Shares in Kromek Group PLC (LON:KMK) opened higher after the radiation technology company announced a new five-year contract from an existing customer.
The customer, which operates in the bone mineral densitometry sector, intends to incorporate Kromek’s cadmium zinc telluride (CZT)-based detector modules in a new medical diagnostics product.
WATCH: Contract 'validates increasing traction of Kromek's CZT-based detectors'
Delivery on the contract, which is worth a minimum value of US$5.38m, is expected to begin in the current financial year, which runs to the end of April 2018.
Dr Arnab Basu, chief executive officer of Kromek, said the order validated the company’s belief that CZT-based detectors will become a core technology in the diagnostics industry.
Kromek expects to be one of the major suppliers to this segment, Dr Basu said.
“The agreement also demonstrates the strong relationships we build with our customers and the company's commitment to securing further contracts in the medical imaging sector," he added.
Kromek’s shares were up 2.2% at 29p.
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