Traffic enforcement systems developer Redflex Holdings is speeding to a nice photo finish for the year. The stock has rallied about 15 per cent over the past year during which the ASX Small Cap Industrials Index has barely broken even. But Redflex’s gains have everything to do with hopes that the embattled company will be taken over. Those hopes got a boost on Wednesday when Redflex updated the market on its sale process. Management said it had completed the due diligence phase and had received conditional and incomplete acquisition proposals. Redflex is negotiating with interested parties, including Macquarie Group. But investors will have to wait until early in the new year on whether a suitable formal bid will be forthcoming. The stock had been struggling since problems with its Arizona contract were revealed. The company is also facing a possible lawsuit by the Victorian government due to defective speed cameras it supplied.