Image Scan, (AIM: IGE) specialists in the field of X-ray imaging for the security and industrial inspection markets, today announces its interim results for the six months ended 31 March 2021. During the first six months the performance of the Company has continued to be impacted by COVID-19, but there is a sufficiently strong orderbook and pipeline of new business for us to expect a stronger second half.
· Revenue £868k (2020: £2.3m)
· Gross profit margin improved to 55% (2020: 45%)
· Loss before taxation of £201k (2020: profit of £180k)
· Period end bank balance of £1m (2020: £1.1m)
· Order intake £938k (2020: £1.5m)
· Period end order book of £702k (2020: £933k)
· Order book increased to £1.5m at 27 April 2021 including large Asian portable X-ray contract win
· First order for new conveyor X-ray system received from USA
· New portable X-ray customer in Canada
· Contract to supply portable X-ray systems to RAF
· New orders for industrial screening systems
· Research and Development effort supported by customer funding
· Large portable X-ray order received from Asian customer after period end
The Board considers that the Company has a sufficiently strong pipeline of new orders to continue to trade in line with market expectations for the year ending 30 September 2021 which are for sales of £3m and a loss of £200k.
Bill Mawer, Chairman and Chief Executive Officer of Image Scan commented: "We expected that the COVID-19 pandemic would continue to impact the flow of new orders into the business in the first half of this financial year, and that impact is reflected in these results. However, we are delighted that our new products are finding their first customers and that we have been able to open up new markets in North America and the UK. The new portable X-ray order and our strong new business pipeline point to a stronger performance in the second half, though we continue to monitor closely the potential impact of COVID-19 outbreaks in important markets such as India and Brazil. Nonetheless, we will continue our ambitious new product development programme as this is putting us in a strong position for when the effects of the pandemic diminish."