REG - Image Scan Holdings - Trading Update

Image Scan HoldingsAnnouncement

23/10/2024 07:00

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RNS Number : 1837J  Image Scan Holdings PLC  23 October 2024

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.

23 October 2024

IMAGE SCAN HOLDINGS PLC

("Image Scan" or the "Company")

Trading Update

Profits expected to be in line with market expectations

Strong Profit Growth, Healthy Cash Position,

Image Scan, a leading provider of X-ray screening systems, today announced its
pre-close trading update for the year ended 30 September 2024 ("FY24").

As anticipated in the interim report, after a measured first-half, trading in
the second half has been much stronger. Subject to audit, revenue is expected
to be approximately £2.9m, broadly in line with the previous year (FY23:
£3.0m). The Group also expects to report unaudited pre-tax profit in line
with market expectations at £0.2m (FY23: £0.1m) being a 100% increase on
FY23.

Notable factors contributing to this pleasing performance have been

·   Product Innovation: The introduction of new and innovative products has
driven increased market adoption and customer satisfaction.

·     Government Opportunities: The company's ability to secure
government contracts has been a key driver of growth.

·  Cost Management: Previous restructuring and ongoing cost-control
measures have contributed to improved profitability.

In addition to the strong profitability and financial performance, Image Scan
also maintained a healthy cash position. As at 30 September 2024, the Group
had cash balances of £912k (FY23: £958k).  During FY24, £215k (FY23:
£185k) was invested in product development. This financial foundation
provides the Company with the flexibility to invest in future growth
initiatives, including potential acquisitions.

Recent Contract Win and Order Book

As announced in a separate release last week, Image Scan has successfully
finalised a major contract with a prominent defence contractor for the supply
of its ThreatScan® portable X-ray system. Valued at approximately £3m over a
36-month period, the contract is a significant achievement in our strategic
growth.

The revenue and profit from this contract are anticipated to be recognised
primarily in FY25 and FY26. The win further strengthens our substantial order
book as we enter the new financial year. This contract provides a solid
foundation for next year's performance, providing a consistent level of
activity and reflects the growth in demand for our high-performance solutions
to the security and defence sectors.

As at 30 September 2024 the order book stood at £4.5m which will be primarily
delivered in FY25 and FY26.

Looking Ahead

Image Scan remains focused on expanding its product range, strengthening its
market position, and exploring new growth opportunities including through
acquisition. The Company's strong financial performance, bolstered by recent
contract wins gives the Board confidence for the year ahead.

Vince Deery, Chief Executive of Image Scan, commented: "I am extremely pleased
with the Group's performance in FY24. We have not only achieved a significant
increase in profitability but also maintained a strong cash position. The
recent contract awards with European defence partners positions us well in the
marketplace and gives us confidence for future growth in FY25 and beyond."

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/Sarah Mather (Corporate Finance)

 

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
an updated and refreshed range of portable products to compliment the
previously revised cabinet-based x-ray product line. All these products are
taken to market across the world through a strong network of international
partners.

In addition, over the last sixteen years, Image Scan has developed and
manufactured industrial X-ray inspection systems. 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.

 

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/)

 

 

 

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