Image Scan Holdings Share News (IGE)

Shares in real-time 3D and 2D x-ray imaging specialist Image Scan shot up after the company held out high hopes for its new products.Turnover for the year to end-September rose to £1.5m from £1.4m the year before.The company said sales of security equipment continue to grow, driven by a two-fold increase in demand for the FlatScan portable x-ray scanning system emerging from a wide range of end users.With component costs for three-dimensional (3D) computing much cheaper than they were the company has invested in the redesign of the Axis baggage screening system resulting in what the company called "highly competitive" 3D and 2D versions of the Axis product range. A sale into the Middle East has already been secured on the back of this revised costing and pricing model.Things are less bright on the industrial revenue side of the business, which represents 16% of total group revenue. Demand for new equipment sales is still at a very low level, the company said. As a result, the company's business has shifted its focus to the security side of the business, where the model is more geared towards a higher quantity of lower value orders delivered from stock.As a consequence of the need to maintain higher stock levels the year end cash balance has fallen to £0.35m from £0.85m a year earlier. "We are tendering on a greater number of contracts both in the UK and overseas, and the feedback from end users has given fresh impetus to investment in the development of the product range. The introduction of new products to the company's portfolio is expected to address wider market requirements and support sales growth in 2011," said Image Scan's chief executive officer, Louise George.