Image Scan Holdings PLC Pre Close Trading Update (9766B)
13 October 2015 - 5:00PM
UK Regulatory
TIDMIGE
RNS Number : 9766B
Image Scan Holdings PLC
13 October 2015
13 October 2015
Image Scan Holdings plc
("Image Scan" or the "Company")
PRE-CLOSE TRADING UPDATE
Image Scan, (AIM: IGE) specialists in the field of real-time
X-ray imaging for the Security and Industrial Inspection markets,
today provides a pre-close trading update ahead of its results for
the year ended 30 September 2015.
Key Points:
-- Sales of GBP1,700k at a gross margin of approximately 38%
resulted in a pre-tax trading loss of approximately GBP640k
-- Sales were held back by delays in the product development
programme as previously announced. The issues have now been
rectified
-- Research and development spend increased to drive product launches
-- First customer deliveries of a new ultra-thin portable X-ray
detector panel and associated software
-- Upturn in orders for industrial inspection systems
-- Won UK Government grant to develop new generation portable
detector using technology licensed from Ibex Innovations
-- GBP470k of cash at the end of the period (H1 2015: GBP455k)
Security sales during the year of GBP1,200k (2014: GBP1,500k)
were held back by the delayed availability of new portable X-ray
systems, while industrial sales of GBP500k (2014: GBP660k) brought
total sales to GBP1,700k (2014: GBP2,200). Gross margin was
improved at 38% (2014: 31%) reflecting both increased margin on
security products, as process and supply chain improvement took
effect, and the winding down of a large loss making contract in the
nuclear industry.
An increase in overheads of GBP80k was attributable to increased
spending on research and development as the business focussed on
overcoming product development delays in its new portable X-ray
systems. The resulting pre-tax loss for the business was
approximately GBP640k (2014: GBP520k)
The year saw the market release and first customer deliveries of
the new ThreatScan(R)-LS1 detector panel and the associated new
software system. These products joined the recently developed
portable X-ray generator to create an all-new high performance
portable X-ray system for security and counter terrorism
professionals world-wide. A grant was received from the UK
Government under which a Precision Linescan Detector will be
developed, combining Image Scan's portable X-ray technology with
new detector technology licensed from Ibex Innovations to deliver
further performance improvements.
While industrial sales in the year were un-remarkable at 2 units
(2014: 3 units) the Company has seen increased demand from
manufacturers of automotive emission control systems for its X-ray
inspection systems. The Company starts FY 2015/16 with 4 units in
the order book. The final customer acceptance was completed on a
one off large inspection system developed for the nuclear industry
that has adversely impacted Company performance in recent
years.
The Company expects to announce its preliminary results in
December.
Image Scan's Chairman and Chief Executive, Bill Mawer,
commented: "As previously announced the delayed availability of the
replacement portable X-ray generator from our partner and, more
recently, of the new detector panel from our internal Research and
Development team has adversely impacted the business this year.
However it is pleasing to see first orders and deliveries for
this system and our sales team and their partners are now
demonstrating the system to security customers world wide. We look
forward to working with Ibex Innovations on a new generation of
portable X-ray detector technology. The strong order intake for our
industrial inspection systems, a trend we expect to continue into
the new financial year, is also pleasing as these sales usually
include valuable long term support contracts."
-ENDS-
For further information, please contact:
Image Scan Holdings plc Tel: +44 (0) 1509 817400
William Mawer, Chairman
Sarah Atwell-King, Company Secretary
ir@ish.co.uk
Cantor Fitzgerald Europe Tel: +44 (0) 207 894 7000
Rick Thompson / David Foreman / Michael Reynolds (Corporate
Finance)
David Banks / Tessa Sillars (Corporate Broking)
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(R) 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 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.
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
This information is provided by RNS
The company news service from the London Stock Exchange
END
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