Olympus has announced the VH-520, hoping to bring clever low-light tech and image processing to a budget camera. At £129.99, the VH-520 includes iHS technologies that let you snap colourful low-noise pictures in any lighting condition.

The camera also includes a TruePic V image processor, normally found in DSLR cameras. There is also a 14-megapixel CMOS sensor paired with a 26mm-260mm 10x optical zoom lens. The built in image stabilisation should work all the way up to 6400 ISO, where the camera tops out.

Other tweaks include things like a HDR backlight adjustment so you can correctly expose when shooting directly into light sources. Full 1080p movie mode is included at up to 240fps, which will allow for slow motion. The image stabilisation also works while shooting movies.

At £129, the compact clearly packs quite a punch for the price. Image stabilisation to our mind should be the most handy feature. Keeping the ISO down will help on noise and the TruePic V processor will clean up pictures further. Throw in a nice and wide lens and a selection of colours and you have a great value for money snapper. Olympus says the VH-520 will go on sale in April.