings plc Tel: +44 (0) 1509 817400
Bill Mawer, Chairman and Chief Executive Officer
Cantor Fitzgerald Europe Tel: +44 (0) 207 894 7000
David Foreman / Rick Thompson (Corporate Finance)
David Banks / Paul Jewell (Corporate Broking)
Yellow Jersey PR Tel: +44 (0) 7747 788 221
Anna Legge / Dominic Barrett
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 FlatScan 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