Kromek Share Discussion Threads

[aqc888] 14/7/2021 19:47

Hallelujah!!!!!!!!!!! STRONG BUY 28p and WELL BEYOND

This will boom in the morning!

[33mick] 14/7/2021 18:06

Cheers toptomcat

July 14, 2021
By Simon Thompson

"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
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.

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.

The technology is based on Kromek’s work in developing a mobile bio-security system capable of detecting airborne pathogens for an agency of the US Department of Defence (DARPA). In the past month, DAPRA awarded Kromek a follow-on US$6m (£4.2m) contract to deliver an automated and fully mobile airborne pathogen detection system, and the company has been awarded a £349,000 contract from the UK Ministry of Defence. Chief executive Arnab Basu (pictured) says his company is in “serious discussions with multiple governments” and notes that “its unique set of IP isn’t reflected in the current valuation.” I concur, so much so that with a raft of positive news flow set to announced on multiple fronts in the coming months I expect the share price to re-rate markedly.

To quantify the size of the opportunity, Hill at Equity Development values the annual global market for the biological threat detection devices at £500m and believes that Kromek could win a 20 per cent share on a 25 per cent profit margin

[quepassa] 14/7/2021 18:03

You wanna read/remind yourselves what Simon Thomson wrote on 16th April 2020 about the Kromek ventilators and the 35p price target he then gave.

Both horrifically wide of the mark.

link herewith:-

hXXps://www.investorschronicle.co.uk/comment/2020/04/16/stock-picking-for-bear-market-gains/


ALL IMO. DYOR.
QP

[toptomcat] 14/7/2021 17:40

Been following the conversation with interest today and also attended the results call this morning. Impressed with what I heard and I think Kromek have now finally reached a positive cornerstone. ST has just released an article with a STRONG Buy recommendation targeting April's highs of 28p and well beyond

[33mick] 14/7/2021 17:27

This really answers where the Covid detection units are at re testing, performance and validation.
With plans and conversations happening re manufacturing and Futher trails.

MOD, military and UK gov being up there at the top of the list I expect.

[quepassa] 14/7/2021 16:10

Doug,

Have searched around but can't find link to this morning's analyst presentation with questions. Can't find link/upload on Kromek's web-site. If anyone has it, please post link.

However, have listened to two other Kromek presentations this morning on YouTube.

The one with Proactive Investors and another one featuring an 11 minute presentation by CEO.


Neither of those mention any company figures whatsoever. Not the loss, not the revenues, not the net worth. How can you give an annual results overview and not mention actual performance??

More waffle about how well everything is doing and all the worn-out, threadbare, tacky jargon about ramping-up, good visibility and how rosy everything is in the garden.

What was gob-smacking is that the ventilators were glossed over and not mentioned a single time.

I'd like to hear the analyst presentation and will hope to find it as I want to listen to the FD talking rather than the usual media-interface but can also imagine with some of the questions raised that it may equally be suspended.

Do you have a link you can post?


ALL IMO. DYOR.
QP

[aqc888] 14/7/2021 15:45

If the CEO says the results are positive in interviews repeatedly - that suggests that he is in possession of the results.

If the CEO says the results are in the coming days - that suggests they are imminent.

Where are they?

The detector is a pretty big part of Kromeks offering to shareholders. He shouldn’t be playing games with the results. I expected them today and I’m getting very frustrated they are being withheld.

Its pretty condescending 33mick to suggest I don’t understand engineering well enough to have a view on the handling of the results

[33mick] 14/7/2021 14:35

AQC888 did you get to read the last Paul Hill Equity Development article?
It got missed by some as it came out on the same day the last ST Investor Chronicle update was released.
From memory it did say live trials/testing of prototypes were planned and thought to take a 'few' months which is reasonable ito my mind.
It was an extensive article and showed the other pro-types, vehicle mounted and such, the one in the airport wasn't shown as its an all new one ment for floor space in high footfall areas.
I'm not sure where you read/heard about trails from the beginning of the year...they only announced the UK innovate contract/project in Jan this year.
I don't share your feelings of being mislead by management at all.
Almost all the design engineers/ companies/manufacturing plants have been in someway restricted by remote working from home or delays with part supply (PCB boards/Chips mentioned this morning by Kromek)
I've been very impressed that they got those first units up and running.
But that's because my job is design of engineering products and systems and components, they've done very well in my book.

[33mick] 14/7/2021 13:19

Ok AQC888, in this world nothing is guaranteed we all know that.
Kromek are the only Tech company in the UK and arguably the US that have had such backing to develop thier Bio dection units, they were originally for multi patho virus / bacterial / anthrax detection, they've in parallel in record time developed a pure Covid unit being tested/trialed and now we're told today as I understand -
Technically assessed for accuracy and performance by the NHS...so if you like a 3rd party accreditation. There is no 'airborne viral' standards actually to meet so they are in communication with gov bodies to gain accredition etc..we know its as accurate as PCR.

With no doubt news to follow.

The other core parts of the business are back on track and firing on all cylinders, that was the facts we heard from Kromek this morning.

There's none if the skulldungery you imply...it's a woefully unrealistic expectation of what can be humanly achieved by any tech company designing and testing a new product that seems to frustrate you. You're probably not alone as not everyone has a technical mind or product development knowledge.

Things are all starting to line up here.

Just coming thro what for most companies has been the worse period imaginable with Covids shutdowns Kromek's results today are more than impressive to many.

[aqc888] 14/7/2021 12:51

What else exactly was inaccurate/misleading?

[aqc888] 14/7/2021 12:50

33mick, winning government funding for a product does not equate to, or guarantee, a successful product being developed.

[dougmachin] 14/7/2021 12:34

QP - where are you viewing the presentation?

I think the more who see it the better.

It takes away from the trials and focusses on the whole company, with the bio-detection as an exciting bonus.

[33mick] 14/7/2021 12:32

AQC888...it's very frustrating reading your inaccurate and misleading posts.
You have a very poor grasp of information you read and hear and for some reason decide to believe another version of imagined events.

Technology and Science and Product development...world first fully US/UK gov funded..seems completely missed by you!!

Nothing you say I find correct or factual...sorry your the Muppet here.

[ch1ck] 14/7/2021 12:29

Amazing results buying more on this fall which is unwarranted

[aqc888] 14/7/2021 12:17

Very predictable results. A lot of exciting news in the pipeline, as always... Past promises forgotten - no results from the trial. (Results to the trial were to come in the coming days, last month). Recovery of the £13m AROC exception (from 2020) is now considered doubtful and it has been revealed it relates to doubtful/bad debts (rather than written off stock held by Kromek - as Simon Thompson stated).

Given Simon Thompson seems to have been mislead not even a repeat tip can be expected. I’m doubtful that the Chinese government don’t consider workers for a hospital imaging system as essential workers and refuse them entry.

Very frustrated by the lack of details regarding the trial. Supposedly they have been in trials for over 6months. (Although as we learned from the Teeside Mayor this was not the case, they only started 1month ago).

I can understand the trials are ongoing and they are refining the system for different environments. But no details at all regarding the trials other than vague references to them being as good as pcr tests??? If that’s the case why aren’t they releasing specific details on this information to show how wonderful it is?? We’re just left to ‘believe’; what the CEO tells us. Kromek is beginning to feel like being a member of a cult. Nobody is allowed to see any evidence of the game changer covid machine. We just have to listen and ‘believe’; in it. Alot of smoke and mirrors. Just enough information given about the biological pathogen detector to keep people holding on, but not any actual evidence of its effectiveness from the trials. Very frustrating.

[dougmachin] 14/7/2021 12:11

QP - Yep, Paul Farquhar CFO was present and gave a good run through of figures at the start. He also answered questions that were best answered by him. I took a bunch of "notes" which I hope to have a good look at soon.

[quepassa] 14/7/2021 11:53

Doug,

Thanks.

Lots of red-herrings with Kromek. The $159m 4/4/14 contract..... The ventilator contract....

They obviously knew some time back that the ventilator project was cratering. I just wonder to myself if it would have been good corporate etiquette to mention how it was progressing.


Question please. Haven't had the chance to view the presentation but will do in due course.

Was the Finance Director present and did (as customary in annual results presentations) the Finance Director give a thorough run-through of figures?

thanks.

ALL IMO. DYOR.
QP

[dougmachin] 14/7/2021 11:47

QuePassa - I think you're chasing a red herring here. Ventilators were a potential that never came about. That's all. If you wanna beat KMK with a stick, I would say there's other ways to do it. Ventilators aren't a part of KMK's core business. Agreed, they probably never should have mentioned anything in an RNS unless it was actually 100% going to result in sales, as this leads to 'boy who cried wolf' affect.

From the presentation, I've moved so far on from that RNS. It's history. Not KMK's finest moment. But a small blip that in no way has affected KMK's core business.

The presentation showed a quality company with some really exciting possibilities. Let's see where the share price is, this time next year. I am watching and would now add more.

[33mick] 14/7/2021 11:43

I bet the Navy s Covid problems were related to this latest MOD contract.

Today's Proactive Investors comments.

"Kromek targets record annual revenues after securing new contracts"

"In Kromek’s new target area of biological-threat detection, the detection specialist has been awarded a £349,000 contract with the UK Ministry of Defence to develop its technology to meet defence and security"

[quepassa] 14/7/2021 11:22

Thank you Doug for asking the question and eliciting an answer on the Ventilators.

Appreciated.

So despite the fanfare of their announcement, now we know according to your response that ZERO VENTILATORS were made during a time of grave national crisis.

And a curious response that it was an issue with the UK government , not theirs.

Must say , I don't really comprehend that. At that time, I thought the UK government was desperate for ventilators.


But putting that conundrum to one side, in the same 15/4/20 RNS announcing the VENTILATOR project, Kromek said that the ventilators were to be sold in the UK and GLOBALLY.

" Following the signing of a license agreement, which is expected shortly, Kromek intends to sell the ventilators in the UK and globally."


Well, what about their GLOBAL sales of ventilators? Surely that can't be laid at the door of the UK government. What happened there?




ALL IMO. DYOR.
QP

[33mick] 14/7/2021 11:21

Today..BBC news-

I was amazed there was no talk of it as she sailed out of Portsmouth only to return a few weeks later..and leave at a latter date.

All those matlos were double jabbed, double PCR tested before boarding and it appears nothing can detect it well enough.

'An outbreak of Covid-19 has been confirmed on the Royal Navy's flagship, HMS Queen Elizabeth.

The BBC has been told there have been around 100 cases on the aircraft carrier, which is part way through a world tour.

Several other warships in the fleet accompanying it are also affected.

Defence Secretary Ben Wallace said all crew on the deployment had received two doses of a Covid-19 vaccine and the outbreak was being managed.

HMS Queen Elizabeth is about a quarter of the way through a 28-week deployment leading the Carrier Strike Group (CSG).

It has now entered the Indian Ocean, and the Royal Navy says it is due to continue on its voyage to Japan later this year.'

[33mick] 14/7/2021 11:05

Very good write up Doug, I'm glad I tuned in, seems all very positive to me in all areas, the future potential bio detection/monitoring units sales are as you state not factored in to any projections. So to my eyes a very exciting story to follow.

NHS based 3rd party accuracy and sensitivity tests being carried out If I heard correctly?

Manufacturing/Production lines being sounded out.

And even the Chinese/Asian customer still could come good. All products in store awaiting onsite installation when techies can travel I believe.