Fully-listed retinal screening technology specialist Optos, established after founder Douglas Anderson’s five-year-old son went blind in one eye when a retinal detachment was detected too late, now counts over 8m retinal exams using its innovative imaging device – up 40% from the first half of 2005.

Optos’ ‘unique non-invasive imager’, captures a high-resolution digital image of the retina. While routine examination methods provide only a limited, narrow-field view - typically less than 5% in a single capture – its new scan captures over 80% of the retina in a mere quarter of a second.

The company believes this ‘optomap’ device will significantly reduce the risk of missing early signs of eye diseases as well as highlighting other non-eye related diseases such as diabetes, hypertension and certain cancers.

The technology is leased on three-year agreements, and each use incurs a charge subject to a minimum monthly amount. At present Optos boasts a 90% renewal rate of leases for its devices, of which there are over 2000 installed (up 39.7% from the first half of 2005).

Interims to March revealed near 44% growth in revenues to £16.9m, of which 96% arose in the US and 4% from Europe. Entry into the French and Spanish market is targeted for the next 12 months, with Japan also on the radar, although a lengthy regulatory process could mean that this is 20 months away.

Floated in February at 250p, the shares have suffered recently, perhaps due to perceived difficulties in breaking into the UK market, although studies are currently underway by an NHS trust to test the suitability of the device. Optos is currently trading at 197p – valuing the company at £129.6m – well south of the 285p targeted by brokers.

House broker Goldman Sachs regards Optos as a ’compelling long-term growth stock’ and expects the shares to 'outperform'. Analysts tip Optos to break even in the second half and become profitable in 2007 to the tune of £2m at the pre-tax line. The shares are certainly appealing.

Optos	LSE	£49.36m	71.00p	0.00p
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Optos			21/07/2006