https://audioboom.com/posts/8100653 |
I had to look it up but the facts are : GE have produced CZT SPECT scanners since 2009 and bought the company producing the CzT in 2010 - they have 15 years production experience , patents , know how etc which is why they are global leaders in CZT production and selling CZT scanners. By law they have to supply 3rd parties such as SmartBreast for their Molecular Breast imaging scanner but it's no surprise that a global OEM and rival Siemens have partnered with KMK . The surprise is that it's taken them 15 years to respond to the trend of gamma cameras using CZT as its principle method of photon detection. |
#KMKKromek in simple terms, they are the only global commercial producer of "cadmium zinc telluride", with this they've cornered 2 markets:Wrong: GE healthcare produce their own CZT and have done so for over 10 years (and to interested 3rd parties) . |
#KMKKromek in simple terms, they are the only global commercial producer of "cadmium zinc telluride", with this they've cornered 2 markets:Medical imaging: "There are 4 Tier 1 OEM's in SPECT and CT scanning. Seimens, GE Healthcare, Canon and Phillips. They control 85% of a $8bn+ p.a market. CZT is recognised as key to SPECT and CT future by the OEMs."Military: They have deals with UK, USA and Asian governments in this space and recently got selected as a supplier under a government framework total pot size £380m (uk only)"Kromek selected as a supplier under the UK Government's Radiological Nuclear Detection Framework"KMK are the only independent supplier left capable of producing commercial scale CZT. Which means everyone else has to deal with them. |
Here https://x.com/theunsophistic2/status/1885009265246519637?s=46&t=4s-AQzZhMmeWz3Ire1AEsA |
From the kmk telegram group |
 There are 4 Tier 1 OEM's in SPECT and CT scanning. Seimens, GE Healthcare, Canon and Phillips. They control 85% of a $8bn+ p.a market. CZT is recognised as key to SPECT and CT future by the OEMs. 3 of the 4 OEM's have been have acquired supply chain of CZT. 3 acquisitions of CZT manafacturers. The latest was the acquisition by Canon of Redlen Technologies in 2021 (paid $270m for 85%). GE launched their first CZT product in 2018, Siemens launched their first CZT product in 2021. Canon has indicated ints intention to launch between 2022-2025. It is clear that the market is moving towards using CZT detectors in CT and SPECT imaging. KMK are the only independent supplier left capable of producing commercial scale CZT. Which means everyone else has to deal with them. KMK did their first deal for CZT supply in 2019. 7yr supply agreement with Tier 2 Spectrum Dynamics. $58m over life of contract. The second deal was with the remaining tier 1 OEM (which by deduction is with Phillips) in 2023. Phillips have 20% of the CT market at around $1.3bn p.a. Assuming a 100% conversion (this would take many years) to CZT detectors would mean a potential market for KMK of $300m-$400m p.a. And today we see a deal with Siemens.....the story continues to build and this deal puts potential funding worries in the rear view mirror. IMO a good deal that deserves more recognition today. |
Spect is really the main event atm. Essentially they developed the advanced imaging and spent years and a huge sum of money getting there. The barriers to entry for anyone else trying to develop this are so huge that KMK are literally in a league of their own. Siemens announced today. Phillips apparently the other tier 1 mentioned in various rns then you have canon and ge healthcare. That's the main 4 and all eyes will have been on this news today. The value to these guys as sole holders of this tech is huge, they can dominate the market for advanced imaging. The major surprise for me today was not only the value of each furnace but the fact they've managed to get that price on a non exclusive basis therefore leaving the door wide open to the other 3 tier 1s. We could see a bidding war for spect between the top 4!! Very important part of today's news and not to be underestimated! |
Great write up in the Daily Mail
Market Report STOCK WATCH: |
AQC88830 Jan '25 - 10:52 - 7226 of 7244
0 1 1
Before making this a core holding you should look through what has been said in all the previous results and compare to today.
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Your comments in the above post are very inaccurate.
This is a HUGE deal ,one which will finally catapult the company to become profitable for the FIRST time in their history.
This is MASSIVE , traders and stale bulls like you have offloaded today , the shares price over the next 6 to 12 months will substantially higher than 10p.
Cavendish's new forecasts today after the deal says for the year to 30/04/2025 the company will make EBITDA of £12.3m pre-tax profit of £4.9m.
+++++++++++ PRE-TAX PROFITS FOR THE YEAR TO 30th APRIL 2025 OF £4.9M +++++++++++ |
https://www.bbc.com/news/articles/c1w1gvl1yl9o |
A nice line from the interims..... Kromek is pre-qualified to be selected for orders in three categories, covering the supply of handheld, wearable and large volume static radiation detectors, which over the four-year term of the framework have a combined maximum procurement value of £84m. |
I’ve seen the likes of JakNife on many boards. Nothing ever good enough. Shorting all day long. The vast majority of us had a good day, for some it was clearly painful. |
A great day for all. When this deal starts to build and other contracts follow, today will mark the new beginning. To all those negative voices — your day was yesterday, the future is with the long term holders |
Https://x.com/theunsophistic2/status/1885009265246519637?s=46&t=4s-AQzZhMmeWz3Ire1AEsAKmk telegram group |
The deal is worth almost the same as the market cap. Not often you see that.... |
Great that Kromek atill own the IP after such a big deal with Siemens. |
What is going on |
Stream of buys at 6.9244 now it's 6.88Someone shorting this or selling stock |
The results are awful.
P&L
1. Revenue is down 48.2%!
Can anyone point to the RNS where Kromek warned that revenues were going to drop materially? I can see loads of RNSs about new contracts but there's not one warning that contracts have been lost or that revenue is going to fall materially.
2. Costs are up!
How on earth can distribution costs be up when revenue has nearly halved? That suggests 100% inflation in distribution costs!?!?!
Why are Admin expenses up 8%?
3. Costs hidden in the P&L
Note that a further £2.2m of costs have been capitalised directly to the cash flow statement
4. Total loss of £8.9m for the first six month of the year if you include the capitalised costs. Is the company on track for a full-year loss of £18m?
Balance Sheet
1. Tangible net assets are just £8.6m, cf the market cap at pixel (6.75p share price) is £43.3m!
2. Why are inventories so high at £11.1m when H1 cost of sales was just £1.6m? On the face of it they're carrying the equivalent of 3.5 years' worth of stock?!?! Have they got a problem with excess stock or stock that needs to be written off?
3. Why are trade and receivables so high at £9.3m? H1 revenue was only £3.6m! That must means that invoices issued a year ago still haven't been paid? Have they got a problem with customers not paying them?
4. Net debt as at 31 October was £11.7m. They signed a loan agreement around about that date, what is net debt today? Note 14 to the accounts shows that a further £1m loan was required since October
Cash Flow
Note 10 show the normal cash flow statement. There's a large swing in working capital that has been favourable to KMK. That looks like a one-off that can't be repeated.
The Siemens Deal
1. The interims note:
”the first installment of $25.0m to be received in the current financial year, of which a material amount will be recognised as revenue”
Why only “a material amount”, why not all of it?
2. They also note
"The initial $25.0m payment from Siemens Healthineers will be used to support the delivery of various milestones under the agreements,”
What are the costs associated with the Siemens deal? KMK’s costs of sales is 43% of revenue (ie the gross profit margin is 57%). So should we assume that the cost of sales for the Siemens deal is 43% of $25m?
If so then gross profit would be just $14.25m, which is £11.5m in sterling terms, which is only just enough to pay off the debt!!!
Conclusion
Yet again Kromek’s CEO has demonstrated that he is an untrustworthy crook. He publishes RNSs left right and centre telling shareholders about contract wins but doesn’t provide *ANY* information about contract losses and doesn’t bother to warn when revenues fall off of a cliff.
Revenues are dwarfed by enormous administration expenses and further costs are hidden in the cash flow statement and no details are given about the costs associated with the $25m due from Siemens this year, leaving shareholders to fill in the gaps on what the net amount might be.
Shareholders have got carried away with a one-off deal. Six months from now, after the normal cycle of excessive costs (including rewards for failure to the directors) the balance sheet will likely have improved marginally to perhaps £13m (net tangible assets), which would be 2p a share – a much more reasonable price given the dishonesty that management displays.
JakNife |
Which institution is responsible for this I wonder |
Who is the dumper |
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