Image Scan Holdings PLC Trading Update (3861D)
28 Octubre 2020 - 01:00AM
UK Regulatory
TIDMIGE
RNS Number : 3861D
Image Scan Holdings PLC
28 October 2020
28/10/2020
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
IMAGE SCAN HOLDINGS PLC
("Image Scan" or the "Company")
PRE-CLOSE TRADING UPDATE
Image Scan (AIM: IGE), the specialist supplier of X-ray
screening systems to the security and industrial inspection markets
provides a pre-close trading update ahead of its results for the
year ended 30 September 2020.
Key Points:
-- Sales increased 50% to GBP3.5m (2019: GBP2.3m) at a gross margin of 49% (2019: 54%)
-- Unaudited pre-tax trading profit of GBP112k (2019: Loss of GBP402k)
-- New cabinet X-ray system launched
-- Exciting new partnership with major security technology company
-- Period-end order book of GBP633k (2019: GBP1.7m)
-- Cash generation of GBP769k (2019: -GBP142k) giving a year-end
balance of GBP1,409m (2019: GBP640k)
The Company started the year with a strong order book of
GBP1.7m, which included a large order for portable X-ray systems
from a European government customer. That order was successfully
delivered early in the year and, together with continued momentum
in new security orders from other regions, contributed to a strong
first half performance. As anticipated, the COVID-19 pandemic
impacted the Company in the second half. However, our facility has
remained open and continued to operate in a COVID secure way,
processing customer orders and working on our ambitious product
development programme.
Sales for the year ended 30 September 2020 were up by 50% to
GBP3.5m (2019: GBP2.3m), the growth largely driven by portable
X-ray sales which doubled from the previous year. Aftersales
revenues, which consist primarily of service, spares and training,
were up by nearly 50%, supported by valuable spares contracts for a
nuclear screening system originally delivered in 2015. For the
first time, Image Scan training courses for bomb technicians have
been run in the USA.
Gross margins returned to more normal levels at 49% (2019: 54%)
reflecting the balance of product mix towards portable X-ray.
Overheads declined slightly to GBP1.6m, as the Company used the
Government's Coronavirus Job Retention Scheme to support salaries
during periods of reduced activity. Subject to any audit
adjustments, the pre-tax trading profit for the year was GBP112k
(2019: loss of GBP402k), exceeding our previous guidance of a
profit of GBP0 to GBP100k.
In the second half of the year COVID-19 impacted both security
spending by governments and investment in new plant in the
automotive sector, resulting in a reduced flow of new contracts.
Orders received in the year totalled GBP2.4m (2019: GBP3.9m) and
the Company ended the period with an order book of GBP633k (2019:
GBP1.7m).
The high stock holding reported at the end of the previous
period was reduced to a more normal level, contributing to strong
cash generation of GBP769k (2019: -GBP142k) and a healthy year-end
cash balance of GBP1.409m (2019: GBP640k). Stock has been managed
tightly, particularly in the period of the pandemic, with a balance
being struck between control of working capital and the need to
offer short delivery times to customers.
The Company has continued to invest in the expansion of its
product range, using a combination of internal Research and
Development and partnership with other technology suppliers. This
effort led to the recent launch of the Axis-CXi cabinet X-ray
system which is now being shown to customers and partners using a
mix of on-line demonstrations, virtual trade exhibitions and newly
created video material. In July, a partnership agreement was signed
with a major security technology company and work is underway on a
new conveyor X-ray machine under this agreement.
Image Scan's Chairman and Chief Executive, Bill Mawer,
commented: "The COVID-19 pandemic has impacted our customers, our
supply chains and our staff. However, I am proud of the way the
whole Company has pulled together through this period to keep the
business operating and deliver a profit for the year that exceeded
our earlier estimates. The recent launch of the Axis-CXi cabinet
X-ray machine is an exciting step forward for the Company and
should bring new customers and new sources of revenue. With our
strong cash position and our ambitious product development
programme we look to emerge from the pandemic well-placed for the
future."
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:
Image Scan Holdings plc Tel: +44 (0) 1509 817
William Mawer, Chairman and Chief Executive Officer 400
Sarah Atwell King, Finance Director and Company ir@ish.co.uk
Secretary
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W H Ireland Tel: +44 (0) 117 945
Mike Coe/Chris Savidge (Corporate Finance) 3470
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