Bullish Cavendish comments, 26p target7 Feb 2025 12:56
The announcement, today, of significant multi-year agreements between Kromek and
Siemens Medical Solutions USA, Inc (Siemens Healthineers) – to enable the latter to produce
CZT detectors for SPECT applications – will see Kromek receive a total of $37.5m in cash
over a four-year period, with a first instalment of $25.0m. The combination of agreements on
a non-exclusive basis means Kromek remains free to seek other potential collaborations,
including similar ventures with other OEMs in advanced imaging. In addition, a Supply
Agreement with Siemens offers the potential to materially add to Advanced Imaging revenues over the period of the agreement. The first instalment of $25.0m will be received in the current financial year with a material amount to be recognised in FY25. This underpins revised FY25 numbers and will see the company become sustainably profitable for the first time in its history. The beneficial impact on the balance sheet will further strengthen Kromek’s position for future growth.