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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Image Scan Holdings Plc | LSE:IGE | London | Ordinary Share | GB0031410581 | ORD 1P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 1.35 | 1.20 | 1.50 | 1.35 | 1.35 | 1.35 | 0.00 | 07:38:37 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Photographic Equip & Supply | 2.96M | 124k | 0.0009 | 15.00 | 1.85M |
From May 2019 to May 2024
TIDMIGE
RNS Number : 4654M
Image Scan Holdings PLC
30 April 2018
Image Scan Holdings plc
Interim Report 2018
30/04/2018
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")
(AIM: IGE)
INTERIM RESULTS
Strong recovery after contract loss
Image Scan, (AIM: IGE) specialists in the field of X-ray imaging for the security and industrial inspection markets today announces its interim results for the six months ended 31 March 2018. Given performance during the first six months, the Board remains confident of meeting market expectations for the year to 30 September 2018.
Financial summary:
-- Order intake increased by 54% to GBP2.0m (2017: GBP1.3m) -- Revenue flat at GBP2.0m (2017: GBP2.1m) -- Gross profit margin increased to 40% (2017: 39%) -- Profit before taxation of GBP39k (2017: GBP111k) -- Period end bank balance of GBP752k (2017: GBP469k) -- Period end order book of GBP1.1m (2017: GBP940k)
Operational highlights:
-- Despite the cancellation of a large order, the number of portable X-ray units sold increased over the prior period
-- All units from the cancelled order now sold to other customers -- New ThreatScan(R) 2 precision detector launched; first orders received -- 70% of sales to Indian Subcontinent and Asia -- Sales campaign in South America produced first order -- Orders received for 5 industrial units -- Updated quality management system passed ISO 9001:2015 assessment
Bill Mawer, Chairman and Chief Executive Officer of Image Scan, commented: "In February we announced we had accepted the cancellation of a GBP1m contract for portable X-ray systems. I am pleased to report that a cancellation agreement has been reached with the customer and compensation payment has been received. Furthermore, all the units manufactured for this order have now been sold to other customers. The number of portable units delivered increased over the same period last year.
We are excited by the potential of our newly launched ThreatScan(R)2 detector panels, which offer a significant performance increase. Currently available in the compact LS3 panel, this technology will soon be available across the product range.
Recent security exhibitions in UK, Europe and Asia have confirmed high levels of interest in our products and the order pipeline remains strong, both in well established markets and in newer markets such as South America, where a recently launched sales campaign has delivered its first order.
We have now started to build a batch of 5 industrial X-ray inspection systems and expect to achieve valuable cost savings from building these complex machines in this quantity.
The cancelled portable X-ray order was undoubtedly a setback, but I am pleased at the speed with which we have been able to put this behind us and the company looks to the future with confidence."
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 William Mawer, Chairman and Chief 817 400 Executive Officer ir@ish.co.uk Sarah Atwell King, Company Secretary ----------------------------------------- ------------------ Cantor Fitzgerald Europe Tel: +44 (0) 207 Rick Thompson / David Foreman/Will 894 7000 Goode (Corporate Finance) Alex Pollen / Caspar Shand Kydd (Sales) ----------------------------------------- ------------------
Chairman's statement
Introduction
Image Scan Holdings plc is a specialist in innovative X-ray technology, operating globally in the security and industrial inspection sectors. The Company's principal activity is the design, manufacture and supply of both portable and fixed X-ray security screening systems to governments, security organisations and law enforcement agencies. The Company also supplies high-quality image acquisition systems for non-destructive testing to commercial organisations worldwide.
Financial results
New order intake grew by 50% to GBP2.0m (2017: GBP1.3m) with the business performing particularly well in Asia and the Indian Subcontinent.
Revenues for the six months ended 31 March 2018 were GBP2.0m (2017: GBP2.1m). This revenue performance was achieved despite the loss of a GBP1m contract, 50% of which had been scheduled for delivery in the period. The continued demand for the Company's products was reflected in the fact that the number of portable X-ray systems sold increased by 10% over the prior year. Gross margin increased to 40% (2017: 39%) reflecting favourable product mix and strong support revenue.
Overhead costs increased to GBP759k (2017: GBP695k), principally due to an additional GBP40k spend on research and development as the new precision detectors were transferred to production. The business made a post-tax profit of GBP39k (2017: GBP111k).
The Company finished the period with an order book of GBP1.1m (2017: GBP940k) and a cash balance of GBP752k (2017: GBP469k)
Overview
Having decided in February to accept the cancellation of a GBP1m contract, the Company has moved rapidly to negotiate a cancellation agreement, against which a payment has been received. The units built for the cancelled order have been repackaged and sold to other customers, leaving a stock of accessories against which a conservative provision has been made. Some of these accessories are common across many customers and may be sold in the future. The Company considers that this temporary setback is now behind it and is able to move forward strongly.
The continued focus on the Indian subcontinent led to a four-fold increase in X-ray unit sales to this region. These were primarily the lower cost, compact units, which are targeted specifically at this market. Asia continued to be a valuable market for the larger, more expensive systems, demonstrating the value of a product strategy that gives the Company a portfolio of products that can be optimised for particular requirements and budgets. Over the last 12 months, several sales visits have been made to South America and new partners have been appointed in key territories. This effort produced its first orders in the period and the order pipeline in the region is growing.
A change in technology strategy saw technology from our Precision Linescan Detector programme reach the market with the launch of the Threatscan(R)2. This offers a four-fold improvement in display resolution and allows our linescan technology to compete more directly with the much more expensive medical X-ray type detectors used by some competitors,
In the industrial inspection business area, where the Company provides machines for scanning catalytic converters and diesel particulate filters in the automotive industry, sales were light in the first half. However, the Company goes into H2 with an orderbook of five units (2017: 2 units) allowing valuable cost saving to be achieved in the supply chain and in assembly/test time. We expect to deliver all these units in H2.
The Company developed a new Quality Management System, and, in December 2017, its processes and systems were judged to meet the new ISO9001:2015 quality standard. These new processes are being implemented through a newly-launched Continuous Improvement Programme, backed up by detailed performance measurements, under the Operations Manager.
Outlook
In response to the continuing terrorist threats we see continued high demand for threat detection systems world-wide and demand for portable X-ray systems is part of this trend. The Company's expansion into new geographies such as the Indian Subcontinent and South America, alongside its continuing strength in Asia and the Middle East should allow it to capitalise on this continuing demand.
The Threatscan(R)2, with its high-resolution detector panel, together with a range of new system configuration options and accessories, will further broaden the range of customer requirements that Image Scan can address.
We have seen our catalytic converter customers expanding their industrial footprint to meet demands caused by tighter emissions controls legislation, and expect this trend to continue, further driving demand for our inspection systems.
The impact of the cancelled order, while short term, was significant and points to the need to expand the activities of the Company so that it is less dependent on individual product lines or customers. The Board is pursuing initiatives to achieve this through acquisition and partnership, as well as through internal product development.
The staff at Image Scan are enthusiastic, dedicated and creative and on behalf of my fellow Board members, I would like to formally thank our staff for their contribution during this period.
The Board and staff of Image Scan look forward to the future with confidence.
Bill Mawer
Chairman and Chief Executive Officer
30/04/2018
Consolidated income statement
For the six months ended 31 March 2018
Hot Features
Premium
Six months Year
Six months ended
ended ended 30 September
31 March 31 March
2018 2017 2017
(Unaudited) (Unaudited) (Audited)
Note GBP'000 GBP'000 GBP'000
----------------------- ----- ------------------- ------------------- ----------------
Revenue 1,990 2,086 5,033
------------------------------ ------------------- ------------------- ----------------
Cost of sales (1,192) (1,280) (3,104)
------------------------------ ------------------- ------------------- ----------------
Gross profit 798 806 1,929
------------------------------ ------------------- ------------------- ----------------
Other operating Income [3] - - 57
----------------------- ----- ------------------- ------------------- ----------------
Operating expenses (759) (695) (1,509)
------------------------------ ------------------- ------------------- ----------------
Operating profit 39 111 477
------------------------------ ------------------- ------------------- ----------------
Finance income - - -
----------------------- ----- ------------------- ------------------- ----------------
Profit before taxation 39 111 477
------------------------------ ------------------- ------------------- ----------------
Taxation - - 103
------------------------------ ------------------- ------------------- ----------------
Profit for the period 39 111 580
------------------------------ ------------------- ------------------- ----------------
Pence Pence Pence
------------------------- ---- ----- ----- -----
Earnings per share
------------------------- ---- ----- ----- -----
Basic profit per share [4] 0.03 0.09 0.45
------------------------- ---- ----- ----- -----
Diluted profit per share 0.03 0.09 0.43
------------------------------- ----- ----- -----
Consolidated statement of changes in equity
For the six months ended 31 March 2018
Six Six Year
months months ended
ended ended 30 September
31 March 31 March
2018 2017 2017
(Unaudited) (Unaudited) (Audited)
Note GBP'000 GBP'000 GBP'000
------------------------------------------- ----- -------------- ------------- -------------
Opening equity shareholders' funds 1,821 740 740
-------------------------------------------------- -------------- ------------- -------------
Shares issued in the year 6 - 527
-------------------------------------------------- -------------- ------------- -------------
Share issue costs - - (43)
-------------------------------------------------- -------------- ------------- -------------
Share-based payments [5] 6 5 17
------------------------------------------- ----- -------------- ------------- -------------
Profit attributable to equity shareholders 39 111 580
-------------------------------------------------- -------------- ------------- -------------
Closing equity shareholders' funds 1,872 856 1,821
-------------------------------------------------- -------------- ------------- -------------
Consolidated statement of financial position
As at 31 March 2018
As at As at
31 March
2018 As at 30 September
(Unaudited) 31 March
2017 2017
GBP'000 (Unaudited) (Audited)
GBP'000 GBP'000
--------------------------------------- ------------ ------------ -----------------
Non-current assets
--------------------------------------- ------------ ------------ -----------------
Plant and equipment 20 31 27
--------------------------------------- ------------ ------------ -----------------
20 31 27
--------------------------------------- ------------ ------------ -----------------
Current assets
--------------------------------------- ------------ ------------ -----------------
Inventories 676 700 1,095
--------------------------------------- ------------ ------------ -----------------
Trade and other receivables 1,327 652 1,660
--------------------------------------- ------------ ------------ -----------------
Cash and cash equivalents 752 469 1,253
--------------------------------------- ------------ ------------ -----------------
2,755 1,821 4,008
--------------------------------------- ------------ ------------ -----------------
Total assets 2,775 1,852 4,035
--------------------------------------- ------------ ------------ -----------------
Current liabilities
--------------------------------------- ------------ ------------ -----------------
Trade and other payables 855 929 2,166
--------------------------------------- ------------ ------------ -----------------
Non-current liabilities
--------------------------------------- ------------ ------------ -----------------
Provisions for liabilities and charges 48 67 48
--------------------------------------- ------------ ------------ -----------------
Total liabilities 903 996 2,214
--------------------------------------- ------------ ------------ -----------------
Net assets 1,872 856 1,821
--------------------------------------- ------------ ------------ -----------------
Equity
--------------------------------------- ------------ ------------ -----------------
Share capital 1,360 1,256 1,357
--------------------------------------- ------------ ------------ -----------------
Share premium account 8,320 7,935 8,317
--------------------------------------- ------------ ------------ -----------------
Retained earnings (7,808) (8,335) (7,853)
--------------------------------------- ------------ ------------ -----------------
Equity shareholders' funds 1,872 856 1,821
--------------------------------------- ------------ ------------ -----------------
Consolidated cash flow statement
For the six months ended 31 March 2018
Six Six Year
months months ended
ended ended 30 September
31 March 31 March
2018 2017 2017
(Unaudited) (Unaudited) (Audited)
GBP'000 GBP'000 GBP'000
------------------------------------------- ----------------- -------------- --------------
Cash flows from operating activities
------------------------------------------- ----------------- -------------- --------------
Operating profit/(loss) 39 111 477
------------------------------------------- ----------------- -------------- --------------
Adjustments for:
------------------------------------------- ----------------- -------------- --------------
Depreciation 7 6 13 ------------------------------------------- ----------------- -------------- -------------- Impairment of inventories 24 13 30 ------------------------------------------- ----------------- -------------- -------------- Increase in provision for warranty - 16 (3) ------------------------------------------- ----------------- -------------- -------------- Decrease/(increase) in inventories 394 (209) (620) ------------------------------------------- ----------------- -------------- -------------- Decrease/(increase) in trade and other receivables 267 190 (715) ------------------------------------------- ----------------- -------------- -------------- (Decrease)/increase in trade and other payables (1,274) (698) 539 ------------------------------------------- ----------------- -------------- -------------- Share-based payment charge 6 5 17 ------------------------------------------- ----------------- -------------- -------------- Net cash used in operating activities (537) (566) (262) ------------------------------------------- ----------------- -------------- -------------- Corporation tax recovered 30 - - ------------------------------------------- ----------------- -------------- -------------- Net cash outflow from operating activities (507) (566) (262) ------------------------------------------- ----------------- -------------- -------------- Cash flows from investing activities ------------------------------------------- ----------------- -------------- -------------- Purchase of property, plant and equipment - (20) (23) ------------------------------------------- ----------------- -------------- -------------- Net cash used in investing activities - (20) (23) ------------------------------------------- ----------------- -------------- -------------- Cash flows from financing activities ------------------------------------------- ----------------- -------------- -------------- Proceeds from issue of share capital 6 - 527 ------------------------------------------- ----------------- -------------- -------------- Financial costs of fundraising - - (43) ------------------------------------------- ----------------- -------------- -------------- Net cash from financing activities 6 - 483 ------------------------------------------- ----------------- -------------- -------------- Net (decrease)/increase in cash and cash equivalents (501) (586) 198 ------------------------------------------- ----------------- -------------- -------------- Cash and cash equivalents at beginning of period 1,253 1,055 1,055 ------------------------------------------- ----------------- -------------- -------------- Cash and cash equivalents at end of period 752 469 1,253 ------------------------------------------- ----------------- -------------- --------------
Notes to the unaudited interim financial statements
For the six months ended 31 March 2018
1 Basis of preparation
The interim financial statements, which are unaudited, have been prepared on the basis of the accounting policies expected to apply for the financial year to 30 September 2018 and in accordance with recognition and measurement principles of International Financial Reporting Standards ('IFRSs') as endorsed by the European Union. The accounting policies applied in the preparation of these interim financial statements are consistent with those used in the financial statements for the year ended 30 September 2017.
The interim financial statements do not include all of the information required for full annual financial statements and do not comply with all the disclosures in IAS 34 'Interim financial reporting'. Accordingly, whilst the interim statements have been prepared in accordance with IFRSs, they cannot be construed as being in full compliance with IFRSs.
The financial information for the year ended 30 September 2017 does not constitute the full statutory accounts for that period. The annual report and financial statements for the year ended 30 September 2017 have been filed with the Registrar of Companies. The Independent auditor's report on the report and financial statements for the year ended 30 September 2017 was unqualified, did not draw attention to any matters by way of emphasis, and did not contain a statement under Section 498(2) or 498(3) of the Companies Act 2006.
2 Going concern
The interim financial information has been prepared on a going concern basis, which assumes that the Company will have adequate resources to continue in operational existence for the foreseeable future.
3 Other Operating Income
The R&D tax credits in the year have been decreased due to the limits on the amount credits which can be claimed
4 Earnings per share ('EPS')
Basic earnings per ordinary share is based on the profit on ordinary activities before taxation of GBP38,619 and on 136,004,577 ordinary shares in issue throughout the period.
Diluted profit/ per share is calculated by adjusting the weighted average number of ordinary shares in issue on the assumption of conversion of dilutive potential ordinary shares, based on the share price at the end of the period. The Company's dilutive potential ordinary shares are shares issued under the Company's Enterprise Management Incentive ('EMI') scheme and options issued under the Company's Unapproved scheme.
5 IFRS 2 'Share-based payments'
Operating expenses includes a charge of GBP5,887 (2017: GBP4,691) after valuation of the Company's employee share option schemes in accordance with IFRS 2. Under this standard, the fair value of the options at the grant date is spread over the vesting period. These charges have been credited to equity in accordance with IFRS2 as presented in the consolidated statement of changes in equity.
6 Additional copies
Further copies of the 2018 interim report are available on the Company's website, www.ish.co.uk, and from the Company's registered office, 16-18 Hayhill Industrial Estate, Sileby Road, Barrow-upon-Soar, Leicestershire LE12 8LD.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR QDLFLVZFFBBZ
(END) Dow Jones Newswires
April 30, 2018 02:00 ET (06:00 GMT)
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