Image Scan dragged to a loss on exceptional costs

Image Scan is expecting to turn in a loss from its current trading year despite record sales thanks to a strong performance by its industrial X-ray inspection systems unit which continued throughout the second half of 2018.

The AIM-list firm anticipates the number of units sold for the full year to hit a record high after its two largest industrial customers both procured new units and "valuable" support contracts.

While Image Scan warned that sales of portable X-ray systems had been "slower than hoped for" in the second half, orders for delivery in 2018 were still being received.

"There is no evidence that this decline in orders reflects anything other than changing Government budget schedules and the typically 'lumpy' order intake that has been a characteristic of the business from time to time," said Image Scan.

Image Scan expects sales to be between £3.4m and £3.8m but noted that lower revenues, exceptional costs associated with its aborted fundraise and its acquisition of Todd Research had brought the firm to a loss for the year.

Image Scan's chairman and chief executive, Bill Mawer, said: "I am confident in our portable and industrial X-ray products and we plan to develop new products, serving a wider segment of the security market, during FY 2019."

"Additionally, we are looking to strengthen our sales team. I expect the company to be focused on organic growth for a period before revisiting its acquisition ambitions."

As of 1000 BST, Image Scan shares had tumbled 14.93% to 3.19p.