Kromek Group PLC Business and Trading Update (1489Y)
11 May 2021 - 4:00PM
UK Regulatory
TIDMKMK
RNS Number : 1489Y
Kromek Group PLC
11 May 2021
11 May 2021
Kromek Group plc
("Kromek" or the "Group")
Business and Trading Update
Kromek (AIM: KMK), a worldwide supplier of detection technology
focusing on the medical, security screening and nuclear markets,
provides an update on business and trading ahead of announcing its
results for the year ended 30 April 2021, in July 2021.
As noted in the Group's interim results announcement, orders and
shipments across all of the Group's segments resumed in the final
two months of the first half of the year and as such the Board was
pleased to enter H2 2020/21 with an extensive commercial pipeline
and experiencing increased commercial activity. This momentum
continued throughout the second half as the Group delivered on
previously awarded contracts and won new orders. As a result, the
Group has achieved significant sequential revenue growth in H2 over
H1 2020/21 and expects to report revenue and EBITDA for the year
ended 30 April 2021 in line with market expectations. The Group
continues to maintain tight cost control, improve collections and
manage cash flow, and this conscientious management has resulted in
the Group's cash position at 30 April 2021 being slightly ahead of
market expectations.
Specifically, in the second half of the year, progress was made
in all of the Group's business units. In the Medical Imaging
segment, Kromek's customers increasingly rolled out their
next-generation products, based on the Group's technology, such as
the Group's OEM customer that previously awarded a medical imaging
contract expected to be worth up to $58.1m. The installation of the
customer's medical imaging scanners, which is occurring in multiple
countries, saw a ramp up in the second half of the year as
planned.
In the Nuclear Security segment, the Group received new orders
from government customers for D3S-related technologies. This
includes a contract extension from the Group's European-government
related company customer, working with a European government, to
detect and protect against potential nuclear threats. The Group
added a new customer, a US government agency, for its D3S-ID
product, received repeat orders from a US government customer for
its CZT detectors for nuclear security applications, and received
orders from the European Commission's Directorate-General for
Migration and Home Affairs for the Group's D3S Drone radiation
detectors. Kromek also received orders in the Security Screening
segment, including for CZT modules to be designed into an advanced
baggage screening system of a new US-based customer.
Furthermore, the Group remains excited about the potential for
its new market segment of Biological Threat Detection. During the
second half of the year, the Group commenced piloting its airborne
COVID-19 detection solution at an airport and at another public
place, which are progressing according to plan and the Board looks
forward to providing an update on the next steps in due course.
Consequently, and combined with the successful fundraising
completed in the second half of 2020/21, the Group is well-placed
to capitalise on the opportunities across its business and the
Board continues to look to the future with increased
confidence.
The Group will provide further information at the time of its
annual results announcement.
For further information, please contact:
Kromek Group plc
Arnab Basu, CEO
Paul Farquhar, CFO +44 (0)1740 626 060
Cenkos Securities plc (Nominated Adviser
and Broker)
Max Hartley/Camilla Hume (NOMAD)
Julian Morse (Sales) +44 (0)20 7397 8900
Luther Pendragon (PR)
Harry Chathli/Claire Norbury +44 (0)20 7618 9100
About Kromek Group plc
Kromek Group plc is a technology group (global HQ in County
Durham) and a leading developer of high performance radiation
detection products based on cadmium zinc telluride ("CZT") and
other advanced technologies. Using its core technology platforms,
Kromek designs, develops and produces x-ray and gamma ray imaging
and radiation detection products for the medical, security
screening and nuclear markets.
The Group's products provide high resolution information on
material composition and structure and are used in multiple
applications, ranging from the identification of cancerous tissues
to hazardous materials, such as explosives, and the analysis of
radioactive materials.
The Group's business model provides a vertically integrated
technology offering to customers, from radiation detector materials
to finished products or detectors, including software, electronics
and application specific integrated circuits ("ASICs").
The Group has operations in the UK and US (California and
Pennsylvania), and is selling internationally through a combination
of distributors and direct OEM sales.
Currently, the Group has over 150 full-time employees across its
global operations. Further information on Kromek Group is available
at www.kromek.com and https://twitter.com/kromekgroup.
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