TIDMIGE
RNS Number : 5627V
Image Scan Holdings PLC
19 April 2016
Image Scan Holdings plc
Interim report 2016
19/04/2016
IMAGE SCAN HOLDINGS PLC
("Image Scan" or the "Company")
(AIM: IGE)
INTERIM RESULTS
Improved performance in both security and industrial sectors
Image Scan, (AIM: IGE) specialists in the field of innovative
real-time X-ray imaging for the Security and Industrial Inspection
markets, today announces its interim results for the six months
ended 31 March 2016 which are in line with the Board's
expectations. Given performance during the first six months the
Board remains confident of meeting market expectations for the year
to 30 September 2016.
Financial summary:
-- Order intake for the period of GBP1,314k (2015: GBP977k)
-- Revenue of GBP1,372k (2015: GBP863k)
-- Gross profit margin of 44% (2015: 36%)
-- Loss before taxation of GBP64k (2015: GBP387k)
-- Period end bank balance of GBP532k (2015: GBP455k)
-- Period end order book of GBP634k (2015: GBP536k)
Operational highlights:
-- New portable X-ray system demonstrated worldwide
-- Multi unit portable X-ray orders received
-- Good progress with Government supported Precision Linescan Detector development
-- Continued new orders for industrial inspection systems
-- Growth in customer funded research and development for industrial systems
Bill Mawer, Chairman and Chief Executive Officer of Image Scan,
commented: "This period shows a marked improvement in the Company's
performance, driven by growing sales of standard products in both
the security and industrial sectors. Our new systems are well
positioned in the very active portable X-ray inspection market and
sales have substantially increased from the prior year. It has been
gratifying to see the return of substantial multi-unit government
orders.
The increase in our industrial inspection activity shows Image
Scan's ability to benefit from our deep and longstanding
relationships with a number of key customers in the automotive
emissions control area. We hope to further strengthen these
relationships and extend the deployment of our systems across these
customers' global manufacturing operations.
Although we start the second half of the year with a healthy
order book, the business will be focussed on continuing the
momentum so far achieved and winning further orders."
For further information on the Company, please visit:
www.ish.co.uk and for further information on its products, please
visit: www.3dx-ray.com
Enquiries:
------------------------------------------ ------------------
Image Scan Holdings plc Tel: +44 (0) 1509
Bill Mawer, Chairman and Chief Executive 817 400
Officer ir@ish.co.uk
Sarah Atwell King, Company Secretary
------------------------------------------ ------------------
Cantor Fitzgerald Europe (Nominated Tel: +44 (0) 207
Adviser and Broker) 894 7000
Rick Thompson / David Foreman / Michael
Reynolds / David Banks
------------------------------------------ ------------------
Chairman's statement
Introduction
Image Scan Holdings plc is a specialist in innovative real-time
X-ray technology, operating globally in the security and industrial
inspection sectors. The Group's principal activity is the design,
manufacture and supply of both portable and fixed X-ray security
screening systems to governments, security organisations and law
enforcement agencies. The Group also supplies high-quality image
acquisition systems for non-destructive testing to commercial
organisations worldwide.
Financial results
Revenue for the six months ended 31 March 2016 of GBP1,372k
(2015: GBP863k) represented a significant increase over the prior
period. Security sales were GBP741k (2015: GBP669k). There was a
significant change in security product mix, with almost double the
number of portable X-ray units being sold, including two
significant multi-unit orders. These increases in portable unit
sales offset a decrease in the number of Axis Conveyor systems sold
and lead to an improved gross margin for security of 41% (2015:
32%). Industrial sales were GBP631k (2015: GBP194k) reflecting an
increase of activity in this area.
Overheads were tightly managed at GBP670k (2015: GBP697k). The
post-tax loss in the business narrowed significantly to GBP44k
(2015: GBP335k) while growth in orders seen at the end of the
previous financial year continued with new orders received during
the period totalling GBP1,314k (2015: GBP977k) leaving the Company
with a period end order book of GBP634k (2015: GBP536k).
The company held GBP532k in cash at the period end (2015:
GBP455k).
Overview
The sales team have continued to demonstrate our range of
portable X-ray systems to customers and partners around the world.
Important new customers, who have placed their first orders for
these systems, have been found in the Middle East, Canada and
Europe. The research and development team is working to further
extend the portable X-ray products range. This activity includes
the development of the Precision Linescan Detector with our partner
Ibex Innovations. This Government supported programme continues to
make good progress and high resolution images of complex objects
have already been produced.
The industrial inspection business area, focussed on scanning
catalytic converters and diesel particulate filters in the
automotive industry, continues to grow with 3 units in the order
book at the period end. Additionally, orders totalling
approximately GBP150k for customer funded development are allowing
additional features to be added to these systems.
The nuclear project, which had a negative impact on company
performance for a number of years, has completed all its milestones
and reached the end of its warranty period and an ongoing support
contract has been put in place with the end user.
The Company's commitment to process improvement and quality
continues and in December 2015 our quality systems were recertified
by an independent assessor as compliant to ISO 9001.
Outlook
The market for security X-ray systems remains strong, reflecting
the existence of a continuing terrorist threat and the impact of
recent incidents in Paris and Brussels. This has led to multi-unit
procurements of our portable X-ray systems and we have submitted
tenders against Government requirements for further multi-unit
orders on which decisions are expected in the second half of FY
2015/16. Discussions with current and potential customers support
the requirement for the Precision Linescan Detector and we remain
confident that this system will do well following its anticipated
launch in financial year 2017.
In the industrial area we believe that increased demands for
in-line quality assurance in the manufacture of automotive emission
control systems will continue to drive demand for Image Scan's
suite of inspection products. We are enhancing the product range
through a combination of customer funded and self-funded research
and development.
Although we start the second half of the year with a healthy
order book, the business will be focussed on continuing the
momentum so far achieved, winning further orders and supporting the
continued development of new products. The staff at image Scan are
enthusiastic, dedicated and creative and on behalf of my fellow
Board members, I would like to formally thank our staff for their
contribution during this period.
Bill Mawer
Chairman and Chief Executive Officer
19/04/2016
Consolidated income statement
For the six months ended 31 March 2016
Six months Year
Six months ended
ended ended 30 September
31 March 31 March
2016 2015 2015
(Unaudited) (Unaudited) (Audited)
Note GBP'000 GBP'000 GBP'000
------------------------ ----- ------------------ ------------------ -----------------
Revenue 1,372 863 1,707
Cost of sales (766) (553) (1,058)
------------------------------- ------------------ ------------------ -----------------
Gross profit 606 310 649
Administrative expenses (670) (697) (1,290)
------------------------------- ------------------ ------------------ -----------------
Operating loss (64) (387) (641)
Finance revenue - - 1
------------------------------- ------------------ ------------------ -----------------
Loss before taxation (64) (387) (640)
Taxation 20 52 90
------------------------------- ------------------ ------------------ -----------------
Loss for the period (44) (335) (550)
------------------------------- ------------------ ------------------ -----------------
Pence Pence Pence
--------------------------------- ---- ------ ------ ------
Earnings per share
Basic and diluted loss per share [3] (0.04) (0.27) (0.44)
--------------------------------- ---- ------ ------ ------
Consolidated statement of changes in equity
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For the six months ended 31 March 2016
Six Six Year
months months ended
ended ended 30 September
31 March 31 March
2016 2015 2015
(Unaudited) (Unaudited) (Audited)
Note GBP'000 GBP'000 GBP'000
----------------------------------------- ----- -------------- ------------- -------------
Opening equity shareholders' funds 617 1,156 1,156
Shares issued during the year - - -
Share issue costs - - -
Share-based payments [4] 8 5 11
Loss attributable to equity shareholders (44) (335) (550)
------------------------------------------------ -------------- ------------- -------------
581 826 617
----------------------------------------------- -------------- ------------- -------------
Consolidated statement of financial position
As at 31 March 2016
As at As at
31 March
2016 As at 30 September
(Unaudited) 31 March
2015 2015
GBP'000 (Unaudited) (Audited)
GBP'000 GBP'000
--------------------------------------- ------------ ------------- ------------------
Non-current assets
Plant and equipment 11 5 4
11 5 4
--------------------------------------- ------------ ------------- ------------------
Current assets
Inventories 459 659 571
Trade and other receivables 334 459 294
Cash and cash equivalents 532 455 469
Current tax asset 20 124 90
--------------------------------------- ------------ ------------- ------------------
1,345 1,697 1,424
--------------------------------------- ------------ ------------- ------------------
Total assets 1,356 1,702 1,428
--------------------------------------- ------------ ------------- ------------------
Current liabilities
Trade and other payables 742 845 778
--------------------------------------- ------------ ------------- ------------------
Non-current liabilities
Provisions for liabilities and charges 33 31 33
--------------------------------------- ------------ ------------- ------------------
Total liabilities 775 876 811
--------------------------------------- ------------ ------------- ------------------
Net assets 581 826 617
--------------------------------------- ------------ ------------- ------------------
Equity
Share capital 1,256 1,256 1,256
Share premium account 7,935 7,935 7,935
Retained earnings (8,610) (8,365) (8,574)
--------------------------------------- ------------ ------------- ------------------
Equity shareholders' funds 581 826 617
--------------------------------------- ------------ ------------- ------------------
This interim financial information was approved by the Board of
Directors on 18/04/2016.
Bill Mawer
Chairman and Chief Executive Officer
Consolidated cash flow statement
For the six months ended 31 March 2016
Six Six Year
months months ended
ended ended 30 September
31 March 31 March
2016 2015 2015
(Unaudited) (Unaudited) (Audited)
GBP'000 GBP'000 GBP'000
------------------------------------------- ---------------- -------------- ---------------
Cash flows from operating activities
Operating loss (64) (387) (641)
Adjustments for:
Depreciation 2 3 5
Impairment of inventories 10 10 18
Increase in provision for warranty - 9 12
Decrease/(increase) in inventories 102 (338) (258)
(Increase) in trade and other receivables (40) (277) (112)
(Decrease)/increase in trade and other
payables (36) 482 414
Share-based payment charge 8 5 11
------------------------------------------- ---------------- -------------- ---------------
Net cash (used) in operating activities (18) (493) (551)
------------------------------------------- ---------------- -------------- ---------------
Corporation tax recovered 90 - 72
------------------------------------------- ---------------- -------------- ---------------
Net cash inflow/(outflow) from operating
activities 72 (493) (479)
------------------------------------------- ---------------- -------------- ---------------
Cash flows from investing activities
Interest Received - - 1
------------------------------------------- ---------------- -------------- ---------------
Purchase of property, plant and equipment (9) - (1)
------------------------------------------- ---------------- -------------- ---------------
Net cash used in investing activities (9) - -
------------------------------------------- ---------------- -------------- ---------------
Cash flows from financing activities
------------------------------------------- ---------------- -------------- ---------------
Proceeds from issue of share capital - - -
------------------------------------------- ---------------- -------------- ---------------
Financial costs of fundraising - - -
------------------------------------------- ---------------- -------------- ---------------
Net cash from financing activities - - -
------------------------------------------- ---------------- -------------- ---------------
Net (decrease)/ increase in cash and cash
equivalents 63 (493) (479)
Cash and cash equivalents at beginning
of period 469 948 948
------------------------------------------- ---------------- -------------- ---------------
Cash and cash equivalents at end of period 532 455 469
------------------------------------------- ---------------- -------------- ---------------
Notes to the unaudited interim financial statements
For the six months ended 31 March 2016
1 Basis of preparation
The interim financial statements, which are unaudited, have been
prepared on the basis of the accounting policies expected to apply
for the financial year to 30 September 2016 and in accordance with
recognition and measurement principles of International Financial
Reporting Standards ('IFRSs') as endorsed by the European Union.
The accounting policies applied in the preparation of these interim
financial statements are consistent with those used in the
financial statements for the year ended 30 September 2015.
The interim financial statements do not include all of the
information required for full annual financial statements and do
not comply with all the disclosures in IAS 34 'Interim financial
reporting'. Accordingly, whilst the interim statements have been
prepared in accordance with IFRSs, they cannot be construed as
being in full compliance with IFRSs.
(MORE TO FOLLOW) Dow Jones Newswires
April 19, 2016 02:00 ET (06:00 GMT)
The financial information for the year ended 30 September 2015
does not constitute the full statutory accounts for that period.
The annual report and financial statements for the year ended 30
September 2015 have been filed with the Registrar of Companies. The
Independent auditor's report on the report and financial statements
for the year ended 30 September 2015 was unqualified, did not draw
attention to any matters by way of emphasis, and did not contain a
statement under Section 498(2) or 498(3) of the Companies Act
2006.
2 Going concern
The interim financial information has been prepared on a going
concern basis, which assumes that the Company will have adequate
resources to continue in operational existence for the foreseeable
future.
3 Earnings per share ('EPS')
Basic earnings per ordinary share is based on the loss on
ordinary activities after taxation of GBP43,845 and on 125,604,577
ordinary shares in issue throughout the period.
IAS 33 requires presentation of diluted EPS when a company could
be called upon to issue shares that would decrease net profit or
increase net loss per share. Earnings or loss per share would not
be affected by the exercise of out-of-the-money options since it is
inappropriate to assume that option holders would act irrationally.
Accordingly, as there are no other diluting future share issues,
diluted EPS equals basic EPS.
4 IFRS 2 'Share-based payments'
Operating expenses includes a charge of GBP8,492 (2015:
GBP5,000) after valuation of the Company's employee share option
schemes in accordance with IFRS 2. Under this standard, the fair
value of the options at the grant date is spread over the vesting
period. These items have been added back in the consolidated
statement of changes in equity.
5 Additional copies
Further copies of the 2016 interim report are available on the
Company's website, www.ish.co.uk, and from the Company's registered
office, 16-18 Hayhill Industrial Estate, Sileby Road,
Barrow-upon-Soar, Leicestershire LE12 8LD.
Professional advisers
Directors
William Mawer
Executive Chairman/Chief Executive Officer
Vincent Deery
Sales and Marketing Director
Richard Leaver
Non-executive Director
Timothy Jackson
Non-executive Director
Company Secretary
Sarah Atwell-King
Registered Office
16-18 Hayhill Industrial Estate
Sileby Road
Barrow-upon-Soar
Leicestershire LE12 8LD
Company number
03062983
Nominated adviser and broker
Cantor Fitzgerald Europe
One Churchill Place
Canary Wharf
London EC14 5RB
Principal bankers
Royal Bank of Scotland plc
8 South Parade
Nottingham NG1 2JS
Solicitors
Browne Jacobson
44 Castle Gate
Nottingham NG1 7BJ
Registrars
Neville Registrars Ltd
Neville House
18 Laurel Lane
Halesowen B63 3DA
Auditors
Wilkins Kennedy LLP
Statutory Auditor
Chartered Accountants
Bridge House
London Bridge
London SE1 9Q
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR QVLFFQZFXBBK
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