AGM Statement

RNS Number : 3172Y

Image Scan Holdings PLC

29 February 2012

 



                                                                                                           29 February 2012

Image Scan Holdings plc

("Image Scan" or "the Company")

TRADING UPDATE

The Board of Image Scan, specialists in the field of real-time 3D and 2D x-ray imaging for the 'Homeland Security' and 'Industrial Inspection' markets, is pleased to present a trading update to coincide with the AGM being held at the offices of Seymour Pierce Limited, 20 Old Bailey, London EC4M 7EN at 11am today.

The high order intake in 2011 gave rise to an opening order book of £2.3m, the majority of which is deliverable in the 6 months to 31^st March 2012.  Together with orders in the year to date of £520,000, this has provided a solid base to support increased revenue in the current financial year.

In addition to the significant nuclear and security contracts that constituted the bulk of the order book at the start of the year, the Company has continued to secure a steady flow of orders for its FlatScan portable screening system, and an encouraging level of orders for its Axis baggage screening system including an Axis-3d system for a prestigious London location.   The renewed level of interest from the industrial sector has continued into 2012 with two contracts secured for new industrial markets using applications work undertaken in previous years.

Whilst extending our sales reach and potential with customers, the new products introduced in 2011 are yielding lower margins due to increased competitiveness in the market and the need to bear non-recurring engineering costs associated with product introductions.  Furthermore, there has been an increase in R&D expenditure associated with the development of the second generation FlatScan software, ThreatSpect, and the enhancement of the software for SVXi, the small vehicle x-ray inspection system.

The current cash balance is £370,000 which reflects the substantial investment in work-in-progress on current contracts to be delivered within the next two months. The Company has a £100,000 overdraft facility with the Royal Bank of Scotland.

Image Scan's Chairman, Brian Emslie, commented, "Having achieved break-even in the second half of 2011, the Board anticipates that the six months to 31^st March 2012 will return increased revenue underpinned by the substantial opening order book.  Whilst the Board is encouraged by this prolonged period of positive trading, the challenge is still to ensure long term viability."

-ENDS-

For further information, please contact:

Image Scan Holdings plc                                     Tel: [phone]

Brian Emslie, Chairman

Louise George, CEO

[e-mail]

Seymour Pierce                                                      Tel: [phone]

Sarah Jacobs

Paul Jewell

About Image Scan Holdings plc

Image Scan Holdings plc (AIM: IGE) is focused on the development and commercialisation of market leading real-time 3D and 2D x-ray solutions for use in the global security and industrial inspection markets. The Company's security portfolio includes the Axis-3d^® and Axis-2d baggage inspection systems for corporate and airport security; FlatScan-TPXi, a portable bomb and suspect package detection system; and SVXi, a small vehicle inspection system. The industrial inspection solutions include the MDXi and the DEX systems.

For further information on the Company, please visit: www.ish.co.uk - and for further information on its products, please visit: www.3dx-ray.com

 

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