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.

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'.