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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."

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Image Scan Holdings Plc Timeline

February 23 2016

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