Sign up United Kingdom
Proactive Investors - Run By Investors For Investors

Image Scan predicts full-year loss after mixed year

Despite a tough year, Image Scan said it expects to have sold a record number of industrial X-ray units in 2018
Image Scan predicts full-year loss after mixed year
Image Scan supplies x-ray screening systems to the security and industrial inspection markets

Image Scan PLC (LON:IMG) said on Friday it expects to deliver a full-year loss due to costs associated with its aborted fundraising plan and acquisition of Todd Research.

The specialist supplier of X-ray screening systems to the security and industrial inspection markets said it was trying to finalise several orders before the year-end, adding that total sales are expected to be between £3.4mln and £3.8mln for the year to the end of September.

READ: Image Scan off to a flier with Todd Research acquisition

It added that the gross margin on sales would be up on 2017, reflecting the strong performance of its more profitable industrial products. This will deliver a trading profit performance of close to break even, with the final number dependent on the sales over the last few weeks of the year, Image Scan said.

Image Scan also said it expects to have sold a record number of industrial X-ray units during the year after its two largest industrial customers both bought new X-ray units for deployment into their global catalytic converter manufacturing operations during the period. It also expects to secure valuable support contracts for all the new units sold.

However, the company said that sales of portable X-ray systems to security and counter-terrorism forces had been slower than hoped for in the six months to the end of September but that orders for delivery in 2018 were still being received.

Image Scan believes the decline in orders reflects changing government budget schedules and the typically "lumpy" order intake that has been a characteristic of the business. Interest in the range of systems remains high and the volume of quotations made to customers is strong, the firm added.

"I am confident in our portable and industrial X-ray products and we plan to develop new products, serving a wider segment of the security market, during FY 2019. Additionally, we are looking to strengthen our sales team,” CEO Bill Mawer said in a statement.

“I expect the Company to be focused on organic growth for a period before revisiting its acquisition ambitions."

View full IGE profile View Profile

Image Scan Holdings Plc Timeline

February 23 2016

Related Articles

Picture of XTEK's products
May 04 2018
Patersons' price target of $1.15 implies upside of 130% relative to XTEK's current share price.
The Internet of Things
April 30 2018
Richard Kilsby, the non-executive chairman of Telit, said that the early signs of changes made, especially to the group's activities and cost base, have led to positive operational progress since the beginning of 2018
Male model
July 09 2018
Clothes maketh the man ... and the chances are, those clothes were bought from a website that uses ATTRQT's technology

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2018

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use