Image Scan Holdings Regulatory News (IGE)

30 Sep 2008 07:00



 30 September 2008

Image Scan Holdings plc

("Image Scan" or "the Company")

PRE-CLOSE TRADING UPDATE

RULE 2.10 ANNOUNCEMENT

The Board of Image Scan, specialists in the field of real-time 3D and 2D x-ray imaging for the 'Homeland Security' and 'Industrial Inspection' markets, today provides shareholders with a pre-close trading update, highlighting the trading position of the Company for the year ending 30 September 2008.

The Board anticipates turnover for the year ended 30 September 2008 at £2 million (2007: £1.5 million), an increase of 30% on the previous year. Year end cash balances have remained stable at £1.5 million (2007: £1.5 million) due to reduced working capital requirements, careful cash management and other non-operational factors, including the receipt of interest, R&D tax credits and the issue of £60,000 share capital.

Security sales have increased in 2008 as a result of improved take-up of TPXi Flatscan, a portable suspect package x-ray inspection system, and further sales of the Axis-3D® baggage screening x-ray system for the Beijing Olympics. In addition, the Company currently has the Axis-3D® system on trial in China. The original trial period has been extended following issues relating to the reliability of certain bought in components.  The confirmation of a £630,000 order is dependent on the satisfactory completion of this trial and this represents the major constituent of the 2009 forward order book.

On the industrial side, the Company has successfully completed the £1m contract to British Nuclear Group and has recently sold a system to Boston Power Inc for the inspection of batteries at their plant in Taiwan. This contract with Boston Power was won against major international competition, and is expected to result in follow on sales into the same sector in the next financial year.

The Board has appointed Grant Thornton to carry out a strategic review of all the options available to the Company in seeking a stable and growing platform for its business. These options include, but are not limited to, potential mergers with other companies and/ or collaboration with companies operating in similar market sectors.

Image Scan's CEO, Nick Fox, commented, "Our new sales and marketing manager, appointed in January, has been effective in improving both our rate of enquiries and our enquiry response time. This proved to be critical in winning the contract with Boston Power. The past year has seen security sales strengthen, resulting in a better balance of opportunities within both the security and industrial sectors."

Rule 2.10 

Relevant Securities in Issue

In accordance with Rule 2.10 of the City Code on Takeovers and Mergers, Image Scan confirms that it currently has in issue 55,698,120 ordinary shares of 1 pence each. The International Securities Identification Number for the ordinary shares is GB0031410581.

Dealing Disclosure Requirements 

Under the provisions of Rule 8.3 of the City Code on Takeovers and Mergers (the "Code"), if any person is, or becomes, "interested" (directly or indirectly) in 1% or more of any class of "relevant securities" of Image Scan, all " dealings" in any "relevant securities" of that company (including by means of an option in respect of, or a derivative referenced to, any such "relevant securities") must be publicly disclosed by no later than 3.30 pm (London time) on the London business day following the date of the relevant transaction. This requirement will continue until the date on which the offer becomes, or is declared, unconditional as to acceptances, lapses or is otherwise withdrawn or on which the "offer period" otherwise ends. If two or more persons act together pursuant to an agreement or understanding, whether formal or informal, to acquire an "interest" in "relevant securities" of Image Scan, they will be deemed to be a single person for the purpose of Rule 8.3. 

Under the provisions of Rule 8.1 of the Code, all "dealings" in "relevant securities" of Image Scan by Image Scan, or by any of its respective "associates", must be disclosed by no later than 12.00 noon (London time) on the London business day following the date of the relevant transaction. 

A disclosure table, giving details of the companies in whose "relevant securities" "dealings" should be disclosed, and the number of such securities in issue, can be found on the Takeover Panel's website at www.thetakeoverpanel.org.uk. 

"Interests in securities" arise, in summary, when a person has long economic exposure, whether conditional or absolute, to changes in the price of securities. In particular, a person will be treated as having an "interest" by virtue of the ownership or control of securities, or by virtue of any option in respect of, or derivative referenced to, securities. 

Terms in quotation marks are defined in the Code, which can also be found on the Panel's website. If you are in any doubt as to whether or not you are required to disclose a "dealing" under Rule 8, you should consult the Panel.

-ENDS-

For further information, please contact:

Image Scan Holdings plc  Tel: +44 (0) 1664 503 600

Gilbert Chalk, Chairman

Nicholas Fox, CEO

info@ish.co.uk

Bishopsgate Communications Ltd  Tel: +44 (0) 207 562 3350

Jenni Herbert 

Will Tindall

Seymour Pierce Tel: +44 (0) 207 107 8000

Richard Feigen

Sarah Jacobs

About Image Scan Holdings plc 

Image Scan Holdings plc (AIM: IGE) is focused on the development and commercialisation of market leading real-time 3D and 2D x-ray solutions for use in the global industrial and security inspection markets. The Company's industrial inspection solutions include the MDXi unit and the DEX systems. The security portfolio includes Axis-3d®, a unique 3D baggage inspection system for corporate and airport security, and TPXi, a portable bomb and suspect package detection system. 

Current Technology Portfolio

The Company's portfolio currently comprises of the following x-ray inspection systems: Axis-3d®; MDXi-400™; TPXi-675™; and the DEX™ x-ray vision engine for OEM applications.

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