Image Scan Share Discussion Threads

[amt] 20/10/2016 08:25

Wow look at the share price go. Not sure how big this company can get. Are we talking 10m sales or potentially tens of millions. Anyone got a handle?

[columbarius] 19/10/2016 16:32

Glad you appreciated it owenski. I placed the link at the end but ADVFN removed it. Charles occasionally writes a Smartco column for proactive investors.

[owenski] 19/10/2016 15:47

Thanks for the post Columbarius

[monty68] 19/10/2016 15:11

And so say all of us

[columbarius] 19/10/2016 14:59

Here's a copy of the Charles Breese IGE article from August for anyone who missed it. The market cap is out of date but otherwise it is all relevant and scans well in my opinion.

Impact Investing
Wikipedia defines impact investing as being the making of investments into companies, organizations, and funds with the intention to generate a measurable, beneficial social or environmental impact alongside a financial return. There seems to be a widely held belief that investors face the choice of investing either in businesses which bring such benefits but generate low returns for shareholders, or into businesses which bring no such benefits but which provide big investor returns - an example of the latter has been billing systems for the internet gaming industry.
I developed SMARTCO investing as a form of impact investing, with the objective of improving the economic landscape for future generations in terms of a) increasing the number of higher quality jobs in terms of both interest and pay, and b) generating exports. With SMARTCOs, investors do not have to make the above choice, since the essence of SMARTCO investing is finding businesses which can both benefit society as a whole whilst delivering very attractive returns to investors. They are able to achieve this because they combine exceptional and valuable knowledge, which they package in a way which a) makes the business scalable and b) improves the productivity of their direct and indirect customers - a key element of their marketing material is being able to articulate the economic benefit which they bring to their direct and/or indirect customers.
Image Scan Holdings (ISH - www.3dx-ray.com - I am an investor in the company)
Founded in 1996, ISH [www.proactiveinvestors.co.uk/LON:IGE/Image-Scan-Holdings-Plc/] deploys x-ray technology in the security industry and in industrial systems - in the security market, the focus is on portable, rapid deployment systems eg for dealing with unattended items found on the Underground, mail room screening etc. - the focus of the industrial systems is on non-destructive testing systems for manufacturers of catalytic converters and diesel particulate filters.
I first met ISH in 2006, when I thought that the company’s technology and targeted markets seemed very interesting but felt that management’s approach to commercialisation was unlikely to be successful. In 2013, a friend of mine contacted me to say that he was a shareholder in ISH and that the technology was excellent, but the incumbent management lacked the skills to build a successful business based on the technology - my informant had had a senior position in charge of commercialising IP at a multinational supplier to the automotive industry, and also had introduced me to a very attractive engineering business listing on AIM, so I took his comments seriously.
In the light of the above information, I recalled that Smiths Industries had a Detection Division and via an ex-Smiths Medical contact, I was put in touch with Bill Mawer - he worked at Smiths for 13 years up to 2013, including roles within Smiths Detection as President North America and Director of Strategy & Technology - in May 2014 Bill was appointed Executive Chairman of ISH.
Key issues which Bill had to address included organising a new key supplier, a development programme to refresh the product porfolio, strengthening the distribution network and closing out a significant underperformong industrial contract. Whilst ISH is still tiny in terms of sales (the broker note projects £2.3 million for 2015/16) and market cap (£3.9 million), I believe that the foundations are in place for building a business worth at least £100 million through a combination of organic growth and strategic acquisitions. This confidence is supported by two order announcements in June and July 2016 worth a total of c.£1.5 million for ISH’s ThreatScan portable x-ray product for use in Asia, with delivery scheduled for December 2016.
ISH is a good example of the impact which can be made on an underperforming microcap by a person with senior industry relevant experience within a large corporate and who (vitally!) combines that experience with the ability to operate successfully within a microcap.
Charles Breese
[...]

[columbarius] 17/10/2016 21:33

The interims were out within three weeks of the period end and the pre close trading updates are timely. Management clearly on top of the finances. I have to say I was expecting a placing some time ago but the way the larger than normal orders have been managed is exemplary.

[vasilis] 17/10/2016 14:56

Great to see that the company is delivering on its promises plus the financials at this stage of the turnaround look quite healthy. I particularly like the fact that efficiencies have increased the GM by four percentage points as it demonstrates that management is very much on the ball as regards production and supply chain controls in handling large orders.

As regards future growth potential, this is where I see the focus will start to shift over the next year or so :-

'The ThreatScan(R)-LS1 portable X-ray system was widely demonstrated and trialled during the period, notably at international Explosive Ordnance Disposal (EOD) gatherings in Asia and North America. The system performed well in these high pressure scenarios which will provide access to extensive new opportunities. A wide range of accessories have been developed and delivered to customers. The development of the next generation of Image Scan portable X-ray systems, under an award from Innovate UK, a UK Government body, is well advanced. The new technology licensed from Ibex innovations specifically for this project is performing well in the first prototype.'

A little press exposure at some point wouldn't do any harm - especially as Cantor have now upgraded back to a 'Buy' rating - though I agree with columbarius that the target price of 7.6p is 'conservative' bearing in mind the current SP,trading update and future growth potential driven by current offerings and near term 'new technology' innovations.

[columbarius] 17/10/2016 13:18

In an analyst rating update on Monday shares of Image Scan Holdings PLC (LON:IGE) had their rating upgraded by analysts at Cantor Fitzgerald. The broker said it has now set a ‘Buy’ rating on shares of Image Scan Holdings PLC with a price target of 7.6.

Not surprising after a good trading statement. Cantor have been taking a conservative view.

[amt] 17/10/2016 11:12

Hydrus Sorry I screwed up. I picked up the 387k loss from 2015 by mistake. You are correct. Still cash went up 500k so I suppose some consolation.

[hydrus] 17/10/2016 10:12

They lost £64k in first half of year and that moved to profit of £100k in second half of year. How does that translate to an annualised profit of £500k? I'm just interested in your calculation. Thanks

[pru dent] 17/10/2016 10:04

Wow, only just read the release. That's a green light for me to add as soon as the dust/profit taking settles down. Have had a couple hundred k for three years so happy with the outcome. Double up time!

[assagai] 17/10/2016 09:58

I think it's an annualised profit based on the uplift of the last six months reversing a loss to date.

[hydrus] 17/10/2016 09:23

Amt where did you get the £500k profit figure from? The report says £100k, which means it's on a trailing PE ratio of around 90

[assagai] 17/10/2016 07:52

Another greatly important point is this clearly demonstrates the company's ability to deliver in volume.

[amt] 17/10/2016 07:46

Anyone have a view on what the potential market is. Tens of millions in 5 years time?

[amt] 17/10/2016 07:43

Excellent report. So made 500k profit and added 500k to cash in 6 months. Annalised thats 1m. Pe of 8 is too low for a company with this potential.

[assagai] 17/10/2016 07:40

What a joy is that trading statement. Nothing but positives, a profit, lots of cash, greatly improved prospects. Not even the usual cautious outlook. Well done to Bill and the team!

[philjeans] 17/10/2016 07:39

Very positive update there - in profit at last; better margins and doubled sales!

Glad I have been oh so patient.

Now on to 10p.

[monty68] 05/10/2016 13:19

I thought Image Scan counted as Business assets for CGT purpoes anyway?

[assagai] 05/10/2016 10:40

Hi Pru Dent, i tend to agree with you about the prospects going forward and co-incidentally am also waiting to see if there is a positive update. I probably shouldn't add any more but I probably will if it all looks good!

EJ - Holiday, shopping trip, surgery ?