cont again27 Jun 2013 15:58
Brian Emslie, Chairman of Image Scan, commented: "Having become profitable within the last 18 months, the loss reported in the interim results is particularly disappointing. This has occurred partly due to the flow of orders during the year being unevenly phased, with orders intake during the last three months of £1.5m being double that of the previous six. In addition an exceptional loss of £112,000 on the latter stages of the nuclear contract has been realised within the period. In the light of the first half trading performance and the repositioning of the Company towards standard product sales where costs can be better controlled, the Board has revisited the level of resourcing required and has restructured the business to streamline operations. This incurred a further exceptional charge of £25,000 in the period, but has reduced ongoing overheads by around 20%, at which level the Board is confident that the Company should be able to achieve profitability on a sustainable basis. However, the loss in the period coupled with the need to build for stock has made cash flow management challenging. The Board is actively looking at ways to provide further working capital to properly develop the business and to fund new product development. I would like to take this opportunity to thank Ian Johnson, who is standing down from the Board as of today, for over 11 years of invaluable service to the Company."