14 September 2018
Image Scan (AIM:IGE), the specialist supplier of X-ray screening systems to the security and industrial inspection markets provides this trading update for the financial year to 30 September 2018.
The strong sales of the Company’s industrial X-ray inspection systems reported in the first half have continued into the second. We expect the number of units sold for the full year to hit a record, the two largest industrial customers both procuring new units for deployment into their global catalytic converter manufacturing operations. Valuable support contracts will be put in place for all the new units.
Sales of portable X-ray systems to security and counter terrorism forces have been slower than hoped for in the second half, though orders for delivery in FY2018 are still being received. There is no evidence that this decline in orders reflects anything other than changing Government budget schedules and the typically “lumpy” order intake that has been a characteristic of the business from time to time. Interest in the range of systems remains high and the volume of quotations made to customers is strong.
The Company is trying to finalise several orders before the year end and total sales are expected to be between £3.4m and £3.8m. The gross margin on sales will increase over FY2017, reflecting the strong performance of the more profitable industrial products. This will deliver a trading profit performance of close to break even, the final number dependent on the sales over the last few weeks of the year.
With lower expected revenues for the year coupled with the exceptional costs associated with the aborted fundraise and acquisition of Todd Research, which are estimated to have a total impact on profit of £270k, the Company expect to make a loss in FY 2018.
Image Scan’s Chairman and Chief Executive, Bill Mawer, commented: “I am confident in our portable and industrial X-ray products and we plan to develop new products, serving a wider segment of the security market, during FY 2019. Additionally, we are looking to strengthen our sales team. I expect the Company to be focused on organic growth for a period before revisiting its acquisition ambitions.”
The Company will provide a pre-close statement on its results for the year to 30 September 2018 on Wednesday 24 October.
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 / Will Goode (Corporate Finance)
Caspar Shand Kydd (Sales)
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 ThreatScan® range of portable bomb and suspect package detection systems; the Axis range of baggage inspection 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 was founded in 1996 and joined AIM in 2002.