2013 ANNUAL GENERAL MEETING 27 February 2013 Ticker : ige Web : www.ish.co.uk 1
Company Overview • Shares in issue 76,267,932 • Market Cap £1.24m @ 1.62p per share • Est .1996 acquiring IP from Nottingham Trent University • Floated on AIM in 2002 on back of 3D x-ray technology • Operates in Security and Industrial inspection markets • Security portfolio includes a range of portable, baggage and vehicle x-ray screening products AXIS-3D • Industrial applications include x-ray inspection of catalytic converters, batteries and medical devices • Maiden profit in 2012 • Employs 20 staff based near Loughborough 2
Experienced Management • Brian Emslie Chairman • Louise George Chief Executive Officer • Nick Fox Chief Technical Officer appointment as NED from11 th June 2013 • Vincent Deery Sales and Marketing Director appointed 1 st January 2013 • Ian Johnson Non-Executive Director 3
Investor Opportunity • Company has a diversified portfolio of products across two sectors • With national and international reach and blue-chip customers • The Company has a well-qualified, experienced and balanced Board • Finances have been well managed and costs controlled • Revenue doubled and maiden profit achieved in tough economic climate • Opportunity to participate in AIM-listed British technology company • Image Scan remains low investment threshold stock 4
Low Investment Threshold • Sustainability of business performance 20 18 remains a challenge and a priority 16 14 12 • Company continues to be more sales Pence 10 8 Share Price 6 and marketing driven 4 2 0 2004 2006 2008 2010 2012 • Extension of product range driven by 3 0 S e pte mbe r Share- end user and customer feedback Share-holding holding Rise Step Int’l Dev 26.05% • Contracts drawn from wider range of D Allenby 8.08% customers and territories Calculus Capital 7.30% • Appointed Financial PR advisers A P Stirling 4.94% Directors 4.12% 5
FY12 Highlights • Revenue doubled to £4.3million • Increased sales across both sectors • Significant investment of £388,000 (2011: £137,000) in R&D • Expansion of product line to include 4 new products • Break-even in both half-years • Maiden profit after 16 years MedSpect 6
Security Overview • Security sales up 119% to £2,954,000 (2011: £1,351,000) • Successful roll-out of new SVXi vehicle screening product • First sale of AXIS-100 baggage screening system • Margin of 35% reflecting sales mix: – Lower margins on highly competitive baggage screening market – Major elements of the SVXi subcontracted – One-off costs associated with product introductions 7
Industrial Overview • Industrial revenue increased by 64% to £1,348,000 (2011: £ 823,000) • Developed two additional industrial inspection systems: – MDXi-200, a more compact, lower cost system – MedSpect, for inspection of small medical devices • Two new industrial customers with repeat business potential • Nuclear contract proving to be more costly than originally planned • Overall Industrial margin at 45% 8
Sales Mix by Sector 3000 2500 2000 £'000 1500 Security Industrial 1000 500 0 2005 2006 2007 2008 2009 2010 2011 2012 Financial Years 9
Income Statement 2009 2010 2011 2012 Revenue (£’000) 1,444 1,472 2,173 4,302 Gross Margin (%) 48% 55% 41% 38% Overheads (£’000) 1,283 1,218 1,169 1,624 Profit/(Loss) (£’000) (537) (382) (237) 108 EPS (pence) (1.0) (0.6) (0.4) 0.14 10
Balance Sheet £’000 2009 2010 2011 2012 Tangible Assets 73 49 44 39 (£’000) Inventories (‘000) 233 273 315 413 Receivables (‘000) 246 348 596 1,197 Net Cash (£’000) 850 348 945 74 Current Liabilities (323) (204) (1,029) (746) (£’000) Net Assets (£’000) 1,079 814 871 977 11
Balance Sheet • Year-end cash balance of £74,000 • Receivables at £1,197,000 of which £350,000 received within 3 days of the year end • Current bank balance of £166,000 • RBS overdraft facility of £100,000 EOD vehicle inspection • Company remains debt-free • Investment in inventory continues to support wider product range Drugs in petrol tank 12
Commercial Strategy Since 2009 the Company has adopted a strategy to: Establish a range of standard products Incrementally develop products to meet market demands Invest in new products where commercially justified Extend reach in territory through experienced sales team FlatScan-TPXi Invest in marketing collateral and website Positive signs that strategy adopted is valid: Enhanced volume and quality of sales enquiry pipeline Both sectors increasing in revenue and sales opportunities FlatScan-15 13
Product Portfolio 2008 2012 Security AXIS-3D, AXIS-64, AXIS-3D AXIS-100, AXIS-53 FlatScan-TPXi Gen 2 FlatScan-TPXi FlatScan-15, ThreatSpect SVXi SVXi Industrial MDXi-400, MDXi-NT MDXi-400, MDXi-NT CatSpect, MDXi-200 MedSpect 14
Outlook • Cumulative orders for current financial year of £1,145,000 – Opening order book of £417,000 – New order intake since 1 st October of £728,000 • Order intake exceeds that first 5 months last year by 39% • Increase evident across both sectors – FlatScan sales reach extended to new territories – Repeat sales of industrial system to a new customer – Industrial opportunities opening up from niche expertise • However, profitability reliant on securing 2 significant contracts 15
Challenges for 2013 • Improve profitability through increased gross margins • Incremental investment in product range driven by market feedback • Strong pipeline but sales target for 2013 is challenging • Build on industrial expertise to secure new business opportunities • Limited cash resources • Sustainability of business performance remains the major challenge 16
Contact Us Brian Emslie Chairman Louise George CEO Image Scan Holdings plc 3DX-RAY Limited 16-18 Hayhill Industrial Estate Barrow-upon-Soar Leicestershire, LE12 8LD Tel : 01509 817400 Email : ir@ish.co.uk Web : www.ish.co.uk Ticker : ige 17
Important Notice • This document is issued and approved for distribution within the United Kingdom by Image Scan Holdings plc (the “Company”) only to eligible counterparties and professional clients as defined in the FSA rules. It is not directed at, may not be suitable for and should not be relied upon by any other person. The information in this document is compiled from a number of sources and is believed to be correct, but cannot be guaranteed and should not be relied upon. This document does not constitute or form any part of, and is not to be construed as an offer, invitation or solicitation to buy or sell any securities issued by any of the companies referred to in it. Any opinions expressed are subject to change without notice. 18
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