Image Scan Holdings Regulatory News (IGE)

5 Oct 2009 07:00



5 October 2009

Image Scan Holdings plc

("Image Scan" or "the Company")

TRADING UPDATE

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 trading update, highlighting the trading position of the Company for the year ending 30 September 2009.

The Board anticipates turnover for the year ended 30 September 2009 at £1.4 million (2008: £2.0 million). The year end cash balance is expected to be £850,000 (2008: £1.5 million) and the current order book is £293,000. Whilst security sales are comparable to the prior year, industrial sales reflect the difficult economic conditions. As a result of the bias towards the security sector, the Company has taken action to increase the potential to capitalise on these opportunities, whilst continuing to respond to industrial enquiries.  Security sales have been underpinned by the successful sale of 14 Axis-3d® baggage screening systems into China. The Company also secured the first sale of its Axis-2d system for use in screening mail at the head office of a major financial institution in the City. The Company's portable suspect package x-ray inspection system, FlatScan-TPXi, continues to perform well with sales into new territories such as Canada, Thailand, India and the Middle East as well as another recent order received from the British Transport Police.  Historically, the Company's industrial sales have been very dependent on the automotive sector. Clearly this sector has been disproportionately affected by the economic downturn, however, the Company did supply an MDXi-NT industrial inspection system to Johnson Matthey for their plant in Japan and has recently received an order from them to develop the software platform for their installed base worldwide. The Company has sought to exploit its security products within territories facing a higher level of threat. As a result the Company has entered into a memorandum of understanding with Castmaster Enterprises Private Ltd, a Delhi-based engineering company with well established Government and industry contacts, to distribute its products in India. Furthermore, the Company has recently appointed a regional sales manager with several years experience of selling security equipment into the Middle East to develop the necessary routes to market in that region.  Following the termination of the lease in Melton Mowbray, the Company will be moving to new premises towards the end of October. A suitable location has been secured close to Loughborough within 13 miles of the existing premises. This will involve minimal disruption to the business and ongoing costs of occupation are expected to be comparable to the existing premises. Costs associated with the move are estimated at £60,000, including preparing the building for occupation and effecting the move.

Image Scan's CEO, Louise George, commented, "During the year the Company has focused on refining its strategy and developing the routes to market for its security products, particularly in India and the Middle East, where there has been considerable interest shown in the FlatScan-TPXi portable system. The challenge for 2010 will be to convert that interest into sales in a period when Governments are having to balance economic reality against their security needs."

-ENDS-

For further information, please contact:

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

Brian Emslie, Chairman

Louise George, CEO

info@ish.co.uk

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

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 security and industrial inspection markets. The Company's security portfolio includes the Axis-3d® and Axis-2d baggage inspection systems for corporate and airport security; FlatScan-TPXi, a portable bomb and suspect package detection system; and SVXi, a small vehicle inspection system. The industrial inspection solutions include the MDXi and the DEX systems.

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