REG - Image Scan Holdings - Update on Defence Contract with NP Aerospace

Image Scan HoldingsAnnouncement

02/02/2026 07:00

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RNS Number : 1730R  Image Scan Holdings PLC  02 February 2026

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.

 

2 February 2026

 

 IMAGE SCAN HOLDINGS PLC

("Image Scan" or the "Company")

Update on Defence Contract with NP Aerospace

Further to the Company's previous announcements notifying of delays in the
defence contract progress, and in line with well documented government defence
procurement reviews. Image Scan today announces that it has been notified by
NP Aerospace Limited ("NP Aerospace"), a prominent UK defence contractor, that
the large military customer has exercised its contractual right to terminate,
for convenience, the prime contract under which Image Scan was contracted to
supply its ThreatScan® portable X‑ray systems.

The Company has been informed by NP Aerospace that the customer has issued a
formal notice terminating the prime contract under its "termination for
convenience" provisions. The termination is not performance‑related and does
not arise from any alleged failure by NP Aerospace or Image Scan to meet their
contractual obligations. Negotiations have yet to commence regarding
alternative options to the termination for convenience notice received.

As previously disclosed, the NP Aerospace contract represented a programme
over a 36‑month period and was expected to contribute materially to FY27 and
FY28 revenues.

As reported in the Company's results for the year ended 30 September 2025,
Image Scan entered FY26 with a strong order book of £4.67 million and a
year‑end cash balance of £1.13 million, the order book after the removal of
this large contract stands at over £1 million and our cash position is £1
million.

While the termination of this contract is disappointing, particularly given
the significant effort invested by Image Scan to secure and support the
programme, the Board believes that the remaining order book and cash position
provide a good platform from which to manage the impact of this decision and
continue to execute the Group's broader strategy.

CEO Comment

Vincent Deery, Chief Executive Officer of Image Scan, commented:

"We are extremely disappointed that this defence programme has been terminated
for convenience by the end‑customer, particularly given the strength of our
collaboration with NP Aerospace and the quality of our ThreatScan® systems.

However, it is important to stress that this decision is not
performance‑related and does not reflect on the capability of our technology
or the work of our team.

With a robust order book, a strong cash position and a differentiated product
portfolio, we remain confident in Image Scan's ability to deliver long‑term
value to our shareholders."

 

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/)

 

 

 

 

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