EBITDA breakeven achieved on record sales
Kromek is pioneering digital colour imaging for x- and gamma rays, using cadmium zinc telluride crystals. Key markets include medical imaging, homeland security and nuclear detection.Recently the Turkish police, only after acting on a tip-off, managed to thwart a potentially heinous plan to sell 1.4kg of radioactive material (worth £49m) on the black market. Which is exactly why the US Department of Defense (DoD) has committed to develop an early warning system for the detection of ‘dirty bombs’.
Here Kromek has already shipped >10,000 D3Ss to the DoD - and in March won another $1.6m contract to further enhance its state-of-the-art technology. The hope being ultimately to roll-out the device across 20+ US cities (each worth $10m+), along with securing similar orders in other geographies (eg Europe).
Encouragingly too, the company is hitting its numbers. Saying this morning that trading for the 12 months ended April 2018, had been “in line with expectations†- achieving “EBITDA breakeven†(Act -£311k H1 vs ED £300k H2) on top of positive revenue growth (ED £12.5m; Act £4.8m H1 vs ED £7.7m H2).
Kromek also continues to “gain traction†across “all its business segments†– and expects further growth in FY19. As such, we make no change either to our numbers or 37p/share valuation. Albeit we note that at 22p, the stock trades on a modest 3.6x FY19 EV/sales multiple vs 5.2x peers, despite its superior growth trajectory.
General Electric is a technology industrial company. The company's segments include: Power, which serves power generation, industrial, government and other customers with products and services related to energy production; Renewable Energy, which engineers and manufactures energy equipment and projects, grid solutions and digital services; Aviation, which designs and produces commercial and military aircraft engines, digital components, electric power and mechanical aircraft systems; Healthcare, which provides healthcare technologies; and Capital, which provides financial products and services that build on the company's industry capabilities in aviation, power, renewables, healthcare and other activities.
Hologic is a developer, manufacturer and supplier of diagnostics products, medical imaging systems, surgical products and light-based aesthetic and medical treatment systems. The company's segments are: Diagnostics, which provides diagnostic products which are used to aid in the diagnosis of human diseases; Breast Health, which provides solutions for breast cancer care for radiology, pathology and surgery; Medical Aesthetics, which provides aesthetic treatment systems, including SculpSure, PicoSure and MonaLisa Touch; GYN Surgical, which includes NovaSure Endometrial Ablation System to treat abnormal uterine bleeding; and Skeletal Health, which includes the Horizon DXA, a dual energy x-ray system.
Kromek Group is a developer of radiation detectors based on cadmium zinc telluride, providing detection and characterization capabilities within the medical imaging, nuclear detection and security screening markets. Co. designs, develops and produces x-ray and gamma-ray imaging and radiation detection products.
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