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Image Scan Holdings PLC on Tuesday said it swung to a loss in its recent financial year, due to a slow rebound from the virus pandemic in government procurement cycles, alongside delays in component sourcing.
The Leicestershire, England-based X-ray screening systems supplier reported a pretax loss in the financial year that ended September 30 of £350,000, swinging from a profit of £190,000 the year earlier. Revenue was down 31% to £2.0 million from £2.9 million.
Image Scan said its trading performance in financial 2022 was below expectations, as government procurement continued to be held back by pandemic-related challenges that have persisted in some of Image Scan’s key markets. Delays in component sourcing also caused problems.
It said its balance sheet provides a strong operational and financial platform from which to deliver growth, despite its cash balance on September falling 43% to £690,000 from £1.2 million a year prior.
Image Scan said it expects to meet trading expectations for its financial 2023 after an encouraging start. It order book stood at £712,000 at the end of September, up from £520,000 a year before.
‘Whilst there are still macroeconomic uncertainties and challenges and the domestic economic outlook looks weak, the board of directors is confident in the group’s prospects in the medium to long term as we continue to seek to capitalise on our extended product range and global sales channels,’ said Chair Tim Jackson.
Chief Executive Officer Vince Deery added: ‘Our goal is to build upon Bill’s legacy while focusing on the expansion of our higher margin portable product line which we believe is our route to returning to profit in 2023.’
Deery was referring to Bill Mawer, who stepped down as chair and CEO in January, before retiring from the board in June.
Shares in Image Scan were up 14% to 1.05 pence each in London on Tuesday morning.
By Greg Rosenvinge, Alliance News reporter
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