Image Scan swings to profit as revenues rise 50pc

Security and inspection x-ray company Image Scan reported a 50% improvement in sales in its preliminary results on Friday, to £3.5m.

The AIM-traded firm said its pre-tax trading profit for the year ended 30 September totalled £0.11m, swinging from a loss of £0.4m in the prior year.

It said it saw “strong” cash generation, yielding a year-end balance of £1.4m, up from £0.64m year-on-year.

After-sales revenues were ahead 50%, while sales of portable x-ray systems doubled as the company launched a new cabinet x-ray system.

A partnership agreement was signed with a “major” security technology company during the year, with the board also explaining that its strong cash flow was due to “excellent” working capital management.

“It is gratifying to be able to report a profit in the middle of such a difficult period for manufacturers around the world,” said chairman and chief executive officer Bill Mawer.

“The Covid-19 pandemic has impacted our customers, our supply chain and our staff.”

Mawer said the recent launch of the Axis-CXi cabinet x-ray machine was “an exciting step forward” for the company, which was expected to bring new customers and new sources of revenue.

“With our strong cash position and our ambitious product development programme we look to emerge from the pandemic well-placed for the future.”

At 1029 GMT, shares in Image Scan Holdings were up 6.51% at 2.29p.