Image Scan finalises £3m UK defence contract

16th Oct 2024 13:44

(Sharecast News) - Image Scan announced the finalisation of a significant contract with UK defence contractor NP Aerospace on Wednesday, for the supply of its 'ThreatScan' portable x-ray system.

The AIM-traded firm said the contract, valued at £3m over a 36-month period, was a key milestone for the company.

It said the testing and trial phase for the ThreatScan system would begin shortly, with completion expected in the coming months.

On successful trials, Image Scan would start delivery of the systems.

Although the contract would not impact the company's financial performance for the 2024 financial year, revenue and profits from the deal would largely be recognized in 2025 and 2026.

The ThreatScan portable x-ray system is designed for rapid and accurate threat assessments in defence and security operations.

Image Scan said it features a portable x-ray generator, detection panel, and operator workstation equipped with its advanced image processing software, along with customer-specific ancillary equipment tailored to meet the demands of the defence sector.

"We are thrilled to have successfully agreed the contract with NP Aerospace, marking a key achievement in our strategic collaboration," said chief executive officer Vince Deery.

"The agreement reflects the strength of our relationship and mutual commitment to delivering high-performance solutions.

"As we now move forward together into the testing and trials phase, we are confident that this partnership will further enhance our ability to meet the evolving challenges of the defence and security industry."

At 1258 BST, shares in Image Scan Holdings were up 5.81% at 3.28p.

Reporting by Josh White for Sharecast.com.