Kromek Group PLC (AIM:KMK) shares advanced on Monday, boosted by a trading update that revealed an influx off new orders.
The company, this morning, announced it had landed a new biosecurity award from the UK Ministry of Defence (MoD), as well as other orders in the CBRN Detection segment worth a total of c£860,000, with the majority to be delivered during the first half of 2026.
In London, Kromek was up 6.6% changing hands at 5.33p.
City-based stockbroker Cavendish repeated a 26p price target.
“We consider the orders provide increased visibility on Kromek’s future revenues and reflect the company’s building momentum within this segment,” the broker said in a note.
New business wins
The company landed a £250,000 biosecurity contract by the UK Ministry of Defence’s Defence Science and Technology Laboratory. The 18-month project is funded through the UK Government’s Defence and Security Accelerator and will develop new methods to detect biological agents and incidents.
The company has also received further orders for CBRN detection, worth about £860,000, with most units slated for delivery in the first half of the financial year to 30 April.
Among those orders is a $470,000 order for D5 detectors under an existing US federal IDIQ contract, bringing total orders under the agreement to $1.9 million. And, there is up to $1.00 million remaining to be ordered before the programme ends.
Kromek added that three additional orders for D3M detectors, valued at £252,000, have been placed by distributors for customers in Japan, Canada, and Bulgaria for use by first responders and homeland security.
High demand for Kromek's solutions
Chief executive Arnab Basu told investors that the influx of new business underscores the global demand for Kromek’s mission-critical solutions and the broad, growing base of organisations that rely on its technology.
“We are especially proud to have been awarded a new biosecurity contract by the UK Ministry of Defence, expanding our existing collaboration in nuclear security and reinforcing our position as a trusted partner in national defence,” Basu said in a statement.
“These orders provide increased visibility on our future revenue and reflect the strong momentum building in this segment.
“We look forward to reporting further progress as we continue to scale and deliver on our strategy."