LONDON (ShareCast) - It was a "disappointing" second half for Image Scan, as the group suffered as a result of delays to a new X-ray generator.
The scanner manufacturer expects to report full-year revenue of £2.3m, a £0.2m drop on the prior year, with losses widening from £0.34m to £0.5m.

The group had previously said its results would be very much contingent on the availability of the generator that was being manufactured to replace a unit that was no longer available.

"While development of the new generator has progressed through the prototype stages and the first production model is currently in testing in Image Scan's facility, customer deliveries have been delayed until November 2014," the group explained.

During the period, the company increased its product development investment, reflecting the increased focus on new research and development projects under the new board.

The nuclear contract continued to generate costs, though the key milestones of customer acceptance and delivery to the end user's site were achieved. Outstanding work relates only to the final system commissioning and delivery of a training course, it added.

Looking ahead, the company said its the market reach of the company is being extended with orders received from Vietnam, Myanmar and Thailand, which are all new territories.

The company is also close to finalising a partnership that would give it proper access to important markets in North and South America for the first time.

Chairman Bill Mawer said: "To be reporting a loss in my first six months as chairman is disappointing. However, in those first six months we have made real progress in the renewal and extension of our product range and in broadening our market access.

"As these new products become available and as we start working in the new markets in the early part of the next financial year I expect to see sales of our core portable x-ray systems recover and then grow strongly."

Shares had declined 17.18% to 1.76p by 12:09.

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