Image Scan signs £750,000 nuclear contract

24th Jan 2011 07:45

Shares of 3D and 2D x-ray imaging firm Image Scan powered ahead after it announced it had signed a £750,000 contract for the supply of an x-ray inspection system for use within a large UK nuclear facility.The group's chief technical officer Nick Fox has been working closely with a key contractor to the nuclear sector to offer an innovative x-ray solution for the management of nuclear waste, the group explained."The image quality and the analysis thereof offered were critical to the client in meeting their requirements. The contract provides for a number of milestones such that the Board expects approximately 50% of the revenue to fall in the financial year 2011."Image Scan also said it reduced annual pre-tax losses, knocked down costs and said the order intake for the year to date provides a stronger platform for it to achieve breakeven.The group, which sells products to the security and industrial inspection markets, said pre-tax losses narrowed to £0.4m for the year ended 30 September 2010 from a loss of £0.6m the year before. Revenue for the year rose to £1.5m from £1.44m before.The group reduced overheads to £1.2m from £1.3m in 2009. Chairman Brian Emslie said, "The financial results for 2010, whilst still disappointing, mask the fundamental progress being made in changing the historical culture and repositioning the strategic focus of the company."Image Scan added that, while in recent years demand for new industrial equipment sales has been at a very low level, it has recently secured orders totalling £335,000 from another key industrial customer.As a result the current order book exceeds £1.3m while cash at the bank to date stands at £339,000.Recent contract wins in the security sector include sales of the FlatScan-TPXi portable x-ray system to the Middle East, Southeast Asia and China.