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LONDON (Alliance News) - Image Scan Holdings PLC Thursday posted a narrowed pretax loss in the half year to end-March, amid reduced overheads and strong sales of its security products.
The x-ray screening systems company said it needs to focus on accelerating product development to drive its business forward and will target growth in research and development and sales activity.
It posted a pretax loss of GBP59,000, narrowed from a GBP399,000 in the previous year, as it saw revenue rise to GBP1.7 million from GBP1.1 million, driven by strong sales of its security products.
Following restructuring in May 2013, the company cut its overheads in the half year to GBP576,000 from GBP740,000, helping to boost profit.
Image Scan Holdings said it had total confirmed orders to date of GBP2.3 million, having secured new orders of GBP1.1 million in the first half.
Although revenue in the first half was on target, the company said that its performance in the second half will be reliant on the supply of a newly developed portable generator to replace the existing system which is no longer available.
The company said that as a result of committing its limited resource base to a nuclear contract over the last three years, its research and development activity had been restricted, and had led a decline in competitiveness.
Image Scan Holdings outlined its plans to accelerate product development, including a complete renewal and extension of its existing portable x-ray product range, co-developing checkpoint x-ray systems to replace its current products, and the recruitment of additional senior sales positions.
Shares in Image Scan Holdings were trading up 9.1% at 3.00 pence Thursday midday, having peaked at 3.48p in the morning.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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