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Update on Defence Contract with NP Aerospace
Image Scan Holdings PLC has been notified by NP Aerospace Limited that a large military customer has terminated their prime contract for convenience, impacting Image Scan's supply of ThreatScan® portable X-ray systems. This termination is not performance-related and was expected to contribute materially to FY27 and FY28 revenues. The company entered FY26 with a £4.67 million order book and £1.13 million cash balance; after this contract's removal, the order book stands at over £1 million with a cash position of £1 million. Despite the disappointment, the Board believes the remaining order book and cash provide a solid foundation to manage the impact and continue the Group's strategy. Disclaimer*
About this update from Image Scan Holdings Plc
This announcement contains inside information for the purposes of Article 7 of the UK version of Regulation (EU) No 596/2014 which is part of UK law by virtue of the European Union (Withdrawal) Act 2018, as amended ("MAR"). Upon the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain. 2 February 2026 IMAGE SCAN HOLDINGS PLC ("Image Scan" or the "Company") Update on Defence Contract with NP Aerospace Further to the Company's previous announcements notifying of delays in the defence contract progress, and in line with well documented government defence procurement reviews. Image Scan today announces that it has been notified by NP Aerospace Limited ("NP Aerospace"), a prominent UK defence contractor, that the large military customer has exercised its contractual right to terminate, for convenience, the prime contract under which Image Scan was contracted to supply its ThreatScan® portable X‑ray systems. The Company has been informed by NP Aerospace that the customer has issued a formal notice terminating the prime contract under its "termination for convenience" provisions. The termination is not performance‑related and does not arise from any alleged failure by NP Aerospace or Image Scan to meet their contractual obligations. Negotiations have yet to commence regarding alternative options to the termination for convenience notice received. As previously disclosed, the NP Aerospace contract represented a programme over a 36‑month period and was expected to contribute materially to FY27 and FY28 revenues. As reported in the Company's results for the year ended 30 September 2025, Image Scan entered FY26 with a strong order book of £4.67 million and a year‑end cash balance of £1.13 million, the order book after the removal of this large contract stands at over £1 million and our cash position is £1 million. While the termination of this contract is disappointing, particularly given the significant effort invested by Image Scan to secure and support the programme, the Board believes that the remaining order book and cash position provide a good platform from which to manage the impact of this decision and continue to execute the Group's broader strategy. CEO Comment Vincent Deery, Chief Executive Officer of Image Scan, commented: "We are extremely disappo...
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