08:00 Mon 30 Apr 2018
Image Scan Holdings - Half-year Report
Interim Report 2018
The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain
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(AIM: IGE)
INTERIM RESULTS
Strong recovery after contract loss
Financial summary:
· Order intake increased by 54% to
· Revenue flat at
· Gross profit margin increased to 40% (2017: 39%)
· Profit before taxation of
· Period end bank balance of
· Period end order book of
Operational highlights:
· Despite the cancellation of a large order, the number of portable X-ray units sold increased over the prior period
· All units from the cancelled order now sold to other customers
· New ThreatScan® 2 precision detector launched; first orders received
· 70% of sales to Indian Subcontinent and
· Sales campaign in
· Orders received for 5 industrial units
· Updated quality management system passed ISO 9001:2015 assessment
We are excited by the potential of our newly launched ThreatScan®2 detector panels, which offer a significant performance increase. Currently available in the compact LS3 panel, this technology will soon be available across the product range.
Recent security exhibitions in
We have now started to build a batch of 5 industrial X-ray inspection systems and expect to achieve valuable cost savings from building these complex machines in this quantity.
The cancelled portable X-ray order was undoubtedly a setback, but I am pleased at the speed with which we have been able to put this behind us and the company looks to the future with confidence."
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
Enquiries: |
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Tel: +44 (0) 1509 817 400 |
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Tel: +44 (0) 207 894 7000 |
Chairman's statement
Introduction
Financial results
New order intake grew by 50% to
Revenues for the six months ended
Overhead costs increased to
The Company finished the period with an order book of
Overview
Having decided in February to accept the cancellation of a
The continued focus on the Indian subcontinent led to a four-fold increase in X-ray unit sales to this region. These were primarily the lower cost, compact units, which are targeted specifically at this market.
A change in technology strategy saw technology from our Precision Linescan Detector programme reach the market with the launch of the Threatscan®2. This offers a four-fold improvement in display resolution and allows our linescan technology to compete more directly with the much more expensive medical X-ray type detectors used by some competitors,
In the industrial inspection business area, where the Company provides machines for scanning catalytic converters and diesel particulate filters in the automotive industry, sales were light in the first half. However, the Company goes into H2 with an orderbook of five units (2017: 2 units) allowing valuable cost saving to be achieved in the supply chain and in assembly/test time. We expect to deliver all these units in H2.
The Company developed a new Quality Management System, and, in
Outlook
In response to the continuing terrorist threats we see continued high demand for threat detection systems world-wide and demand for portable X-ray systems is part of this trend. The Company's expansion into new geographies such as the Indian Subcontinent and
The Threatscan®2, with its high-resolution detector panel, together with a range of new system configuration options and accessories, will further broaden the range of customer requirements that
We have seen our catalytic converter customers expanding their industrial footprint to meet demands caused by tighter emissions controls legislation, and expect this trend to continue, further driving demand for our inspection systems.
The impact of the cancelled order, while short term, was significant and points to the need to expand the activities of the Company so that it is less dependent on individual product lines or customers. The Board is pursuing initiatives to achieve this through acquisition and partnership, as well as through internal product development.
The staff at
The Board and staff of
Chairman and Chief Executive Officer
Consolidated income statement
For the six months ended
|
Note |
Six months ended (Unaudited) £'000 |
Six months ended (Unaudited) £'000 |
Year ended 30 September 2017 (Audited) £'000 |
Revenue |
|
1,990 |
2,086 |
5,033 |
Cost of sales |
|
(1,192) |
(1,280) |
(3,104) |
Gross profit |
|
798 |
806 |
1,929 |
Other operating Income |
[3] |
- |
- |
57 |
Operating expenses |
|
(759) |
(695) |
(1,509) |
Operating profit |
|
39 |
111 |
477 |
Finance income |
|
- |
- |
- |
Profit before taxation |
|
39 |
111 |
477 |
Taxation |
|
- |
- |
103 |
Profit for the period |
|
39 |
111 |
580 |
|
|
Pence |
Pence |
Pence |
Earnings per share |
|
|
|
|
Basic profit per share |
[4] |
0.03 |
0.09 |
0.45 |
Diluted profit per share |
|
0.03 |
0.09 |
0.43 |
Consolidated statement of changes in equity
For the six months ended
|
Note |
Six months ended (Unaudited) £'000 |
Six months ended (Unaudited) £'000 |
Year ended 30 September 2017 (Audited) £'000 |
Opening equity shareholders' funds |
|
1,821 |
740 |
740 |
Shares issued in the year |
|
6 |
- |
527 |
Share issue costs |
|
- |
- |
(43) |
Share-based payments |
[5] |
6 |
5 |
17 |
Profit attributable to equity shareholders |
|
39 |
111 |
580 |
Closing equity shareholders' funds |
|
1,872 |
856 |
1,821 |
Consolidated statement of financial position
As at
|
As at (Unaudited) £'000 |
As at (Unaudited) £'000 |
As at 30 September 2017 (Audited) £'000 |
Non-current assets |
|
|
|
Plant and equipment |
20 |
31 |
27 |
|
20 |
31 |
27 |
Current assets |
|
|
|
Inventories |
676 |
700 |
1,095 |
Trade and other receivables |
1,327 |
652 |
1,660 |
Cash and cash equivalents |
752 |
469 |
1,253 |
|
2,755 |
1,821 |
4,008 |
Total assets |
2,775 |
1,852 |
4,035 |
Current liabilities |
|
|
|
Trade and other payables |
855 |
929 |
2,166 |
Non-current liabilities |
|
|
|
Provisions for liabilities and charges |
48 |
67 |
48 |
Total liabilities |
903 |
996 |
2,214 |
Net assets |
1,872 |
856 |
1,821 |
Equity |
|
|
|
Share capital |
1,360 |
1,256 |
1,357 |
Share premium account |
8,320 |
7,935 |
8,317 |
Retained earnings |
(7,808) |
(8,335) |
(7,853) |
Equity shareholders' funds |
1,872 |
856 |
1,821 |
Consolidated cash flow statement
For the six months ended
|
Six months ended (Unaudited) £'000 |
Six months ended (Unaudited) £'000 |
Year ended 30 September 2017 (Audited) £'000 |
Cash flows from operating activities |
|
|
|
Operating profit/(loss) |
39 |
111 |
477 |
Adjustments for: |
|
|
|
Depreciation |
7 |
6 |
13 |
Impairment of inventories |
24 |
13 |
30 |
Increase in provision for warranty |
- |
16 |
(3) |
Decrease/(increase) in inventories |
394 |
(209) |
(620) |
Decrease/(increase) in trade and other receivables |
267 |
190 |
(715) |
(Decrease)/increase in trade and other payables |
(1,274) |
(698) |
539 |
Share-based payment charge |
6 |
5 |
17 |
Net cash used in operating activities |
(537) |
(566) |
(262) |
Corporation tax recovered |
30 |
- |
- |
Net cash outflow from operating activities |
(507) |
(566) |
(262) |
|
|
|
|
Cash flows from investing activities |
|
|
|
Purchase of property, plant and equipment |
- |
(20) |
(23) |
Net cash used in investing activities |
- |
(20) |
(23) |
|
|
|
|
Cash flows from financing activities |
|
|
|
Proceeds from issue of share capital |
6 |
- |
527 |
Financial costs of fundraising |
- |
- |
(43) |
Net cash from financing activities |
6 |
- |
483 |
|
|
|
|
Net (decrease)/increase in cash and cash equivalents |
(501) |
(586) |
198 |
Cash and cash equivalents at beginning of period |
1,253 |
1,055 |
1,055 |
Cash and cash equivalents at end of period |
752 |
469 |
1,253 |
Notes to the unaudited interim financial statements
For the six months ended
1 Basis of preparation
The interim financial statements, which are unaudited, have been prepared on the basis of the accounting policies expected to apply for the financial year to
The interim financial statements do not include all of the information required for full annual financial statements and do not comply with all the disclosures in IAS 34 'Interim financial reporting'. Accordingly, whilst the interim statements have been prepared in accordance with IFRSs, they cannot be construed as being in full compliance with IFRSs.
The financial information for the year ended
2 Going concern
The interim financial information has been prepared on a going concern basis, which assumes that the Company will have adequate resources to continue in operational existence for the foreseeable future.
3 Other Operating Income
The R&D tax credits in the year have been decreased due to the limits on the amount credits which can be claimed
4 Earnings per share ('EPS')
Basic earnings per ordinary share is based on the profit on ordinary activities before taxation of
Diluted profit/ per share is calculated by adjusting the weighted average number of ordinary shares in issue on the assumption of conversion of dilutive potential ordinary shares, based on the share price at the end of the period. The Company's dilutive potential ordinary shares are shares issued under the Company's Enterprise Management Incentive ('EMI') scheme and options issued under the Company's Unapproved scheme.
5 IFRS 2 'Share-based payments'
Operating expenses includes a charge of
6 Additional copies
Further copies of the 2018 interim report are available on the Company's website, www.ish.co.uk, and from the Company's registered office, 16-18
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