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Kromek Group hails order momentum across all three divisions

Snapshot

  • Developer and supplier of radiation detection products
  • Sells to medical, security screening and nuclear markets
  • Operates in UK and US with international distribution network
nuclear

Quick facts: Kromek Group PLC

Price: 17.25 GBX

AIM:KMK
Market: AIM
Market Cap: £59.45 m
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What Kromek does

Kromek Group PLC (LON:KMK) is a developer and supplier of radiation detection products for the medical, security screening and nuclear markets.

The company’s products are based on cadmium zinc telluride (CZT), an alloy used primarily for x-ray and gamma radiation detection, as well as other technologies.

The group has operations in the UK and the US and sells its products internationally through a network of distributors, original equipment manufacturers (OEMs) and direct sales.

 

How is it doing

In September, Kromek won two contract extensions for its D3S nuclear detection platform worth a combined £1.6mln in the current year.

The company previously predicted further growth ahead as annual revenues rose by more than a fifth and underlying profits jumped four-fold.

Kromek recently won the largest order in its history (worth US$58.1mln) to supply CZT medical scanners to a customer over the next seven years.

Revenues to April rose 23% to £14.5mln while underlying profits [EBITDA] jumped to £2mln from £0.5mln.

Losses were reduced to £1.3mln from £2.5mln.

 

What the boss says: Arnab Basu, chief executive

"The D3S family of products is gaining increasing momentum globally, with sales in 18 countries, as governments continue to adopt innovative solutions for countering the threat of nuclear terrorism. We are also pleased to be receiving further orders from existing customers, which reflects the value that they gain from our solutions."

"With some of our multi-year trials approaching a successful conclusion, we look forward to additional product and system-level sales of this leading-edge solution in the future."

 

Inflexion points

  • Additional orders in all three divisions
  • Airport safety standards tightening around the world
  • Nuclear detection system now being incorporated into drones
  • New opportunities in biological detection
  • The company has new manufacturing plants in the US and UK

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Top stories from the Proactive Investors UK newsroom. Kromek (LON:KMK) has been awarded three contracts worth £1.6mln for its D3S platform for nuclear radiation detection. The largest contract, worth £1.1mln, is with a UK government-related company. Avation (LON:AVAP) has seen another...

on 1/7/19

2 min read