2022 has been a “challenging year” for Image Scan, according to its chairman, Tim Jackson, balancing lower booking levels with cost increases whilst maintaining research and development investment to lay the foundations for a stronger 2023.
The X-ray screening systems manufacturer has today announced preliminary results for the year ended 30 September 2022, in which the firm has slipped to a pre-tax loss and revenues have dropped.
The Leicestershire-based group generated revenues of £2m, down 31% from £2.9m in the year prior, and produced a loss before tax of £0.35m, decreasing from a profit of £0.19m.
It is said this performance was a result of the slow recovery from the COVID-19 pandemic in certain key markets and Government procurement cycles, coupled with some delays with component sourcing.
Tim Jackson said: “On behalf of the Board and management of Image Scan, I would like to thank all of our colleagues and customers for their contribution to our business during 2022, without whom we would not be in the position we are today.
“The trading performance was below expectations as government procurement continued to be held back following the pandemic challenges that remain in some of our key markets. Our balance sheet provides us with a strong operational and financial platform from which to deliver growth.
“We have made an encouraging start to 2023 and are confident in meeting our expectations for the full year. Whilst there are still macroeconomic uncertainties and challenges and the domestic economic outlook looks weak, the Board of Directors is confident in the group’s prospects in the medium to long term as we continue to seek to capitalise on our extended product range and global sales channels.”
Bill Mawer, the former chairman and CEO, stepped down as CEO in January 2022 and retired from the Board in June 2022.
Image Scan’s Chief Executive, Vince Deery, said: “Following the organisational changes completed during the year, I would like to thank Bill Mawer for his leadership and contribution over the last eight years.
“Furthermore, I would also like to express my appreciation to the new chairman Tim Jackson and the entire Board for their support in this transitional period. Both myself and the Board take this opportunity to commend the staff for their valued contribution during a challenging year. Our goal is to build upon Bill’s legacy while focusing on the expansion of our higher margin portable product line which we believe is our route to returning to profit in 2023.”
