Kromek Group PLC (LON:KMK) shares surged in early trading Monday after it clinched a long-term supply agreement to customise its technologies for baggage screening systems.
The firm, which develops radiation detection systems, said the contract would commence immediately and run for a five-year period, with an estimated worth of US$7.8mln.
READ: Kromek secures US$1.8mln from US defence department to develop radiation detection device
The contract is with one of Kromek’s existing customers, an x-ray systems maker, and would cover the customisation of its current technologies and CZT detector modules for deployment in the baggage security screening market.
CZT stands for cadmium zinc telluride, a semiconductor used for x-ray and gamma radiation detection that can operate at room temperature.
The firm's systems have already been used in high-level security, with its D3S detector deployed at the July 2018 NATO summit in Brussels earlier this year.
Arnab Basu, chief executive of Kromek, said the latest win continued a trend of multi-year contracts for the firm as its customers moved away from legacy systems to embrace CZT detection technology.
"Our expertise makes us ideally positioned to develop customer-specific detector modules and to efficiently deploy these in advanced screening systems for real-world use" he added.
Shares were up 8.6% at 25.2p.
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