LONDON (ShareCast) - Security X-ray scanning specialist Image Scan disappointed as it published an annual loss and reduced revenues.

Shares in the company were down 20% on news that although order intake was up 32%, revenues fell 42% to £2.5m in the year to September 30th, leading to a £0.3m loss before tax.

Chairman Brian Emslie said: "Having operated at break-even in four of the last five half-year periods, it is disappointing to report a loss for 2013.

“Much of the loss derived from exceptional costs relating to a one-off contract that was taken three years ago in very difficult economic conditions when the company was in need of additional revenue.”

Image Scan has tried to reposition itself away from one-off sales and towards broadening the product base of standard equipment, with an approximate 20% saving flowing through into the last quarter of the financial year and profitability restored in the second half of the year.

Said Emslie: “Having stabilised the company, the board is now considering what actions and investments need to take place for the company to make a significant step-change."

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