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Image Scan – update on trading & a placing

By Steve Moore | Wednesday 10 May 2017


Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.


Writing previously in December on x-ray imaging products for the security and industrial inspection markets-focused Image Scan Holdings (IGE) I concluded, with the shares at 6.5p, that I’d continue to monitor for the company growing more into such a valuation. It has now announced a 5.25p per share placing and subscription “to accelerate the introduction of recently developed products into the widest possible market, further extend the research and development activity and to provided additional working capital to facilitate the management of larger contracts”.

The company notes the price represents a discount of approximately 6.7% to prior closing prices, though the shares have been slipping back from above 6p since the late April announcement of results for the company’s half year ended 31st March 2017.

Those results showed a profit of £0.11 million on revenue of £2.1 million – these comparing to a loss of £0.04 million on revenue of £1.4 million in the corresponding prior year period and profit of £0.15 million on revenue of £1.9 million in its second half of last year.

After though particularly a £0.70 million decrease in payables, cash (net) was reduced by £0.59 million to £0.47 million (overall the balance sheet showed a £0.10 million increase in current assets over liabilities to £0.83 million), whilst an order book of £0.94 million and that “the order pipeline in both of our principal markets remains robust and, with new products being introduced to the market, the company looks to the future with confidence” were noted.

It is now updated that “the company continues to trade positively” and has raised a gross £0.525 million through the placing and subscription – including £26,250 from Chairman and CEO Bill Mawer. At the current 5.625p share price, that will mean a market cap of £7.6 million - and, for now, I continue to monitor for the stated potential seeing the company grow more into the valuation with the shares on the watchlist.


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