Technology investment group Axiomlab will this week announce the first significant contract for one of its fledgling companies.

Image Metrics, in which Axiomlab invested £510,000 last December, is to unveil a million dollar contract with a leading US animation company.

The deal is three times the size of any previous contracts won by the company.  Manchester-based Image Metrics uses software to analyse and create images.

Potential uses include medical imaging, security systems that can recognize individual faces and creating digital special effects for film-making.

Axiomlab floated on the Alternative Investment Market last year at 5p a share and rose to 17p.  The stock has since slumped to 3.5p.  Results last week showed a loss of £2.44 million in the year to April.