REG - Image Scan Holdings - Final Results
02/12/2025 07:00
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RNS Number : 7699J Image Scan Holdings PLC 02 December 2025
IMAGE SCAN HOLDINGS PLC
("Image Scan" or the "Company")
Final Results for the Year Ended 30 September 2025
Image Scan (AIM: IGE), the specialist supplier of X-ray screening systems to
the security and industrial inspection markets, today announces final results
for the year ended 30 September 2025.
HIGHLIGHTS
Resilient Performance Against Global Uncertainty - Strong Second-Half
Performance, Robust Margins, Strong Cash Position, Strengthened Order Book,
and Optimistic Outlook
FINANCIAL HEADLINES
· Order intake £1.9m (2024: £6.6m)
· Sales £1.6m (2024: £2.9m)
· Gross profit margin 58% (2024:53%)
· Administrative expenses £1.2m (2024: £1.3m)
· Pre-tax loss £0.3m (2024: profit £0.2m)
· Year-end order book £4.67m (2024: £4.47m)
· Year-end cash balance £1.13m (2024: £0.91m)
Image Scan's Chief Executive, Vince Deery, commented:
FY25 was a year of contrasts for Image Scan. The first half was marked by
global uncertainty and delayed procurement decisions, which impacted our
revenues and resulted in a loss for the year. However, I am proud of how the
team responded-demonstrating resilience, discipline, and a relentless focus on
operational efficiency.
The second half saw a clear turnaround, with improved activity levels, a
return to profitable trading, and a robust closing order book. Our cash
position is strong, and we continue to invest in product innovation and
strategic partnerships to drive future growth.
With a healthy pipeline and recent contract wins, we enter FY26 with renewed
confidence. I would like to thank our employees, partners, and shareholders
for their ongoing support as we build on this momentum and look forward to
delivering improved performance in the year ahead.
For further information on the Company, please visit: www.ish.co.uk
(http://www.ish.co.uk/) and for further information on its products, please
visit: www.3dx-ray.com (http://www.3dx-ray.com/)
-ENDS-
Image Scan Holdings plc
Tel: +44 (0) 1509 817400
Vincent Deery CEO
Sarah Atwell-King, CFO & Company Secretary
Zeus - Nominated Advisor and Corporate Broker
Tel: +44 (0)203 829 5000
Mike Coe/James Bavister (Investment Banking)
ABOUT IMAGE SCAN HOLDINGS PLC
About Image Scan Holdings plc
The core activity of the Group is the manufacture of portable X-ray systems
for security and counter terrorism applications. The Group recently launched a
cabinet X-ray machine and is replacing its Axis range of checkpoint X-ray
systems with new machines developed with a partner. All these products are
taken to market across the world through a strong network of international
partners.
In addition, over the last seventeen years, Image Scan has developed and
manufactured industrial X-ray inspection systems, the MDXi range. The primary
market for these systems is in automotive emissions control where they are
used for quality control inspection of catalytic converters and diesel
particulate filters.
The visibility and reach of the Company's 3DX-Ray brand has been further
strengthened through a new LinkedIn profile focussed on its EOD and
counter-terrorism activities. This can be found at:
https://www.linkedin.com/company/3dx-ray/
(https://www.linkedin.com/company/3dx-ray/)
(https://www.linkedin.com/company/3dx-ray/)
For further information on the Company, please visit: www.ish.co.uk
(http://www.ish.co.uk/) - and for further information on its products,
please visit: www.3dx-ray.com (http://www.3dx-ray.com/)
CHAIRMAN'S STATEMENT
Overview
For the year ended 30 September 2025 (the "Year"), the Group generated
revenues of £1.6m (2024: £2.9m), and a loss before tax of £0.3m (2024:
profit £0.2m). FY25 was a year of contrasts. The first half presented
significant challenges, driven by global uncertainty surrounding the new U.S.
administration and tariff policies. This hesitation rippled across markets,
delaying government spending and procurement decisions worldwide. Despite
these headwinds, the team demonstrated resilience and discipline, maintaining
tight cost control and operational efficiency. Group cash balances closed at
£1.13m (2024: £0.91m), reinforcing our financial strength.
The second half of the year marked a clear turnaround. Activity levels
improved, profitability strengthened, and we closed the year with renewed
momentum. Our commitment to innovation and market responsiveness remains
steadfast, and we continue to invest in product development and strategic
partnerships to secure long-term growth.
Outlook
With a strengthened order book, a healthy cash position of £1.13 million, and
continued, focused investment in product development, we stand on a solid
operational and financial foundation. The continuing success of our flagship
ThreatScan portable x-ray platform, coupled with encouraging post-year-end
contract awards and a robust pipeline, strongly reinforces our confidence in
our ability to deliver substantial growth and a much-improved performance in
FY26.
Leveraging the collective expertise of our team, and with determination and
agility, the Board remains confident in the Group's medium to long-term
prospects. We are fully committed to capitalising on the significant
operational momentum built in the latter part of the year, which is further
reinforced by the subsequent substantial orders notified post year-end.
Alongside this, we are actively pursuing focused strategic and organic
initiatives that will underpin our future growth trajectory.
Tim Jackson
CHAIRMAN
CEO REPORT
BUSINESS REVIEW
FY25 began under the shadow of persistent global economic uncertainty.
Concerns around U.S. trade policy and tariffs created hesitation among
government organisations, which resulted in delayed procurement cycles across
our key international markets. As an exporter, with around 90% of our products
going overseas, this environment was particularly challenging, with delays
evident across the Middle East, Southeast Asia, and Europe,
Throughout the difficult trading conditions in the first half of the year, the
Group maintained strict cost discipline and organisational efficiency. Our
strategy was focused on proactive engagement and sustaining competitiveness
through ongoing product development. This decisive action resulted in a marked
improvement in demand and profitability in the second half of the year.
Continued, focused investment ensured that our flagship ThreatScan® platform
gained further traction, reinforcing our competitive position in international
tenders and deliveries to over twenty territories.
We were pleased to announce two significant contract awards in August 25 which
materially strengthened our order book. The first was for a new customer in
North America for our industrial MDXi-400 system a notable achievement given
the maturity of this market. The second was for our latest portable
ThreatScan® system for an Eastern European military organisation.
Additionally, we progressed deliveries of a double-digit quantity of
ThreatScan® systems to a Southeast Asian customer. It must be noted, however,
that supply chain lead times prevented the completion of key contracts, which
limited overall revenue.
Our sales team maintained excellent market visibility through participation in
key trade shows and Counter Explosive Ordnance conventions. These efforts
generated new opportunities and supported robust performance in several
geographies, with Europe and Asia delivering particularly strong results, and
India returning to growth.
Our operational discipline is reflected in our strengthened financial
position: our cash position improved significantly during the year, reaching
£1.13m at year-end (FY24: £0.91m), a testament to disciplined financial
management and active working capital control.
Industrial revenues provided stronger-than-anticipated results, as the
strength of our recurring income from service and software contracts
successfully mitigated the anticipated decline and structural changes in the
catalyst-related business, underscoring the Group's adaptability.
We continue to seek clarity on the timing of a major UK defence contract.
While progress has been significantly slower than expected, recent
developments have been positive, though timelines remain dictated by
government processes.
OUTLOOK
We enter FY26 with renewed confidence following a strong second-half
performance and a significantly strengthened order book. Market activity
levels remain high post-year end, reinforced by recent contract awards,
providing a robust order book and a solid foundation for sustained success.
We also note that progress on the large UK defence contract has been slower
than anticipated. While we are seeing recent positive developments, timelines
remain dictated by the pace of government departments, and we continue to work
closely with all stakeholders to advance this important opportunity.
Continued investment in product development, particularly the ThreatScan®
platform, positions us well to maintain competitiveness and access new
opportunities. We are committed to reinforcing our global channel network,
prioritising engagement at trade shows and industry events, and actively
exploring strategic alliances, and partnerships, to accelerate future success
and enhance long-term shareholder value. While geopolitical uncertainties
remain, the current momentum and high activity levels give us optimism for the
year ahead.
Vincent Deery
CHIEF EXECUTIVE OFFICER
CFO REPORT
KEY PERFORMANCE INDICATORS
2025 2024 2023 2022 2021
Order intake £1.9m £6.6m £2.9m £2.2m £2.8m
Turnover £1.6m £2.9m £3.0m £2.0m £2.9m
Gross profit margin 58% 53% 48% 54% 53%
Profit/(loss) before tax (£0.3m) £0.2m £0.1m (£0.4m) £0.2m
Cash balance £1,131k £911k £958k £690k £1,186k
Inventory Balance £374k £393k £349k £629k £393k
FINANCIAL RESULTS
FY25 was a difficult year for Image Scan, delivering a pre-tax loss of £288k
after two successive years of profit. The stronger second half performance
indicate FY25 was an unusual year largely due the impact of global uncertainty
leading to governments delaying spends. Notably, our gross margin increased to
58%, the highest on record for the Group. The improved closing bank balances
along with the strong order book and underlying opportunity pipeline provides
forward looking metrics which give confidence for FY26.
Sarah Atwell King
CHIEF FINANCIAL OFFICER
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the year ended 30 September 2025
Note
2025 2024
£ £
REVENUE 1,617,718 2,860,776
Cost of sales (671,393) (1,348,975)
Gross profit 946,325 1,511,801
Administrative expenses (1,238,253) (1,313,730)
Other operating income - 3,474
OPERATING (LOSS)/PROFIT (291,928) 201,545
Finance income 7,888 10,736
Interest payable and similar charges (3,984) (4,514)
(LOSS)/PROFIT BEFORE TAXATION (288,024) 207,767
Taxation - (756)
(LOSS)/PROFIT AND TOTAL COMPREHENSIVE INCOME FOR THE YEAR FROM CONTINUING (288,024) 207,011
OPERATIONS ATTRIBUTABLE TO THE EQUITY OWNERS OF THE PARENT COMPANY
Pence Pence
Earnings per share
Basic 2 (0.21) 0.15
Diluted (0.21) 0.15
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 30 September 2025
2025 2024
£ £
NON-CURRENT ASSETS
Intangible assets 309,733 333,249
Property, plant and equipment - -
Right of use asset 79,893 143,873
389,626 477,122
CURRENT ASSETS
Inventories 374,176 392,643
Trade and other receivables 422,164 910,775
Cash and cash equivalents 1,130,955 911,468
1,927,295 2,214,886
TOTAL ASSETS 2,316,921 2,692,008
CURRENT LIABILITIES
Trade and other payables 776,852 792,167
Lease liability 48,467 53,158
Warranty provision 15,522 25,473
840,841 870,798
NON-CURRENT LIABILITIES
Lease liability 45,392 102,498
45,392 102,498
NET ASSETS 1,430,688 1,718,712
EQUITY
Share capital 1,368,546 1,368,546
Share premium account 8,332,910 8,332,910
Profit and loss account (8,270,768) (7,982,744)
TOTAL EQUITY ATTRIBUTABLE TO SHAREHOLDERS 1,430,688 1,718,712
STATEMENT OF CHANGES IN EQUITY
For the year ended 30 September 2025
CONSOLIDATED Share capital Share premium Profit and loss account
£ £ £ Total
£
As at 1 October 2023 1,368,546 8,332,910 (8,189,755) 1,511,701
Profit for the year and total comprehensive income for the year - - 207,011 207,011
As at 30 September 2024 1,368,546 8,332,910 (7,982,744) 1,718,712
Loss for the year and total comprehensive income for the year - - (288,024) (288,024)
As at 30 September 2025 1,368,546 8,332,910 (8,270,768) 1,430,688
CONSOLIDATED CASH FLOW STATEMENT
Year ended 30 September 2025
2025 2024
£ £
Cash flows from operating activities
Operating (loss)/profit (291,928) 201,545
Adjustments for:
Amortisation of intangible assets 66,394 62,350
Depreciation - 7,199
Amortisation of right of use asset 45,584 40,524
Research and development expenditure credit - (3,474)
Increase/(decrease) in impairment of inventories 31,838 (9,280)
Increase in inventories (13,371) (34,610)
Decrease/(increase) in trade and other receivables 488,611 (300,627)
Decrease/(increase) in trade and other payables (15,315) 79,712
Decrease in warranty provisions (9,951) (8,385)
Cash generated from operating activities 301,862 34,954
Corporation tax received - 26,440
Net cash flows generated from operating activities 301,862 61,394
Cash flows from investing activities
Interest received 7,888 10,736
Purchase of intangibles (42,878) (74,642)
Purchase of property, plant and equipment - (600)
Net cash used in investing activities (34,990) (64,506)
CASH FLOWS FROM FINANCING ACTIVITIES
Lease payments (capital and interest) (47,385) (43,885)
Net cash used in financing activities (47,385) (43,885)
Net INCREASE(DECREASE) in cash and cash equivalents 219,487 (46,997)
Cash and cash equivalents at beginning of year 911,468 958,465
Cash and cash equivalents at end of year 1,130,955 911,468
Notes to this statement
1. Basis of preparation
While the financial information included in this annual financial results
announcement has been prepared in accordance with the recognition and
measurement principles of UK adopted international accounting standards, this
announcement does not contain sufficient information to comply therewith.
The financial information set out above does not constitute the Group's
statutory accounts for the years ended 30 September 2025 or 30 September 2024
but is derived from those accounts. Statutory accounts for 2024 have been
delivered to the Registrar of Companies, and those for 2025 will be delivered
following the Company's Annual General Meeting. The auditors have reported on
those accounts; their reports were unqualified and did not contain statements
under Section 498 of the Companies Act 2006.
2. Earnings per share
The diluted earnings per share is calculated by adjusting the weighted average
number of ordinary shares in issue on the assumption of conversion of dilutive
potential ordinary shares. The Company's dilutive potential ordinary shares
are shares issued under the Company's Enterprise Management Incentive ('EMI')
scheme and options issued under the Company's Unapproved scheme. Where the
Company is reporting losses, the impact of share options is
considered anti-dilutive. Where the Company is reporting profits, share
options could potentially dilute basic earnings per share in the future but
are only included in the calculation of diluted earnings per share when the
exercise price of the share options is below the average share price in the
year.
2025 2024
£ £
(Loss)/profit for the year (288,024) 207,011
Weighted average number of ordinary shares in issue 136,854,577 136,854,577
Number of diluted shares 136,854,577 136,854,577
Basic (loss)/profit per share (0.21p) 0.15p
Diluted (loss)/profit per share (0.21p) 0.15p
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