Image Scan Holdings Regulatory News (IGE)

14 Nov 2006 07:01

Image Scan Holdings PLC14 November 2006 14 NOVEMBER 2006 IMAGE SCAN HOLDINGS PLC ("Image Scan" or "the Company") PRE-CLOSE TRADING UPDATE Strong trading and rapidly growing order book The Board of Image Scan, a world leader in the field of real-time 3D and 2Dx-ray imaging for the 'Homeland Security' and 'Industrial Inspection' markets,is pleased to provide shareholders today with a pre-close Trading Update,highlighting continued strong trading at the Company on the back of its growingorder book and client portfolio. It is also pleased to announce that it hasreceived a welcome endorsement from the US Transport Security Administration("TSA"). KEY POINTS €2006 turnover anticipated to have increased by 70%; •Significant reduction in losses expected; •Order book increased five fold since year start; •Endorsement of 3D technology from US Government's TSA; •TSA contract extension worth over $100,000 secured; and •Board confidence growing of move into profitability in 2007. TRADING & CORPORATE UPDATE The Board anticipates that turnover, for the year ended 30 September 2006, willexceed £1.4 million (2005: £843,000), an increase of approximately 70%. Thecorresponding loss before interest and amortisation is also anticipated to besignificantly reduced. ORDER BOOK UP 600% The order book at the end of September 2006 stood at £1.7m, a five fold increaseover the corresponding close in 2005. To fund the inevitable increase in cashflow requirements attributable to this increased order book the Company hasnegotiated deferment of the existing £200,000 loan to a new date of 31st March2008 and an additional long-term loan for a further £200,000. Both loans havewarrants attached at 20p. Our long term strategic funding plans are now clear aswe move into profitability. This considerable uplift in the order book stems from a series of new contractsuccesses including an order for Image Scan's innovative MDXi system - suppliedto a blue-chip international corporation for their plants in the UK and SouthAfrica - and a major £1m contract with British Nuclear Group Ltd ("BNG") forin-line x-ray inspection systems; the latter due for completion by May 2008. Sales of TPXi, the transportable, light-weight, security inspection device,continue to grow with orders for a further 14 units being received in the lastthree months. The Company is now confident that the distributors of the TPXisystems will comfortably exceed their minimum sales targets. The Directors believe that the on-going sales and significant improvement in theorder book will provide a sound platform for achieving profitability in 2007. ENDORSEMENT: TRANSPORT SECURITY ADMINISTRATION 3DX-Ray Limited, pioneers of 3D x-ray imaging technology in bothbaggage-checking security and industrial applications and a wholly ownedsubsidiary of Image Scan, has received a welcome endorsement from the USGovernment's security equipment regulator, the TSA. The TSA are the purchasingauthority for the USA transport sector. The imminent release of a report on 3D x-ray imaging technologies by the TSA,concludes that 3DX-Ray Limited's real-time 3D images provide significantimprovements in overall security when compared to conventional 2D x-ray baggageinspection systems. Detailed analysis of the results by the TSA demonstrated that the probability ofthreat detection rates improved by over 10% when the bags were viewed with3DX-Ray's 3D system. EXTENSION TO EXISTING CONTRACTS Further to the TSA endorsement, Image Scan is pleased to report that it hassecured an extension to an existing award with the Department of HomelandSecurity ("DHS") and TSA for research and development into advanced 3D x-raysystems for baggage inspection. The contract extension is valued at $100,000over the next 12 months. In this latest project the TSA will work actively with Image Scan in thedevelopment of an advanced autostereoscopic 3D display that does not require theoperator to wear any special equipment, such as polarizing glasses, to view the3D image. The new system will also be evaluated by the TSA and DHS to benchmarkit against conventional systems. Nicholas Fox, CEO of Image Scan Holdings plc, commented: "We run a businessproviding solutions, not just technology, to our customers. As the Company headsinto its closed period, the Board is delighted to provide news of the robustcurrent position of Image Scan and looks forward to reporting its PreliminaryResults in January." ---ends--- For further information, please contact: Image Scan Holdings plc Tel: +44 (0) 1664 503 600Nicholas Fox, CEOinfo@ish.co.uk Bishopsgate Communications Ltd Tel: +44 (0) 207 430 1600Dominic BarrettoJenni Herbertdominic@bishopsgatecommunications.com KBC Peel Hunt Tel: +44 (0) 121 698 8505Nick Maslennick.maslen@kbcpeelhunt.com About Image Scan Holdings plc Image Scan Holdings plc (AIM: IGE) is focused on the development andcommercialisation of market leading real-time 3D and 2D x-ray solutions for usein the global industrial and security inspection markets. The company'sindustrial inspection solutions include the MDXi unit and the X-Line systems.The security portfolio includes a unique 3D baggage inspection system forcorporate and airport security and TPXi, a portable bomb and suspect packagedetection system. Current Technology PortfolioThe Company's portfolio currently comprises of the following x-ray inspectionsystems: Axis-3d(R); X-Line; MDXi-400TM; TPXi-675TM; and the DEXTM x-ray visionengine for oem applications. For further information on the Company, please visit: www.ish.co.uk - and forfurther information on its products, please visit: www.3dx-ray.com. This information is provided by RNS The company news service from the London Stock Exchange