Image Scan Holdings (IGE) AI Stock Analysis

• Market Cap: £1.92M
• Dividend Yield: N/A
• Average Volume (3M): 180.27K
• Price to Earnings (P/E): 11.0
• Beta (1Y): 0.32
• Revenue Growth: -16.19%
• EPS Growth: -600.00%
• Country: UK
• Employees: 17
• Sector: Industrials
• Sector Strength: 87
• Industry: Security & Protection Services
• EPS (TTM): >-0.01
• Shares Outstanding: 136,854,580
• 10 Day Avg. Volume: 68,536
• 30 Day Avg. Volume: 180,274
• PEG Ratio: 0.03
• Price to Book (P/B): 1.33
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -3.93
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 61 Neutral
• Price Target: 1.50p ▲(7.14%Upside)

Image Scan Holdings shows strengths in financial stability and valuation, but faces significant cash flow challenges and bearish technical indicators. The company's strategic direction has garnered shareholder support, yet operational challenges, especially in order intake and revenue, remain crucial obstacles. The overall score reflects a cautious outlook given the current market and operational conditions.

Image Scan Holdings Business Overview & Revenue Model

Company Description

Image Scan Holdings Plc manufactures and sells portable X-ray systems for security and counter terrorism applications in the United Kingdom, Europe, the Middle East, Africa, Asia, and the Americas. Its security products include portable systems, such as ThreatScan-LS1, ThreatScan-LS3, and ThreatScan-LSC X-ray systems; mail and baggage screening products, including AXIS-CXi cabinet based x-ray systems and AXIS conveyor systems; AXIS archway systems walk-through metal detectors; and vehicle screening systems which includes SVXi, ThreatScan, and ThreatSpect software X-ray systems for high security building and facility, explosive ordnance disposal, border control and custom, mass transit locations, stadia and events, and mail room screening applications. The company's industrial products include production line systems, such as MDXi-NT, a high-resolution turnkey X-ray inspection system; laboratory systems, which comprise MDXi, cabinet based systems for stand-alone use; ThreatScan-LS1 X-ray scanning systems; and X-ray tubes and generators for emission control solutions and other applications. It serves its products to police, military, security services, bomb disposal teams, prisons, ports, airports, cargo handlers, freight forwarders, corporate HQs, mail rooms, and stadia and events operators. Image Scan Holdings Plc was incorporated in 1995 and is based in Barrow-upon-Soar, the United Kingdom.

How the Company Makes Money

Image Scan Holdings generates revenue primarily through the sale of its X-ray imaging systems and related services. Its key revenue streams include the direct sales of security screening and industrial inspection systems, maintenance and service contracts, and software upgrades. The company often collaborates with government agencies and private enterprises to provide tailored solutions, and these partnerships are significant contributors to its earnings. Additionally, after-sales support and training services form an integral part of its revenue model, ensuring clients maximize the utility of their systems.

Image Scan Holdings Financial Statement Overview

Summary

Image Scan Holdings demonstrates a solid balance sheet with low leverage and strong equity, providing a stable financial foundation. Income statement metrics show profitability improvements despite a slight revenue decline, indicating operational resilience. However, cash flow challenges highlight the need for better cash management to sustain growth and profitability.

Income Statement

The company's gross profit margin has remained strong at around 52.8% in the latest year, indicating efficient cost management. Net profit margin improved significantly from negative figures in prior years to 7.2%, reflecting enhanced profitability. However, revenue has declined by 3.4% compared to the previous year, suggesting potential challenges in market growth. EBIT and EBITDA margins are modest at 7.0% and 11.3%, respectively, showing room for operational efficiency improvement.

Balance Sheet

The balance sheet is healthy with a low debt-to-equity ratio of 0.09, indicating low leverage and financial stability. Return on equity stands at 12.0%, which is a positive indicator of profitability. The equity ratio is 63.8%, reinforcing financial stability and a strong equity base. These metrics reflect a solid financial position with potential for leveraging equity for growth.

Cash Flow

The company experienced a negative free cash flow growth rate, moving from a positive free cash flow last year to negative this year, signaling cash management challenges. The operating cash flow to net income ratio is low at 0.30, indicating that cash generation from operations is not in sync with net income. However, the free cash flow to net income ratio is slightly negative, suggesting a need for improved cash flow management.

Breakdown
Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
2.86M	2.96M	2.00M	2.87M	3.48M
	Gross Profit
1.51M	1.44M	1.08M	1.51M	1.72M
	EBIT
201.54K	95.49K	-323.85K	170.11K	92.72K
	EBITDA
322.35K	209.35K	-268.24K	259.43K	172.53K
	Net Income Common Stockholders
207.01K	123.94K	-271.52K	239.90K	137.96K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
911.47K	958.47K	689.54K	1.19M	1.41M
	Total Assets
2.69M	2.42M	2.42M	2.68M	2.24M
	Total Debt
155.66K	164.31K	201.75K	232.95K	88.52K
	Net Debt
-755.81K	-794.16K	-487.79K	-953.47K	-1.32M
	Total Liabilities
973.30K	910.62K	1.03M	1.03M	829.90K
	Stockholders Equity
1.72M	1.51M	1.39M	1.65M	1.41M
Cash Flow		Free Cash Flow
-13.85K	305.28K	-469.25K	―	759.42K
	Operating Cash Flow
61.39K	429.57K	-290.05K	―	769.01K
	Investing Cash Flow
-64.51K	-117.65K	-179.21K	-129.47K	-9.59K
	Financing Cash Flow
-43.88K	-43.00K	-27.63K	-95.96K	9.59K

Image Scan Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.40
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:IGE, the sentiment is Negative. The current price of 1.4 is below the 20-day moving average (MA) of 1.44, below the 50-day MA of 1.70, and below the 200-day MA of 2.45, indicating a bearish trend. The MACD of -0.10 indicates Negative momentum. The RSI at 29.91 is Positive, neither overbought nor oversold. The STOCH value of 31.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:IGE.

Image Scan Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SNX	75 Outperform	£52.82M	16.74	7.93%	1.59%	13.60%	46.74%
NWT	69 Neutral	£6.98M	56.21	-3.17%	―	10.37%	-57.83%
CSSG	68 Neutral	£11.84M	19.46	4.03%	2.67%	6.44%	-82.88%
Sector *	66 Neutral	$4.47B	12.22	5.40%	3.65%	4.14%	-12.00%
IGE	61 Neutral	£1.92M	11.00	-7.14%	―	-16.19%	-600.00%
THRU	45 Neutral	£2.00M	―	-55.82%	―	-52.98%	-615.15%

Image Scan Holdings Corporate Events

Image Scan Holdings Faces Challenges Amid Delays and Market Uncertainty

Image Scan Holdings PLC reported disappointing interim results for the first half of 2025, with a significant drop in order intake and revenue compared to the previous year. The company’s performance was impacted by delays in a major defense contract and geopolitical uncertainties affecting customer budgets and decisions. Despite these challenges, Image Scan continues to engage in extensive marketing activities and has received a significant post-period order, indicating strong market interest in its newer products. The company remains optimistic about its opportunity pipeline and is focused on cost management and promoting its product range to capitalize on future opportunities.

Braveheart Investment Group Adjusts Stake in Image Scan Holdings

Image Scan Holdings PLC has announced a change in its major shareholdings, as Braveheart Investment Group PLC has adjusted its voting rights in the company. The notification reveals that Braveheart’s voting rights have decreased from 10.28% to 9.95%, indicating a slight reduction in their stake. This adjustment in holdings could influence the company’s shareholder dynamics and potentially impact future decision-making processes.