27 February 2018
The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.
Image Scan Holdings plc
(“Image Scan” or the “Company”)
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 to be held at 13:30 today.
- Short term trading impacted by previously reported contract cancellation
- Business trading in line with revised market expectations
- Healthy order pipeline in security and industrial
- Strong interest in portable X-ray systems at Middle East security show
- ThreatScan2® compact precision detector panel to be launched at March exhibition
- Launched integrated back pack system
- New “combi system” with both compact and large format detector panels launched and first orders achieved
- Quality system certified to new international standard
On 1 February 2018, the Company announced that it was negotiating cancellation terms for an export order valued at approximately £1m for portable X-ray systems. That process continues and the Board is hopeful this will be resolved before the end of March and that this important customer relationship will remain effective. Some of the units built for the cancelled order have already been repackaged for other customers.
The order pipeline for both security and industrial units remains healthy. The Intersec Exhibition in Dubai in January saw strong interest in the product range from the entire region and new orders have been received since the exhibition.
Technology from the grant supported Precision Linescan Detector programme is being incorporated into a new range of detector panels, known as ThreatScan2®. The compact version is complete and production has started. The new technology offers a four-fold increase in display resolution compared to the previous range and will compete directly with the more expensive Amorphous Silicon technology used by some competitors. The new panel will be launched at the Security and Counter Terror Exhibition in London’s Olympia in March.
A new “Combi” system, combining a single generator with both compact and large format panels, a distinctive product in the portable X-ray market, has been designed and first orders have been received. This new system allows bomb technicians to react to the widest possible variety of threat scenarios.
The Company’s quality management system has been updated and in December 2017, achieved certification against the important new quality standard ISO 9001/2015.
The business is trading in line with revised market expectations. As noted in the Company’s trading update on 1 February 2018, FY18 sales are expected to be weighted towards the second half. Whilst the Company expects to remain profitable over the full financial year, due to the weighting of sales, the Board expects to report a small loss in the first half.
Image Scan’s Chairman and Chief Executive, Bill Mawer, commented:
“As our product strategy for the Precision Linescan Detector has evolved through the course of the project, I am very pleased to see the results of this program reach the market in our new ThreatScan2® detector panels. Other innovations such as the new Combi system increase the value of individual orders and improve differentiation from our competitors. As stated at the start of the month, the cancellation of any order is disappointing, but I remain confident in the competitiveness of our products and with the future direction of the business.”
At its Annual General Meeting to be held today at 13:30, the Board will give a brief presentation, a copy of which will shortly be made available on the Company’s website www.3dx-ray.com. No new material information will be provided during the presentation.
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 (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.