Image Scan PLC (LON:IGE) said it had a “renewed focus” on organic growth after failing to garner sufficient investor support for its acquisition plans.
There may some clue as to why the x-ray screening systems specialist was keen to do a deal as it confirmed sales were below management’s expectations in the first six months of the financial year.
READ: Botched acquisition and loss of major order sees Image Scan swing to a loss
That said, the company, which sells security and industrial inspection equipment, cited areas of pain that were largely out of its control.
Contract delays with international government customers are likely to recover in the second half, allowing the business to meet expectations for the year, investors were told.
Image Scan also said it had a healthy opportunity pipeline, while a new product development programme is well underway.
"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," chairman Bill Mawer will tell the company’s annual meeting later.
"We have started the second half of the year well and in-line with the board's expectations. We remain well placed to deliver on our vision to be the trusted global leader in the global supply and distribution of critically important hospital medicines."