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Kromek Share Price - KMK

Share Name Share Symbol Market Type Share ISIN Share Description
Kromek LSE:KMK London Ordinary Share GB00BD7V5D43 ORD 1P
  Price Change Price Change % Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  -2.50 -7.25% 32.00 31.00 33.00 35.25 32.00 35.25 150,931 16:16:43
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m) RN NRN
Pharmaceuticals & Biotechnology 8.1 -31.4 -2.0 - 34.61

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Date Time Title Posts
01/12/201516:38Kromek Group PLC431
19/5/201507:23Kromek Group (KMK) - Overvalued AIM mugging177

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archway1: Kromek's X-ray success IP-backed small cap's future looks bright Extensively used by hospitals ,Durham University spin-out Kromek aims to take x-ray technology into new markets using its own patent protected Cadmium Zinc Telluride (CZT) crystal technology. This is s high risk play that will not suit every investor but we believe that for those willing to roll the dice there is substantial growth here. Consensus share price targets are pitched north of 43p implying nearly 60% upside. The time looks right given the depressed share price and what we believe could be a major boardroom appointment coup. The £43 m ill company has signed up Sir Peter Williams as its non-executive chairman, a man who has successfully walked the tightrope between academia and commercial markets for decades, including as a UK goverment adviser on science and education policy and as a former chief executive officer (CEO) of Oxford Instruments the world class science and research kit and tools maker. The appointment implies sound council at the helm of this emerging business, with the political and corporate clout to help the company speed along its commercial sales execution. Kromek is identifying medical, security screening , homeland security and nuclear radiation detection markets with colour imaging equipment that is affordable , easy to use and that gives instant results.
archway1: I think there may well be a bid for the company , it stands to reason that now is the time to do it before the new revenues and profits kick in. I think this is going to go the exact same way as Xchanging . Top dog joins the board of company with depressed share price at its bottom. Outlook very strong and company now on firm financial footing. I smell a bidding war!!
quepassa: Ranting. Me?? You just wrote 7 consecutive posts. Try and keep a grip. Or is it too difficult to put more than one thought in each post for you? What do I do? I finance companies like Kromek to help them build their plans. You soon get to understand which category they fit into. The good, the bad or the ugly. Without investors , this company is dead in the water in my view. This Company will need future equity investment and without it, it is unlikely to succeed. If you think the way that Kromek treats investors is clever, you are completely misguided. You see, that's it with Kromek. They tell you about all these wonderful contracts and are great at endless name-dropping but has that translated into profits? Don't get sucked in. Kromek displays one of the classic symptoms of university spin-outs. Academics don't necessarily translate well into the purely commercial world. After their shock Trading Statement in early 2014 which halved the share price so soon after their late 2013 IPO, this is what they came out with a short time later on 4th. April 2014 about a long-term contract with an established SME manufacturer in China:- "For continued exclusivity the contract provides for revenues of $1.4m and $10.2m in the Financial Years 2014-15 and 2015-16 respectively and the overall value of the contract over the next seven years is up to $159m, subject to the customer meeting its contractual revenue targets. Advanced cash payments totalling $260,000 are expected from the customer in the current Financial Year, part of which has already been received. The first supply commences in October 2014." Well let's just see if the referenced $10.2m comes through this year. Or indeed the $159million. What is the name of that Chinese manaufacturer? If you like having a laugh at other people, the biggest laugh is staring right back at you in the mirror. Foolish investing giants? It's easy to invest when it's someone else's money. One thing is quite clear Archway, you will never ever make it up the hill to Highgate. ALL IMO. DYOR. QP
quepassa: Perhaps one of the first tasks of the new Chairman may or may not be to consider finding a new Chief Executive to replace the current incumbent. In my opinion, the Company got off to a very bad start for failing almost immediately to deliver on the timing/delivery/pipeline of contracts which it had much spoken about at/during/before and after the IPO. It appears to me that this has dented ongoing credibility in the Company enormously. I personally find myself in a position of enthusiastically and urgently reaching for the salt cellar every time I read announcements by the Company. The share price performance since IPO speaks volumes and is wholly unacceptable in my opinion. ALL IMO> DYOR. QP
p1nkfish: lastly: 1) amphion mentioned expectations for kmk a week or 2 back - very positive. something going on only a 10%+ holder may have wind of? 2) share price rise convincingly since at volume. volume preceeds price. 3) all just prior to BoD meeting on July 1st. may just be a re-rating or is there something to be announced?
ali47fish: but the share price is already at 35p so how does this work with edison giving a tp which has already bee reached- the shares are up 6pc today!
nigelmoat: Report just released by Equity Development puts a target share price of 35p/share on Kromek after fund raising.
culford: Hybrasil, Congratulations on buying in at what i also think should be the bottom. How did you come to invest? I have been a holder from higher levels!! Risk remains balance sheet and more equity being required. However, I was encouraged that despite lower than forecast revenues, the company was EBITDA positive in H2 to April 2015. Revenue was £3.2m in H1 and £4.9m in H2. If it is positive at c£5m, then for current year, if revenues >£10m for year, should be able to avoid an equity issue, as much of capex on increased capacity has already been made. Company says that orders for current year are 50% ahead of where they were last year, which if translated directly into sales, would imply revenues c£12m, implying positive EBITDA for year as a whole. Company has a number of big contracts it is working on in nuclear and medical and if any of these come to fruition, revenues should be a multiple of current levels, as should share price.
techno20: Upbeat piece on Shares mag website from a couple of weeks back. Apologies if already been posted.... Kromek's regenerative X-man Technology group is confident of winning back the market's favour after earnings slip-up It was exactly 163 days after joining AIM via an £15 million initial public offering (IPO) priced at 51p that Kromek (KMK:AIM) stunned the market with a revenue warning. The x-ray technology designer was forced would admit revenue for the period to be 'significantly below current market expectations,' thanks to delayed large contracts and a failure to get its commercial team properly in place. 'In light of the impact of the issues described in today's statement, our forecast downgrades reflect Kromek delivering adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) loss in full-year 2014 of £2.4 million,' said analyst Mike Mitchell of house broker Panmure Gordon at the time. That reset the EBITDA loss bar £1 million higher than expected. The cuts to estimates run deep into 2015 too, Mitchell slashing his EBITDA for next year from £7.7 million to just £700,000. Management must face up to being overly optimistic in the face of clearly opaque end markets, and it's the first point I put to chief executive officer (CEO) Arnab Basu. 'Our end markets are very big and, given their nature, it's sometimes difficult to project,' he responds. 'We have learned our lesson about how a public company should look at projections.' Perhaps it shows a bit of corporate naivety I wonder out loud, but Basu defends his company, arguing that the numbers, then in the market, were based on 'absolute, solid data.' In fairness, Kromek is not alone among capital equipment suppliers in finding its grip on future contracts slipping to the right. As far as Basu is concerned, none of that revenue has gone away, it just didn't happen within the time period. That will come as little consolation to investors, considering the 47% share price collapse on the day to 36p was a startling reaction. Was that a fair response, I pitch to Basu? 'It's not for me to judge, the market has a voice and it spoke out on the day,' he bats back. 'We just have to rebuild from there.' Academic roots Kromek was spun-out of the physics department of Durham University in April 2003, having developed specialist cadmium telluride cystal technology. The company quickly began to realise the scope to climb up the value chain by developing engineered x-ray imaging solutions and sub-assemblies. Today the company has three principal markets; Security Screening (scanning bottles of liquids at airports), Medical Imaging (such as bone mineral density testing) and Nuclear Detection (radiation leakages monitors among them). 'The company is the strongest it's ever been,' Basu insists, the CEO pointing out Kromek's pipeline, its quality customer positioning, the maturity and acceptances of its technology within its markets, 'and the growth that we're experiencing,' he concludes. This is in part backed up with several contracts signed since March across all three divisions, and including its biggest ever bit of business with an estimated value of $159 million over the next seven years. Importantly, as Basu sees it, those end markets are highly regulated, and it's that tight red-tape wrapping that plays to Kromek's advantage, both from a technology demand point of view, and also as a barrier to entry for alternative technologies. 'We're in three very high-growth markets,' he says, where the need is established and met by Kromek's technology, he claims. 'It's not as if our technology is still to be proven,' Basu insists, 'our detectors are in hospitals scanning patients today, in airports scanning liquids, in nuclear power plants detecting radiation signatures.' That alone separates Kromek from many of the technology companies who floated on AIM over the past few years. Kromek is now on the stock market to access funding to 'expand our commercial growth, expand our reach, and leverage what we've built over the last 10 years, and scale-up.' But this still raises the question of why Kromek's commercial resources were not in place. Expanding the sales and marketing teams were among the company's IPO promises, and failure to do so is not market related, it's an internal problem. 'Our recruitment didn't happen fast enough,' Basu explains. 'It's not that we weren't doing the right things, but we had to get the right people,' he says. 'Unlike the US, people in the UK tend to have notice periods, and work them,' he says, before adding that 'we've got some fantastic talent onboard and they will be key assets in building this business going forward.' He reassures that all of the vital gaps are now filled. How large a challenge is managing large and lumpy contracts from a fairly limited customer base, I ask? This needn't only be negative, surprises can come on the upside too. 'Our three markets have different drivers,' Basu explains, and while nuclear and security revenues tend to be more unpredictable, he claims that medical imaging is a 'very stable original equipment manufacturing (OEM) market, and even parts of security is fairly predictable.' Basu's hope is that this combination of drivers and timing should even out, with outperformance in one space offsetting any shortfalls elsewhere. 'It will hopefully, ultimately, washout.' That sounds sensible enough but others have thought similarly in the past only to disappoint, but time will tell. Competition in its place The CEO also plays down competition threats. In bottle scanners, for example, he claims that the market is worth an estimated $250 million. That's big for Kromek, but wouldn't move the needle much for a global OEM. 'This is not a simple technology or market and we continue to innovate,' he says. That should mean barriers to entry for even very large device companies and Basu sees outsourced innovation (because it's less expensive), and Kromek's unique x-ray technology (owned intellectual property and processes), as two key reasons why large OEMs are more likely to partner with Kromek than go head-to-head with it. 'We can provide global leaders in their fields unique technology and capability that will allow them to extract more value from their markets,' Basu insists. What about new technology I wonder. A Shares reader posed a question about SORS, which stands for Spatially Offset Raman Spectroscopy. This is effectively a chemical analysis process of objects where the contents are obscured by an opaque layer or container, such as a fizzy drink bottle. SORS cannot currently detect liquids through bottles but that might change in time, so could SORS supercede x-ray technology? Basu explains that several technologies are used to detect liquids today, 'microwave, light or laser-based, ultrasound,' he spells out, but x-ray is used in airports because it can penetrate any container. 'X-ray is the most used and the most effective process for analysing properties that human eyes cannot see.' Beyond that, Kromek's technology also pings results back fast. 'You can get an answer in ten seconds,' Basu tells me, 'without the operator having to do anything.' The boss seems to have 'kitchen sinked' March's revenue warning, making sure that every bit of bad news was out. If that proves correct, there is the possibility that the company could beat substantially lowered expectations in the financial year to April 2015. Back in March this year, Northland's technology analyst David Johnson noted that the 'technology remains attractive with numerous applications and inevitable weakness may represent an interesting entry point.' Investors might not be ready to give Kromek that sort of benefit of the doubt but at 45.5p, perhaps they should. Biography Dr Arnab Basu, chief executive officer A PhD in Physics from Durham University, Dr Basu is no shy academic but a seasoned commercial operator with management positions with multi-billion dollar corporation Honeywell, as well as extensive experience running small electronics enterprises selling to giants including Siemens and GEC. In January 2014 he received an MBE in the New Year's Honours list for services to regional development and international trade. INVESTMENT CASE Kromek (KMK:AIM) 45.5p SUMMARY The x-ray specialist must regain the market's support after significant downgrades to earnings expectations straight after floating. Fundamentally, it is the unique and protected technology that makes Kromek an exciting growth company. Bull case Growing regulated markets Owned IP Proven technology Bear case Unpredictable revenues Limited scale Cashflow intensive Market value: £49 million Prospective PE Dec 2014: N/A Prospective dividend yield: N/A BROKER CONSENSUS Buy 2 ' Issue Date: 10 Jul 2014Page: 50 Tags:
yump: Interesting market, but with market cap. 8X revenue and announcing a drop in forecasts 6 months after float, its not exactly an attractive proposition. Companies don't float to make new investors money. In the first couple of years, the only people that make money are the advisers and anyone who trades short term, if its a bouncy stock. Especially when the main markets are having a hiccup. Last year was a good time to float with the market high - draws in a lot of punters. Now comes the real world where we'll see which shares are dross and which ones have credible businesses that are actually likely to make profits. If you assume this made say 500K pbt, that would put it on a p/e around 80 at this share price. Gives a quick idea of how far its got to catch up. Still an interesting market though.

Kromek Most Recent Trade

Trade Type Trade Size Trade Price Trade Date Trade Time Currency
O 25,291 31.00 01 Dec 2015 16:16:52 GBX

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