Aim-listed Image Scan – developer of 3D x-ray and light scanning technologies for the security and industrial sectors – grew sales 700 per cent to £502,697 in the year to September and, having recently signed a commercial agreement with security systems specialist Rapiscan, anticipates further strong growth in 2002/03. Elliott Davis reports.

Rapiscan specialises in producing the baggage scanning machines used in airports and snared itself 60 per cent of all new sales to this market last year. News that it has entered into a manufacturing and marketing agreement with Image Scan thus looks fairly significant for the company, which today announced a £664,607 (£523,592) full year loss.

However, chief executive Nicholas Fox strikes a note of caution, reminding investors that Image Scan's 3D technology will make any joint product a 'premium offering'. He also warns that initial take-up may be fairly slow as the security industry 'is, by nature very conservative: you are dealing with people's lives and the likes of the British Airports Authority don't want to take new technology unless they're sure it works'.

Nonetheless, Fox reiterates that Image Scan hopes to break even in the second half of 2002/03, adding that to reach full year break-even the company will need to generate sales of between £1.6 million and £1.8 million. Some £377,000 of revenue has already been contracted for the period.

Aside from its work in the security sector Image Scan's technology is being targeted at several industrial sectors including food production. Applications include scanning food packaging for contaminants and, somewhat bizarrely, reducing wastage in cauliflower picking.

Longer term Image Scan has also set its eyes on the medical sector and is currently trying to apply its technologies to the detection of cervical tumours.

Shares in Image Scan perked up 3 per cent to 64.5p on today's results, valuing the company at £10.5 million.