REG - Image Scan Holdings - Trading Statement

Image Scan HoldingsAnnouncement

22/02/2022 07:00

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RNS Number : 3396C  Image Scan Holdings PLC  22 February 2022

22 February 2022

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 ahead of AGM

Image Scan, (AIM: IGE) specialists in the field of real-time X-ray imaging for
the security and industrial inspection markets, provides an update ahead of
its Annual General Meeting being held later today.

Key points:

·    New portable X-ray system launched at Dubai security show

·    Image Scan appointed global distributor for Serstech AB

·    Portable X-ray sale to US Federal agency

·    Change of board roles from 1 January

·    Trading continues to be impacted by COVID-19

·    Company will be loss-making for the first half of the financial year

·    Board considers the loss may not be recovered by end of the financial
year

 

 

The new ThreatScan®-AS1 fully integrated portable X-ray system, together with
a new, high energy, X-ray generator, was launched at a Dubai security
exhibition held in January and there were encouraging levels of interest from
both customers and trading partners. Manufacturing of the first batch of
production units is about to start, and some of these will be used as
demonstrators by our sales team and international sales partners. The first
sale of a portable X-ray system to a US Federal agency was an important
milestone in our targeting of the North American market.

 

Sales of the Company's industrial scanners continue to be impacted by
disruption in the automotive industry, where both customer demand and global
supply chains have been adversely affected by COVID-19. However, the Company
recently received an order for a new machine and has been performing trial
inspections of parts for a potential new customer in the same industry. As
part of its diversification plan, trial inspections of parts for a fuel cell
company have also been carried out.

 

Initiatives to further expand the footprint of the Company included entering
into a distributor agreement with Serstech AB, under which we are taking their
sophisticated, hand-held chemical analysers to the global security market.

 

As part of the Board's succession plan, Vincent Deery was appointed as Interim
CEO on 1 January 2022. William Mawer now performs the role of Executive
Chairman.

 

In the first half of FY22, COVID-19 has continued to impact customer spending,
the operation of our sales and service functions, our international supply
chain, and our staff. Orders have been delayed, causing the momentum built up
in the second half of FY21 to stall. This is now expected to result in the
Company making a significant loss for the first half.

 

The result for the year as a whole was, and still is, expected to be second
half weighted but while we have a strong pipeline of orders across many parts
of the world, the timing of those orders is hard to predict in the current
environment, and the Board therefore believes it is unlikely that the second
half will be sufficiently strong to enable the Company to fully recover the
first half loss.

 

Bill Mawer, Chairman and Chief Executive Officer of Image Scan commented: "It
is disappointing that our order intake has stalled in the first half of the
year. While international travel for trade shows and demonstrations is still
limited, we have a healthy pipeline of new business. However, it will take
some time for that business to come through.   Together with the loss of
COVID-19 Government support mechanisms, this gives us less confidence in our
original expectation for the current financial year. The positive response to
the launch of our new products gives us confidence for the longer term but, in
the continuing, challenging environment, it has to be expected that it will
take a while for order levels to recover."

The Company's Annual General Meeting, which will take place on 22 February at
13.30. It will be a hybrid meeting, with options for attendance at its
Barrow-upon-Soar facility and on-line. The Board will make a brief video
presentation available on the Company's website www.3dx-ray.com
(http://www.3dx-ray.com) immediately after the AGM.

The Company will provide further detail in its interim results in April 2022.

-ENDS-

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/)

 

 Enquiries:
 Image Scan Holdings plc                                     Tel: +44 (0) 1509 817 400

 William Mawer, Executive Chairman                           ir@ish.co.uk (mailto:info@ish.co.uk)

 Sarah Atwell King, Finance Director and Company Secretary
 W H Ireland - Nominated Adviser and Broker                  Tel: +44 (0) 207 220 1666

 Mike Coe/Sarah Mather

 

 

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