01 February 2018
Image Scan (AIM:IGE), the specialist supplier of X-ray screening systems to the security and industrial inspection markets provides a trading update for the year to 30 September 2018 (“FY18”).
In the Company’s preliminary results statement for the year to 30 September 2017, announced on 6 December 2017, the Company stated that although it “started the new year with a record order book” it had “yet to finalise extended delivery dates on a portion of those orders”. For one export order, valued at approximately £1m, a definitive delivery date has still not been confirmed by the customer. The Board now believes that following discussions with this customer, the issue will not be resolved in the near term and, as such, Image Scan is currently negotiating terms for the cancellation of that order.
The order was made up of largely standard portable X-ray products and, though the Board is confident these units can be sold to other customers, this may not occur in FY18. Whilst the Board expects FY18 sales to be weighted towards the second half and the Company to remain profitable for the financial year, given this development the Company now expects its trading performance for FY18 will be materially below current market expectations.
Bill Mawer, Chairman and CEO of Image Scan, said: “After successive periods of growth it is disappointing to anticipate a fall-off in our expected performance for the current year. However, there is always some risk in taking large orders in some export markets even from existing customers. I would like to emphasise that this issue is not one of product performance, and our security and industrial product ranges remain in demand. We recently exhibited the full portable X-ray product range at the Intersec exhibition in Dubai and this generated exciting new leads in the region.”
The Company will issue a further trading update at its Annual General Meeting on 27 February.
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 (Corporate Finance)
Alex Pollen / 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.