Image Scan swings to profit as sales rise significantly

Specialist x-ray screening system supplier Image Scan reported a 50% improvement in sales for the year ended 30 September on Wednesday, to £3.5m.

The AIM-traded firm said in the pre-close trading update that its gross margin for the year was 49%, down from 54% in 2019.

It said its unaudited pre-tax trading profit was £0.11m, swinging from a loss of £0.4m year-on-year, as its period-end order book stood at £0.63m, down from £1.7m at the end of 2019.

Cash generation during the year was £0.77m, compared to a cash burn figure of £0.14m in 2019, giving the company a year-end cash balance of £1.41m, rising from £0.64m year-on-year.

“The Covid-19 pandemic has impacted our customers, our supply chains and our staff,” said chairman and chief executive officer Bill Mawer.

“However, I am proud of the way the whole company has pulled together through this period to keep the business operating and deliver a profit for the year that exceeded our earlier estimates.”

Mawer said the recent launch of the ‘Axis-CXi’ cabinet x-ray machine was an “exciting step forward” for the company, and should 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 0933 GMT, shares in Image Scan Holdings were up 2.12% at 2.4p.