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My bet is that Kromek will be the subject of a takeover offer within 18 months. They have the products, Covid hit them because of the reduced investment, in medical needs other than dealing with the pandemic. That is changing now. Also Covid has caused supply chain problems, which not only causes delays to orders but soaks up working capital until orders are shipped and payment received. Difficult for a small company, even with the right products to sell, that is attracting large orders.
My thinking is that they would be better off if they operated as part of a group of specialist companies, rather than being alone. Interesting that finnCap have been appointed as they advise such a company in SDI. Am not suggesting that it will be them that will make an offer, but would not rule out. More so, that finnCap will understand the problems that Kromek face and will be able to give them beneficial advice. Conveniently, should an offer emerge, say next spring, when the numbers are more appealing. Their Cavendish unit would be invaluable in negotiating the sale of the business. To a larger company that will retain the integrity of Kromek but will have control of the finance and able to smooth out short term capital needs.
If an offer is not received or accepted, no worries. As the numbers in terms of order values are moving upwards. The sp will recover somewhat in any case over the next twelve months.
An excellent summary of the current position… thanks
Explosive detection market growth
Anyone access this report ?
https://www.digitaljournal.com/pr/explosive-detection-technologies-market-growth-analysis-2022-industry-size-global-share-top-manufacturers-safran-smiths-l-3-communications-kromek-business-revenues-impact-of-covid-19-region
NED director share purchase - nice to see though suspect others will comment negatively re other directors
NED purchase was sizeable -£30,000 positive ?
strategicinvesto, why even suggest that which is "negative" in itself, especially in the face of what is basically a positive RNS?
Careful chaps - "Strategicinvesto" is paid to ramp this share or connected to the company (IMO). He is on here and Advf n but only posts positively about KMK no other shares.
Yes is positive. I would like to see directors take bigger stakes to increase my confidence…. disappointing that they don’t
Unlikely SDI would offer for this business. Whilst it is the type of company that they could conceivably acquire, to date they have tended to target small private firms for low multiples and that are very well run and typically family / founder run. They don't like to interfere with their companies too much a bit like Buffett, they trust them to do their thing which I don't think they could do here. Not a holder here, but watched for a couple of years and the price has slowly dwindled down and management seem to have a real lack of delivery, despite having some seemingly good products. Science group (SAG) may be more likely to target Kromek, as they don't mind a hostile takeover and would replace management.
Is it likely to also make the printed version of IC and if so when is it published? Readership copies c30,000 I think.
Am disappointed with managements lack of update on pathogen detection but hopefully means commercial discussions in progress but who knows !!??
After Canons recent buy out of Canadian Redlen Tech and comments made about Kromek's under valuation, some might be interested to read/ watch this GE info on the new Star Guide which has set the bench mark on CZT medical colour imaging, reducing time to scan from 15mins to just 3 mins, and I assume other medical OEMs after developing now with Kromek's products.
Very impressive tech.
https://www.gehealthcare.com/products/molecular-imaging/starguide
This must be the new Philips CZT based imaging
Scanners that are using Kromek's CZT and one of the reasons they've increased their in house production furnace capacity recently.
Spectral Detector CT | CT Spectral Imaging | Philips Healthcare
https://www.philips.co.uk/healthcare/resources/landing/spectral-detector-ct
Thanks that is very helpful. The Phillips situation is very interesting….
Anyone know who the main investors are now in Kromek ? I think about 35% held by small private investors ??
Major holdersCurrency in GBp
Breakdown
45.86% % of shares held by all insiders
37.24% % of shares held by institutions
68.78% % of float held by institutions
19 Number of institutions holding shares
Insider roster
Individual or entity Most-recent transaction Date Shares owned as of transaction date
BARCLAYS WEALTH
Annual Return
30 Jun 2021
13,296,690
BASU (ARNAB)
Annual Return
12 May 2021
2,988,750
HARGREAVE HALE LTD
Annual Return
03 Aug 2021
33,688,423
HARGREAVES LANSDOWN ASSET MANAGEMENT LTD.
Annual Return
03 Aug 2021
34,334,276
HERALD INVESTMENT MANAGEMENT LTD
Annual Return
03 Aug 2021
21,080,059
JARVIS INVESTMENT MANAGEMENT LTD.
Annual Return
30 Jun 2021
11,488,421
LLOYDS BANKING GROUP PLC
Annual Return
03 Aug 2021
17,829,469
NEWLANDS (DAVID JOHN)
Increase
28 Sept 2021
11,725,000
SHARMA (RAKESH)
Bought
16 May 2022
807,539
SPEIRS (GRAEME KENNETH)
Annual Return
03 Aug 2021
20,273,475
This is rerating from a very low level.....Worth at least 40p...in my opinion......Orders have started to flood in......mark up very high.....Geo political situation having an effect.....
Siemens first Photon Counting CT scanner being installed at Oxford Hospital this month.
Kromek is actively designing and marketing this similar tech.
https://www.radmagazine.com/uks-first-photon-counting-ct-scanner-at-the-university-of-oxford-to-redefine-diagnostics/
Watch "Get to know the world’s first photon-counting CT: NAEOTOM Alpha" on YouTube
https://youtu.be/HqvbOeuBu1I
It’s a pity then that this “similar tech” isn’t KMKs!
So kmk are currently "actively designing" and have clearly yet to market a product that someone else (one of the largest health tech companies in the world with a global reach, massive sales and support network) is x years ahead of them. Brilliant.
The Siemens Photon Counting CT scanner is another step up in my understanding and more advanced than GE's CZT latest design.Skid Kromek don't manufacture the medical scanners they supply the CZT modules, cameras and electronics to the OEMs which are only now being bought and installed in hospital s after years of development it like black and white TV to colour OLED in image clarity, both GE and Siemens have their own supply of CZT and hardware, but the other 6, 7 or more OEMs don't, 3 of them are customers of Kromek's.
They haven't increased their CZT production capacity 5 fold on a whim they're talking with the other OEMs who want to develop similar scanners.
The article says they Oxford university Hospital are the fore runners of an NHS upgrade to these new high spec low dose rapid scan time units.
Siemens have a subsidiary manufacturing cdte, slightly different tech vs czt.
Not sure someone else taking early market share with a superior product (with a competing element that kmk cannot supply) is a good news story.
With kmk I have learnt to wait for the numbers ( which means cash in the bank not "orders" or "revenue").
This is a very risky environment to invest in the market with inflationary and geo political concerns dominating all matters.This is one of the few shares that you could feel confidence in the future.I am looking for similar situations to park my money....does anybody have other good investments that may thrive in this environment,at low price?
Historic share price barriers seem to be around 16p then 21p then 28p IMHO DYOR. Any views on share price barriers in short / medium term and whether we are likely to test them again ?? or will share price remain subdued for some time ?