Kromek’s biohazard and radiation detection technology is becoming increasingly relevant as the world becomes a more dangerous place, according to Equity Development.
The research house, which has a target price of 26p against a market price of 7.8p, highlighted a number of recent incidents including a Minnesota nuclear power plant leak, a missing caesium container in Bangkok and the recent recovery in Libya of 2.5t of uranium concentrate.
"All are timely reminders of an unsafe world," said the researcher, adding Kromek’s technology has two key advantages: practicability – making ultra-high performance detection devices compact, robust and easily deployed – and connectivity – enabling data sharing and analysis, to facilitate rapid response.
Contract wins have been steady over the past six months and ED expects sales this year (April 2023) to see a 49% jump year-on-year to £18mln, with underlying profits (adjusted EBITDA) of just under £1mln.