TIDMIGE
RNS Number : 1438A
Image Scan Holdings PLC
05 October 2009
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5 October 2009
Image Scan Holdings plc
("Image Scan" or "the Company")
TRADING UPDATE
The Board of Image Scan, specialists in the field of real-time 3D and 2D x-ray
imaging for the 'Homeland Security' and 'Industrial Inspection' markets, today
provides shareholders with a trading update, highlighting the trading position
of the Company for the year ending
30 September 2009.
The Board anticipates turnover for the year ended 30 September 2009 at GBP1.4
million (2008: GBP2.0 million). The year end cash balance is expected to be
GBP850,000 (2008: GBP1.5 million) and the current order book is GBP293,000.
Whilst security sales are comparable to the prior year, industrial sales reflect
the difficult economic conditions. As a result of the bias towards the security
sector, the Company has taken action to increase the potential to capitalise on
these opportunities, whilst continuing to respond to industrial enquiries.
Security sales have been underpinned by the successful sale of 14 Axis-3d
baggage screening systems into China. The Company also secured the first sale of
its Axis-2d system for use in screening mail at the head office of a major
financial institution in the City. The Company's portable suspect package x-ray
inspection system, FlatScan-TPXi, continues to perform well with sales into new
territories such as Canada, Thailand, India and the Middle East as well as
another recent order received from the British Transport Police.
Historically, the Company's industrial sales have been very dependent on
the automotive sector. Clearly this sector has been disproportionately affected
by the economic downturn, however, the Company did supply an MDXi-NT industrial
inspection system to Johnson Matthey for their plant in Japan and has recently
received an order from them to develop the software platform for their installed
base worldwide.
The Company has sought to exploit its security products
within territories facing a higher level of threat. As a result the Company has
entered into a memorandum of understanding with Castmaster Enterprises Private
Ltd, a Delhi-based engineering company with well established Government and
industry contacts, to distribute its products in India. Furthermore, the Company
has recently appointed a regional sales manager with several years experience of
selling security equipment into the Middle East to develop the necessary routes
to market in that region.
Following the termination of the lease in Melton
Mowbray, the Company will be moving to new premises towards the end of October.
A suitable location has been secured close to Loughborough within 13 miles of
the existing premises. This will involve minimal disruption to the business and
ongoing costs of occupation are expected to be comparable to the existing
premises. Costs associated with the move are estimated at GBP60,000,
including preparing the building for occupation and effecting the move.
Image Scan's CEO, Louise George, commented, "During the year the Company has
focused on refining its strategy and developing the routes to market for its
security products, particularly in India and the Middle East, where there has
been considerable interest shown in the FlatScan-TPXi portable system. The
challenge for 2010 will be to convert that interest into sales in a period when
Governments are having to balance economic reality against their security
needs."
-ENDS-
For further information, please contact:
Image Scan Holdings plc Tel: +44 (0) 1664 503 600
Brian Emslie, Chairman
Louise George, CEO
info@ish.co.uk
Seymour Pierce Tel: +44 (0) 207 107 8000
Sarah Jacobs
About Image Scan Holdings plc
Image Scan Holdings plc (AIM: IGE) is focused on the development and
commercialisation of market leading real-time 3D and 2D x-ray solutions for use
in the global security and industrial inspection markets. The Company's security
portfolio includes the Axis-3d and Axis-2d baggage inspection systems for
corporate and airport security; FlatScan-TPXi, a portable bomb and suspect
package detection system; and SVXi, a small vehicle inspection system. The
industrial inspection solutions include the MDXi and the DEX systems.
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
This information is provided by RNS
The company news service from the London Stock Exchange
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