Image Scan confident despite slower start to year

28th Feb 2024 13:19

(Sharecast News) - Security and industrial inspection scanning technology specialist Image Scan said in a trading update on Wednesday that, while it returned to profit in 2023, trading in the current financial year started at a slower pace in terms of sales and order intake.

The AIM-traded firm, which was holding its annual general meeting, said that as of January, its order book stood at £0.61m.

However, the company said it expected a second-half-weighted performance, with positive expectations as the current sales pipeline materialised.

The board said the contribution from ThreatScan-AS1 was growing, presenting opportunities in larger volume tender processes previously inaccessible to Image Scan.

It said it was actively engaged in multiple-unit government tender opportunities for its portable x-ray product, with potential positive impacts on the order book, which was already weighted towards the second half.

Extensive marketing efforts had been undertaken, including participation in exhibitions in Europe and the Middle East, as well as territory visits to demonstrate the enhanced product portfolio.

The focus had been on showcasing the latest addition, ThreatScan-AS2, a lightweight imaging panel designed for rapid response counter explosive ordnance operations.

Orders for Axis-CXi had also expanded into new territories, enhancing the company's market reach.

Image Scan acknowledged the decline in its industrial business supporting the catalyst market, attributed to geographic migration to lower-cost locations.

However, the company said it was adapting by prioritising service and support revenue over capital equipment sales.

Looking ahead, Image Scan said it was aiming to expand its business through strategic partnerships and acquisitions.

With support from its largest shareholder, the company had started the process of identifying and analysing potential targets offering complementary products or technology to leverage its well-established partner network.

The company remained optimistic about its prospects, buoyed by the positive feedback from partners and the sales team.

"The launch of ThreatScan-AS2 aligns with our strategy to introduce higher performing products to enable competition in wider geographies and more government opportunities," said chief executive officer Vince Deery.

"The endorsement of the strategy is evidenced by our participation in a number of tender processes that would not have been possible previously."

At 1131 GMT, shares in Image Scan Holdings were down 15.07% at 1.19p.

Reporting by Josh White for Sharecast.com.