Join our community of smart investors

Backing a tech winner in the fight against Covid-19

A radiation detection technology company focused on the medical, security screening and nuclear markets is planning a commercial roll-out of its Covid-19 bio-security pathogen detectors. It is winning multiple contracts in other parts of the business, too.
Backing a tech winner in the fight against Covid-19
  • Order book covers 75 per cent of revenue estimates for 2021/22 financial year.
  • Successful pilot of Covid-19 pathogen detectors in UK airports, schools and retail outlets ahead of commercial roll-out.
  • Cutting edge CZT detectors being deployed in medical imaging scanners in multiple countries.
  • £20m worth of nuclear sector revenue in active procurement that could be delivered this year.

Kromek (KMK:15.75p), a Sedgefield-based radiation detection technology company focused on the medical, security screening and nuclear markets, has announced a raft of contract wins worth over £0.75m alongside annual results. The directors also revealed that the current order book covers 75 per cent of analysts’ revenue estimates for the 2021/22 financial year which point towards turnover rising from £10.4m to £15m.

Moreover, house broker Cenkos Securities expects gross margins to rise from 48 to 52 per cent, so with the benefit of a relatively fixed cost base last year’s Covid-19 impacted cash loss of £1.7m is forecast to produce a small adjusted cash profit. Paul Hill of Equity Development has similar estimates. It’s worth pointing out that forecasts don’t factor in any contribution from Kromek’s bio-security pathogen detectors which sample air and identify the presence of any biological pathogen including Covid-19.

To continue reading...
Join our Community of Smart Investors
  • Independent full-length company analysis
  • Actionable investment ideas and recommendations
  • Expert investment tools and data
  • Stock screens from Algy Hall
Have an account? Sign in