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"Questor normally takes a dim view of companies that ask their shareholders for more money; we believe that cash should really be flowing in the other direction. But when Kromek, the hi-tech imaging firm, raised £21m from investors earlier this month it was not motivated by a shortage of funds – instead, it strengthened its balance sheet to reassure its most important customers, including the American government, that its finances were rock solid and that it would be able to fulfil long-term supply contracts. The US government, for example, is interested in placing orders with Kromek that could be vital to America’s national security – and very rewarding to the company’s shareholders. It has placed a trial order for pocket-sized radiation detectors that could be used to pinpoint the location of a “dirty bomb” – a type of terrorist device that would use conventional explosives to spread radioactivity within densely populated areas. One of the problems a dirty bomb would pose is that its location would not necessarily be immediately obvious, as its effects would be seen in shifting clouds of radiation rather than at the point of the explosion. Kromek’s devices are designed to overcome this problem by allowing, for example, large numbers of police officers to carry the detectors, providing sufficient data for a central processing unit to deduce the location of the bomb. Some of the detectors were in use for Donald Trump’s inauguration as president.
The large scale testing in the USA is finished. They are now negotiating deals to roll it out over 23 cities in the USA with more to follow. Estimated value to KMK per city is 10 million. An advanced radioactive threat detection system completed its first large-scale citywide testing of more than 1,000 networked, mobile radiation sensors in Washington, D.C.
The shares placing and offer provides hope the company can record its first profit, with earnings before interest, tax, depreciation and amortisation (EBITDA) expected to break even in the coming months. As well as its radiation detectors, Kromek is also known for airport bottle scanners, which scour luggage for explosives, and medical equipment capable of helping diagnose brittle bones.
“We are building up a very good list of customers who are willing to commit their medium and long-term futures with us. “Our pipeline is extremely strong and we are working hard to bring more customers to it; we expect to see more good news coming out.” Kromek’s £810,000 contract, which Dr Basu said is bound by strict confidentiality clauses, came just weeks after the company revealed a £21m stock market drive. At the time, Dr Basu told the Echo it would provide the “rocket fuel” to power fresh growth and ease some customer concerns over its balance sheet.
Dr Arnab Basu, chief executive, said he expects the company to continue its impetus, as demand for its goods remains strong. He said: “The group is making good progress on the delivery of new orders won over the past two years. “Products continue to gain traction in all business segments and the group expects to continue to win new customers. “Together with the momentum of contract wins, it expects a step change in revenue growth in the new financial calendar year.” Speaking to the Echo earlier this year, Dr Basu said the firm was ready to start another chapter in its relatively short history, confirming he expected an £810,000 contract renewal - to send upgraded versions of detectors to a US customer - to be followed by further lucrative agreements. Saying firms were now willing to enter into long-term relationships with Kromek, which began as a research-focused spin out from Durham University’s physics department in the early 2000s, he added: “A pipeline is one thing, but the conversion into contracts is another and that has started to happen.
A TECHNOLOGY firm helping thwart terror attacks has confirmed it expects a “step change” in income growth – just weeks after telling The Northern Echo it aimed to do so. Kromek believes it will continue picking up new work after a strong year bolstered its international presence. The business, based at NetPark, in Sedgefield, County Durham, is known for its anti-extremist technology and previously revealed a £2.5m deal to supply parts for security systems designed to detect homemade bombs. It has already sent thousands of radiation detectors to an agency of the US Department of Defense to help identify threats including ‘dirty bombs’ and bosses told the Echo it has translated a contract pipeline worth nearly £33m into tangible agreements over the last 20 months.
Hopefully but the real action will come when deals are announced. You wont hear a whisper about them until they are in the bag. Then it will be BAM . No warning just an RNS one morning. They are negotiating large deals and large ones only. You wont get time to buy in on the news as the market makers will have it marked up pre open. Its simply a case of being patient and happy with the reasons you invested and the level of risk involved. Im very happy. GL if you hold. Another long weekend becons have a good one Im off sailing again.
You NOT pointed out 1 single fact bon here but you have LIED LIED AND LIED consistently and troll me 24/7 ADMIN agree which is why they have and are removing your posts. They can read you see , as can everyone else. GL to all genuine holders.
Yes it is a clear vote of confidence seeing as you ask. Miton think so to with their 20% Herald thought so as well and took nearly 6% Polymer who is Graeme Speirs and an industry expert he though yeah I will have 8% The list goes on just like your LIES and TROLLING
ADMIN as you can see from my posts below Mathew C is a liar and the recent RNS from KMK prove this to be true. 1 Director alone has bought £23k worth of shares just a few weeks ago This does not include all the other director share buys in March and Feb. This guy is a troll and has been consistently trolling this thread and abusing me. Can you please deal with him and point out the rules for posting. Thank you.
Kromek (AIM: KMK), a radiation detection technology company focusing on the medical, security and nuclear markets, announces that it has received notification that, on 24 March 2017, Berry Beumer, Chief Operating Officer of Kromek, purchased 80,000 Ordinary Shares of 1 pence each ("Ordinary Shares") in the Company at a price of 29.35 pence per share.
When a company raises funds via way of a placing, and investors are willing to pay a premium to participate in the fundraising, it’s a big deal. Indeed, most placings are conducted at a discount to a company’s prevailing share price, as that’s the only way managers can get investors to stump up more cash. It’s rare that a company completes a placing at a premium. Kromek (LSE: KMK) was able to accomplish this goal a few days ago. The company announced on January 25 that management was looking to raise £21m via way of a placing and open offer. The firm placed 100m ordinary shares at a price of 20 per share, the closing middle market price on 24 January. What’s even more impressive is that, at the time of writing, Kromek’s market value is only £33.2m, so the company was able to get away with tapping shareholders for three-quarters of its market value in cash without offering any substantial discount. Impressed with the company The very fact that investors were willing to commit to such a significant capital raise without demanding a discount shows that Kromek’s key institutional investors trust the company and its management, and believe Kromek has a bright future ahead. Kromek’s three primary markets — medical, security and nuclear detection — are all worth many multiples of the company’s current market capitalisation, presenting a tremendous opportunity for the group. Management is already working hard to capitalise on the opportunities available, but has apparently been stonewalled by some customers because of the company’s lack of production capacity. £21m of fresh capital should help prove to customers that the business can be relied upon to make good on customer order commitments. Customers base growing One of the firm’s main customers is the US government. The company is working on D3S hand-held radiation detectors with it, and this market alone represents a potential opportunity of $1bn over the next ten years. Kromek has the skills and capabilities to take on these massive markets, but the group is only in its very early stages of growth. Still, 2016 promises to be the strongest year on record for the group with over £22m of contracts awarded for the year to November, the largest value of contracts ever won in a year by the company. For the fiscal year ending 30 April 2017 City analysts expect the group to report revenue of £8.9m and a pre-tax loss of £3.7m for the year after, revenue is expected to hit £12.5m and losses should fall to £2.3m. These forecasts look good, but could be subject to substantial revisions higher if Kromek’s fundraising convinces new customers to use the group’s services. A wave of new contracts could see the group report its maiden profit sooner than expected. Undervalued With the revenue set to grow by 40% next year and a cash rich balance sheet, shares in
Kromek (AIM: KMK), a radiation detection technology company focusing on the medical, security and nuclear markets, announces that it has today received notification that Dr. Arnab Basu, Chief Executive Officer of the Company, today exercised options over 80,000 ordinary shares of 1 pence each in the Company ("Ordinary Shares"), at an exercise price of 1.5 pence per Ordinary Share, pursuant to the EMI share option scheme. Following the purchase, Dr. Basu has an interest in 2,952,000 Ordinary Shares representing 1.92% of the entire current issued share capital of the Company.
Further to the announcement by the Company on 10th February 2017, Lawrence Kinet, a non-Executive Director of the Company, has confirmed to the Company that on the 10th February 2017 he acquired 50,000 ordinary shares of 1 pence each in the Company ("Ordinary Shares") at a price of 22.9 pence per Ordinary Share. Following the purchase Mr Kinet is beneficially interested in 200,000 Ordinary Shares, representing 0.1 per cent. of the current issued share capital of the Company.
Further to the announcement by the Company on 10 February 2017, Sir Peter Williams, the non-Executive Chairman of the Company, has confirmed to the Company that he was allocated, and hence purchased, 14,814 ordinary shares of 1 pence each in the Company ("Ordinary Shares") as part of the open offer announced on 25 January 2017. The Company has further been informed that on 13 February 2017, Sir Peter Williams bought 35,186 Ordinary Shares at a price of 22.19 pence per Ordinary Share, in the open market.