This announcement contains inside information for the purposes of Article 7 of the
("Image Scan" or the "Company")
Trading Update
Profitable second half, Cash Position Enhanced and Improved Order Book
The financial results for the full year were impacted by a slow start to the year and compounded by supply chain constraints and delays to a high-value contract. Pleasingly, as anticipated in the interim report, trading in the second half was profitable and demonstrates a considerable operational turnaround.
Financial Highlights (Unaudited)
Subject to audit, the Group expects to report the following key financial metrics for FY25:
· Revenue of approximately
· An unaudited pre-tax loss of
· A robust cash position. As at
Operational Highlights and Key Factors
Key factors influencing the FY25 performance include:
· H1 Slow: challenging start to the year, driven by specific timing issues and external supply issues.
· H2 Recovery: Following a significant loss in the first half of the year, the second half proved to be significantly profitable. This substantial operational rebound mitigated the overall full-year loss
· Cost Discipline: The full-year loss was restricted due to the rigorous cost management.
· Contract Uncertainty: Delivery capacity was impacted by component supplies and long lead times, which was previously notified in the trading update on
· Major Contract Delay: The financial performance was materially affected by the slow progression of the previously announced major defence contract into realisation.
· Order Book and Forward Visibility
The Group's forward visibility remains strong, underpinned by a robust order book:
· As at
· This growing forward order book confirms the strong intrinsic market demand for Image Scan's high-performance solutions to the security and defence sectors, aided by industrial sector revenues particularly for support services.
Looking Ahead
Image Scan remains focused on expanding its product range, strengthening its market position, and accelerating the conversion of the substantial order book. The Group is encouraged by activity levels post year-end and what appears to be a much more buoyant market environment.
The strong financial position provides the Company with the financial resilience and flexibility to pursue strategic growth.
"We acknowledge that the timing challenges inherent in complex government procurement programmes, coupled with the supply chain difficulties that led to market guidance being withdrawn in August, have resulted in disappointing results for the year ended
"However, I am extremely encouraged by the operational recovery achieved. Following the significant loss recorded in H1, the second half of the year proved to be significantly profitable, which mitigated the full-year loss. The operational stabilisation is a testament to rigorous and sustained cost management."
"Crucially, we strengthened our closing cash position to
"Our immediate focus is on accelerating the conversion and realisation of this substantial pipeline, including the delayed defence programme. Building on this strong foundation and enhanced liquidity, we remain focused on our product development and continue to evaluate strategic opportunities to accelerate our growth trajectory."
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
-ENDS-
Zeus - Nominated Advisor and Corporate Broker Tel: +44 (0)203 829 5000
ABOUT
About
The core activity of the Group is the manufacture of portable X-ray systems for security and counter terrorism applications. The Group recently launched a cabinet X-ray machine and is replacing its Axis range of checkpoint X-ray systems with new machines developed with a partner. All these products are taken to market across the world through a strong network of international partners.
In addition, over the last seventeen years, Image Scan has developed and manufactured industrial X-ray inspection systems, the MDXi range. The primary market for these systems is in automotive emissions control where they are used for quality control inspection of catalytic converters and diesel particulate filters.
The visibility and reach of the Company's 3DX-Ray brand has been further strengthened through a new LinkedIn profile focussed on its EOD and counter-terrorism activities. This can be found at: https://www.linkedin.com/company/3dx-ray/
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
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