London-listed X-ray screening systems supplier, Image Scan Holdings, has announced that it expects to report a swing to pretax profit for the year ended September 30. This shift in financial performance is attributed to a combination of cost-saving measures, the relocation of industrial activities to lower cost-based locations, and increased sales.
Shares of Image Scan Holdings rose by 18%, or 0.3 pence, to 2.0 pence at 0753 GMT following the announcement.
The company’s pretax profit for the year is expected to be approximately £100,000, a stark improvement from the previous year’s loss of £350,000. This positive turnaround can be attributed to the recovery from the impacts of the pandemic, as government opportunities progress, as well as a restructuring and cost control program.
Revenue also experienced a significant increase, rising from £2 million to £3 million. This growth can be attributed to the expansion of the product range in the Counter Explosive Ordnance portable x-ray marketplace, as well as the company’s transition to lower cost-based locations in Eastern Europe and Asia.
Chief Executive Officer Vince Deery expressed his satisfaction with the company’s performance, stating, “I am delighted with the work we have undertaken this year to ensure organization changes and cost controls have had their impact which has helped deliver the hugely welcome return to profit. With the improving market conditions, we wish to build on this result and use the coming period working with significant shareholders to look at the strategic opportunities for growth as a listed business.”