RNS Announcements

Trading Statement

28 February 2024

Image Scan, (AIM: IGE) specialists in the field of real-time X-ray imaging for the security and industrial inspection markets provides a trading update ahead of its Annual General Meeting being held later today.

Highlights:

• The ThreatScan®-AS2 product was launched at the Middle Eastern Security Exhibition
• Order for Axis-CXi, the cabinet-based mail screener, expanded into new territories, including Spain and Switzerland
• Attended European and Middle Eastern demonstrations with new portable products and product combinations
• Commenced activities (with largest shareholder support) to identify strategic acquisition opportunities

Following a successful return to profit in 2023, trading in the current financial year has begun more slowly in terms of sales and order intake. The order book as at January  2024 was £611k. As a consequence of the slow start, the results for the year are expected to be significantly second half weighted with the second half expected to benefit as the current pipeline of sales opportunities is converted. ThreatScan®-AS1 is increasing its contribution to the business and is providing opportunities in larger volume tender processes historically unavailable to Image Scan. The Company is participating in multiple unit government tender opportunities for the portable x-ray product, which if successful will add to the order book, which is already weighted to H2. Positive feedback from partners and sales team instils confidence in the sales pipeline for the year.

The year to date has seen extensive marketing activities; the team has been actively attending exhibitions in Europe and the Middle East and going on territory visits, to showcase and demonstrate the enhanced product portfolio. The focus is on the latest addition to the product family, the ThreatScan®-AS2, a very thin and light weight imaging panel ideal for rapid response Counter Explosive Ordnance operations using a backpack deployment, launched at the Middle Eastern Security Exhibition. The introduction of the ThreatScan®-AS2 compliments the ThreatScan®-AS1, expanding outreach to a broader customer and more sophisticated territory base. The Group received orders for Axis-CXi, the cabinet-based x-ray system for screening mail, parcels and small baggage for potentially harmful items and contraband, expanded into new territories, including Spain and Switzerland.

We are adeptly managing the reduction in industrial business supporting the catalyst market (associated with the internal combustion engine), as this sector undergoes geographic migration to lower cost-based locations. Image Scan is focusing on service and support revenue rather than relying on capital equipment sales.

As announced in the final results for the year ended 30 September 2023, the board are looking to create strategic opportunities to expand the business through partnerships and acquisitions. The Board, with the support of the Company’s largest shareholder, has commenced a process of identifying and analysing organisations offering complementary products or technology that would benefit from Image Scan’s well developed partner network.

Vince Deery, Chief Executive Officer of Image Scan said: “The launch of ThreatScan®-AS2 aligns with our strategy to introduce higher performing products to enable competition in wider geographies and more government opportunities. The endorsement of the strategy is evidenced by our participation in a number of tender processes that would not have been possible previously.”

The Image Scan Holdings plc AGM will take place on 28 February at 13.30 at its Barrow-Upon-Soar HQ, with online attendance also facilitated.  A brief presentation will be given by the Board, which will be made available on the investor’s website immediately after close of the meeting.  For more information, please visit www.3dx-ray.com/investor-relations/.

Further detail will be provided in Image Scan’s interim results in April 2024.

-ENDS-

For further information on the Image Scan, please visit: www.ish.co.uk. For further information on Image Scan products, please visit: www.3dx-ray.com

About Image Scan Holdings plc

The core activity of the Group is the manufacture of portable X-ray systems for security and counter terrorism applications. The Group recently launched a cabinet X-ray machine. The products are taken to market across the world through a strong network of international partners.

Over the last fifteen years, Image Scan has developed and manufactured industrial X-ray inspection systems, the MDXi range. The primary market for these systems is automotive emissions control where they are instrumental in quality control inspection of catalytic converters and diesel particulate filters.

The visibility and reach of the company’s 3DX-Ray brand has been further strengthened through a new LinkedIn profile focussed on its EOD and counter-terrorism activities. This can be found at:  https://www.linkedin.com/company/3dx-ray/

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