Image Scan Holdings (IGE) AI Stock Analysis

• Market Cap: £2.26M
• Dividend Yield: N/A
• Average Volume (3M): 70.58K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.20
• Revenue Growth: -43.45%
• EPS Growth: -240.00%
• Country: UK
• Employees: 17
• Sector: Industrials
• Sector Strength: 72
• Industry: Security & Protection Services
• EPS (TTM): <0.01
• Shares Outstanding: 136,854,580
• 10 Day Avg. Volume: 41,598
• 30 Day Avg. Volume: 70,584
• PEG Ratio: 0.03
• Price to Book (P/B): 1.34
• Price to Sales (P/S): 1.18
• P/FCF Ratio: 6.19
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 44 Neutral
• Price Target: 1.50p ▼(-28.57% Downside)
• Action: Reiterated Date: 02/03/26
• Date: Action: Reiterated 02/03/26

The score is held down primarily by weakening financial performance (sharp revenue decline, negative profitability, and deteriorating free cash flow). Technicals also remain very weak with a clear downtrend and bearish momentum, while valuation is difficult to support given the negative P/E and no dividend yield provided.

Positive Factors

Conservative leverage / strong capital structure

Low leverage and a healthy equity ratio provide durable financial resilience. With limited debt service obligations the company can better absorb revenue volatility, retain access to financing for strategic investments, and preserve operational flexibility while pursuing recovery or product development.

Stable gross profit margins

A stable gross margin indicates the core product pricing and direct cost structure are intact. That durability means improvements in volumes or cost control can flow quickly to the bottom line, supporting a faster path back to profitability if sales recover or fixed costs are reduced.

Diversified revenue streams and sector partnerships

Mix of equipment sales, recurring maintenance/support contracts and software plus government/private sector partnerships creates steadier long-term cash flow and customer stickiness. Recurring service revenues and institutional clients raise switching costs and support sustainable demand.

Negative Factors

Sharp revenue decline

A near-25% revenue drop is a durable structural concern: reduced scale can damage pricing power, raise per-unit fixed costs, and erode customer relationships. Sustained top-line contraction limits reinvestment in R&D and sales, hindering market recovery and long-term competitiveness.

Negative profitability across margins

Persistent negative operating and net margins indicate the business is not generating enough income to cover operating and capital costs. Continued losses deplete equity, restrict strategic spending, and increase reliance on external financing, pressuring long-term viability.

Severe free cash flow deterioration

Dramatic FCF deterioration undermines the firm's ability to fund maintenance, service obligations, capex, and working capital internally. Weak cash generation forces external financing or asset sales, raising financing costs and constraining sustainable investment in product and market expansion.

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 through the sale of its imaging systems and related software, which are targeted at security and industrial markets. The company's key revenue streams include direct sales of equipment, maintenance contracts, and after-sales support services. It also benefits from partnerships with government and private sector organizations that require advanced security solutions, significantly contributing to its earnings. By continuously innovating and expanding its product offerings, IGE aims to increase its market share and revenue potential in the growing imaging technology sector.

Image Scan Holdings Financial Statement Overview

Summary

Revenue declined sharply (-24.75%) and profitability deteriorated with negative net/EBIT/EBITDA margins. Balance sheet leverage is conservative, but negative ROE and steep free cash flow deterioration signal weak operating and cash generation performance.

Income Statement

The company has experienced a significant decline in revenue over the past year, with a 24.75% drop. Gross profit margin remains relatively stable, but the net profit margin has turned negative, indicating profitability challenges. EBIT and EBITDA margins are also negative, reflecting operational inefficiencies.

Balance Sheet

The company maintains a low debt-to-equity ratio, suggesting conservative leverage. However, the return on equity has turned negative, indicating a decline in shareholder value. The equity ratio remains healthy, indicating a strong capital structure.

Cash Flow

Free cash flow has significantly decreased, with a negative growth rate of 382.95%. The operating cash flow to net income ratio is positive, but the free cash flow to net income ratio is concerning, indicating cash flow challenges.

Breakdown	Sep 2025	Sep 2024	Sep 2023	Sep 2022	Sep 2021
Income Statement
Total Revenue	1.62M	2.86M	2.96M	2.00M	2.87M
Gross Profit	946.33K	1.51M	1.44M	1.08M	1.51M
EBITDA	-172.06K	322.35K	209.35K	-268.24K	259.43K
Net Income	-288.02K	207.01K	123.94K	-271.52K	239.90K
Balance Sheet
Total Assets	2.32M	2.69M	2.42M	2.42M	2.68M
Cash, Cash Equivalents and Short-Term Investments	1.13M	911.47K	958.47K	689.54K	1.19M
Total Debt	93.86K	155.66K	164.31K	201.75K	232.95K
Total Liabilities	886.23K	973.30K	910.62K	1.03M	1.03M
Stockholders Equity	1.43M	1.72M	1.51M	1.39M	1.65M
Cash Flow
Free Cash Flow	309.75K	-13.85K	305.28K	-469.25K	-127.11K
Operating Cash Flow	309.75K	61.39K	429.57K	-290.05K	2.36K
Investing Cash Flow	-42.88K	-64.51K	-117.65K	-179.21K	-129.47K
Financing Cash Flow	-47.38K	-43.88K	-43.00K	-27.63K	-95.96K

Image Scan Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.10
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:IGE, the sentiment is Positive. The current price of 2.1 is above the 20-day moving average (MA) of 1.50, above the 50-day MA of 1.81, and above the 200-day MA of 1.59, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 53.73 is Neutral, neither overbought nor oversold. The STOCH value of 70.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	79 Outperform	£31.44M	12.60	10.49%	2.09%	21.43%	44.70%
CSSG	70 Neutral	£9.98M	13.62	5.08%	3.20%	10.26%	45.18%
NWT	69 Neutral	£10.13M	-38.26	7.90%	―	3.41%	393.71%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
PEG	61 Neutral	£6.68M	-4.01	-8.06%	―	63.81%	71.62%
IGE	44 Neutral	£2.26M	-6.65	-18.29%	―	-43.45%	-240.00%
THRU	42 Neutral	£4.25M	-0.42	-71.37%	―	-21.55%	10.59%

Image Scan Holdings Corporate Events

Image Scan shareholders back all AGM resolutions

Image Scan Holdings said all resolutions at its latest annual general meeting were passed on a shareholder poll, confirming continued shareholder support for the company’s strategic direction. The outcome provides stability as the group rolls out new X-ray products and strengthens its 3DX-Ray brand presence in the security and industrial inspection sectors.

The AGM result underpins Image Scan’s efforts to transition its product range, including the replacement of its Axis checkpoint systems and expansion of its MDXi industrial line. This backing may help the company maintain competitive positioning in global security and automotive inspection markets while it leverages an expanded international partner network and enhanced marketing channels.

The most recent analyst rating on (GB:IGE) stock is a Sell with a £1.50 price target. To see the full list of analyst forecasts on Image Scan Holdings stock, see the GB:IGE Stock Forecast page.

Image Scan trading surges despite loss of major defence contract

Image Scan Holdings has reported that trading in the early part of FY26 is significantly ahead of the prior year, driven by several contract wins, higher market activity and the successful rollout of its new ThreatScan-AS2 portable X-ray system. Despite expecting a small loss at the half-year and the non-performance-related termination of a major UK defence programme, the company has entered the year with a strengthened £1.1m order book and improved cash position, supported by recurring industrial services and plans to expand its product portfolio and partner network.

Management highlighted that demand for security and industrial X-ray solutions remains robust, with activity spanning a wider range of tenders, demonstrations and partner-led opportunities. While the defence contract had been expected to boost revenues in FY27 and FY28, Image Scan is offsetting this with new product introductions, enhanced software modules for its installed industrial base and a strategic focus on global partnerships, underpinning confidence in growth into the second half of FY26.

The most recent analyst rating on (GB:IGE) stock is a Sell with a £1.50 price target. To see the full list of analyst forecasts on Image Scan Holdings stock, see the GB:IGE Stock Forecast page.

Image Scan Hit by Termination of Key Defence X-Ray Contract but Says Balance Sheet Remains Robust

Image Scan Holdings has been informed by defence contractor NP Aerospace that a major military customer has exercised its right to terminate, for convenience, the prime contract under which Image Scan was to supply ThreatScan portable X-ray systems, ending a 36‑month programme that had been expected to materially boost revenues in FY27 and FY28. The company emphasised that the termination is not performance-related and follows broader government defence procurement reviews, and while the removal of the contract reduces its order book from £4.67m at the start of FY26 to just over £1m and leaves cash at around £1m, the board and CEO argue that the remaining orders, solid cash position and differentiated product portfolio provide a sufficient platform to manage the impact and pursue the wider growth strategy, aiming to sustain long-term value for shareholders despite the setback.

The most recent analyst rating on (GB:IGE) stock is a Hold with a £2.00 price target. To see the full list of analyst forecasts on Image Scan Holdings stock, see the GB:IGE Stock Forecast page.

Image Scan Publishes 2025 Annual Report and Sets February AGM

Image Scan Holdings has published its Annual Report and Accounts for the year ended 30 September 2025 and circulated the Notice of its upcoming Annual General Meeting, which will be held on 25 February 2026 at its registered office in Leicestershire, with all documents also made available via the company’s website for shareholder access. The update underscores the company’s ongoing efforts to support governance transparency and investor communication as it advances its X-ray security and industrial inspection product portfolio and continues to strengthen the global reach and brand recognition of its 3DX-Ray line.

The most recent analyst rating on (GB:IGE) stock is a Hold with a £2.00 price target. To see the full list of analyst forecasts on Image Scan Holdings stock, see the GB:IGE Stock Forecast page.