REG - Image Scan Holdings - Interim Results
20/05/2025 08:45
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RNS Number : 3881J Image Scan Holdings PLC 20 May 2025
This announcement contains inside information for the purposes of Article 7 of
the UK version of Regulation (EU) No 596/2014 which is part of UK law by
virtue of the European Union (Withdrawal) Act 2018, as amended ("MAR"). Upon
the publication of this announcement via a Regulatory Information Service,
this inside information is now considered to be in the public domain.
IMAGE SCAN HOLDINGS PLC
("Image Scan" or the "Company")
Interim Results
Image Scan (AIM: IGE), the specialist supplier of X-ray screening systems
for security and industrial inspection, is delighted to announces its interim
results for the six months ended 31 March 2025("H1 2025" or the "Period").
Financial summary:
· Order intake £315k (H1 2024: £1,136k)
· Revenue was £350k (H1 2024: £1,061k)
· Gross profit margin of 59% (H1 2024: 54%)
· Loss before taxation of £422k (H1 2024: £120k)
· Period end bank balance was £512k (H1 2024: £759k)
· Period end orderbook of £4,720k (H1 2024: £729k)
Operational highlights:
· Actively engaged in extensive marketing activities, with
attendance at exhibitions in the UK, USA, Middle East, South East Asia, and
Europe, to promote the enhanced product portfolio.
· A number of important demonstrations co-ordinated by our business
partners to several key end users have been undertaken in support of
significant end user requirements.
· Continued to develop a strong pipeline of future opportunities.
Post Period-end highlights
· A significant post-period order of over £300k in Australasia was
received for diplomatic security. This order demonstrates the strong market
interest in our newer products and validates our product development strategy.
Vince Deery, Chief Executive Officer of Image Scan commented:
"H1 performance is disappointing and has been impacted by the ongoing delay
with the significant defence contract, from which revenue was originally
expected to commence by this time. The current geopolitical situation and the
resulting uncertainty have further affected budgets and customer decisions,
adding to these challenges. While we are optimistic about our opportunity
pipeline, which includes some significant prospects, the timing of both these
opportunities and the delayed defence contract introduces uncertainty into our
view of our full-year performance.. We are continuing an active program to
promote and demonstrate our broader product range, alongside careful cost
management. We believe this will position us strongly to capitalise when the
delays to the large defence contract are resolved and global market conditions
improve."
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/)
Chief Executive Officer's statement
Image Scan Holdings plc
Interim report 2025
Chief Executive Officer's statement
Introduction
Image Scan Holdings plc is a specialist in innovative X-ray technology,
operating globally in the security and industrial inspection sectors. The
Company's principal activity is the design, manufacture, and supply of both
portable and fixed X-ray security screening systems to governments, security
organisations and law enforcement agencies. The Company also supplies
high-quality screening systems used in the manufacture of catalytic converters
and diesel particulate filters.
Financial results
Revenue for the period was £350k (H1 2024: £1,061k). Gross profit margin
increased by 5% to 59% (H1 2024: 54%) due mainly to the change in product mix.
Operating expenses were well managed at £630k (H1 2024: £691k), reflecting
strong cost control measures.
The improved gross margin percentage and a reduction in costs did not
compensate for the quiet sales period leading to a pre-tax loss of £422k in
H1 2025 (H1 2024: pre-tax loss off £120k).
The Company finished H1 2025 with an order book of £4,720k 1 (#_ftn1) (H1
2024: £729k).
At the period end, the Company had a cash balance of £512k (H1 2024: £759k)
and no debt.
Review of the period
Following a second successful year of profit growth in 2024, trading for H1
2025, followed the same pattern as H1 FY24, being characterised by slow
sales. As previously reported, the overall result for the year is expected
to be more significantly second half weighted than last year.
H1 2025 presented challenges with order intake significantly lower than the
comparative period in 2024. The Board believes this unprecedented decrease
was influenced by geopolitical events leading to uncertainty in key markets
impacting release of budgets and the timing of our customers' investment
decisions. In addition, it believes that this disruption to normal patterns of
trading may continue in the short term.
The ongoing delays in the substantial defence contract secured in the previous
financial year also affected performance. Revenue from this contract was
originally expected to commence in H1 but has yet to start. The progress of
this contract remains outside of our control, which is a source of uncertainty
and frustration.
Despite these difficulties, the Company has:
· Actively engaged in extensive marketing activities, with
attendance at exhibitions in the UK, USA, Middle East, South East Asia, and
Europe, to promote its enhanced product portfolio. The focus has been on
showcasing and demonstrating our latest product innovations to potential
clients and partners.
· A number of important demonstrations co-ordinated by our business
partners to several key end users have been undertaken.
· A significant post-period order of over £300k in Australasia was
received for diplomatic security. This order demonstrates the strong market
interest in our newer products and validates our product development strategy.
· Continued to develop a strong pipeline of future opportunities.
We continue to manage the ongoing reduction in industrial business, following
our approach in FY24, with a focus on service and support revenue.
As highlighted in the H1 performance, the Company has also continued to
maintain tight control over our overhead expenditure.
Outlook
The Company has a strong quote pipeline, and our products continue to be well
promoted. Management is confident that this robust pipeline will deliver
increased sales in the second half of the year.
However although the Board is confident of an improved second half, the
outcome for the year is currently very uncertain as it is dependent on the
timing of order receipts and their subsequent delivery. While the Board can
still see a path to achieving market expectations for the year it is now
looking increasingly unlikely. It can also see the possibility that the
improvement in H2 will not be sufficient to deliver positive full year
earnings.
The Board remains optimistic about the opportunity pipeline, which includes
some significant prospects, and believes the Company is positioned strongly to
capitalise when the delays to the large defence contract and other awards are
resolved. In the meantime we will continuing to exercise careful cost
management while maintaining an active program to promote and demonstrate our
broader product range.
I want to express my thanks to the team who have continued to show dedication
and commitment in the face of this challenging period.
Vince Deery Chief Executive Officer
Vince Deery
Chief Executive Officer
Financial Results
Consolidated income statement
For the six months ended 31 March 2025
Note Six months Six months Year ended
ended ended 30 September
31 March 2025 31 March 2024 2024
(Unaudited) (Unaudited)
£'000 £'000 (Audited)
£'000
Revenue 350 1,061 2,861
Cost of sales (145) (492) (1,349)
Gross profit 205 569 1,512
Gross profit % 59% 54% 53%
Operating expenses (630) (691) (1,313)
Other operating income - - 3
Operating (loss)/profit (425) (122) 202
Finance income 5 5 11
Interest payable (2) (1) (5)
(Loss)/profit before taxation (422) (120) 208
Taxation - - (1)
(Loss)/profit for the period (422) (120) 207
Pence Pence Pence
Earnings per share
Basic (loss)/profit per share 3 (0.30) (0.09) 0.15
Diluted (loss)/profit per share (0.30) (0.09) 0.15
Consolidated statement of changes in equity
For the six months ended 31 March 2025
Note Six months Six months Year ended
ended ended 30 September
31 March 2025 31 March 2024 2024
(Unaudited) (Unaudited) (Audited)
£'000 £'000 £'000
Opening equity shareholders' funds 1,719 1,512 1,512
(Loss)/profit attributable to equity shareholders (422) (120) 207
Closing equity shareholders' funds 1,297 1,392 1,719
Consolidated statement of financial position
As at 31 March 2025
As at As at As at
31 March 2025 31 March 2024 30 September
(Unaudited) (Unaudited) 2024
£'000 £'000 (Audited)
£'000
Non-current assets
Intangible and tangible assets 481 488 477
481 488 477
Current assets
Inventories 489 495 393
Trade and other receivables 302 514 911
Cash and cash equivalents 512 759 911
1,303 1,768 2,215
Total assets 1,784 2,256 2,692
Current liabilities
Trade and other payables 394 753 871
Non-current liabilities 93 111 102
Total liabilities 487 864 973
Net assets 1,297 1,392 1,719
Equity
Share capital 1,368 1,368 1,368
Share premium account 8,333 8,333 8,333
Retained earnings (8,404) (8,309) (7,982)
Equity shareholders' funds 1,297 1,392 1,719
Consolidated cash flow statement
For the six months ended 31 March 2025
Six months Six months ended 31 March 2024 (Unaudited) £'000 Year ended
ended 30 September
31 March 2025 2024
(Unaudited) (Audited)
£'000 £'000
Cash flows from operating activities
Operating (loss)/profit (424) (119) 202
Adjustments for:
Depreciation 1 6 7
Amortisation of intangibles 31 24 62
Amortisation of right of use asset 21 17 41
Impairment of inventories 23 (5) (9)
(Increase)/decrease in inventories (119) (141) (35)
Decrease/(increase) in trade and other receivables 605 82 (301)
(Decrease)/increase in trade and other payables (451) (6) 80
(Decrease)/increase in provision for warranty (11) (6) (8)
Net cash (used in)/generated from operating activities (324) (148)
Corporation tax recovered - - 26
Net cash (outflow)/ inflow from operating activities (324) (148) 61
Cash flows from investing activities
Interest received 5 5 11
Purchase of intangible assets (57) (37) (74)
Purchase of property, plant and equipment - - (1)
Net cash used in investing activities (52) (32) (64)
Cash flows from financing activities
Lease payments (23) (19) (44)
Net cash used in financing activities (23) (19) (44)
Net decrease in cash and cash equivalents (399) (199) (47)
Cash and cash equivalents at beginning of period 911 958 958
Cash and cash equivalents at end of period 512 759 911
Notes to the unaudited interim financial statements
For the six months ended 31 March 2025
1 Basis of preparation
The interim financial statements, which are unaudited, have been prepared on
the basis of the accounting policies expected to apply for the financial year
to 30 September 2025 and in accordance with recognition and measurement
principles of International Financial Reporting Standards ('IFRSs') as adopted
by the United Kingdom. The accounting policies applied in the preparation of
these interim financial statements are consistent with those used in the
financial statements for the year ended 30 September 2024.
The interim financial statements do not include all of the information
required for full annual financial statements and do not comply with all the
disclosures in IAS 34 'Interim financial reporting'. Accordingly, whilst the
interim statements have been prepared in accordance with IFRSs, they cannot be
construed as being in full compliance with IFRSs.
The financial information for the year ended 30 September 2024 does not
constitute the full statutory accounts for that period. The annual report and
financial statements for the year ended 30 September 2024 have been filed with
the Registrar of Companies. The independent auditor's report on the report and
financial statements for the year ended 30 September 2024 was unqualified, did
not draw attention to any matters by way of emphasis, and did not contain a
statement under Section 498(2) or 498(3) of the Companies Act 2006.
2 Going concern
The interim financial information has been prepared on a going concern basis,
which assumes that the Company will have adequate resources to continue in
operational existence for the foreseeable future.
3 Earnings per share ('EPS')
Basic earnings per ordinary share is based on the loss on ordinary activities
before taxation of £422k (H1 2024 loss £120k) and on 136,854,577 ordinary
shares in issue throughout the period.
Diluted profit 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, based on the share price at the end of the
period. 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.
1 (#_ftnref1) Realisable over a twenty four month period.
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