Kromek Share Discussion Threads

[quepassa] 16/5/2022 09:56

And as if by magic, FinnCap issue today a 34 PAGE Research Note on Kromek.

If that isn't a prelude to an investor kiss - I'll eat my hat!


ALL IMO. DYOR.
QP

[aqc888] 16/5/2022 09:53

Still no update on the biological pathogen detector - despite this being the main selling point of the last £13m fundraising. Does it work? Is anyone interested in them? How are the trials doing? Read through previous years updates and they all say the same… confident about next year… then next year comes and no change. There could be a point when things really do change - which is why I keep an eye on Kromek. The increase in production of CZT I see as good solid income and de-risks Kromek slightly. However there is no director buying still and this is what makes Kromek un investable from my point of view. With the share price so low, profitability so close, and with so many products developed with IP all paid for, why are directors not buying? Perhaps because they know the same thing they knew in all previous updates - there is no imminent profitable year anywhere close

[quepassa] 16/5/2022 09:41

hey strategic,

you are deluding yourself and I fear you are trying to delude others to support an underwater position.


Would you care to comment on your recent post number 5851 of 18/1/22.

Copy herewith:-


"Equity Developments now 65- 75p valuation read across.

Looks well on track for EBITDA profit this year and strongest position they have ever been in.

Excellent cash management.

Imho DYOR"




Care to comment on your recent January delusions/pronouncements about cash management and being on track for EBITDA profit?

Care to comment??




ALL IMO. DYOR.
QP

[dougmachin] 16/5/2022 09:28

I'm happy that a company with quality products is on the mend.

Sure, I agree, it's not amazing, but it's not the worst it could be either.

[strategicinvestor2] 16/5/2022 09:12

Forward outlook is the key. Loss die to timing of shipping so expect growing EBITDA and cash flow from here.. I’ll certainly sleep a lot better now

[quepassa] 16/5/2022 08:45

Someone who believes that another LOSS is a fantastic result - yeah right

[strategicinvestor2] 16/5/2022 08:39

Fantastic update. Some order slippage
but only timing to benefit h1 and orders ahead of expectations. Well done all.

[charlie_bucket] 16/5/2022 08:06

I'm not a shareholder anymore. But I'm thinking that to say that they have enough cash "for the foreseeable future" is a very surprising thing to say for a company that is a long way away from being cashflow positive. What does that mean, what time horizon, its subjective and intended to downplay it I think. Short term cash boosts from reducing inventory levels and getting cash in from recent higher orders are one offs. Changing NOMAD with no explanation not necessarily positive, did they have a disagreement with the previous ones? I'm not contemplating buying (or shorting!) this one (ever) again so be clear I have no bias here.

[quepassa] 16/5/2022 08:00

New NOMAD and Broker announced as FinnCap.

The real question is why CENKOS have ceased being NOMAD and Broker after so long.


You don't need to be a rocket scientist to work that one out.



If there isn't a new fund-raising by the end of 2022 - I'll be amazed.


Watch out for any tell-tale signs such as RNS announcements of big new orders or new product launches, swiftly followed by rapid rises in share price - all prior to an announcement of raising fresh equity.


ALL IMO. DYOR.
QP

[senttothegallows] 16/5/2022 07:53

Excellent update back I double figures immediately imho

[dougmachin] 16/5/2022 07:48

From directorstalk

[dougmachin] 16/5/2022 07:42

From Equity Development: We retain a fair value of 26p / share.

Trading update: FY23 targets remain on course

In a Trading Update for the year to 30 April 2022 Kromek reports that it expects FY22 revenue of £12.1m. This compares to our previous FY22 forecast of £15.0m. However, for the current year, backed by strong contract visibility, our FY23 expectation of £18.0m revenues remains unchanged.

As outlined at the interims, the Group continued to be impacted by supply chain issues, notably the availability of key components required to complete £2.9m of orders required by the year end. These orders are now being shipped and are set to contribute to H1 ‘23 earnings.

Despite order shipment delays, strong cost control and cashflow management resulted in a year-end FY22 cash position of £5.1m; this compares to our estimate of £7.4m. As a result of the unwinding of inventory, combined with cash inflow from delayed order completion, Kromek reports sufficient cash reserves for ongoing operations.

For the current financial year, Kromek reports that it expects growth to accelerate in both its core segments - CBRN and Imaging - resulting in the prospect of “substantial revenue growth”. We retain a fair value of 26p / share.

[edmonda] 16/5/2022 07:40

Supply chain issues have indeed affected KMK but with strong contract visibility in current year Equity Development have retained their revenue forecast for FY23 and fair value of 26p/share.
Read / hear that new note at:

[quepassa] 16/5/2022 07:37

ANOTHER LOSS EXPECTED.

"As a result, the Group expects to report an adjusted EBITDA loss for the year ended 30 April 2022 of approximately GBP1.2m."





The Rub:-

Cash/cash equivs

30/4/21 £15.6m
31/10/21 £10.2m
30/4/22 £5.1m


Cash burn rate c. £5m each six months.

They have burnt through a whopping £10.5m of cash in a year.

Where has it gone? What have they spent it on?


Read carefully:-

1.

"Specifically, the late arrival of certain components prevented the completion of orders totalling approximately GBP2.9m that were scheduled to be delivered before the year end. "

and

2.

"Kromek expects cash inflows following the delivery and payment of the aforementioned GBP2.9m orders; the unwinding of high inventory levels; and a continued improvement in customer collections. Consequently, the Board believes that the Group has sufficient cash available for the foreseeable future."



The numerous amount of times that Kromek has repeatedly tapped the markets for fresh equity to raise cash since IPO is well documented.

In my opinion only, it may or may not be the case that Kromek may or may not need to raise yet further cash in the future given the notable cash burn rate.


Should that be the case, the important question is how receptive the markets may or may not be given the repeat loss-making track record of Kromek and given that investor appetite for the tech markets has badly soured.


Another loss.


ALL IMO. DYOR.
QP

[dougmachin] 13/5/2022 10:13

An article:

From Floodlight to Laser Focus: Spotting the Next Pandemic Before It Happens



I sold half a while ago. Fine to hold the rest to whatever end!

[aqc888] 13/5/2022 07:58

Will be a challenge to persuade investors at the next fundraising with Kromeks track record. Kromek need some significant good news to stay afloat. Kromek is entering a very unstable/unpredictable future, to take on that kind of risk new investors need a much more attractive valuation. In my opinion 4-6p will get investors considering the huge risk here worthwhile, it’s simply not worth 8p imo

[ark87] 10/5/2022 16:55

Unless there is some good news lurking these markets might spell the end for KMK.

[quepassa] 09/5/2022 15:59

Two recent and interesting employee Reviews on Glassdoor dated 7/4/22 and 11/3/22.

Both Reviews stated as being from long-term employees.


ALL IMO. DYOR.
QP

[aqc888] 06/5/2022 19:39

Ark87, that £1.7m announcement from last month probably included the bio pathogen sales we’ve been waiting for.

[aqc888] 06/5/2022 11:21

No director buying. Says it all really. Should have seen the signs when they didn’t take part in the fundraising at 15p. So many wonderful opportunities on the horizon, yet so little director buying no matter how low the share price goes

[ark87] 05/5/2022 17:12

Simon Thompson made to look a fool again with his April prediction for news regarding Covid detector sales. I wonder if that's the final straw for him here.

[quepassa] 05/5/2022 09:48

This article is interesting:-



hXXps://www.vitae.ac.uk/researcher-careers/researcher-career-stories/career-stories-doctoral-entrepreneurs/arnab-basu


" My role is not day-to-day management of technical issues, rather the more generic skills..."


all imo. dyor.
qp

[aqc888] 21/4/2022 12:23

Doing well to still be above 10p… some still waiting out for a miracle

[b00mb0y] 15/4/2022 18:32

Senttothegallows, is that .25p per share or .25p lock, stock and barrel. Hahaha. Either-or, it won’t get me my money back. Hmmm