Image Scan Holdings Regulatory News (IGE)

22 February 2021

Image Scan Holdings plc

("Image Scan" or the "Company")

Trading Update ahead of AGM

Image Scan, (AIM: IGE) specialists in the field of real-time X-ray imaging for the security and industrial inspection markets, provides an update ahead of its Annual General Meeting.

Key Points:

· Contract to supply portable X-ray systems to the Royal Air Force

· New portable X-ray customer in Canada

· Overall order intake impacted by COIVD-19

· New cabinet X-ray system launched

· Design of new conveyor X-ray machine approaching completion

· Healthy cash balance of £1.1m (as of 31 January)

The business has operated continuously through the COVID-19 pandemic, with sales, service, manufacturing and research and development functions operating as close to normally as possible. However, as anticipated in our report and accounts, the pandemic has continued to have an adverse impact on the overall level of orders, particularly in security. This impact has been most noticeable in delays to the placing of larger, multi-unit orders by our government customers.

Smaller portable X-ray orders have continued to be received and have included several from significant new customers, not least the RAF order announced in January, and a first order from the Canadian government. The latter illustrates the progress of the 2020 initiative to target the North American security market, which has included running training courses for security technicians and an extensive programme of trials and demonstrations.

The new product development programme passed a significant milestone with the launch of the AXIS-CXi cabinet X-ray system for use in mailrooms and other security screening environments. This system has been presented at on-line security equipment exhibitions, demonstrated directly to customers, and has been the subject of a number of multi-unit quotations. The AXIS-CXi will soon be joined by the AXIS-64E conveyor X-ray system which is in the final stage of design. A significant aspect of both these additions to the product range is the anticipated increase in recurring service and support revenues as they are deployed.

The order pipeline in both security and industrial markets is showing some signs of recovery and the performance in the second half will be dependent on timely receipt of those orders. The Company continues to enjoy a healthy bank balance, with £1.1m of cash as at 31 January.

Bill Mawer, Chairman and Chief Executive Officer of Image Scan commented: "As anticipated, the business continues to be impacted by the pandemic, though we are beginning to see a strengthening pipeline of opportunities with both security and industrial customers. We are making good progress with our ambitious product development programme, and our aim remains to come out of the pandemic with a broader range of screening systems, and a presence in a wider range of security markets than before it started. We are on target to achieve that goal."

 The Company's Annual General Meeting, a closed meeting, will be held at its Barrow-upon-Soar facility on 23th February at 11.00. The Board will make a brief video presentation available on the Company's website www.3dx-ray.com immediately after the AGM.

The Company will provide further detail in its interim results in April 2021.

-ENDS-

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