Kromek Share Discussion Threads

[33mick] 12/11/2020 21:26

With something in the news every other day of possible related benefit from the Kromek s Patho' Detection project
It's worth reading again the many possible applications this tech could have.
The some 17 million+ Mink cull in Denmark and the resulting spread of a new Covids strain, Bird flu in chicken farms here in UK, to name two.



""Dr Richard Leggett, Technology Algorithms Group Leader at the Earlham Institute, said: “Existing protocols for identifying potential biological pathogens are relatively slow. The idea behind this project is to design a far more responsive system that provides real-time analysis of the environment. It could be adapted for many purposes, ranging from clinical infections, crop or animal diseases to national security.”

Professor Matthew Clark, Research Leader at Natural History Museum, said: “This technology gives us a unique ability to understand biodiversity and the environment – not just in urban centres but also the jungles, plains, mountains, rivers and oceans of the world. In addition to human pathogens it can be used to identify potentially invasive species such as Ash Dieback and prevent them establishing and devastating our countries environment."”

[davethechef] 10/11/2020 09:54

Events Kromek holding this week

hxxps://www.kromek.com/events/d5-riid-launch-webinar/

hxxps://www.kromek.com/events/nct-virtual-asia-2020/

[jimtech] 06/11/2020 12:20

I think the PR has been the problem in the past. A lot of noise and expectations that have not been met in practice.

[b00mb0y] 06/11/2020 10:54

Been in here since the IPO and seen this share price in the high 70's. I originally purchased at 49p and should have taken a decent profit at one point but greed set in. I did keep buying though but now fully loaded with an average of 20.5p. I do believe that this WILL come good and I am prepared to waite. I also believe that we can get back up to those higher share price figures due to the unpresidented climate that we are in and the products that we have. We do need more PR noise to push this though. I am a believer in this company.
GLA.

[abbynat] 06/11/2020 10:38

jimtech, am in similar situ. was in red with this, then i actually topped up a couple of weeks back when the buys and volume returned.
i do think we will make profit here by the end of the year, which is not long really.

[dennisbergkamp] 06/11/2020 10:13

Normally my FOMO plays out badly, but this was decent from 11.5... after dithering at 8'iah!

D

[dougmachin] 06/11/2020 09:56

A lot of support at the 11p mark IMO, with that purchase from the new director. Really should have added more when it dropped back down to 11p.

[jimtech] 06/11/2020 09:55

That would be nice. But it has disappointed so many times over the years. I have made five purchases since May with the first at 21.5p now averaging 14.75. They say never average down. Close to break even now but am ever hopeful so will keep holding...

[gleach23] 05/11/2020 14:32

There was an update in Small Company Sharewatch last weekend advising to set a stop loss @ 11p....oops

[susiebe] 05/11/2020 14:09

Someone quick to give your post a thumbsdown.Sad.

[33mick] 05/11/2020 13:41

double post..

[33mick] 05/11/2020 13:41

Last write up I've seen was on ii
as mentioned on lse...

Finding 10-bagger shares on AIM
by Andrew Hore from interactive investor | 23rd October 2020 14:13

Companies to watch article a week ago.


"Alternatively, there are companies, such as Kromek Group (LSE:KMK), that have spent millions of pounds developing technology that has yet to be fully exploited. Kromek’s medical imaging, security and nuclear detection technology has already generated significant orders and investment has increased capacity. Contracts have been delayed but Kromek should bounce back and return to growth."

[techno20] 05/11/2020 13:19

Not complaining, but anyone know any reason for today’s increase?

[matt123d] 05/11/2020 09:53

Added a few here

[dicktrade] 05/11/2020 09:50

tipped somewhere today ?

[sev22] 03/11/2020 14:26

I am highlighting this article, published by Simon Thompson on the 7th October 2020, just to reassure those who are still invested here. If anything the news flow has improved since this update so I am surprised to see so many investors bailing out.

Kromek (KMK:8p), a Sedgefield-based radiation detection technology company focused on the medical, security screening and nuclear markets, has announced annual results today. The Covid-19 impact on the business led to Kromek reporting an underlying cash loss of £400,000 on 9 per cent lower revenue of £13.1m. This had already been flagged at the time of the pre-close trading update from the £27.5m market capitalisation company (‘Stock picking value open to future gains’, 4 May 2020).

Of far more interest is Kromek’s subsequent $5.2m (£4m) contract extension by the Defence Advanced Research Projects Agency (DARPA), an agency of the US Department of Defence, for work on developing a mobile bio-security system capable of detecting airborne pathogens. That’s because the project is now expected to be expanded for use in the non-military sector in response to the outbreak of Covid-19.

Kromek has already developed a prototype to sample air and identify the presence of any biological pathogen – including Covid-19 or any mutant version that may emerge over time. The technology can be used to immediately flag the presence of someone with a contagious disease and allow effective mitigation of the risk of transmission. By placing samplers in high footfall areas, such as airports and hospitals, or where people are in close proximity for long periods, threats can be identified without having to individually test people. Knowing a carrier is infected with a disease before they infect further individuals is key to halting the onset of an outbreak and before it causes major global disruption. Non-military applications include use in shopping centres, sports arenas, theme parks, schools, hospitals, offices, airplanes, and cruise ships. Importantly, it’s incredibly accurate, giving a false alarm in just one in 800,000 tests.

Chief executive Arnab Basu revealed during this morning’s results call that Kromek will undertake field trials with the pre-production prototype collecting airborne samples from urban and rural locations starting in January, and has field tests scheduled in London with two UK government agencies: The Defence Science and Technology Laboratory (DSTL), an executive agency of the Ministry of Defence; and Defence Aviation Repair Agency (DARA). Kromek also plans for delivery of units for pilot deployment in the US in the first half of 2021.

It could be a saviour for the UK government given the problems it’s facing with its much maligned Covid-19 test and trace programme. It could also reverse the fortunes for shareholders who have seen the share price decline since hitting a 12-month high of 27p in May, losing two-thirds of its value and taking the price well below the 17.5p level of my repeat buy call in early May.

Share price decline

The major reason for today’s share price fall is that Kromek unexpectedly revealed a £13.1m write-down on a medical imaging contract due to Covid-19 which has disrupted both the shipment to hospitals and access onsite.

Work in progress had been stockpiled for delivery and recognised as revenue over the course of the past 30 months. With shipment originally scheduled for 2020 onwards now delayed, the carrying value of accounts receivable under contract (AROC) is dependent on Kromek being able to prove a shipping date. It is unable to provide this at present, hence the £13.1m write-down to AROC in the accounts. However, all the stock remains on Kromek's balance sheet (and in its UK facilities) ready for shipment and delivery in the future, hence why the directors still expect the position to reverse, at which point Kromek can book a hefty exceptional credit. I am not sure investors have fully grasped this accounting point.

Kromek’s rebound potential

I am not sure they have grasped that a rebound in the 2020/21 financial year is on the cards either.

Firstly, Kromek has now started delivering on a delayed seven-year Original Equipment Manufacturer (OEM) contract worth US$58m (£45m) to provide its cutting edge CZT detectors and advanced electronics in state-of-the-art medical imaging detectors. The contract should deliver revenues worth “millions of dollars” in the current financial year, says Mr Basu. The same is true of another delayed contract from the 2019/20 financial year.

Secondly, the company continues to win new contracts in other parts of the business. Kromek was awarded $1.1m worth of contracts to add technical innovation capability to its D3S ‘dirty bomb detectors’ by US government agencies. They are proving popular in Europe, too, with the European Commission and Irish Civil Defence also using them. Given the heightened terrorism risk across the world, the 22 countries currently deploying the technology is likely to grow.

Thirdly, Mr Basu reassuringly notes that Kromek’s revenue is now back to pre-Covid-19 levels following the disruption of the first quarter to 31 July 2020. That’s important as it means that concerns over the company’s cash position should now ease, another reason for the share price fall since May. Finance director Derek Bulmer says that the company had gross cash of £9.4m at 30 April 2020 and gross debt of £5.6m. Since then it has strengthened its gross cash reserves by over £2m and varied bank covenants on its HSBC facility. Given that revenue has returned to pre-Covid-19 levels, and stocks are now being delivered on delayed contracts, the company should have the funding in place to operate without the need to tap shareholders. This may not have been made clear to investors.

The bottom line is that the 40 per cent share price discount to net asset value of 13p should reverse when investors cotton onto the huge commercial opportunities for Kromek's ground breaking DARPA airborne pathogens technology that is being piloted. Strong Buy.

[davethechef] 02/11/2020 19:21

Further comprehensive insight & research thanks to PMH Capital, on today's twitter

[18bt] 02/11/2020 07:36

Smallish contract, but all in the current FY and expectations of continuing revenue.

[quepassa] 29/10/2020 14:43

good luck to the new cfo. - I think he'll need it.

anyone know how long the current auditors have been in place and whether they are due for timely rotation?

all imo. dyor.
qp

[33mick] 29/10/2020 08:16

Mr Farquhar, aged 58, is a Chartered Accountant with almost 30 years' experience as a finance director and chief financial officer, primarily for international businesses. This includes 10 years as Vice President, Treasurer and Chief Financial Officer of Sevcon Inc, which was a NASDAQ-listed designer, manufacturer and supplier of microprocessor controls for electric and hybrid vehicles through wholly-owned subsidiaries in Europe, North America and Asia and via an international dealer network. Alongside his day-to-day responsibilities as the CFO of a public company, Mr Farquhar oversaw the raising of equity and debt finance and M&A activity. This included the acquisition of a private Italian battery charger manufacturer and the formation, and subsequent successful buy-out, of a joint venture in China. He also established a global finance team in five countries with common financial reporting systems to meet the needs of a growing technology business. During this period, Mr Farquhar oversaw an increase in the Sevcon market value from $50m in 2010 to $200m in 2017 when the company was acquired by BorgWarner Inc.

[davethechef] 27/10/2020 20:20

Covid-19 as we're increasingly becoming informed of, will be with us for years to come, one suspects to varying severity. As this article today highlights, unfortunately immunity is becoming less so, & re-infection a possibility, over time too. Scary but true. And as for vaccines, it'll take years to vaccinate everyone(globally) and questions will exist on its effectiveness. Has to be one of the reasons why KMK's technology will be in one of those virus detection technologies in demand in years to come.
hxxps://news.sky.com/story/coronavirus-herd-immunity-hopes-dashed-as-study-shows-covid-19-antibodies-fall-rapidly-after-recovery-12115510

[sev22] 27/10/2020 09:30

Kromek D5 RIID Launch Webinar.

11th Nov 2020 - 1pm GMT.

Our new D5 RIID is a state of the art , robust, high integrity, medium resolution gamma and neutron detector.

In the webinar you will see:
Overview of the new D5 RIID
Key features and applications
Q&A session

Hosted by Eve Paylor - Nuclear Product Manager.

Sign up to the launch webinar on 11th November 2020 at 1pm (GMT) to see what it is all about!

We will be recording the webinar, so if the time is not suitable for you, please still register and we will send you the recording afterwards.

To learn more about Kromek and our products, go to the website www.kromek.com

[wigwammer] 26/10/2020 18:37

700k purchase near the bell. He's not the only one buying :)

[floatupstream] 26/10/2020 16:12

Speaking of sizeable boys ... I need 16p to break even ;)