|Kromek celebrating milestone week
16:36 19 Oct 2016
Radiation technology company Kromek Group PLC (LON:KMK) has completed the delivery of an initial 10,000 personal D3S radiation detectors to a US Department of Defense agency. Also, on Monday they announced six new contracts wins worth, in aggregate, around US$3.1mln.
Chief executive Dr Arnab Basu tells Proactive: ''We've worked with the US department of Defense for the last seven years and we feel very proud we've been able to make a material contribution to their mission goals.''
''There'll be a deployment in Washington DC later on this year and further deployments are planned in 2017/2018 - with 2018 being the expected wider rollout within the federal states in the US.'' Dr Basu added.
With regard to the contract wins, he said fundamentally some of them are very important for us because it demonstrates the real progress in all the sectors we operate in - medical, security and nuclear.
This week Kromek also won an award for business innovation. It was handed out on Tuesday night at the Palace of Westminster – commonly known as the Houses of Parliament – where the company demonstrated the detectors to members of parliament, peers of the realm, policy-makers, business leaders and acclaimed physicians.
htTp://www.p r o a c t i v e i n v e s t o r s.co.uk/companies/stocktube/6217/kromek-celebrating-milestone-week-6217.html|
|I have added today. Will try and accumulate while the seller persists.|
|ED have come up with a price target of 45p - compared to current price of 24p/market cap £37m - i.e. a market cap target of 45/24x37m=£69m.
My view would be that this company will have revenues of c$100m in 3 years (the combined civil and military US nuclear programmes have a combined value in excess of $1bn). This would mean GP of c$50m at 50% margin or £40m - equivalent to net profits of c£30m after admin costs of £10m. Putting that on a conservative 10x gives a market cap of £300m. Discount that back now by 3 years or 50% and you get £150m or 4x the current value. My target price would thus be 100p.|
|Equity Development research paid for by company so for them to forecast £12.5m and break even next year is quite significant. Company has lots of growth opportunities at an advanced stage and it only needs one to crystallise to transform profitability and then investors will be able to focus forward to the potential upside which is enormous for such a small company.|
|I picked up a few this morning. There does appear to be a seller, so this may not be the low for the shares but with revenues for 2017 now 80% covered, according to Equity Development, there doesn't appear to be much downside at these levels.
Any further contract announcements, ought to lead to upgrades.|
|There are c118 US cities with population of >200k - that could require 1.18 million of these DS3s or US$550m of orders for Kromek beginning in 2018 - this company has amazing potential which is very close to being realised now. The shares are really at option value.|
|i can only use the word good when the share price moves up- we have been waitng for DARPA as big event- but it does not seem to do much?|
|New research out today from Equity development
|Good news, looks to me like they are moving along nicely : )Sienna|
|£8.8m revenue this year and a loss.
Breaks even at £12m of revenue.
Weak £/strong $ a small help.
A BIG contract could happen at any stage in next 12 months that would blow it through £12m - further out its revenue should be >$100m. It is sole supplier to the eventually huge (c1million units at $500 each) Darpa programme and is now in similar development stage with US military which could be as big.|
|Mkt cap £37m. Anyone got forecasts?|
|Excellent news again today; added another 20k.
Bargain down here and the big US contract STILL TO COME!|
|OK, found the answer to my question.
AMP have decided to sell KMK to pay principal and interest payments required on the drawdown mentioned in the above Proactive report.|
|Trotters, reading back through the posts I saw yours (619) where you said "(AMP) sold KMK shares to cover a loan facility draw down.". Sorry to be thick, but what does this mean? Who is drawing down what from whom? Can I get a more detailed explanation online somewhere?|
|I am not a holder yet of the shares, but Techno20 I don't think you need to worry about the difference in number of devices used in the pilot (re-100 versus 3000 units).
We need to remember that New York is not the only city in the United States, and it's almost certain that the rest have gone to other locations of equal strategic significance.
I think from memory the US Department of defence is taking around 1000 dirty bomb detectors per month over the first year. Additionally I understand the UK military/police are also trialling the D3S, as well as some other European countries, such as France who were also at the epicentre of the fight against Isis.|
|Hi TT - can't see the site I originally took the article from, but put DARPA and Radiation into Google and the piece gets quite a lot of coverage.
Overall it's really positive, but I am surprised at the size of the pilot @ 100 devices. Think Kmk have supplied over 3000 units - so what's happened to the rest??
I'm a long term holder here and have been topping up regularly at close to the rights price. Still hoping for a multi-bagger, but think it might need more patience than I'd hoped. Hope I'm wrong!
|Nice T20, can you post the link please?|
|Sounds upbeat on the pilot success, with larger scale test planned for Washington. Doesn't sound like mass roll-out is imminent however.....
Ushering in a New Generation of Low-Cost, Networked, Nuclear-Radiation Detectors
Wed, 08/24/2016 - 11:12am by DARPA
A DARPA program aimed at preventing attacks involving radiological “dirty bombs” and other nuclear threats has successfully developed and demonstrated a network of smartphone-sized mobile devices that can detect the tiniest traces of radioactive materials. Combined with larger detectors along major roadways, bridges, other fixed infrastructure, and in vehicles, the new networked devices promise significantly enhanced awareness of radiation sources and greater advance warning of possible threats.
The demonstration of efficacy earlier this year was part of DARPA’s SIGMA program, launched in 2014 with the goal of creating a cost-effective, continuous radiation-monitoring network able to cover a large city or region. Although radiation detectors have in recent years been installed in a number of key locations in the United States and around the world, the SIGMA program has sought to increase capabilities while lowering their costs, in order to network an unprecedented number of advanced detectors and provide a comprehensive, dynamic, and automated overview of the radiological environment.
The demonstration was conducted at one of the Port Authority of New York and New Jersey’s major transportation hubs where DARPA tested more than 100 networked SIGMA sensors. During the month-long test, the system provided more than a 100-fold increase in ability to locate and identify sources of radiation as compared to currently installed systems. All sources of radiation that SIGMA sensors identified were non-threatening, but the system proved how it could pinpoint the location and intensity of a source and specify, in each case, the type of radiation to which it was alerting authorities.
Fulfilling the SIGMA program’s initial goals, the pocket-sized radiation “pager” sensors developed by DARPA and used in the exercise can be easily worn on a person’s belt, are one-tenth the cost of conventional sensors, and are up to 10 times faster in detecting gamma and neutron radiation. Moreover, the program achieved its price goal of 10,000 pocket-sized detectors for $400 per unit.
“We are extremely pleased with SIGMA’s achievements to date in advancing radiation detection technology to fit in a portable, pocket-sized form factor at a price that’s a fraction of what current advanced sensors cost,” said Vincent Tang, program manager in DARPA’s Defense Sciences Office. “The ability to network hundreds, and soon many thousands of these smart detectors would make cities in the United States and around the world safer against a wide variety of radiological and nuclear threats.”
The test with the Port Authority was the largest deployment of the sensors to date, but SIGMA has been refining the algorithms for improving the radiation-sensing technology in its devices based on experience over the past two years in more than 10 real-world deployments and exercises with local, state, federal and military units, including tests in the nation’s capital. A large-scale test deployment of more than 1,000 detectors is being planned for Washington, D.C., later this year.
“A key feature of the SIGMA architecture is that it allows for automated, real-time detection, identification, and tracking of nuclear threats with continuous situational awareness via web-based command and control interfaces,” Tang said. “We’re continuously improving the system and evaluating it in laboratory and operational settings. The user feedback and support from our Port Authority collaboration, as well as government partners such as the Department of Homeland Security’s Domestic Nuclear Detection Office (DNDO) and the UK Home Office, have been invaluable for SIGMA’s development.”
Ultimately, Tang noted, SIGMA is expected to provide foundational capabilities for a range of detection approaches, including two under development by DNDO: the Radiation Awareness and Interdiction Network (RAIN), which is being designed to monitor highways and roadways for vehicle-born threats, and the Mobile Urban Radiation Search (MURS) project, which aims to provide an advanced mobile detection capability that could adjudicate detection alarms encountered by SIGMA or RAIN.
In addition to the handheld devices, large SIGMA prototype detectors with increased capabilities and reduced costs that can be deployed at fixed sites or in vehicles are also coming on line. For example, large SIGMA neutron detectors have now shown twice the sensitivity compared to existing neutron-detection drive-through portals. Multiple vendors reached the price target of $5,000 per unit, which is approximately one-tenth the cost of today’s comparable large neutron detectors, while achieving or exceeding this required performance. Hundreds of large SIGMA detectors are in the process of being networked for gamma and neutron radiation detection at a number of critical locations and on vehicles.
DARPA is planning to demonstrate SIGMA’s full city- and regional-scale, continuous wide-area monitoring capability in 2017 and to transition the operational system to local, state, and federal entities in 2018.
Below is a listing of the DARPA performers funded by the SIGMA program:
Kromek Group plc (Stockton-on-Tees, U.K.)
SCI Technology Inc. (Huntsville, Alabama) with St. Gobain and Bridgeport Instruments LLC
Proportional Technologies Inc. (Houston, Texas)
Arktis Radiation Detectors Ltd. (Zurich, Switzerland)
Silverside Detectors Inc. (Cambridge, Massachusetts)
Algorithm Development, System Modeling and Analysis
Physical Sciences Inc. (Andover, Massachusetts)
Lawrence Livermore National Laboratory (Livermore, California)
Lawrence Berkeley National Laboratory (Berkeley, California)
Los Alamos National Laboratory (Los Alamos, New Mexico)
Oak Ridge National Laboratory (Oak Ridge, Tennessee)
Network, Algorithm Integration, and Deployment Lead
Invincea Labs (Arlington, Virginia) with 3Pillar Global, Eucleo, and Berkeley Applied Analytics
University of Maryland-National Consortium for the Study of Terrorism and Responses to Terrorism (START) (College Park, Maryland)
Johns Hopkins Applied Physics Laboratory (Laurel, Maryland)
TRX Systems Inc. (Greenbelt, Maryland)|
|Need to scale these contracts.
Come on DARPA.|
|The UK Ministry of Defence intends to let a contract to Kromek Limited for the supply of GR1-A Gamma Ray Detectors (initially quantity of 30 units with an option for a further 42 units) with an estimated value of GBP 318,246.40. It is considered that this contract can be placed using the Negotiated Procedure without prior publication of a contract notice in the Official Journal of the European Union for technical reasons pursuant to Article 32(2)(b)(ii) Directive 2014/24/EC (regulation 32(2)(b)(ii) of UK Public Contracts Regulations 2015). This is because Kromek is the only supplier capable of supplying detectors with the required level of thickness which is necessary to ensure consistency for further research activity in support of a joint MOD/Rolls-Royce development programme. A change in detector at this stage would result in disproportionate technical difficulties in carrying out the further research activities which would cause significant and unacceptable delay to the programme.|
|Looks like another contract on its way....
|As I mentioned they sold to cover loan draw down facility. If they do sell a few more great I'll get a lower entry price! Not everyone is here for a quick buck on the AIM casino|
|It doesnt matter what they are all that matters is they are selling and have millions left to sell.
I pay attention everywhere in the markets......its my job.|
|Lol! AMP is not an Insti.. They sold KMK shares to cover a loan facility draw down. Glad to see your paying such an interest in KMK.|