COVID-19 impacts short term outlook
Operating theatres have been converted into ICUs and non-critical procedures understandably postponed to free up resource for COVID-19 patients: so it was no great surprise either to hear today that part of Kromek’s scheduled deliveries for H2’20 have also been pushed to the right - exacerbated by some near-term supply chain issues (eg sub-contractors, site access).Despite trading well up to February, FY20 revenues are now expected to come in at £14.5m (£18.5m ED Est, £14.5m LY). Delivering a breakeven adjusted EBITDA (£2.0m ED, £0.5m LY), with April closing net cash of £5.1m (£9.2m ED, £7.9m LY) & gross funds of £10.0m.
The Group also now has two substantial coronavirus opportunities. It announced a fortnight ago that it would soon be manufacturing ventilators under license from Metran Co. Ltd. Japan’s leading such OEM and is planning to produce at least 2,000 of these much needed units by end July 2020.
And in December 2018 Kromek was awarded a $2.0m contract by DARPA (research arm of US Dept. of Defense) to develop a ground-breaking vehicle-mounted biological-threat detector. The project is well advanced and we understand the same 1st-of-its-kind science can also accurately & consistently recognise COVID-19.
We think their financial liquidity, augmented by £3m of annualised cost savings should provide sufficient financial ballast for the group to weather this temporary soft patch. As already shown in the fight vs COVID-19, where there is disruption, there is also opportunity
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.
Koninklijke Philips Electronics is active in the markets of healthcare, consumer lifestyle and lighting. Co.'s activities can be divided into three segments: Healthcare (Co. provides Imaging Systems, Patient Care and Clinical Informatics, Home Healthcare Solutions and Customer Services), Consumer Lifestyle (Co.'s products are divided into the following: Health and Wellness; Domestic Appliances; and Lifestyle Entertainment), Lighting (Co. provides lighting solutions for homes, shops, offices, schools, hotels, factories and hospitals; Co. also offers solutions for roads (street lighting and car lights) and for public spaces, residential areas and sports arenas).
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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