Security screening contract order expansion
1 May 2019
Kromek Group plc
("Kromek" or the "Company")
Kromek receives Security Screening Contract order expansion
New order represents increase of $2.7m in contract value
Kromek (AIM: KMK), a worldwide supplier of detection technology focusing on the medical, security screening and nuclear markets, is pleased to announce that it has received an order expansion under its five-year contract in the security screening market that was awarded and announced on 22 February 2017. This order expansion has increased the total value of the contract to a minimum of $5.8m over the period, with the additional $2.7m expected to be recognised over the next 24 months.
Kromek commenced delivery under the contract in 2017 with orders as expected for the first two years. For years three and four, the customer has increased its order quantities resulting in the contract now having a minimum value of $5.8m, compared with the original $3.1m minimum, over the five-year period.
Arnab Basu, CEO of Kromek, commented: "This was our first long-term contract in the security screening market and we are pleased to see the value now increase by almost 90%. This latest order expansion is an endorsement of the strength of our detection solution and credentials as a high-quality product supplier. We are gaining traction across all our markets as our customers continue to recognise the value that our technology adds to their products. This customer, like many others, is seeing increasing market adoption of its next-generation equipment that incorporates our detection solutions, and so we will continue to benefit from this growing momentum."
This announcement contains inside information.
For further information, please contact:
Kromek Group plc
Arnab Basu, CEO
Derek Bulmer, CFO
+44 (0)1740 626 060
Cenkos Securities plc
Max Hartley (NOMAD)
Julian Morse (Sales)
+44 (0)20 7397 8900
Luther Pendragon Ltd
+44 (0)20 7618 9100
About Kromek Group plc
Kromek Group plc is a technology group (global HQ in County Durham) and a leading developer of high performance radiation detection products based on cadmium zinc telluride ("CZT") and other advanced technologies. Using its core technology platforms, Kromek designs, develops and produces x-ray and gamma ray imaging and radiation detection products for the medical, security screening and nuclear markets.
The Group's products provide high resolution information on material composition and structure and are used in multiple applications, ranging from the identification of cancerous tissues to hazardous materials, such as explosives, and the analysis of radioactive materials.
The Group's business model provides a vertically integrated technology offering to customers, from radiation detector materials to finished products or detectors, including software, electronics and application specific integrated circuits ("ASICs").
The Group has operations in the UK and US (California and Pennsylvania), and is selling internationally through a combination of distributors and direct OEM sales.
Currently, the Group has over one hundred full-time employees across its global operations. Further information on Kromek Group is available at www.kromek.com and https://twitter.com/kromekgroup.
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Quick facts: Kromek Group PLC
Market Cap: £69.2 m
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