Order intake, revenues jump at Image Scan

26th Apr 2023 13:22

(Sharecast News) - Security and industrial inspection imaging specialist Image Scan said in its interim results on Wednesday that its previously-reported strong momentum had resulted in an improved performance compared to the same period last year.

The AIM-traded firm reported a significant increase in both order intake and revenue in the six months ended 31 March.

Order intake increased 81% to £1.86m, while revenue was 85% higher at £1.46m year-on-year.

The company's gross profit margin for the first half was 48% - a slight decrease from 52% in the first half of 2022.

However, the firm reported a profit before tax of £0.02m, swinging from a loss of £0.35m a year earlier.

Image Scan's period-end bank balance was £1m, up from £0.78m year-on-year, as its period-end order book improved to £1.12m from £0.72m.

"We are pleased with the financial results for the first half of the year and our operational highlights demonstrate our continued commitment to delivering high-quality products and services to our customers," said chief executive officer Vince Deery.

"The half year performance demonstrates a substantial improvement over the same period last year with the higher levels of activity reported at the commencement of the financial period successfully converted into contracts and delivery of product to customers.

"The decline in margin reflects the product mix and pressures of the global economic conditions."

Deery said that, with "careful" cost management and continued improved market activity and product innovation, the firm hoped to maintain its momentum to deliver a full year in line with market expectations.

The CEO added that, as part of the board's succession plan, Dr Richard Leaver had indicated his intention to resign as vice-chairman, leaving the board at the end of the financial year.

"On behalf of the board, I would like to thank Richard, and acknowledge his dedication, support, and guidance to the company over the years of his valuable service."

At 1140 BST, shares in Image Scan Holdings were up 7.69% at 2.1p.

Reporting by Josh White for Sharecast.com.