Image Scan sales fall short of expectations

X-ray screening systems supplier Image Scan generated sales below management expectations in the first half of its trading year, leading the group to a "renewed focus" on organic growth after failing to get investors to back its acquisition plans.

Image Scan, which provides security and industrial inspection equipment, told investors on Wednesday that contract delays with international government clients were likely to bounce back in the second half and help the group meet expectations.

"Government procurement processes are lengthy and not always predictable in their timing and sales intake is running behind management expectations for the half year," said Image Scan.

"However, with customer decisions due on several significant projects, the level of activity is expected to increase in the second half and the company expects to achieve market expectations for the full year."

The AIM-listed outfit also assured shareholders it had a healthy pipeline, with "significant" new channel partners being appointed in South America and Europe, and the development of its new security X-ray system underway.

Chief executive Bill Mawer said: "We are now moving forward rapidly with our recovery plan with the short-term aim to drive strong organic growth, diversifying our sources of revenue to deliver sustainable performance improvement and renew shareholder and investor confidence to the point where growth by acquisition can again be contemplated."

As of 0900 GMT, Image Scan shares had slumped 13.17% to 2p.