Pre-close trading update

RNS Number : 3465P

Image Scan Holdings PLC

03 October 2011

 



03 October 2011

Image Scan Holdings plc

("Image Scan" or "the Company")

TRADING UPDATE

The Board of Image Scan, specialists in the field of real-time 3D and 2D x-ray imaging for the Security and Industrial Inspection markets, today provides shareholders with a trading update, highlighting the trading position of the Company for the year ending 30 September 2011.

The Board anticipates turnover for the year ended 30 September 2011 at £2.1 million (2010: £1.5 million).  Sales of security equipment have increased by 10% to over £1.3m still predominantly based around the portable FlatScan system, and a contract from the nuclear sector and other industrial orders have provided a further £800,000 of sales.  Overall this represents an increase in revenue of 40%.

Whilst this is regarded as a significant improvement in the Company's results, it is in fact the underlying order book that demonstrates the fundamental step change in the Company's performance over the past twelve months.  At the start of the last financial year, the order book was £90,000 and consisted primarily of spares and support.  During FY11 order intake totalled £4.3m of which £2.3m will be carried forward into the next financial year.  Orders received include a £0.75m contract for the nuclear sector and £1.5m contract for the security sector.  Furthermore, there has been a steady stream of smaller orders totalling over £2m from a wide range of customers and territories, giving the Company a stronger platform from which to grow revenue.

The Company increased the product range with the launch of the FlatScan-15, a smaller, lower cost portable x-ray inspection system, of which sales during its first year of introduction total six. In addition the Company has secured orders for its small vehicle inspection system, SVXi, of which four are deliverable in FY12.

The year end cash balance of £944,000 (2010: £347,000) reflects a combination of the recent strategic investment in the Company of £300,000 and significant upfront deposits on the recent security contract wins.

Image Scan's CEO, Louise George, commented, "The Company is now seeing the results of the investment in an expanded sales team to execute the strategy of building revenue growth based on selling standard security products through a network of agents and distributors worldwide.  Meanwhile the Company has also been able to capitalise on an opportunity to apply its technology to the inspection of nuclear waste.  Image Scan has seen order intake in FY11 at more than three times that of the prior year, and will be entering FY12 with an order book in excess of FY11 total revenue."

-ENDS-

For further information, please contact:

Image Scan Holdings plc                                     Tel: [phone]

Brian Emslie, Chairman

Louise George, CEO

[e-mail]

Seymour Pierce                                                      Tel: [phone]

John Cowie (Nominated Adviser)

Richard Redmayne / Paul Jewell (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 3D and 2D x-ray solutions for use in the global security and industrial inspection markets. The Company's security portfolio includes the Axis-3d^® and Axis-2d baggage inspection systems for corporate and airport security; FlatScan-TPXi, a portable bomb and suspect package detection system; and SVXi, a small vehicle inspection system. The industrial inspection solutions include the MDXi and the DEX systems.

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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