08 April 2014
The Board of Image Scan, specialists in the field of real-time 3D and 2D x-ray imaging for the Security and Industrial Inspection markets, today provides shareholders with a trading update, highlighting the trading position of the Company for the half year to 31 March 2014.
- £2.1m of cumulative orders in the current financial year, of which £1.6m was booked to revenue in the first half of the year;
- Increase in demand of multiple unit contracts for portable FlatScan security systems, including a 13 unit contract received in January;
- Recent contract win for industrial inspection systems worth £0.3m;
- Fresh impetus to be given to the introduction of new technology and associated development of new products;
- Interims results planned for release on 12 June.
In the current financial year, the Company has £2.1m of cumulative orders, having started the year with an order book of £1.2m and booked a further £0.9million of new orders in the first 6 months. Of this £1.6m will be reported as revenue in the interim results. Over the last year, there has been an increase in the take-up of multiple unit contracts for the smaller portable FlatScan security system, including a contract received for 13 units, received in January. The Company continues to sell its MDXi range of industrial x-ray systems into the market for the inspection of catalytic converters with a contract secured in March for July delivery. Whilst the revenue in the first half of the year is on target, performance in the second half will be reliant on a marked increase in the level of order intake to include securing two significant contracts deliverable within the financial year.
As a result of an onerous nuclear contract and given the limited resource base available, it has been necessary in recent years to restrict R&D activities to modest incremental development. However, the Board is exploring means of accelerating product development. In order to give this fresh impetus, it is intended that following the General Meeting on 11 April 2014, Bill Mawer will be appointed Chairman and Chief Executive Officer, and he will be taking executive responsibility for the introduction of new technologies and the associated development of new products.
The current bank balance stands at £83,000 and the Company remains debt-free. Image Scan maintains an overdraft facility of £100,000 with the Royal Bank of Scotland.
The interim results will be released on 12 June 2014.
Image Scan’s Chairman, Brian Emslie, commented: “The Board has long recognised that increasing the product range is the key to unlocking the potential of the Company. As the onerous nuclear contract draws to a close, the Company’s development team will be refocused onto the expansion of our core standard products, from which a more regular and sustainable flow of orders can be secured.”
For further information, please contact:
Image Scan Holdings plc Tel: +44 (0) 1509 817400
Brian Emslie, Chairman
Louise George, Company Secretary
Cantor Fitzgerald Europe Tel: +44 (0) 207 894 7000
Mark Percy / Rick Thompson (Corporate Finance)
Richard Redmayne / Paul Jewell (Corporate broking)
Yellow Jersey PR Tel: +44 (0) 7747 788 221
Anna Legge / Dominic Barretto
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.