Pre-close Trading Update

13 Sep 2007 07:00

Image Scan Holdings PLC13 September 2007 13 SEPTEMBER 2007 IMAGE SCAN HOLDINGS PLC ("Image Scan" or "the Company") PRE-CLOSE TRADING UPDATE 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,today provides shareholders with a pre-close Trading Update, highlighting thecurrent trading position of the Company for the year ending 30 September 2007. The Board anticipates that turnover for the year ended 30 September 2007 willexceed £1.5 million (2006: £1.4m). The corresponding net loss is expected to bearound £0.6m (2006: £0.5m). Despite confidence expressed by the Company in the interim statement and in theEGM statement released in June 2007, the second half of the year has beendisappointing. The conversion of orders has been slower than anticipated suchthat the order book worth £1.7m at the start of the year fell to £945,000 by thehalf year. This is forecast to fall further by the year end as some of the salesexpected have not materialised in the period under review and two significantorders were lost. Following the departure of the Sales and Marketing Director in July, Nick Foxhas taken on the responsibility for heading up the sales team. Since then theCompany has issued a significantly larger volume of quotations than in thepreceding 9 months of the year under review. At the time of the fund-raising in June, the Company stated that it wouldexpand the sales and marketing function in order to respond better to marketneeds and secure additional orders. In line with this objective, the Company isactively looking to appoint two further sales executives. Internalreorganisation of the service and applications teams has led to them becomingmore client-facing and has increased efficiencies. It is anticipated that thesechanges to the sales, service and applications groups will contribute toproviding a stronger platform for the conversion of existing sales leads intoorders. The Board moreover is examining all aspects of its operations and willcontinue to strengthen the position of the Company in the coming months. Following the fund-raising in June 2007, the Company's cash balances at 30September 2007 are expected to be £1.4m which will support the Company inachieving its targets for 2008. Nicholas Fox, CEO of Image Scan Holdings plc, commented: "The scale of theorders at the start of 2007 precluded us from pursuing and responding toenquiries within appropriate timescales. This has been reflected in thedisappointing second half. Finding a resolution to increasing efficiencies issomething that we are addressing by strengthening and reorganising the internalstructure of the Company. Image Scan continues to have a growing number ofsales prospects worldwide for our products and we remain confident of ourability to generate good growth over the next twelve to eighteen months." ---ends--- The directors of the issuer accept responsibility for this announcement. 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) 207 562 3350Dominic BarrettoJenni Herbert Seymour Pierce Tel: +44 (0) 207 107 8000David NewtonSarah Jacobs 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 Portfolio The Company's portfolio currently comprises of the following x-ray inspectionsystems: Axis-3d(R); X-Line; MDXi-400(TM); TPXi-675(TM); and the DEX(TM)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