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Kromek profit warning sinks shares just 5 months after AIM float

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Kromek (LON:KMK) shares are now sinking, just five months since its AIM float.

The radiation technology developer slumped more than 40% this morning, as the fledgling company issued a profit warning.

It said a delay in a number of large contracts means that revenue for the twelve months to 30 April 2014 will be significantly below the market’s current expectations. As a result, it no longer expects to break even in this financial year.

Another factor contributing the shortfall is a slower than expected “build up of sales and marketing resources” since it raised £15mln through October’s IPO.

Upon listing Kromek was valued at £55mln. Following a 47% drop in the share price, down to a new low of 35.5p, this morning Kromek is now valued at just over £38mln.

"The management team have demonstrated their ability to rapidly grow the business and yet I know they are disappointed that growth will be slower than they had forecast,” Kromek chairman Richard Morgan said.

“The board is confident in the medium term prospects for Kromek and the recent advances in our technology development only add to the already substantial market opportunities to create a technology leader and a profitable and valuable business."

Quick facts: Kromek Group PLC

Price: 15.2621 GBX

AIM:KMK
Market: AIM
Market Cap: £52.6 m
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