Image Scan Holdings Share Price (IGE)

Zeus's latest note after the defence contract win concludes as follows FYI:

"The contract was secured against strong international competition and, in our view, further demonstrates the operational capability, reliability and performance of the Group’s ThreatScan technology in demanding military applications.

Recap on a strong H1-26A performance:

In late April, Image Scan reported H1-26A revenue up sharply to £1.32m (H125A: £0.35m; 3.8x). Gross margin eased to 51% (59%) due to product mix; however, stronger sales drove absolute gross profit to £0.68m (£0.21m; 3.3x). Operating costs were slightly lower at £0.61m (£0.63m), reflecting continued cost discipline. This resulted in a return to PBT of £0.08m (£0.42m loss). At period end, the Group had no debt and a cash balance of £0.96m (£0.51m).

 Order book momentum building:

The Group entered H2-26E in a stronger position than at the same point last year, supported by improved trading momentum, a solid order book and a developing opportunity pipeline across multiple geographies. Image Scan had already highlighted increased engagement in higher-value tenders, ongoing partner-led demonstrations and continued strengthening of the product offering. The contract announced today supports this cautiously positive outlook.

 Zeus forecasts:

We will reintroduce forecasts in due course. This contract win, alongside the strong H1-26A performance reported in late April, should drive a significant improvement in earnings versus FY25A, including sustained profitability."

That was a quick bounce! And rightly so.

A rather encouraging snippet from Zeus's latest research note issued after Friday's ThreatScan contract win from the European government defence organisation:

"Under the contract, Image Scan will supply 25 units of its ThreatScan portable X-ray systems for use in Explosive Ordnance Disposal (EOD) operations. We understand there is potential for further orders from this customer."

Masonmaster

Winning a competitive international tender against large global defence corporations proves their newer tech like the ThreatScan-AS2 is ultra elite.

😘