Well, this is my share for 2004.

The grounding of BA flight 223 to Washington has been all over the news this week. Along with the pictures of police armed with semi-automatic weapons and demands for armed rangers on planes the question of flight security is firmly back on the agenda.

Enter 7m British company Image Scan Holdings whose 3D X-ray baggage handling technology represents a 'Best of Class' solution to problems of baggage screening.

The advantage of Image Scan's machine over convential 2D machines is that it provides a 3D view of a scanned bag - providing psychological depth clues which have been shown to be important in identifying threat objects. 3D views are currently provided by CT scanners but these are slow and expensive. Image Scan's machine provides comparable results using X-ray. It is much less expensive and involves no loss of speed over conventional 2D scanners



Contracts are being signed and some major OEMs are trialling Image Scan's cameras in their own systems.
Broker forecasts are for EBITDA breakeven this year and eps of 6p in 2005 (shares are currently 39p to buy). The market Cap is just 7m

The FAA (now TSA) are swimming in grants with $Millions and $Millions being awarded to security companies. They have purchased two machines from Image Scan (machines are also on trial at Heathrow and Midlands airports) and have paid ISH for the development of 3D Image Threat Projection software which has been installed in beta form on these machines. Threat Image Projection(TIP) software should become compulsory on all machines during 2004. It trains bagage handlers and screens their performance by introducing threat images (knives, guns etc) into the image captured by the X-ray scanner.

What is better, they are not a 1 product company. The pipeline is exciting. They have a range of 3D solutions for industrial non-destructive testing available now, medical applications are ivolved in development of an automated system related to cervical smeer test screening expected 2005- currently the only unautomated major screening programme in the UK... And they are developing a 3D scanner for examining occluded electrical components post-assembly. Key IP is in the area of X-ray examination of plastic and non-magnetic components.

Image of an all-plastic inhaler pump
using ISH's DEX camera for industrial/medical
non-destructive testing:

(Key IP is in the area of x-ray imaging plastics and non-magnetic metals)

Look a very interesting prospect for 2004, IMO. The share price slid relentlessly last year but enjoyed a bounce last month. That trend re-commenced last week. Sitting on 1.4m cash (having raised fresh funds in the summer) and having now transitioned from pure r&D into a company actively marketing its commercial products there appears little downside in the price (the FD was buying at 35p). Upside looks considerable.

Durlacher published a research note in November - well worth getting hold of a copy. A couple of snippets:

"International legislation has delivered the security sector its most significant boost for almost a decade with the entire security industry looking set to become a hot sector for the next couple of years"

"We believe the Image Scan instrument to be 'best in class' and currently the only real time 3D X-ray device in the industry"

"Growth in the security sector has been in excess of 50% pa over the last 2 years....with equipment replacement cycles falling from an average 6 years to nearer 4."

Order potentially worth 1m from Scanna expected shortly...

"We believe Image Scan presents an immediate and unique opportunity to invest in the rapidly expanding global security markets"


To take just one element of what ISH are involved in, the importance of the 3D TIP software is conveyed in this extract:

p.32-33
"Following the September 11th attack, Dillinghams testimony [22] was provided before the Committee on Commerce, Science and Transportation, US Senate to discuss security concerns with:
i) aviation-relatedcomputer systems;
ii) airport access controls and
iii) passenger andcarry-on luggage screening including how the USA differs from other countries.

This committee had earlier reported in the year 2000 that there were several weaknesses found with screeners in tests in the USA. In 1987, screeners missed 20% of potentially dangerous objects and recent tests approximating real threats showed that the performance degrades even further.

The main problem is because of less experienced staff, large turnover because of low wages, limited benefits, and repetitive nature of the work. In addition, the amount of work at airports makes it impossible to check every bag (over 2 million passengers and their bags must be checked per day in USA alone).

Air carriers can use their own employees to conduct screening activities but mostly they hire security companies to perform screening. In the USA, Federal Aviation Authority (FAA) monitors the performance of screeners by periodically testing them with FAA special agents posing as passengers.

Two important reasons explain why screeners fail: rapidscreener turnover and inadequate attention to human factors.
From May 1998 to April 1999, screener turnover averaged 126% in 19 major airports in the USA, 200% at five airports andone with a turnover of 416%.

FAA has been recommended to use threat-projection systems that place images of dangerous objects on the monitors of X-ray machines to keep scanners alert and monitor their performance and a certification program to make screening companies accountable for the training and performance of the screeners that they employ.

The threat-projection systems are useful as they monitor screener performance, and help train them to identify more diffcult objects for the future.
It is expected that FAA will deploy this technology in airports by 2003 and also more FAA security screeners will be used."


This represents my opinions only and is not advice to buy or otherwise. Do your own research!

Happy new year.

G.

Garth, a trully outstanding research note. It was facinating reading it.

Image Scan goes onto my watch list , many thanks.

cheers GF.

Pleasure GF, thanks for the feedback. Up a notch again today :-)

G.

Garth, could I have your kind permission to use this research note on my tips lists????????. I am now going into to buy some. I may add a little at the bottom about accounts etc, and I would give you full credit for the article.

Awaiting your reply, regards Goldfinger.

No probs Goldfinger. Can I have a copy? Where do you post it?

If you want any more info there is quite a lot more in the thread here:
http://www.advfn.com/cmn/fbb/thread.php3?id=5390142

The thread details some of the ongoing research with Nottingham Trent and the Police Scientific Branch, looks at some of the technology and I put some stuff on last week about some of the companies Image Scan are partnering.

Kind regards,

G.

Steadily rising every day - 6.5% today. 2p more and I think thats a break-out. Rise at lunchtime with no further trades reported. Someone hunting for stock?

G.

.

Piece further below from the TSA website highlighting once again the move towards all machines being TIP enabled. I highlight again that the FAA have paid Image Scan to write 3D-TIP software which has been installed in beta form on the two AXIS-3D machines the FAA has already bought.

The TSA are putting a great deal of time and money into improving screening and training of baggage screeners in order to improve their efficiency and effectiveness. Their website details $million and $millions being poured out in grants. 3D images have been shown to improve training times, speed and effectiveness. Image Scans Cost-Benefit Analysis due in April will underline this. The TSA have paid for the development of 3D-TIP on these machines. Why - unless they intend to adopt them?



The company has been told that 3D-Xray has been placed on fast-track
They know all about the machines and have been involved in refining them. They seem pleased with the progress:

" Axis-3D X-ray System: Representatives from Image Scan Holdings of the UK demonstrated their second-generation stereoscopic x-ray machine to AAR-510 at the William J. Hughes Technical Centers Security Operations Human Factors Integration and Evaluation Laboratory. Many of the recommendations AAR-510 provided in their report (DOT/FAA/AR-35/00) were incorporated in the second generation 3D x-ray system. Much improvement was made with 3D image processing and quality and operator functionality. (C. George, AAR-1)"

http://www.hf.faa.gov/docs/508/docs/newsletters/newsletter_0108.pdf

What is AAR-510?

"AAR-510 provides oversight and management of the Aviation Security Human Factors and Airport Security Technology Integration Program. AAR 510 is also responsible for the transition of research and development (R&D) equipment from the laboratory to the field.

The branch conducts applied R&D, with principal emphasis on current and emerging aviation security technology targeted at identified operating requirements; conducts technical feasibility demonstrations; analyzes impact, develops concepts, and conducts objective assessments of evolving technologies; and concentrates on the most promising research areas, with the highest technological dividend, through effective national and international scientific cooperation and communications.......(more at the link)"
http://www.tc.faa.gov/aar500/content/aar510.asp

Helps to sell them to the US if they've been involved all along, I guess.....

OCTOBER 16, 2003 - STATEMENT OF ADMIRAL JAMES M. LOY ADMINISTRATOR, TRANSPORTATION SECURITY ADMINISTRATION ON TRANSPORTATION SECURITY BEFORE THE COMMITTEE ON TRANSPORTATION AND INFRASTRUCTURE SUBCOMMITTEE ON AVIATION UNITED STATES HOUSE OF REPRESENTATIVES

http://www.tsa.gov/public/display?content=0900051980069a5b

..We are also in the process of implementing an updated version of the Threat Image Projection System (TIP), originally deployed by FAA after operational evaluation and validation testing in 1999. TIP is a system that superimposes threat images on x-ray screens during actual operations and records whether screeners identify the threat object. By frequently exposing screeners to images of a variety of dangerous objects, the system provides continuous on the job training and immediate feedback and remediation, and allows supervisors to monitor screener performance.

Our TIP system is already greatly improved over the FAA system in several respects. First, we are expediting the replacement of the approximately 1,800 conventional x-ray machines with TIP-ready x-ray machines (TRXs). We now have over 1,300 new TRXs in place. Additionally, whereas the FAA used a library of only a few hundred images, which were frequently shared with screeners, eliminating any real test value, we are deploying a more comprehensive library of 2,400 images. We expect the new TSA TIP image library to be deployed on all TRX machines that are in place by the end of this calendar year. Through the combination of increased deployment of TRX machines and deployment of the expanded TIP image library, we will be able to collect and analyze significant amounts of performance data that had not been previously available to us. As we continue to deploy the expanded TIP library on all TRXs, during the months of October and November, we will primarily rely on using the limited library as an on-going training tool and to provide limited, local performance data to FSDs. Once TSA has the expanded TIP library on all TRXs in place (end of November), we will collect and analyze the data in December, allowing us to establish our first, national baseline view of screener performance, as measured by TIP, using the fully expanded TIP library of 2,400 images. This baseline view will help us better understand our strengths and weaknesses, allowing us to implement appropriate skill enhancement strategies. Finally, although the FAA collected TIP data and published it occasionally, for technical reasons the data was never used in any meaningful way for improving screener performance as planned in the early stages of development. In contrast, we will be using TIP as it was intended--an active training and management tool, used to evaluate individual screener skills and enable us to focus on areas needing skill development.

We are replacing all checkpoint x-ray equipment with units that will be equipped with TIP to support the efforts previously mentioned for improving screener performance. We are also developing a system to multiplex TIP-ready x-ray units to allow more flexibility regarding staffing to monitor checkpoint operations. Our goal at the passenger screening checkpoint is to work towards sensor fusion, which will result in fewer boxes with combined capabilities.

Cf Image Scan results where we learn that Image Scan are in discussion with potential collaboration partners to work towards hybrid systems incorporating sensor fusion:
Security
The Company is in discussion with a number of potential collaboration partners to combine its advanced X-ray imaging systems with complementary technologies (such as Thermal Neutron Analysis, X-ray scatter, RF detection and novel vapour and trace systems) to produce hybrid Systems that can address the stated Transport Security Administrations (TSA) objectives of improving the automation of threat detection for both carry-on and checked baggage.

..the Board has agreed to initiate its own Cost Benefit Analysis (CBA) which will objectively compare and enumerate the benefits of 2D versus 3D X-ray imaging system. Although an internal initiative, we believe, that the CBA will be endorsed by aviation sector regulators both here in the UK and equally importantly within the USA. Our discussions with the Department for Transport lead us to conclude that they are positive about the technology and keen to support it. We have also been advised that 3D technology has been placed on a fast track development and implementation programme within the TSA. The CBA, which started in November 2003, is anticipated to be completed in April 2004 and is designed to quantitatively demonstrate the improvements in probability of reducing false alarms, probability of detection and the improvement in time to operator competency (effectively how long it takes to train a new screener) of the AXIS-3D system.

Patience to be richly rewarded here, IMO.

G.

Image Scan are applying their technology to far more than Baggage Screening. The application of advanced X-ray sensing, software, robotics and GPS to the application detailed below is intriguing and makes for a very interesting read. Image Scan's 3DX-Camera + software will scan a field of cauliflowers and determine the development of each. GPS is used to map the results which are 'remembered' so that the harvester returns first to the ready areas of crop. The 3DX eyes then guide a robotic arm for auto cutting/harvesting, leaving those that aren't ready yet. The harvesting can even be done at night when ambient temperatures are lower - because X-Ray 'sees' in the dark. Great stuff. Production line models, manufactured by Richard Pearson, are expected Spring 2005 selling at 100k-150K a time. Enjoy!


Selective mechanical harvester for cauliflower and brassicas



Image produced using the 3DX-Camera - a cauliflower prior to automatic trimming.

World's first automated cauliflower harvesting system is set for commercial production. Image Scan Holdings is supplying image processing software and high- end specialist X- ray technology.

Cauliflowers are a valuable crop, worth around 55m a year to UK growers at farm gate prices. But the delicate curds have to be carefully harvested by hand, and producers have been facing increasing labour shortages. Now LINK research has led to advanced sensing and cutting technology to provide the basis for the world's first commercial harvesting machine.

A significant world market is forecast for the new machines, which are likely to sell for between 100,000 and 150,000 each.

Harvesting cauliflowers is a labour intensive business. The delicate curds do not mature uniformly, so pickers have to inspect each one and carefully cut only those that have reached the right size. Labour costs are high for UK producers. It is increasingly difficult to find enough workers, who must be sufficiently skilled to avoid
wastage and damage to the crop.

Caulicut Horticultural LINK project attracted a grant of 912K. From what is available on Defras website it looks as though the 912K grant was one of the largest awarded. One might assume that that underlines the expectations and importance of the project.

Project, the beneficiary of a SMART award, is still in the stage of modifying prototypes with final build and testing expected towards the end of 2004 with production line manufacture Spring 2005. (They are also working on an automated seedling transplanter which would scan seedlings to ascertain whether they are large enough for planting and then use robotics to transplant them.)

Full details and assorted links below

Regards,

G.


CAULIFLOWER POWER

http://www.defra.gov.uk/science/LINK/Publications/Newsletters/AgricultureLINK/AgLINK_Issue11.pdf


World's first automated cauliflower harvesting system is set for commercial production

SUMMARY
Cauliflowers are a valuable crop, worth around 55m a year to UK growers at farm gate prices. But the delicate curds have to be carefully harvested by hand, and producers have been facing increasing labour shortages. Now LINK research has led to advanced sensing and cutting technology to provide the basis for the world's first commercial harvesting machine.

The HortLINK Caulicut[100] project brought growers together with a leading machinery builder and experts in sensor technology and image processing. Researchers investigated how mature curds could be selected, cut and lifted in an integrated process. Following successful prototype demonstrations, the technology has been
patented and a commercial machine is being developed, ready to go on the market in 2004.

The outcome of the three- year project should help UK growers to harvest high qualify produce more competitively, increasing exports and reducing imports. There could also be significant markets for the harvesting system worldwide. Advanced sensor technology capable of mapping crop maturity could be applied to other crops including lettuces and other brassicas.

QUOTE
Wayne Kimberlin Consultant, Mechatronics Manufacturing PERA Technology:

'This project just would not have taken place without LINK. The HortLINK programme is the only umbrella under which the growers, technology/ industrial companies and research organisations can come together and produce this kind of technology.
'LINK enabled us to cross- fertilise different areas of expertise and achieve a step change in harvesting methods. The result should be a more competitive industry in the UK, with potential for reduced reliance on imports and increased exports of both cauliflowers and machinery. ''


PROFILE
Harvesting cauliflowers is a labour intensive business. The delicate curds do not mature uniformly, so pickers have to inspect each one and carefully cut only those that have reached the right size. Labour costs are high for UK producers. It is increasingly difficult to find enough workers, who must be sufficiently skilled to avoid
wastage and damage to the crop. The work is seasonal and often arduous, with a risk of repetitive strain injury (RSI). New employment legislation has increased costs by restricting working hours and further reducing availability.

A group of Lincolnshire growers wanted to see if new technology could provide a solution and increase their competitiveness. LINK supported research to meet the urgent need for a mechanical harvesting machine capable of sophisticated selection and handling procedures. The Caulicut[100] project, part of the Horticultural LINK programme (HortLINK), brought the growers together with sensor and image
scanning specialists, a leading machinery builder and R& D partners Pera and HRI.

The project's successful outcome promises significant savings for an important sector of UK horticulture. Cauliflower growing accounts for an area of about 18,000 ha and the value of the crop is worth 55m at farm gate prices. Approximately 80% is bought by major supermarkets, who demand high standards of freshness, trim and absence of physical damage.

Researchers designed and tested a variety of sensors, cutting and lifting mechanisms and associated control systems. They had to overcome sensing and handling problems specific to cauliflowers. Mature curds measure about 110 mm, and to identify them sensors must penetrate a heavy leaf mantle. Three different solutions were tested tactile sensing, X- ray sensing and a novel radio- frequency
method. Successful field tests were carried out with the tactile and X- ray sensors and the RF device was successfully bench tested, showing potential for future development.
A stalk cutting and transfer mechanism was designed to cut and lift mature curds
without damaging them. Following completion of the LINK project, the Caulicut[100] consortium were awarded a Smart grant to develop a prototype harvester, integrating sensing and cutting mechanisms with a trailer mounted top- trim unit to prepare the cauliflowers to supermarket standards.

PATENT and COMMERCIALISATION
Following successful field trials, the Caulicut[100] technology was patented. Machinery manufacturer Richard Pearson Ltd is now leading commercial development. The world's first integrated cauliflower harvesting machine is expected to go on the market in 2004 and will be sold throughout the world.

A significant world market is forecast for the new machines, which are likely to sell for between 100,000 and 150,000 each. Their launch will help the manufacturer to diversify its business, currently built around harvesting potatoes and other root crops.
The Boston- based firm currently employs around 40- 50 people. Applications could be extended to a variety of other crops such as lettuces and other brassicas.

Sensing and technology companies have extended their knowledge base as a result of the project. JR Technology is developing the innovative RF sensor and Image Scan Holdings is supplying image processing software and high- end specialist X- ray
technology.


For cauliflower growers, there are wider benefits than envisaged when the project was launched. Because the sensors can 'see' in the dark, they will be able to harvest at night for the first time. Ambient temperatures will be significantly lower compared to daytime harvesting, saving on refrigeration costs. By combining sensor and GPS data, growers will be able to pinpoint maturity and location of every plant in the field. This will make it possible to plan subsequent harvesting instead of relying on repeated inspection and subjective decisions by skilled workers.


Links:

http://www.defra.gov.uk/Science/LINK/Agriculture/HortLINK/projects/default.asp

pdf:
http://www.ost.gov.uk/link/linkcasestudies/cauliflowersapril03.pdf

http://www.eurexcel.org/members/casestudies/casestudy1.asp

http://www.masbonfante.it/images/foto_prodotti/foto_ish_9.jpg

http://www.richardpearson.com/

Thanks Garth.

It's good to see the technology has many applications.

8 Ball,

good to see you here. How are things?

With the official launch of AXIS-3D this month we should see revenue start to climb and the resumption of newsflow - broker forecasts are for revenues of 2.43M, increasing margins, positive cash-flow and EBITDA break even in 2004. With growth in DEX & VIXION through the year and other projects coming to fruition in 2005 (eg. Caulicut, Mediscan imaginging techniques related to cervical smeer testing etc..) we are then looking towards forecasts climbing to 6m revenue, 6p eps for 2005 (I haven't seen anything beyond that).

Not certain that they will achieve earnings quite that high so quickly but there should certainly be good, positive newsflow and a steady move in that direction.

Their recent approach to modularising their technology (both electronic and software) so as to be able to respond quickly and cost-effectively to new applications appears to be a good one with the range of applications already discused, including: Scanning baggage for threats, cauliflowers for GPS location and harvesting, leaflets in pill boxes, components in syringes, plastic asthma pumps, presence of steel in reinforced concrete, locate imbedded hazards such as nails in timber pre-sawing, alloy wheels for internal casting faults, cervical smeer samples for the presence of the correct number and type of cells etc..... With such a wide range of applications already there is, I believe, good reason for confidence in both the quality of the technology and its marketability.

Should be sitting at 50p and a market cap of 10m rather than 40p/8m, IMO, as we sit and await Jan/Feb newsflow with a push up into the 60p-70p(12-14m) range following that. If they achieve 6p eps in 2005 then that sort of growth should be able to hold a 15x valuation which is 90p. And who knows what sort of growth we could be seeing forecast then, with a more established presence in security and NDT and the medical side coming on stream.... All conjecture of course :-)

Thanks for the feedback.

G.

RNS today and a string of early buys. Extension of agreement with Rapiscan should put some more fuel in the tanks... :-)


RNS Number:6883V
Image Scan Holdings PLC
23 February 2004

23 February 2004


Image Scan Holdings plc ("Image Scan")

PRODUCT LAUNCH

Image Scan, a leading provider of multi-view, 3DX-ray imaging technologies for
the security and industrial inspection markets, is pleased to announce that
Rapiscan Security Products Ltd ("Rapiscan") have officially launched the
world's first real time 3D X-ray imaging system for security baggagescreening.
The unit is now included within the Rapiscan range as a 3D20, and incorporates
the unique Image Scan AXIS-3D(R) camera system.

Following several months of intensive production engineering and testing the
product is now enjoying worldwide exposure. Currently five units are in
evaluation and demonstration stages and two owned by the British and Romanian
governments are seeing active service. As part of the world wide roll out,
Rapiscan are looking to add to the number of demonstration systems shown to
prospective customers in Australasia, South Africa, France, Italy, Greece, CIS
and the USA. The next exhibition is at SECUREX South Africa 2004 commencing on
3rd March.

Additionally, Image Scan and Rapiscan have agreed to extend their Sales and
Marketing agreement. As part of this extension, Rapiscan have agreed to issue an
initial framework order for the AXIS-3D(R) camera system.

Nicholas Fox, Chief Executive of Image Scan, said:

"We are delighted to see the formal Launch of the AXIS-3D(R) camera system
through Rapiscan. With Rapiscan's sales and engineering staff now fully
trained and their product champions in place, we look forward to seeing a
heightened interest and increasing sales for ourunique 3D technology."

Peter Williamson, Vice President of Worldwide Sales for Rapiscan, said:

"Following extensive pre marketing and product promotion, everything is now
moving into place to capitalise on the unique offerings of the 3D X-ray
technology. We are seeing renewed regulator interest in the product and from
market comments I am sure it has a particular role to play in the constant
battle against world wide terrorism in the security arena particularly"


For Further Information

Nicholas Fox, Chief Executive
Image Scan Holdings 01664 503 600

Tony Crane, Director (or Peter Williamson)
Rapiscan Security Products Ltd 01293 540 661

Jonathan Retter, Associate Director 020 7459 3600
Durlacher Ltd

"Image Scan Holdings Plc (IGE LN), the provider of 3D and X- ray technology, added 4.5 pence, or 13 percent, to 40, the biggest gain since December. The company said its technology is used in Rapiscan Security Products Ltd.'s new screening system. "

bl.berg



7m Market Cap and with IP and a pipeline that is set to punch with style through 2004/5

http://www.advfn.com/cmn/fbb/thread.php3?id=5390142

DYOR

G.

She's going for it :-)

No takers?

I've bought some although not many others have this morning. The price is up nevertheless.

Hi Smithy,

Not a bad number notched up now - highest volume for some time!

G.

Hello Garth, saw you started a thread on IGE, took a small punt this morning and now starting to do more serious research......and noticed the AGM is on Thursday 24 March....I might go and check out the management at the same time as doing a quick resume.....what do you reckon?

Hi Priscilla,

A pleasure to see you here! :-)

I emailed NP - didn't know if he'd be interested in the DEX technology for testing the Carolite components - core IP is in X-ray of plastics and non-magnetic metals.....
I see Surface Transforms had results today - busy day for you.

IGE CEO Nick Fox invited me to go and have a look round at an analysts/shareholders tour & presentation they are doing. Unfortunately its term time and so thats a no-can-do, but I'd loved to have gone. I can't remember the date but I'm sure they'd welcome you along - and I'd certainly be very keen to hear your comments. It may be the day of the AGM.

Louise George is company secretary. The number is on the corporate website at www.ish.co.uk

If you are in the mood for serious research then there's a fair bit now tucked away in the ADVFN thread - I'd be interested in hearing your thoughts - both positive and negative!

Warm regards,

G.

Just rung them and none of them are around today. But I like people called 'Nick' ....so I might try my luck with him on Friday when he is due to return. Could you please enable your e-mail user settings so I can send you a private email via MoneyAM?

Priscilla,

I've changed my settings :-)

Thanks.

G.

message sent 22.53

Hello Vasey

Nice to see you have seen this one.

That Garth is great to have on a thread.

Bit more action on the other board Pricilla.

Good rise again today, lets hope for a few press tips on the back of the Rapiscan deal.
An IC tip would do wonders for the price, just wish I had bought more.......

8ball :")

G.

Thanks for all your amazing hard work Garth.

Priscilla,

Sorted. Thanks,

G.

Spoke to 'the-other-Nick' (CEO) and I'm down on the list of those attending the upcoming AGM on Thursday 25th March. Post your questions here!

Great. I'll get somequestions together :-)

G.

A little surprised we dropped back to 40p.
Lets hope this becomes our support level and we bounce back.

Vasey... I Would be interested in their opinion on competition.
Also if they have any need/plans to raise cash.

8ball, looks like it might be :-)

Yes Garth looks like it.

I was hoping for a bit more press coverage.
Still very pleased with my investment and happy to wait.

Is Vasey the only one here going to AGM.......

Vasey

Can you ask what their budget for Sales in the current year and next. Don't suppose they would tell you in open forum but may give you a pointer privately.

GE buying InVision, tragic events in Spain, security all over the news. Image are making an important contribution. AGM/open day coming up, CBA due out next month.....

G.

Image Scan Holdings PLC
17 March 2004

17th March 2004





Image Scan Holdings plc ('Image Scan')

Industrial Sales of Axis-3d(R) Technology



Image Scan, a leading provider of multi-view, 3D X-ray imaging technologies for
the security and industrial inspection markets, is pleased to announce its first
commercial sale of their Axis-3d(R) technology into the industrial sector. The
sale, through its trading subsidiary 3DX-RAY Limited is to Amersham, the world's
leading supplier of nuclear medicines for imaging and diagnostics. Amersham
have acquired two customised versions of Image Scan's three dimensional X-ray
imaging systems for use in their sophisticated waste and decommissioning
facilities. The units will be used to help Amersham more cost effectively and
safely comply with stringent regulatory and internal safety requirements for the
disposal of waste products.



Following several months of intensive evaluations in which Image Scan
consistently demonstrated the ability to clearly identify and localise items of
interest within sacks of waste, Amersham's Director, Liabilities Management,
said:



'Having fully evaluated this technology we believe it represents the next
generation of X-ray inspection equipment for our industry. Amersham have
researched and tested a number of techniques for this application and believe
that the Image Scan solution provides the best performance, value for money and
importantly, ease of use out of the systems available today. We are delighted
to take delivery of the two new Axis-3d(R) units.'



Nicholas Fox, Chief Executive of Image Scan, said:



'The sale of these industrial inspection units to Amersham represents a
significant endorsement of our 3D technology for the industrial sector.
Building on our core expertise developed within the security sector we are
delighted to see our novel technology beginning to take a foothold in the
industrial sector.'

I've been rummaging around doing my own research before I decide on how significant a holding I want to take in IGE. I thought I would share with you some of my notes.

Of course I began with the accounts that shareholders will vote on at the AGM. I started with the directors' holdings and was a little puzzled that as of the year end Raymond Gibbs, an Executive Director only owned 60,000 shares (approx 24k) and that Simon Godber owned no shares at all, despite being an Executive Director.

A bit of digging later, I found an RNS confirming that on 29th Oct Mr Gibbs increased his holding to 345,000 shares but Dr Godber, while having a number of share options, still doesn't own any shares in the company. However he has been with the company, originally as a consultant and then a full time employee, from the formation of the company, so he probably is pretty committed. I would like to see him buy some shares from his own funds though.

My second area of curiosity was to discover if IGE faced any major competition for their products. My trawl of the internet suggests there is no competitive product for the AXIS-3D unit or the MAXIS-3D unit and that they are at least competitive with all existing manufacturers for the 2D imaging systems.

The industrial sector appears much more fragmented but the 3D-X-Ray imaging seems to be unchallenged.

If they continue to make sales such as the ones announced today, there will be less pressure to raise cash and, depending on the value of the contract, which will doubtless come out at the AGM or even before, we should be clearer as to when break-even/profit it reasonable.

Thanks for the research V. Good day for Image. The RNS is a great endorsement of the technology!

G.

Agree Garth

A very encouraging RNS.
As we have already said, the great thing is the number of applications in many industries.

More than happy to hold long term......

Up 15% the last two days and rightly so. It'll be interesting to see at what point Shares Mag finally notice the story and do it some justice...

G.

Up 20% on the week and just the start. Not bad in the face of market movement the other way. 70p here we come. :-)

G.

Bon Voyage merry travellers.

:-)

The IGE AGM and Open Day

I caught the 07.30 train from Kings Cross to Grantham because I was determined to attend the AGM. Most people were encouraged to arrive on a train that guaranteed they couldnt make the AGM . That was the train Image Scan arranged taxi transport for and as Grantham Station is a good 25 minutes and a 25 taxi ride from Melton Mowbray, this was a strong incentive for most people to take up the offer.

However, two of your representatives WERE at the AGM. But the formal process was over in exactly FIVE minutes and there was no opportunity to ask questions. Those of you who know me from other threads know that I always have questions for the directors, but today I encountered some novel obstacles. Firstly, while the shareholders all had badges to identify them, the directors didnt and nobody introduced themselves during the formal proceedings. Thus how was I supposed to know who was the Finance Director or what his name was, for example? Indeed, who was the Chairman? All he wanted to tell us was that where we were holding the meeting was once a secret meeting place for the former Prince of Wales and Mrs Simpson.

There was no trading statement which I found particularly disappointing as this is (normally) one of the set pieces of the year when shareholders get to know what has been happening since the year end, in this case 30 Sep 2003. Nothing. Not a word. I would have asked this and many other questions, but the directors left the room like scalded cats six minutes after the AGM began, and most of them did not come back for a considerable time. Indeed, the Finance Director, we were later told, had gone to take one of the AGM brethren back to Grantham Station so that was him absent for nearly an hour, given that it is 25 mins in each direction. So precisely when was I supposed to pose any questions I had lined up for him? Questions such as; why did the Cost of Sales increase over the year from 262,840 to 389,016 whilst the turnover stayed almost the same during the same period? Whether he saw the possibility of additional fund-raising in the foreseeable future (2 years)? Etc..

Now I worry when directors dodge questions and I cannot believe somebody less senior couldnt have driven whoever-it-was to the station so the Finance Director could make himself available to shareholders. Nick Fox also scampered off and never came near the two people he knew had made a considerable effort to be there. So I was unable to ask when the directors now believed the company would reach break-even or why we didnt get a trading statement or who-what-when-why any other questions either!

Anyway, once the folks had been collected from the station and settled into the meeting room, Nick Fox started a presentation, which was, for the most part, a shade too tecchie for ordinary shareholders. But this is a key point. These guys are techies. They are highly qualified experts in their fields, interested in research and development. PR, marketing, financial detail and sales projections are not subjects they did Ph.Ds in at university. So therefore, we heard nothing on these points. Nothing.

After 10-15 minutes from Nick Fox, Simon Godber (Security Techincal Director) and their Industrial Technical specialist (who, interestingly, is not a director) we were split into small groups and taken over to the research site to look at the products they are developing. But a quick resume would be to say Nick Fox explained ISH does not manufacture on site. Production is sub-contracted. They are purely research and the company is effectively divided into two main divisions, Security and Industrial. There is a medical branch but they were mainly focused on those two. Their main focus is on making X-Ray cameras to get 3D data. They put their cameras in other peoples machines, such as those of Rapiscan. Hence their main focus on the security side is hand baggage and getting a better image at a fast speed which would be acceptable to airport authorities who do not want long queues of people waiting to be processed when they could be in the shops, airside, spending money.

The Industial aim is to produce a machine that identifies rejects or potential problems - such as bones in fish fingers, bolts in production-line pizzas, faulty syringes etc.

Anyway three of the threadies were in one group that set off for the look-seeand guess what? We had the Finance Director as our guide! An opportunity we did not waste.

We did the tour or the various bits of kit and got to ask questions of the people demonstrating the relevant machines but I dont think I was the only person to start wondering whether these machines had a ready market of buyers, champing at the gates to buy them. Some were not ready to sell and were still being developed or tweaked but nobody said they were working on any orders for specific customers, except in the case of a rather nifty bit of kit that could X-Ray a small vehicle which would help security officers check what could be inside any suspiciously parked car somewhere. Maybe a government department might be wanting that sharpish, but how many of these were the company likely to produce? Profit margins?

We then went upstairs for a very pleasant buffet lunch, yes with pork pies, before you ask! Your threadies soon bolted off upstairs though when we heard there was a chance of seeing another piece of equipment, a sort of train set they had devised to show a simulated moving production line and screen results of the X-Ray images. This is the sort of demo they take to trade shows, exhibitions and the like and we learned that the big boys in the industry, such as Smiths Hyman and GE were prepared to put their equipment into high profile locations, such as the Athens Olympic Games AS A LOSS LEADER. That is going to be a bit of a problem for IGE who need to make a decent return on their sales and may find it hard to undercut their competitors where they exist.

All too soon, we were told that those wanting to catch the 14.21 train had better start moving and three of us travelled together, swapping observations all the way back to Kings Cross.

My conclusions. Firstly, I dont know why we didnt get a trading statement or opportunity to ask questions of the directors. They disappeared so fast, I was uneasy.

Secondly: No mentions of financials, marketing strategies, sales or PR to promote the company or its products. The figures in the accounts to the year end make it possible their cash-flow could become stretched in many possible ways within the immediate next 2 years.

Thirdly: Great scientific products and brains behind them, but that is where the assets of the company are. The people. Such as the Techincal Wizard in charge of the Industrial division. But he isnt a director and I couldnt see that he has been locked in by share options. He could leave and so could many other talented people. Now, I freely admit I could have missed an RNS where he was appointed a director.but I dont think I did and I never got a chance to ask Nick Fox why one division merits a director and the other doesnt.

The financials offered in the Report and Accounts promise profit in year 2005. Based on orders received? negotiations in progress? Market research? A kindly house broker? I have no idea but having spent a day at the company, I should have some idea, surely?

They kept us moving at a goodly pace but were the directors dodging us? If so, why?

I shall not be adding to my holding in the immediate future. But if I hear from the directors to answer any of the points above, I will certainly update you

Sorry, Garth. More questions than answers on this day out.

Vasey....

Thanks for the detailed report.

Just for interest, there is a major security exhibition in June at Sandoown Park: INTERSEC

Website here:
http://www.intersec.co.uk/ise/index.html

You can pre-order free passes to the conference by following a link from that page.

As far as I am aware Image Scan are not exhibiting directly themselves (although Rapiscan are), but I have heard a little rumour that they will be there. Surprised it wasn't mentioned on thursday actually. :-)

"Exhibition & Conference Security
Due to the nature of our event, all exhibition visitors and conference delegates must pass themselves through metal detectors and all their belongings through x-ray equipment prior to entering the site. Our security operatives are DfT accredited and trained to Level 3."

G.

The 3D20 is now featured on the Rapiscan website:

http://www.rapiscan.com/3d20.html

"The 3D20 is the only checkpoint screening system that enables operators to view three-dimensional images of scanned baggage."

G.

With the revelation that both QuinetiQ and Sharp are working with IGE to put 3D X-Ray baggage scanners into airports; orders for critical software components for training staff in next-gen baggage screening techniques, todays news of further industrial orders, a compelling CBA due towards the end of the month and the US launch by Rapiscan of the 3D20 next week, how long till these hit people's radars?

The 3D20 scanner was the product of choice to scan the baggage of everyone entering the major INFOSEC Security conference and expo last week.

Todays announcement of a sale of the kit for industrial NDT to a blue chip auto component manufacturer hinted at future global roll-out of the scanners at their factories and represented a commercial break-through:

"Image Scan offers a technical solution that hitherto had not been considered commercially viable.

The technology, which offers a very rapid return on investment, also opens up a clear opportunity for our customer to employ more of these systems in their
facilities on a global basis."

DYOR. Still my share for 2004. Price 36.5p, House broker forecasts of 6p eos next year. Do the sums.

G.

Is it any wonder that the Durlacher note on IGE called this an "increasingly hot sector" and Image Scan a "unique and immediate investment opportunity"?

Found this very interesting piece on TIP software. Has some pages about stereoscopic x-ray imaging (for which read 'as in AXIS-3D'). If there is any doubt that Image are a significant player in this arena, just skip down to pages 21-22.

http://www.ece.utk.edu/~lme/TIP.pdf

And then there is that recent software order to add to the equation....

Regards,

G.

Now, 18 months after some brilliant early posts from Garth and others, the SP is on the floor and may have bottomed. It has come up on my radar as a possible recovery stock following significant directors buys and some encouraging news about orders. Is anyone else watching?
sd.

YES, But to early to buy yet!!

F1: Entirely agree, and let's keep watching.
sd.

A very positive update on new orders today. Might be time to pile in at last.

Company Image Scan Holdings PLC
TIDM IGE
Headline New Orders
Released 10th January 2006
Reference TPXi_100106


BRITISH TRANSPORT POLICE ORDER NEW X-RAY SECURITY SYSTEM FROM IMAGE SCAN
HOLDINGS

Image Scan Holdings plc (AIM: IGE), a provider of real-time multi-view, x-ray
imaging solutions, today confirmed that its wholly owned subsidiary, 3DX-Ray
Limited, has secured orders valued in excess of 170,000 for its new portable x-
ray unit, the TPXi, all deliverable within the next 3 months. The orders include
units for the British Transport Police which intends to use TPXi to support
their fight against potential attacks on the British transport systems, such as
those seen in July of 2005.

The TPXi system, launched at Milipol on 22nd November 2005, is designed to give
the operator the greatest probability of detecting potential threats from
explosive, chemical or even biological sources concealed within suspect
packages.

Superintendent Phil Trendall, speaking on behalf of the British Transport
Police, commented:
`Our officers are in the front line protecting the transport infrastructure
against terrorist attack and it is very important that they have the best
equipment available to protect the public, help minimise disruption and keep the
rail system moving. The new TPXi product is one of the most advanced portable x-
ray systems available. Its exceptional image quality and robust wireless
capability are particularly important in terms of maintaining our ability to
manage the high levels of unattended items reported within the rail
environment. We believe this new capability will enhance significantly the
service we can provide the travelling public.'

Nicholas Fox, Chief Executive of Image Scan Holdings plc, added:

'Following on so rapidly from its official launch we are naturally delighted
with these initial orders, especially from such a prestigious customer as the
British Transport Police. These early sales signify another example of the
success of advanced x-ray imaging capability of our company, with the TPXi
system representing the latest tool in the fight against terrorism.

It is very encouraging to see that, at the end of our first quarter, orders in
the current financial year stand at over 870,000. This is in excess of the
turnover for the whole of the previous financial year and provides an excellent
start to the year.`

Share price has reacted very positively to this news - I just get the feeling that the renaissance for IGE has started. Jolly glad I took advantage of the placing last year.

The only thing that concerns me is that there is no large trades going through (ie those with a capital value exceeding 100,000) just private investors dealing. Could it be that the Mkt Cap is so small that the company doesn't feature on the majority of fund managers radar? Surprised that the fledgling funds haven't added.... but maybe they were approached at theplacing and have sufficient exposure and could be looking to realise capital.

Ah well - here's to 30p (in due course)!!

A very significant distribution deal announced this morning.

http://moneyam.uk-wire.com/cgi-bin/articles/20060509070000W2373.html

Posted yesterday........ Analysis selection from the "UPS" IGE 24p

IGE price 24p

A strong rising volume last Friday

A bullish scenario last November as it went into a Golden Cross in the chart following with a BREAKOUT and a retracement, now is on the bounce aiming for higher prices

The 3D and 2D X-ray imaging devices are gaining new business for the inspection of corporate and airport security, is ready for profitability in 2007 as the total order intake is at record levels

Has signed two distribution and a licence agreement within the security sector recently and could lead later to further opportunities for the special projects group

Golden Cross Chart for IGE


Golden Cross
"To form a Golden Gross, the 50 day moving average must cross from below the 200 day MA to above the 200 day MA, whilst the 200 day MA must also be rising".

IGE 25 - 26p +1.50p

up again and doing nicely

L2 ( Level 2) is 1 v 1

Could there be a new contract to be announced?? The sp has gone up by 73.53% this morning (though I hardly dare mention it, as it will inevitably drop now!).

sp climbed again today: up 12% to finish at 11.0-12.0p, with two big Buys going through at 13p later afternoon:
16:18:52 38,194 @ 13p
16:18:58 40,000 @ 13p

Today's RNS explains the recent rise in sp:

"Of particular interest is the sale to China which is a repeat order from an
existing client, following the purchase of their first Axis-3D(R) system last
year. The equipment will be used to provide heightened security measures for
key locations at next year's Beijing Olympics; delivery is scheduled for April 2008."

etc etc

April 10th the bank of England has just announced that the bank rate is now down to 5%The cost of living Up House prices down, bank loans costs are sky high.. I have to trade shares for profits to make ends meet, one of the investments that I hold is Image Scan Holding, yesterday the share price had traded Up 0.38p or 6.95% to 5.75p. Then fell back 1.

The Board of Image Scan, specialists in the field of real-time 3D and 2D x-ray imaging for the Homeland Security; and Industrial Inspection markets, announces that further orders have been received for its Axis-3d system from China and for its MDXi-400 system from Johnson Matthey in the US.

Avoid recommendation from Growth Company Investor

http://www.growthcompany.co.uk/recommendations/1053137/image-scan.thtml

investinggarden, you told us all to avoid, then today you bought 248000 shares. Make up your mind. :))
Mind you, a few more like that and I might get my dosh back...

Picked up 50K at 1.89p after the near 250,000 shares buy at 2p yesterday. Highest size buy in months and maybe something is in the offing. Trading partner in India news can't be too far away.
Level 2 very strong at 3 v 1 with the other 3 MMs on 2.50p offer.

The below news should bring about a significant re-rating imo. News can't be too far away and someone is already loading up in the market, 248K buy yesterday at 2p and 100K buy at 2p today.

Interims last month:-

'The Company is in the process of selecting a trading partner in India, involving
several months of market research and due diligence. It is believed that this
will offer the opportunity to capitalise on the recent sales into India and
respond to the significant demand for security equipment in that territory'.

At the moment the mkt cap equates to cash in bank, so any buy out would offer significant upside to investors.

The technology needs access to strong marketing support to fully penetrate the markets. I imagine Image Scan would be of great interest to certain parties.

My fag packet valuation:

Cash 1mn
Tax Losses Equiv value 1.5mn
R&D and future market potential 5mn

Total 7.5mn or 14-15p per share...

Any comments.

'Any comments' ?

Yep, you're a ramping, pump and dump mongrel

Have a nice day

Growth in India:-

The enhanced security measures are expected to boost India's private security business to 500 billion rupees by 2012 from about 220 billion rupees currently, according to the Associated Chambers of Commerce and Industry, a lobby group.

It will also increase imports of security products from companies in U.S., Europe, Japan and South Korea into India, Assocham said.

"Our business is flourishing as people are now security conscious," said Sanjay Rhode, marketing manager at Digital Security Products, which counts Indian Oil Corp. Ltd., State Bank of India and Delhi Metro Rail Corp. among its customers.

"Earlier, security was on the back burner of companies but now they don't have any other options."

http://online.wsj.com/article/SB122874664024188039.html

India will become the first country in the world to acquire Image Scan's 3D X-Ray technology to enhance the country's security.
http://www.igovernment.in/site/India-to-have-real-time-3D-X-Ray-tech-for-security/

Possible trading partners in India:-

Digital India Security Products
http://www.digitalsindia.com/

Vantage Integrated Security Solutions
http://www.vantagesecurity.com/

Honeywell Security India
Partner of Choice
'Who will you choose to partner with to win? The security industry is changing with new technologies, the influence of IT, more sophisticated end users and interesting competition. Successful security dealers and integrators will need even closer partnerships to continue to thrive. At Honeywell Security, we are committed to being the partner that will give you the best success in your business'.
http://www.honeywell.com/sites/portal?smap=honeywell_india&page=HIIPL3&theme=T6&catID=C01CB9B3E-88B1-F66B-564E-F69D1A4C1519&id=HEC82F1F0-B207-7497-9C5E-9CBF80801557&sel=5


ADT Security
http://www.secprodonline.com/Articles/2009/06/03/India-Airport-ADT.aspx

Other security provides on the software side also targettting doing business in India:-
June 7th, 2009
http://stuff.techwhack.com/6718-kaspersky-india

Gross profit in H1 2009 was only 326k. Admin costs at circa 1.4mln per annum are just too high for the business to be viable at current sales levels, IMHO. Even the planned savings won't reduce admin costs down to anywhere near the level needed simply to reach breakeven, unless sales practically double from recent figures.

I'd suggest there may be going concern issues with full year accounts, unless there is a dramatic turnaround.

This looks like one of those stocks that appears to offer promise without ever actually delivering....

Rgds
dell

All IMHO, DYOR etc.

Listen to an interview with Louise George, CEO of Image Scan.

Webcast

Listen:Bill Mawer, CEO, Image Scan Holdings - Half yearly report

Click here