Image Scan Holdings PLC Trading Update (7435A)
September 14 2018 - 2:00AM
UK Regulatory
TIDMIGE
RNS Number : 7435A
Image Scan Holdings PLC
14 September 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")
Trading update
Image Scan (AIM:IGE), the specialist supplier of X-ray screening
systems to the security and industrial inspection markets provides
this trading update for the financial year to 30 September
2018.
The strong sales of the Company's industrial X-ray inspection
systems reported in the first half have continued into the second.
We expect the number of units sold for the full year to hit a
record, the two largest industrial customers both procuring new
units for deployment into their global catalytic converter
manufacturing operations. Valuable support contracts will be put in
place for all the new units.
Sales of portable X-ray systems to security and counter
terrorism forces have been slower than hoped for in the second
half, though orders for delivery in FY2018 are still being
received. There is no evidence that this decline in orders reflects
anything other than changing Government budget schedules and the
typically "lumpy" order intake that has been a characteristic of
the business from time to time. Interest in the range of systems
remains high and the volume of quotations made to customers is
strong.
The Company is trying to finalise several orders before the year
end and total sales are expected to be between GBP3.4m and GBP3.8m.
The gross margin on sales will increase over FY2017, reflecting the
strong performance of the more profitable industrial products. This
will deliver a trading profit performance of close to break even,
the final number dependent on the sales over the last few weeks of
the year.
With lower expected revenues for the year coupled with the
exceptional costs associated with the aborted fundraise and
acquisition of Todd Research, which are estimated to have a total
impact on profit of GBP270k, the Company expect to make a loss in
FY 2018.
Image Scan's Chairman and Chief Executive, Bill Mawer,
commented: "I am confident in our portable and industrial X-ray
products and we plan to develop new products, serving a wider
segment of the security market, during FY 2019. Additionally, we
are looking to strengthen our sales team. I expect the Company to
be focused on organic growth for a period before revisiting its
acquisition ambitions."
The Company will provide a pre-close statement on its results
for the year to 30 September 2018 on Wednesday 24 October.
-ENDS-
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 / Will Goode (Corporate Finance)
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(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
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END
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