- Image Scan, a supplier of X-ray screening systems, said Wednesday annual profits slumped as sales of X-ray systems were hurt by the cancelled order and lower security system sales in the Indian subcontinent.

For the year ended 30 September 2018, pre-tax profit fell to £96,000 from £480,000 and revenues declined 30% to £3.5m.

Gross margins rose to 47% from 38% a year earlier reflecting the change in the sales mix, the company said.

'Image Scan grew rapidly in both sales and profits between 2015 and 2017 and so the cancelled order and the failure of the attempted acquisition have come as disappointments. A decline in portable X-ray orders has exacerbated this. Our order pipeline is strong, we have strengthened our team and re-focussed our research and development activity to drive the business forward through organic growth,' said Bill Mawer, Chairman and Chief Executive of Image Scan.

'In FY19 we plan to expand our security product range, extend our geographical market reach, and further build on our recent operational improvements. Our industrial activity is performing well and continued tightening of automotive emissions legislation around the world provides a helpful backdrop for the highly specialised inspection systems we provide.'

'We are well placed to put the setbacks of 2018 behind us and return to the growth of previous years.'

At 9:03am: [LON:IGE] Image Scan Holdings PLC share price was -0.2p at 2.65p

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