Kromek is pioneering digital colour imaging for x- and gamma rays, using cadmium zinc telluride crystals. Indeed we have long felt that its revolutionary new cadmium zinc telluride (CZT) products could soon materially change the face of the global medical imaging, homeland security and nuclear detection markets. Encouraging signs can be seen in today's interims for the 6 months ending October 2015: the backlog closed up a healthy 19% (YoY) following $7m of orders (spread over 6-36 months, with Medical Imaging being the divisional standout) - representing a book:bill ratio of 1.4x and providing solid revenue cover for H2. Another key message from today's results was that the H1 numbers were bang on track with the Board's strategic aims - albeit with slightly higher near term investment, reflecting an acceleration of the business plan due to strong demand. Capital is being invested by Kromek, but that is why £11m (net £10.3m) was raised in August at 25p in an over-subscribed placing and open offer. As things stand, we think this funding should be more than adequate to see the company through to EBITDA profitability. News to hope for, barring any late hitches, would be if DARPA in the USA place an order for c. 12,000 DS3 (on-body detectors) worth in the region of $6m; followed possibly by another much larger contract sometime in FY17. We maintain our 42p share price target, but would highlight that if the company can achieve its strategic goals, then there is considerable upside for investors. |
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.