Presentation by William Mawer, Chairman & CEO and Vincent Deery, Sales & Marketing Director (c.55 mins)
Introduction to Image Scan Holdings 00:23
History of Image Scan 01:23
Leadership team 04:37
Progress since 2014 06:05
Portable X-ray system 08:04
FY2017 figures 09:00
The market: security 10:15
The product range 19:47
The market: industrial (emission control) 24:47
The opportunity: organic & acquisition 29:43
Why did revenue drop in 2015? 34:34
How will you raise funds for acquisitions? 35:45
What proportion of rev is from emission control? 36:25
What turnover would you need to get to, to make £1m profit? 36:42
Does the British army use this product? If not who are your reference clients? 37:24
What is the constraining factor in growth of your client base geographically? 38:07
Do you manufacture? 39:26
Do you build to order? 40:41
How long to fulfil an order? 41:07
Is the industrial market a greater growth opportunity, than security? 41:19
Do you get repeat revenue? 43:33
US market penetration? 44:08
Whats the size of the industrial market? 46:07
Is IGEs size an impediment to growth? 50:03
What keeps you awake at night? 51:42
Just wandering what people think re this stock. Its a good price company has a good order book and seems to have turned a big corner. It is also in the current climate a product that will be required by more and more of industry to stay safe and keep people and staff secure. Has anyone got any comments. Looking at seeing what happens over the next few months.
Todays RNS is a trading update, you should check out the final results from Sept 12 for more product development etc. Its a young AIM company, which needs time to develop. It stays on my watchlist to catch any updates on new orders and product updates.
RNS today again refers to "orders" and not to completed sales and margins - of little use to investors I would suggest. The announcements continue to be surprisingly opaque for a company run by an accountant.
The warning of the critical dependency on "securing one or two orders" is, again, without any indication of quantum - how much margin is required to keep the boat afloat? is the question that is not answered.
It is not clear to me whether the product development programme is based on researched, validated demand and forward orders or whether it is speculative.
I have finally taken this company off my watch list.- I will not invest where communication of relevant information is so sparse.
So from that information what do you suggest H2 top line revenue might be?
Opening order book = £2.3m
H1 revenue of £1.76m
Leaves £540k to deliver this FY
Current year order intake = £2m (mostly deliverable this FY)
So H2 revenue to be in region of £540k + £2m = £2.54m (ignoring short turn-round sales and recurring income)
But in the past they have double counted announced orders/revenue IMO - and so I would prefer a simple statement along the lines of - "confident that sales will exceed HI" - or even a number like £2.5m
See SRT as an example of how to communicate activity, expectations and outcome (good and bad) to shareholders.
Current year order intake to date of £2million, mostly deliverable in this financial year
The order book of £2.3million at the start of the year gave the Company a solid foundation for a significant increase in revenue in the first six months of 2012 and the continuing flow of orders in the year means that the order book remains strong.
Half year results today show post tax NP of £6k.
I like the clean balance sheet - no "intangibles" and low creditros.
In past years it has been difficult to reconcile turnover with Board announcements.
I don't understand "The order intake in the year to date of £2m comprises £1.3m of security sales and £0.7m of industrial. " Does this include the all or some of the sales up to 31 March 2012?
The simple number would be "known or expected sales to be reported for the 6 months to September 2012". In the light of past confusion this seems like obfuscation.
The future: They hint at further capital raising to develop products - and report that past sales have included significant "incremental [product] development" which has lowered gross margins.
It feels as if IGE might be better off as part of a larger security product company - and appears clean and tidy for such an acquisition. Current market capitalisation per iii this morning is £1.61m
One wonders what the technology, customers and key staff might be worth.
The full year figures are still in loss but the order book is encouraging.
The chairman's report ends with :
"Whilst remaining confident that the business can develop further, the Board recognises the risks involved and the relatively limited cash position of the Company, and therefore remains open to exploring all strategic options that may materialise."
Am I reading too much between these lines to think that the board may feel they are too small to "go it alone" and might better leverage the opportunities within a larger business?
Current Market cap. is around £2m and in my view there is nothing in the latest statement to suggest IGE is worth more than (or as much as?) that.
The Board of Image Scan, specialists in the field of real-time 3D and 2D x-ray imaging for the Security and Industrial Inspection markets, is pleased to announce a new contract valued at approximately £1,460,000 for the supply of x-ray security screening systems, which will be deliverable in the financial year commencing 1st October 2011.
This contract takes the order intake in the current financial year up to £4.3m, a substantial part of which is deliverable in the next financial year. However, due to highly competitive tendering processes, the overall projected margin for the business will be lower than historical levels.
Great that IGE has taken on a new strategic investor. Can this really be a revival of a company that I thought was pretty much going to die last year? Perhaps!
Still, unless the order rate increases, IGE is probably going to burn through the £300k in cash that is raised over the next year. With lead times of at least a few months for most orders from tender to delivery, the warning signs of further fundraising will be around Sept-Nov this year, if there is no indication that trading has improved substantially from the new product and new distribution channels.
Good news on sales, backed up by a Chinese investor agreeing to buy 20% of the Company at 2p a share. He must already be a customer of IGE otherwise why would he invest in the Company unless he can see a big upside (with his help) in Asia?
Copied from an email from Image Scan Holdings ....
Image Scan Holdings plc, AIM-listed specialist in the field of real-time 3D and 2D x-ray imagine for the security and industrial inspection markets, today announces preliminary results for the year ended 30 September 2010.
Brian Emslie, Chairman of Image Scan, commented:
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. The contracts secured since the year end are an encouraging testament to our implementation of the strategy during the past two years in developing a business based on marketing a range of standard security systems whilst pursuing high value industrial opportunities. During the year the cost base was further reduced despite the additional investment of appointing a UK sales manager. I believe that we now have the appropriate infrastructure and mix of skills capable of focusing on securing additional revenue growth and delivering expected operational and technical performance. The order intake in the year to date provides a stronger platform for the Company to move towards its key short-term goal of achieving breakeven."
All announcements, results, reports amd investor presentations are available to download from our website www.ish.co.uk on the date of publication.
For further information, please contact Louise George at [email protected]
Revenue of £1.5m (2009: £1.4m)
Gross margin 55% (2009: 48%)
Reduced overheads £1.2m (2009: £1.3m)
Loss on ordinary activities after taxation £382,000 (2009: £537,000)
Market positioning strengthened by appointment of UK sales manager, ISO accreditation and launch of new website
Development focused on broadening product range
Current order book over £1.3m
Includes recent nuclear contract win of £0.75m in addition to other industrial and security orders
Current cash at bank £339,000
Great news, and crucially for me, the cash burn has slowed. Looks like loss in the 2nd half should come in circa £100k to £150k.
Good to see contract wins and an order book buildup. For me, IGE needs to get at least £2.5m revenue in FY2011 in order to move to positive cashflow. So far, from my estimating, they have circa £800k secured for FY 2011 already, so a good start. I also like how they've won orders from different parts of the world; I can see the strategy of signing up distributors really working now.
Key question is the working capital, as if orders start to flow through, they'll need more working capital - new share issues? Also management needs to communicate better! I won't be surprised if IGE goes AWOL for a couple of months now.... even if they are getting new contracts...
The Board of Image Scan, specialists in the field of real-time 3D and 2D x-ray imaging for the 'Homeland Security' and 'Industrial Inspection' markets, is pleased to announce the signing of a GBP0.75million contract for the supply of an x-ray inspection system for use at a major nuclear facility in the UK. The contract provides for a number of delivery milestones such that approximately 50 per cent of the total revenue is expected to fall into the current financial year.
Building on the experiences acquired from the Company's previous contracts in the nuclear sector, Image Scan's Chief Technical Officer, Nick Fox, has been working closely with the customer to offer an innovative x-ray solution for the management of nuclear waste. The image quality and the analysis thereof offered by the Company were critical to the client in meeting their requirements. The Company intends to look to other opportunities within this sector.
Over the last two years the Company has focused on building up its range of standard security equipment whilst continuing to pursue strategic high value industrial opportunities. This strategy is showing early signs of promise, as in addition to this substantial nuclear contract win, the Company has recently secured orders totalling GBP335,000 from another key industrial customer and sold a quantity of FlatScan-TPXi portable x-ray security systems to the Middle East, South East Asia and China. As a result of these successes in both markets, the order book total currently exceeds GBP1.3m and cash at the bank as at 17 January 2011 stands at GBP336,000.
Image Scan's CEO, Louise George, commented, "The fact that the Company has again been selected to provide services to the nuclear industry demonstrates our excellence and reliability in delivering high quality image resolution in a controlled environment. Our strengthening reputation has enabled the Company to pursue strategies specific to each of the security and the industrial sectors, with the benefit of minimising the risk of reliance on one customer or one market, and therein providing a stronger base from which the Company can expand."
For further information, please contact:
Image Scan Holdings plc Tel: +44 (0) 1509 817400
Brian Emslie, Chairman
Louise George, CEO
Seymour Pierce Tel: +44 (0) 207 107 8000
Sarah Jacobs (Nominated Adviser)
Richard Redmayne (Corporate Broking)
About Image Scan Holdings plc
Image Scan Holdings plc (AIM: IGE) is focused on the development and commercialisation of market leading real-time 3D and 2D x-ray solutions for use in the global security and industrial inspection markets. The Company's security portfolio includes the Axis-3d(R) and Axis-2d baggage inspection systems for corporate and critical infrastructure security; FlatScan-TPXi, a portable bomb and suspect package detection system; and SVXi, a small vehicle inspection system. The industrial inspection solutions include the MDXi and the DEX systems.
For further information on the Company, please visit: www.ish.co.uk - and for further information on its products, please visit: www.3dx-ray.com
This information is provided by RNS
The company news service from the London Stock Exchange
I can see this latest development helping Image Scan to sell more of its baggage and portable scanners. Authorities will need to have 3D X-Ray scanners which they can use for small packages, and also portable, so they can act on tips and do random inspections.
Hopefully this translates to more sales for Image Scan before they go bankrupt or need more cash!
Indeed, what was once a promising company looks like its just going to die a slow death, with the directors and management leaching away the remaining cash as salary and compensation.
I think their scanners were probably world-class a couple of years ago, but I doubt they have had the money to invest in R&D over the last few years and I'll be surprised if they manage to sell many more units.
Also the recent increase in airport security will not help, as IGE seem to make only baggage scanners, not people scanners, which is what is in demand now.
I have a small holding of IGE shares, bought a few years ago, and while I would sell, the commission from the trade does not make it worthwhile and so I will just hold. It also serves to be a constant lesson learnt to myself.
A very uncommercial website seems to indicate that the Xray equipment is for baggage and things and not for people.
A quick look on the web did not indicate that the company was involved in anything as a response to recent events - in fact the content arrangement on the website looks as if it has been designed by an accountant! The press releases are just the RNSs. If you were thinking of buying from ImageScan I doubt you would be impressed.
The chairman has just invested a paltry £7k for half a percent of the company and the sp is shown by iii as up 18%. Not much of a sign of faith in my opinion.
My guess is that there will be another year of muddling along.
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