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27 February 2019
Image Scan Holdings plc
("Image Scan" or the "Company")
Image Scan (AIM: IGE), the specialist supplier of X-ray screening systems to the security and industrial inspection markets, provides a trading update ahead of its Annual General Meeting to be held at 13:30 today.
· Renewed focus on organic growth following lack of shareholder support for an acquisition
· Sales behind management expectations at the end of H1 due to contract delays with international Government customers but are expected to recover during H2 to meet expectations for the full year
· Healthy opportunity pipeline continuing to grow in both security and industrial
· New product development programme well underway targeted at new security product sector
· Discussions progressing to expand product range through partnership with other X-ray companies
An organic growth plan has been developed with the short-term goal of returning the Company's performance to the level achieved in FY 2017 and to develop a sustainable platform for long term growth. This plan is driven by new initiatives to expand both the Company's product range and its market access.
In addition to sustaining the pace of innovation in its portable X-ray products, the Company has started a project, based on the Company's existing range of technologies, to develop a new security X-ray system, designed for a similar but different group of customers from the bomb squads at whom the portable range is targeted. Discussions are advancing to further broaden the product range through partnership with other security technology companies.
Significant new channel partners have been appointed in South America and Europe and these are managed by the recently appointed sales manager. A tour of South America produced a strong pipeline of opportunities.
Government procurement processes are lengthy and not always predictable in their timing and sales intake is running behind management expectations for the half year. However, with customer decisions due on several significant projects, the level of activity is expected to increase in the second half and the Company expects to achieve market expectations for the full year.
Image Scan's Chairman and Chief Executive, Bill Mawer, commented:
"We are now moving forward rapidly with our recovery plan with the short-term aim to drive strong organic growth, diversifying our sources of revenue to deliver sustainable performance improvement and renew shareholder and investor confidence to the point where growth by acquisition can again be contemplated."
At its Annual General Meeting to be held today at 13:30, the Board will give a brief presentation, a copy of which will shortly be made available on the Company's website www.3dx-ray.com. No new material information will be provided during the presentation.
For further information, please contact:
Image Scan Holdings plc Tel: +44 (0) 1509 817400
William Mawer, Chairman
Sarah Atwell-King, Company Secretary
Cantor Fitzgerald Europe Tel: +44 (0) 207 894 7000
Rick Thompson / Will Goode (Corporate Finance)
Caspar Shand Kydd (Sales)
About Image Scan Holdings plc
Image Scan Holdings plc (AIM: IGE) is focused on the development and commercialisation of market leading real-time X-ray solutions for use in the global Security and Industrial inspection markets. The Company's Security portfolio includes the ThreatScan® range of portable bomb and suspect package detection systems; the Axis range of baggage inspection systems; and SVXi, a small vehicle inspection system. The Industrial inspection solutions include the MDXi product range, cabinet X-ray systems for laboratories and production lines. The Company was founded in 1996 and joined AIM in 2002.
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