Trading Update

13 Mar 2008 07:00

Image Scan Holdings PLC13 March 2008 13 March 2008 Image Scan Holdings plc ("Image Scan" or "the Company") TRADING UPDATE Image Scan, specialist in the field of real-time 3D and 2D x-ray imaging for the'Homeland Security' and 'Industrial Inspection' markets, is pleased to present atrading update to coincide with the AGM being held at 11am today. In recent months, the Company has received positive commercial endorsements ofits technology, including a steady increase in the take-up of TPXi sales andrenewed interest in the AXIS-3D(R) system. Over £541,000 of orders have been received in the financial year to date forTPXi, the portable suspect package x-ray inspection system, including a repeatorder of £116,000 from the British Transport Police and orders totalling£425,000 received through the Belgium-based distributor, ICM. This compares tosales of less than £200,000 in the whole of the previous financial year. Following the order for four AXIS-3D(R) baggage screening systems received inNovember, Image Scan has been working closely with its Chinese distributor todevelop the second generation 3D technology. As a result, negotiations areunderway for a further significant contract subject to acceptance testing of thenew design. This will form the platform for further collaboration in theChinese market. On the industrial side, the British Nuclear Group contract is close tocompletion and is on target in terms of timescales and budget. Opportunitiesfor new orders are expected to arise from sales of the MDXi industrialinspection system into Johnson Matthey and other catalytic convertermanufacturers, and from the development of new OEM relationships supplyingmetrology equipment into systems integrators and equipment manufacturers. Thesefollow on and new sales will be limited in the current year, and this isreflected in the Company's budget, but should provide prospects for repeat andnew product sales in subsequent periods. The Company expects to be close to its targets for the first half of the yearand will start the second half with a bank balance of around £1.3m and aconfirmed order book of over £0.5m. Meeting targets in the second half of theyear will be dependent on early completion of the Chinese negotiations orobtaining further orders for the TPXi. Industrial sales, whilst budgeted atmodest levels, will also need to be met. The Board will keep the overheadstructure under review in the light of how these order expectations arise in theevent. Image Scan's CEO, Nick Fox, commented, "The prospects in China provide both achallenge and a major potential opportunity for the Company. Provided thefurther contract currently under discussion can be secured, then the Companywill be on target to achieve its objective of stabilising its financial positionthrough much improved trading." -ENDS- For further information, please contact: Image Scan Holdings plc Tel: +44 (0) 1664 503 600Gilbert Chalk, ChairmanNicholas Fox, CEOinfo@ish.co.uk Bishopsgate Communications Ltd Tel: +44 (0) 207 562 3350Jenni Herbert Seymour Pierce Tel: +44 (0) 207 107 8008David Newton / Sarah 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 vision engine 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