24th Oct 2018 10:59
LONDON (Alliance News) - Image Scan Holdings PLC said Wednesday it expects a drop in its annual sales and profit as it suffered two setbacks during the year.
Image Scan Holdings shares were trading 9.1% lower at 2.50 pence each.
For the year ended September, the supplier of X-ray screening said it expects sales to be around GBP3.5 million, down from GBP5.0 million a year prior.
Pretax profit is expected at GBP45,000 falling from GBP480,000 a year ago.
The company attributed the drop to two setbacks experienced in the year.
Firstly, an unnamed "important" Asian customer cancelled a GBP1 million order for portable X-ray systems, contributing to the lower sales.
Furthermore, Image Scan incurred GBP245,000 exceptional costs against the aborted acquisition of Todd Research Ltd, as it failed to gain support for the deal from its major shareholder Rise Step International Development Ltd.
"The impact of these setbacks was partially offset by strong performance in the industrial area, where the company provides X-ray machines for inspection of catalytic converters in the manufacturing process," Image Scan explained.
In order to return the company to growth Financial Controller Sarah Atwell-King has been appointed to the company's board as financial director. She currently does not hold any other directorship.
Additionally, a new operations manager is expected to join the company in November.
Related Shares:
Image Scan Holdings