Image Scan ends year in strong position

23rd Oct 2024 13:52

(Sharecast News) - Image Scan reported a strong trading performance for the financial year just ended on Wednesday, with profits set to meet market expectations.

The AIM-traded x-ray screening systems provider said it anticipated revenue of £2.9m for the 12 months ended 30 September, broadly in line with last year's £3m.

Pre-tax profit was expected to rise to £0.2m, double the £0.1m achieved in 2023.

The company attributed the improved performance to product innovation, securing government contracts, and effective cost management following restructuring efforts.

It said those factors contributed to both stronger profitability and higher customer satisfaction.

Image Scan also maintained a robust cash position, with £0.91m on hand at the end of the financial year, down slightly from £0.96m at the end of the prior year.

Investment in product development totaled £0.22m, reinforcing the company's commitment to future growth.

A recent contract win further bolstered Image Scan's outlook, with the board saying the £3m contract with a leading defence contractor for its ThreatScan portable x-ray system was a key achievement, and expected to generate revenue primarily in the 2025 and 2026 financial years.

The contract supported a healthy order book, which stood at £4.5m as of 30 September.

Looking ahead, Image Scan said it remained focussed on expanding its product portfolio and exploring growth opportunities, including potential acquisitions.

"I am extremely pleased with the group's performance in 2024," said chief executive officer Vince Deery.

"We have not only achieved a significant increase in profitability but also maintained a strong cash position.

"The recent contract awards with European defence partners positions us well in the marketplace and gives us confidence for future growth in the 2025 financial year and beyond."

At 1254 BST, shares in Image Scan Holdings were up 3.03% at 3.4p.

Reporting by Josh White for Sharecast.com.