Image scan's portable X-ray sales increase threefold

Image scan, an AIM-listed specialist in the field of real-time X-ray imaging for the security and industrial inspection markets, has reported a threefold increase in sales of portable x-ray systems due to large orders from Asian governments.

The group’s total sales were £3.3m for the year ending 30 September 2016 compared with £1.7m in 2015. The firm’s gross margin improved to 42% from 38% in 2015 due to increased sales and changes in the product mix leading to manufacturing and supply chain efficiencies.

In the final quarter, sales of portable x-ray systems were made to customers in Europe, the Middle East and north Africa.

Total security sales rose to £2m compared to £1.2m in 2015. Industrial sales increased to £1.3m from £0.5m in 2015 due to higher demand from key automotive industry customers and the successful completion of customer-funded development projects.

Total order intake for the year was £4.3m. Outstanding order book at the end of the period of £1.7m compared to £0.67m in 2015.

Pre-tax trading profit was around £0.1m, compared to a loss of £0.64m in the previous period.

The firm’s government funded project with Innovate UK to develop a new generation of portable X-ray systems has reached prototype stage.

Cash balance of £1m at the end of the period compared to £0.53m in the first half of the year.

The company expects to announce its preliminary results in December.

Customer-funded projects at its industrial arm generated potentially important intellectual property that could lead to further developments in that part of the business, the company said in a statement.

Chairman and chief executive Bill Mawer said: "Our strong order book and cash positions point to continued good performance in the short term while our strong product pipeline and the expanding customer base indicate a strong future for the Company. This is an exciting time for Image Scan and the immediate task is to continue the momentum we have built up this year."

The share price rose 10.69% to 7.20p at 1134 BST on Monday.