3-2-1…we have lift-off’ for all of KMK’s end markets
The 19th July 2021 will hopefully ‘go down’ in UK history as the day Covid switched from being a pandemic to an endemic disease. Pent-up demand & acceleration of deferred OEM product launches should also provide a multi-year tailwind for Kromek’s end markets of Medical Imaging, Security Screening, and Homeland Security.Furthermore, their airborne Covid detector is already making great strides, having commenced field trials in schools, airports (eg Teesside International) and other locations under a £1.25m project with funding from Innovate UK. Plus the device’s efficacy is presently being clinically validated by 3rd party laboratories. Where it is demonstrating “very positive” performance in terms of sensitivity and specificity. In fact, comparable with ‘gold standard’ PCR tests.
Today’s FY21 results saw adjusted FY’21 EBITDA (pre share based payments) come in slightly better than our estimates at -£1.7m (vs ED -£1.9m) on turnover of £10.35m (ED £10.0m). Alongside net cash closing April at £7.4m (split cash +£15.6m, debt £8.2m), after Feb’s £13.0m (gross) fundraise at 15p.
We reiterate our 26p/share valuation based on the strong rebound in demand. Noting the stock at 16p trades on 4.1x FY22 EV/sales vs 5.0x for the sector, yet is set to grow materially faster over the next few years.
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.
Equity Development enables companies to become better understood and supported by investors. Since our launch in 1996 we have consistently focused on helping our clients improve their communication and relationships with both existing and potential shareholders. Our clients have come from a wide variety of sectors and domiciles, are both private and quoted and range in size from micro-cap to $multi-billions. We offer free access to company research notes written by experienced analysts. These notes include detailed forecasts, financial models and a fair value. We host regular Private Investor Forums at which investors have the opportunity to hear company directors present, and to ask questions. These are free to attend. We broadcast live Webinars with company management that include active Q&A. We also make the recordings available online. We arrange face to face meetings between private investors and company management. We are active users of Twitter, commenting daily on company news, share price moves, Directors’ Dealings, Equity Development Research Notes & Events.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.