Image Scan Holdings PLC Pre Close Trading Update (6220M)
17 October 2016 - 5:00PM
UK Regulatory
TIDMIGE
RNS Number : 6220M
Image Scan Holdings PLC
17 October 2016
17 October 2016
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 2016.
Key Points:
-- Sales of GBP3.3m (2015: GBP1.7m) at a gross margin of 42% (2015: 38%)
-- Pre-tax trading profit of approximately GBP0.1m (2015: loss of GBP0.64m)
-- 75% of an order for ThreatScan(R)-LS1 portable X-ray systems,
previously announced on 30(th) June 2016, was delivered before year
end
-- In the final quarter of the period sales of portable X-ray
systems were also made to customers in Europe, the Middle East and
North Africa
-- Government grant-assisted project to develop a new generation
of portable X-ray systems reached prototype stage
-- Industrial sales increased, driven by higher demand from key automotive industry customers
-- Total order intake for the year of GBP4.3m
-- Outstanding order book at the end of the period of GBP1.7m (2015: GBP0.67m)
-- GBP1m cash balance at the end of the period (H1 2016: GBP0.53m)
The quantity of Portable X-ray systems sold showed a threefold
increase on the prior year, driven by large orders for
ThreatScan(R)-LS1 systems from government customers in Asia. The
final weeks of the period saw significant progress in both the
supply chain and internal manufacturing which allowed the previous
forecast for assembly and test of these systems to be exceeded.
Total security sales were GBP2m (2015: GBP1.2m).
Industrial sales, were GBP1.3m (2015: GBP0.5m) as further orders
were added to the strong order book at the start of the year and
customer funded development projects were completed.
Total Company sales for the year were GBP3.3m (2015: GBP1.7m).
An improvement in gross margin to 42% (2015: 38%) was driven by
manufacturing and supply chain efficiencies, enabled by the
increased volume of sales and a favourable change in product mix. A
small increase in overheads of around GBP0.1m was attributable to
greater investment in research and development and sales and
marketing. The resulting unaudited pre-tax profit for the business
was approximately GBP0.1m (2015: loss of GBP0.64m).
The ThreatScan(R)-LS1 portable X-ray system was widely
demonstrated and trialled during the period, notably at
international Explosive Ordnance Disposal (EOD) gatherings in Asia
and North America. The system performed well in these high pressure
scenarios which will provide access to extensive new opportunities.
A wide range of accessories have been developed and delivered to
customers. The development of the next generation of Image Scan
portable X-ray systems, under an award from Innovate UK, a UK
Government body, is well advanced. The new technology licensed from
Ibex innovations specifically for this project is performing well
in the first prototype.
An agreement was signed with Todd Research Limited for Image
Scan to market that Company's Mail Scan X-ray systems and two
separate orders were received. Campaigns to sell further systems
are underway in a number of parts of the world.
Alongside increased deliveries of our industrial systems, used
for inspecting catalytic converters in the automotive industry, a
number of customer-funded development projects lead to significant
performance enhancements. Potentially important IP was generated
that could lead to further developments in this profitable part of
the business.
A complex X-ray system provided to a customer in the nuclear
industry, a project which had adversely impacted the Company's
results for a number of years, reached the end of its warranty
period and a maintenance contract was put in place.
The Company expects to announce its preliminary results in
December.
Image Scan's Chairman and Chief Executive, Bill Mawer,
commented: "I am delighted by these results as they demonstrate how
attractive our recently developed products are to the market and
illustrate the significant advances we have made in the management
of our supply chain and manufacturing processes. It is pleasing
that both the security and industrial business activities have made
progress in the year. Our strong order book and cash positions
point to continued good performance in the short term while our
strong product pipeline and the expanding customer base indicate a
strong future for the Company. This is an exciting time for Image
Scan and the immediate task is to continue the momentum we have
built up this year."
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.
-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 / 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(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 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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