Image Scan Share Discussion Threads

[gnnmartin] 26/2/2016 00:30

A few more words on the meeting.

There was a good and informative presentation, and I'm not sure I'll do it justice in just a few lines, but here goes.

The company made money security and industrial customers. In the security sector, the revenues came from portable X-ray and conveyor (eg airport passenger luggage scanning) X-ray machines. There were no sales of vehicle X-ray machines. For the future, vehicle X-rays will be sold if the opportunity presents, but presumably won't be chased. The conveyor X-ray market is thought to be too competitive, with big players already ensconced, so no further development is planned there, even though (IIUC) a fair chunk of the revenues last year came from conveyor. The future hopes are pinned on portable X-ray. Portable X-ray revenues were low due to delays in product development, but significant orders have been received (by end January), including multi-unit orders. Multi-unit orders are considered as sine qua 'not very likely' ('scuse my dog latin) for profitability.

They have the low cost end of portable addressed (with the FlatScan K-120), and the mid range portable market (with the ThreatScan LS1 + I-Gen) both new. They hope to address the top end of the portable market with the ThreatScan PLD (Precision Line Detector) + I-Gen, which is currently being developed with the help of a grant from Innovate UK, and in partnership with Ibex.

There were comforting words about the usability, connectivity, and software of the new devices, plus about the fact that we had new customers.

The industrial application has one big customer who has bought about 70% of the machines he might be expected to use, and two new customers who have bought a few (1 or 2?) but could be as big as the first. Industrial sales in '14 were £660k and in '15 were £500k, but there is a strong pipeline for this year. I don't know that I can really guess figures from the presentation material (or memory). The hope is that further development might widen the market for these machines.

The addressable portable X-aray market was estimated at £30m per year. If a similar figure was given for the industrial market, I failed to note it. Looking for recurring revenues, they expect to sign support contracts worth about 5-10% per annum of the original cost price.

A further note on that 'market expectation' of £2.7m. I think the “market expectation” should be treated as a best guess, which may prove some way out in either direction. We are still in flux. I assume that revenues of £2.7m would put us on roughly break even, and cash flow neutral, though that is an off the cuff guess. There is reason to hope.

A couple of items from the past. I was told that the unfortunate nuclear contract is at last fully out of the way. They may yet sign a maintenance agreement, but hopefully that would be profitable. I asked why the lithium battery opportunity never took off, and was told that the battery makers are too big for IGE to be able to play in that market. I commented that the current customers of the industrial units were also big, but in this case we are not competing with established suppliers, but are feeding an evolving need. Hopefully that means this time it will be different.

One last point. A large shareholder had objected to items 6 & 7 on the agenda (giving IGE permission to issue more shares, and issue shares without pre-emption, so those two items were withdrawn and not voted upon.

[clocktower] 25/2/2016 10:45

Thank you gnn.

[peterblok] 25/2/2016 10:43

Thanks Nigel

[gnnmartin] 25/2/2016 10:35

The meeting went on for 2 hours, so by rights there should be lots of feedback. I think the mood can be summed up as 'We are not out of the woods yet, but things are looking distinctly encouraging'. One small useful bit of data: 'Market expectations' for the revenue for the current year is £2.7m. This was wrenched from the board after several minutes protest at their refusal to give it. My view is that if 'market expectations' are in the public domain, there is no reason not to say what the board believes them to be. And if "market expectations" are only known to a privileged few, then the board should definitely be saying what they believe them to be if they are going to say anything about the chances of meeting them.

I've no time at the moment to say more, but I may later.

[peterblok] 24/2/2016 19:47

Any feedback from the AGM Waggle, Assegai, anyone?

[peterblok] 23/2/2016 10:04

KenOne,

At the present time, I think IGE are looking a better bet than TRT I'm sad to say, as I hold a lot more TRT! Decided against going to the AGM so any feedback would be good.

[kenone] 23/2/2016 08:44

Well I sold my last 20000 shares bought in 2007 this morning. Good Capital Loss for CGT !
Just looking to exit TRT at a profit one day. Still got yours Assagai ? You never post on it anymore ?

[assagai] 23/2/2016 08:11

Well whoever sold 2.5 million shares at a discount yesterday must be feeling pretty sick!

[owenski] 23/2/2016 07:22

Indeed, very positive, IGE still only a 2.5m cap entity, think we'll see some improvement on that in future days, imo

[philjeans] 23/2/2016 07:10

Good trading statement out - very encouraging.

[philjeans] 22/2/2016 12:06

Any developments with the Chinese investor?

[owenski] 22/2/2016 10:50

Cant think of any except, interested in how the sales footprint is working via the Sectus Partnership?

your own impressions on the business would be useful.

I'd imagine funding is tight, do they require more capital at some point?

Regards

[waggle] 22/2/2016 10:44

I shall be going, so if anyoe has any questions they wish to be asked, post them now.

[peterblok] 18/2/2016 15:20

philjeans - just for clarification, AGM is on the 23rd, not the 26th.

1330 at the offices of Cantor Fitzgerald Europe, 1 Churchill Place, Canary Wharf

I will probably go depending on the weather and how lethargic I'm feeling !!

[philjeans] 15/2/2016 12:26

AGM Tuesday week 26th. Anyone going?

Would be good to get a feel for how things are progressing. Last year we had a trading update in April.

[assagai] 15/1/2016 16:42

Yes , agreed. Should gain momentum as long as we don't have disenchanted sellers. Shame to wait this long and get rid just when it's finally getting sorted!

[horsepower] 23/12/2015 10:02

Look on the bright side; someone seems to have started to accumulate and directors will probably only realise the full value of their options if the company is sold...Happy New Year?

[philjeans] 22/12/2015 22:21

Agreed Daniel - me likewise!

Not only no share price increase, but a massive, massive loss of my capital I effectively lent this company to expand and become successful!

So by all means get rewards for appreciation of the share price but at a more challenging price - say 5p would be fair.

On the other hand, we can also buy at this price if we think we might recoup some of our losses!

[daniel] 22/12/2015 21:53

I have been invested in this company for 10 years, before the CEO and many of the employees joined the company. I had no dividend, no profit, no share price rise for ten year... Where is my share option? Are they taking me for a ride or they are just provoking me?

[assagai] 22/12/2015 16:29

Nothing wrong with granting options at current offer in my view. We have waited a very long time for something to happen with this company and if the current team can turn it around, which it appears they are likely too,then good luck to them.
Personally , over the years I have taken placing shares as high as 15p so if anyone has a case to moan.....