Image Scan shares surge on solid order book

Security and industrial x-ray company Image Scan updated the market on its trading on Thursday, reporting that trading in the year-to-date had been “robust”.

The AIM-traded firm, which was holding its annual general meeting, said the “strong” order intake at the end of the 2019 financial year left it with a healthy order book of £1.7m, much of which was expected to be recognised as sales in the period to March.

That included the large portable X-ray contract announced in September, which was recently delivered to the customer.

Image Scan said its order intake gad continued to meet management expectations, with new security and industrial contracts.

A valuable spare parts order was received for the large nuclear screening system delivered in 2015, it added.

The firm’s portable x-ray product range was also further strengthened with the release of new image processing features and a major wireless communication upgrade.

It said the product development strategy included a renewed and extended ‘Axis’ range of x-ray screening systems, combining in-house developments with external technology partnerships.

The prototype of a new security x-ray system developed under the plan had produced its first images, and would be launched in the second half of 2020.

Additionally, a UK distribution agreement was signed with Italian x-ray company, Gilardoni.

The company said it was planning to increase its sales efforts in North America, and had contracted a former US Marine, who it described as an experienced programme manager and senior explosive ordnance disposal (EOD) technician.

He would also support its product development programmes, sharing his “extensive” user and technical knowledge.

“Our organic growth strategy is focussed on expansion of both our product range and our market reach, so it is pleasing to be able to report on progress in both these areas,” said chairman and chief executive officer Bill Mawer.

“I am particularly delighted to welcome our new sales consultant, as he comes with considerable experience and expertise, and gives us, for the first time, a footprint in the US.”

Mawer noted that, as he explained in the company’s annual report, the portable x-ray market was competitive, but Image Scan’s offer was “a strong one”, with the firm working hard to differentiate its product range and expand into adjacent sectors.

“Image Scan has made a promising start to the year and is trading in line with market expectations.

“I am optimistic for a good first half and hope we can continue our current momentum through the rest of the year.”

At 1029 GMT, shares in Image Scan Holdings were up 23.07% at 2.4p.