Imaging product developer Image Scan is expected to follow recent order wins for industrial inspection equipment with product launches for security customers, including the military.

For long a market dog, AIM-quoted Image Scan, whose losses rose 50 per cent to £1.25 million in the year to last September, develops 3-D, multi-view and x-ray technology for inspecting industrial, medical and pharmaceutical processes. These have a wide range of applications, from almost instant identification of luggage contents at airports to similarly prompt checking of ingredients and quantities of drug compounds on the production line.

Last December, the company won a £601,000 order for its x-ray inspection system from leading speciality chemical and metals group Johnson Matthey, which chief executive officer Nicholas Fox argues so enhanced the credibility of its technology that the order outlook has been transformed. In May, Image Scan signed a licensing deal for its 'MimiX' software with Galaxy Scientific Corporation, a US market leader in software for training operators of x-ray security screening equipment.

Another, somewhat smaller order from Johnson Matthey could be on the way soon. Fox, who says much of the company's core technology involves x-ray cameras, is also looking to increase penetration of continental Europe through agents and to enhance cashflow through service agreements with smaller corporate customers.

Close observers believe Image Scan could soon come up with new security applications for its technology which could have a direct bearing on current national concerns. The company remains tight-lipped.

Floated three years ago at 65p by broker Keith Bayley Rogers, Image Scan's shares now trade at a mere 9.5p, which is at least an improvement on the 7p at which the company replenished its coffers with £874,000 in April. The broker suggests Image Scan could show losses cut to £730,000 in the year to next month and sees pre-tax profits of £555,000 in 2005-06 on sales up from 2003-04's £424,000 to £3 million.

At present the shares are a potentially rewarding high-risk recovery speculation for the bold.