SHARE PUNT OF THE WEEK

PRICE: 7p

WHAT IS IT? Image Scan Holdings designs, makes and sells X-ray machines and security systems for customers such as police, military, security services and airports. Its ‘ThreatScan’ range can identify bombs and suspect packages, while its SVXi range of machines can inspect small vehicles. The firm, founded in 1996 and listed in 2002, also offers tailor-made X-ray systems to laboratories and production lines.

WHAT’S THE LATEST? Shares are up nearly 60pc since a trading update in July. After stating it was performing in line with market expectations in its interim results in April, it said rapid growth in demand for its security and industrial products – including £2.5m worth of orders – means full-year performance is likely to be well ahead of predictions. This was two months after it raised more than £500,000 to accelerate the launch of new products and increase its research and development expenses.

WHO BACKS IT? According to filings on Thomson Reuters, UK asset management giant Old Mutual Global Investors owns 8.1pc. Chairman William Mawer owns a 4pc stake and is a veteran of the sector, having worked for 13 years at Smiths Group.

WHY YOU SHOULD INVEST Interest seems to be picking up, and the fact it has raised money to boost operations suggests it believes momentum will grow. Security is always in demand. Image Scan looks worth a punt while its shares still have a lower price to earnings ratio than many rivals.

…AND WHY YOU SHOULDN’T The recent rally follows years of middling performance, so some will want to see more evidence that growth will continue.