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Next stop 10-11p
The biggest buy signal has to be the guff written on the advfn bb, a full deck of armchair saddos who believe the end is nigh.
Concludes with -
"Longer-term view of CZT market. We continue to acknowledge the current low penetration rate of CZT sensors into the Advanced Imaging space, something we believe will change considerably over the next 2-5 years. We have reviewed our longer-term expectations for this market and built a new DCF which leads to a market cap valuation of over £300m, or greater than 50p per share. On that basis we increased our target price from 25p to 28p per share. We note that Canon acquired Redlen Technologies, another previously independent supplier of CZT, for $325m in 2021, at a time when the future demand for CZT sensors was less clear."
CZT is going to be utilised by diagnostic imaging OEMs for some considerable years, the smallish recent CZT imaging going Into prototypes is my guess for testing, with strong likelihood of turning into multi-year supply contacts, 7 years seems to be the industry norm.
Broker 30th Jan
In-line revenue growth and strong OpEx control Kromek reported interim results with revenues up 5% to £7.1m, adjusted EBITDA loss of ca. £0.1m, period-end gross cash of £3.7m and net debt of £5.2m. The company reiterated its view that fiscal 2024E revenues are expected to grow in-line with market expectations, which we see at around 20%, which implies a sharp pick-up in the H2 result (to +32%). Although this sounds a tough target it needs to be remembered that, because of the recurring contract revenue nature of the business, revenue forecasts are predictable – per the release management has good visibility on 84% of the 2024E forecast, with the remaining 16% to come from the known pipeline of opportunities. Adjusted EBITDA saw a dramatic improvement over H1 2023 at a loss of £0.1m, a function of the improving gross margin and significant control of other operating costs, which reduced from £8.0m to £6.4m. We slightly increase our 2024E, adjusted EBITDA moving from £0.9m to £1.2m, and more materially in 2025E, from £1.7m to £3.1m, driven by our belief that the company will continue to stay on top of operating costs. We see 2024E year-end gross cash at £3.5m and net debt at £5.4m (prior to £2.6m conversion of CLN). Having reviewed the longerterm opportunities for CZT in the Advanced Imaging market we increase our price target from 25p to 28p.
Hold on to hats
Starting with the positives the EBITDA number hit the mark.
Finally, costs are a focus and being managed!
New contracts in the period provide good momentum.
Relatively disappointed with the revenue increase.
Cash burn still impacting the outlook and further dilution is on the cards if we need cash under the Polymer N2 agreement.
Not the car crash of previous results and Mr Market seems relatively happy.
Truth.
Yes. A lot of AIM companies realising they cannot keep on coming back to the market every six months when they are simply not performing.
Stock and debtors still far too high, but % are better on increased revenue. Hopefully stock will decrease as it is used for income.
H2, apart from being backended, needed far far more commentary.
Real need to provide backlog and backlog movement backed by purchase orders rather than expectation.
Certainly feels like the penny has dropped and it’s time to generate positive cashflow-good news
Results highlight the emergence of demand for Kromek’s Advanced Imaging and CBRN detection, evidenced by contract wins and collaboration agreement momentum. Supported by strong financial discipline and persistent geopolitical risk, our fair value remains at 26p/ share.
For the six months to 31 October 2023, Kromek reported revenue of £7.1m, +5%YoY, gross profit of £3.9m, +41%, a 54.2% margin compared to 40.4% a year earlier, and an (adj.) EBITDA loss of £0.1m (H1 23: £(2.7)m loss). The loss before tax was £(3.5)m, reduced from £(5.7)m a year earlier. As of October 2023 the cash position was £3.7m, with net debt at £5.2m (H1 23: 8.3m). Significant cost controls are also evident, with administration and distribution costs reduced from £7.6m in H1 23 to £6.2m (-20%).
Link to full report: https://www.equitydevelopment.co.uk/research/kromek-group-interim-results-h1-24-profitability-up-costs-reduced
Correct in every detail skid35. Wonder if mike33 is backing his claims ? Wonder also why Ourknob Basu and his fellow Directors are not buying any shares on the market ?
Important set of results.
Forget the general fluff on strategy - kmk have to show through the financials they have operational control of the business.
- Good and expanding gross margins
- Control of flat operating costs for leverage on higher revenues
- No stock / debtors write offs
- Stock and debtor turns down
- from the above a clear cash focus
Always thought kmk and basu considers the financials and operational execution a bit of an inconvenience, preferring just to strategise about the future and complain to the Times how downtrodden he is.
Ridiculous spread of over 15% if your thinking of buying in now, micke33.
And???
Https://www.marsbioimaging.com/spectral-ct/#:~:text=Spectral%20photon%2Dcounting%20CT%20measures,and%20determine%20the%20amount%20present.
Mars a tier 2 diagnostic CT manufacturer previously mentioned by Kmk as being engaged with, talking about CZT Photon counting CT
It's very likely we will hear about other tier 2 OEMs contracting with Kmk, some of them are already I think such as Fujifilm but under Non disclosure agreements.
"Spectral photon-counting CT measures how specific x-ray wavelengths are attenuated, which is used to determine material composition. For example, if iodinated contrast is administered to the patient, spectral CT can distinguish iodine from body tissues (bone, fat) and determine the amount present.
The combination of a color spectrum with extremely high spatial resolution means spectral photon-counting CT contributes significantly more information compared to conventional x-ray imaging. We aim to revolutionize medical imaging and significantly improve healthcare worldwide. Spectral CT, bringing color to x-rays, is analogous to that of the complex technological innovations that enabled the move from black/white television to color television. "
Invested here yet, mike33?
Kromek Group plc (AIM: KMK), a leading developer of radiation and bio-detection technology solutions for the advanced imaging and CBRN detection segments, gives notice that it will be announcing its interim results for the six months ended 31 October 2023 on Tuesday 30 January 2024.
Dr Arnab Basu, Chief Executive Officer, and Paul Farquhar, Chief Financial Officer, will be hosting a presentation for investors at 6pm GMT on Wednesday 31 January 2024 via webinar.
Mike.
- I pointed you to the relevant pages of the annual report. It isn't 3m, this was just one year. Due to the drop in the share price most appear now worthless.
- I don't think you understand modern executive compensation, especially LTIPs. These aren't based on whether someone has set up the company, that is irrelevant, it is on future performance and aligning management and shareholders.
- Salaries seem appropriate for a company of this size, it would be nice if they hit short term performance targets to be paid an in year bonus and be paid more.
- You have correctly stated the opportunity, I want the best management team to execute against this. I don't think basu is CEO material.
- For the nth time I don't work in an investment house.
- I didn't say they were making the wrong type of czt. I said there were grades of czt, where I work we haven't bought czt from kromek.
Thanks for correcting me Skid,
so the CEO of Kromek has had 3m shares gifted over the last how many years...10, 15,
so even at 10p a share that's £300k, a company he's created from scratch, and you moan that's excessive.
I've looked at the management salaries and not considered them excisive and below UK average.
I was hoping you would bite a bit harder and give us the full list of management salaries, against the UK average ones.
But you probably don't want to.
None are excessive, how about the CFO chief finance, from memory £180k....a tube driver on the new Jubilee line earns £70k ....you're mates at your investment house probably wouldn't get out of bed for that.
The CZT tech that's taken all the tier one OEMs, Canon, Philips, Siemens and GE 10+ years to develop and adopt will likely be utilized for the next 20 odd years.
Hence Siemens building from scratch an £800 mil site already owning a Japanese £200m? £300m plant......you moan a lot on here Skid when you should be joining up the dots....always about the management....they are the last man standing on CZT tech in the world where all the rest have been bought out by tier ones....they now have all the tier 2's as potential customers which no doubt want to keep up with the sea change in medical diagnostic imaging.
Come on Skid you told us all not long ago Kmk were making the wrong type of CZT....2/10 for understanding the business
Mike.
Challenge accepted.
You're really not the sharpest are you. Best read a little before you spout complete rubbish.
Annual accounts 2023 page 57.
Bash awarded 2.5m shares at 1p Dec 22, 0.8m at 1p apr 22.
Those are the facts.
Kromek is at the bottom of the scale and is not an "average UK tech company".
There is a very slight difference between a CEO and non exec chairman.
No, I didn't say I worked for a tech investment house.
I think you have an average buy price, judging by the time you started posting, of between 8.5 - 10p? Can you honestly say you are satisfied with the management of the company?
'Facts are objective truths established through evidence, while opinions are subjective beliefs shaped by personal perspectives'
Unless you're name is Skid
Blimey Skid that's a bit rich, you endlessly moan like an old woman on here month after month, a slip of the pen.. chairman...CEO of dear dear...
On the subject of facts, the last time I checked the CEO 's pay was at the very bottom of the scale of average for a UK
listed tech Company, and with all the multiple international projects that Kmk are working on, any the many foreign gov's and delivering on them and gaining repeat business. You have the nerve to criticize the management pay.
You say you work at an tech investment house and have account ing exp and some kind of qualifications that might impress us..so you know all this without me reminding you, and what share options are you referring to I've never heard of any In the last 5 years.
Come on Skid don't play us all as idiots like your
mates on here.
Yes, the comments of the CEO quoted in the Times demonstrated what an arrogant and inept character he is.
Do keep up.
He is CEO not the Chairman.
With the pay, pay increases, repeated share options etc as a shareholder I am firmly entitled to my views on the CEO backed by facts. The Times article did provide an insight into the complete and total lack of self awareness of the CEO.