Kromek’s new radiation detection contracts underpin existing forecasts, which included an implicit award of new business, but nevertheless illustrate the increasing interest in its handheld technology, says finnCap.
The broker has maintained its forecasts and 27p target price but adds that the interest from government agencies in Kromek's products in the CBRN (nuclear, biohazard) detection segment reflects an increasingly uncertain geopolitical backdrop.
“We anticipate the distribution arrangement with Smiths Detection, announced in July, to catalyse increased demand for Kromek’s products, given its size, reputation and international reach.
“Equally, we hope to see a second major medical imaging supply contract from an OEM customer during the current financial year, which should drive investor interest and underpin our investment thesis.”
Shares rose 4% to 10.5p.