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Image Scan lifts profit expectations despite Covid crisis
1st Sep 2020 16:20
(Sharecast News) - Security and industrial inspection x-ray company Image Scan updated the market on its trading for the financial year ending 30 September on Tuesday, following a better-than-expected performance in the second half.
The AIM-traded firm said it had continued to run its sales, manufacturing and product development operations through the ongoing Covid-19 crisis.
As expected, the overall security technology market was adversely impacted by the pandemic, although orders had continued to be received and equipment delivered.
The initial impact of the coronavirus pandemic on the company's supply chain had been mitigated, the board reported, adding that the firm was currently able to source the parts and subsystems needed for product sales.
While the year-end sales outcome was expected to be close to that expected, margins on orders received were better than expected, with Image Scan managing its overhead costs and stock carefully meaning that profits for the year would be ahead of current market expectations, the directors said.
The board said it now had sufficient confidence in the company's trading to provide earnings guidance for the year ending 30 September of sales of £3.3m to £3.5m, and a profit performance between breakeven and £0.1m.
"I have been delighted by the outstanding effort of our entire team to keep all aspects of the business running through the Covid-19 crisis," said chairman and chief executive officer Bill Mawer.
"This improvement in our anticipated results arises directly from their efforts.
"We expect the pandemic to continue to impact orders for some time but are moving forward with our new product development programmes in order to further improve our performance as the crisis wanes and the security technology market recovers."
Image Scan said it would provide a pre-close statement on its results for the year ending 30 September in October.
At 0958 BST, shares in Image Scan Holdings were up 5.96% at 2.7p.
The AIM-traded firm said it had continued to run its sales, manufacturing and product development operations through the ongoing Covid-19 crisis.
As expected, the overall security technology market was adversely impacted by the pandemic, although orders had continued to be received and equipment delivered.
The initial impact of the coronavirus pandemic on the company's supply chain had been mitigated, the board reported, adding that the firm was currently able to source the parts and subsystems needed for product sales.
While the year-end sales outcome was expected to be close to that expected, margins on orders received were better than expected, with Image Scan managing its overhead costs and stock carefully meaning that profits for the year would be ahead of current market expectations, the directors said.
The board said it now had sufficient confidence in the company's trading to provide earnings guidance for the year ending 30 September of sales of £3.3m to £3.5m, and a profit performance between breakeven and £0.1m.
"I have been delighted by the outstanding effort of our entire team to keep all aspects of the business running through the Covid-19 crisis," said chairman and chief executive officer Bill Mawer.
"This improvement in our anticipated results arises directly from their efforts.
"We expect the pandemic to continue to impact orders for some time but are moving forward with our new product development programmes in order to further improve our performance as the crisis wanes and the security technology market recovers."
Image Scan said it would provide a pre-close statement on its results for the year ending 30 September in October.
At 0958 BST, shares in Image Scan Holdings were up 5.96% at 2.7p.