26th Jun 2019 09:28
(Alliance News) - Image Scan Holdings PLC on Wednesday said it expects to swing to loss in its current financial year after some projects have not materialised.
The stock was trading 35% lower on Wednesday morning at 0.88 pence a share in London.
The supplier of X-ray screening systems said security orders and sales have been "disappointing" in the third quarter, and it is now unlikely to meet market expectations for sales and profit for the year to the end of September.
Image Scan explained that some of its overseas government projects for portable X-ray systems, that had been expected to contribute to on-target earnings, have been delayed or postponed and are now unlikely to be realised in its current financial year.
As a result, the company is now expected to make a loss in its financial year 2019, it said, though the quantum of the loss at the year-end will depend on orders due to be received in the next few months.
More positively, the AIM-listed company said its industrial X-ray inspection sales are performing in line with management expectations.
"Looking to the future, our internal product development programme is moving ahead rapidly, and we are working on partnerships to further expand our product range," said Chair & Chief Executive Bill Mawer.
The company said it will publish a trading statement October.
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