REG - Thruvision Group PLC - Year-end trading update

ThruvisionAnnouncement

26/04/2024 07:00

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RNS Number : 1066M  Thruvision Group PLC  26 April 2024

26 April 2024

Thruvision Group plc

 

Year-end trading update

 

Thruvision (AIM: THRU, "Thruvision" or the "Group"), the leading international
provider of walk-through security technology, today publishes a trading update
for the financial year ended 31 March 2024 ("FY24").

 

·    Revenue is expected to be in the order of £7.8 million (FY23: £12.4
million), made up primarily by Entrance Security, new Customs agency sales and
Retail Distribution.

·    Adjusted gross margin* remained strong and improved to 53.0% (FY23:
51.5%).

·    The revenue reduction can be attributed to the previously announced
lack of further significant orders from US Customs and Border Protection (CBP)
in FY24.

·    Adjusting for the impact of this single customer, revenue growth was
85% to £7.6 million (FY23: £4.1 million) on a like-for-like basis,
demonstrating strong broad-based growth in demand for our solutions.

·    US Transportation Security Administration (TSA) has recently changed
its policy to require increased security screening of aviation employees,
which has led to a meaningful pick-up in sales enquiries which we expect to
lead to new sales in FY25.

·    Approximately 70% of revenue came from the Group's existing customer
base, most of whom were upgrading to our WalkTHRU solution.

·    Adjusted EBITDA loss* is expected to be in the region of £2.5
million (FY23: loss of £0.2 million), which is in line with market
expectations.

·    Cash balance on 31 March 2024 was £4.1 million (31 March 2023: £2.8
million). The Group has no debt.

 

Colin Evans, Chief Executive, commented:

 

"Almost all demand we are now experiencing is for our WalkTHRU technology
where our latest AI-based image processing software is further strengthening
our market leadership.

 

The very strong revenue growth we achieved from customers outside of US
Customs and Border Protection (CBP) is encouraging. In particular, the
worsening geopolitical climate resulted in very strong interest from the
Entrance Security market, a trend we expect to see continue. The Group's
multi-year CBP framework purchasing agreement remains in place for when
Congressional funding support returns and recent policy changes are now
driving demand from US Aviation.

 

The fact that we are, post COVID, once again operating in four distinct end
markets underpins our confidence in our future growth and our expectation that
we will reach profitability in the short-term."

 

 

 

 

 

 

 

For further information please contact:

 

Thruvision Group
plc
                                +44 (0)1235
425400

Colin Evans, Chief Executive

Victoria Balchin, Chief Financial Officer

 

Investec Investment Banking (NOMAD &
Broker)
                +44 (0)20 7597 5970

Patrick Robb / James Rudd / Sebastian Lawrence

 

Meare
Consulting
                                +44 (0) 7990
858548

Adrian Duffield

 

About Thruvision (www.thruvision.com (http://www.thruvision.com) )

 

Thruvision is the leading developer, manufacturer and supplier of advanced
AI-based walk-through security technology internationally. Its technology is
deployed in more than 20 countries around the world by government and
commercial organisations in a wide range of security situations, where large
numbers of people need to be screened quickly, safely and efficiently.
Thruvision's patented technology is uniquely capable of detecting concealed
objects in real time using advanced AI-based detection algorithms.

The Group's offices are near Oxford and Washington DC.

 

*  Adjusted EBITDA loss is defined as statutory operating loss before
depreciation and amortisation, share based payments and impairment of
intangible assets.  Adjusted gross margin is defined as the statutory gross
margin excluding production overheads.

 

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