Kromek Share Discussion Threads

[quepassa] 03/8/2022 07:59

On the one hand yesterday they say

"..we look forward to the future with increased confidence."

and on the other hand they forecast that they will BREACH their Bank Covenant on net debt/EBITDA with HSBC and have already negotiated a temporary waiver until January 2023 with HSBC.


If they are so confident about the future, why are they forecasting that they will breach their bank covenant??

Can someone elucidate please?

This is the extract from their results yesterday about the Breach of Bank Covenants - although the whole section on "Going concern" is important reading.


"The forecasts prepared by the Directors indicate that the Group will breach its net debt:EBITDA bank covenant during the forecast period. In response to these potential breaches, the Board has negotiated with HSBC that the Group shall not be required to ensure compliance with this leverage covenant up to and including the January 2023 quarterly compliance review."



ALL IMO. DYOR.
QP

[aqc888] 03/8/2022 07:46

Just re-tipped by Simon Thompson. Will be worth 69p within 3years he quotes.

[btgman] 03/8/2022 07:22

Kromek is really close a couple more big contracts and they will be flying. Cheap v historical deals in sector interesting times
AIMHO
GLA
BTG

[ark87] 03/8/2022 02:48

What on earth are Investor Chronicle playing at?? They been tipping these for years the whole way down and still going. Their April target for Covid detector now looks laughable. They going to look utter fools if/when this blatant lifestyle company goes bust.

[slicethepie] 02/8/2022 21:51

Bit like your posts then! Time spent badly is clearly not relevant to you given the time you spend educating all on the risks of investing in kmk ALL IMO DYORSP

[quepassa] 02/8/2022 17:32

The predicted Kromek interview is now on Proactive Investors.

It's just the same old, same old.


TONS AND TONS AND TONS OF JAM TOMORROW.


All the normal old guff about earnings visibility/pipeline/growth.


Not worth wasting ten minutes of your life watching it.


ALL IMO. DYOR.
QP

[quepassa] 02/8/2022 08:59

I guess every shareholder would be interested to read and carefully absorb the paragraph headed "Going concern"

One notes the comments contained therein about

- Bank Covenants (NET DEBT/EBITDA)
- Fundraising opportunities


ALL IMO. DYOR.
QP

[cerrito] 02/8/2022 08:45

Pleasantly surprised that the share price is up, even if marginally, given the dire going concern statement

[strategicinvestor2] 02/8/2022 08:32

No new news reading in detail other than non cash ECL. Main thing is confirmation of strong outlook and future EBitda. Imho dyor

[quepassa] 02/8/2022 08:12

see my post 6239 of 20/6 which discusses this topic

[zipstuck] 02/8/2022 08:09

Wondering
if they will need more cash

[strategicinvestor2] 02/8/2022 07:43

Phew except results in line with expectations will order cut off into current year rather than
Last giving small EBITDA loss. Looking good going forward again.

[edmonda] 02/8/2022 07:36

As flagged in last trading update, FY22 revs up 16% + CEO reports confidence for the future with ‘highest ever level of revenue visibility' and anticipates 'substantial revs growth in FY23'

2 repeat OEM orders won today in Medical Imaging worth $751k add to a positive start to new financial year.

[quepassa] 02/8/2022 07:29

same old trick.

announce a contract by RNS on the same day as the results which may serve to distract and deflect attention away from the results.

My guess is that there will be the regular interview on Proactive Investors later today.

What's the betting please that there will be any concrete discussion at all about the actual financial performance of Kromek of losses of £6.1m or just more glib talk about wonderful future prospects ( you know " good visibility on revenues", "strong traction" , "repeat orders" blah, blah, blah......)?


ALL IMO. DYOR.
QP

[quepassa] 02/8/2022 07:20

LOSS OF A WHOPPING £6.1m.


BUT READ THIS !!!

THEY HAVE THE OUTRIGHT CHUTZPAH TO SAY THAT THERE IS A BIG JUMP IN REVENUES:-

"Our revenues grew by 16% compared to the previous year as we saw increased commercial traction, particularly in the CBRN segment, and ended the year in a better position than we began it."

But that's not all it appears in my view

£1.4million of their REVENUES is OTHER INCOME which is moneyfrom UK and US government which they count as REVENUES - and they say that REVENUES are strongly ahead - but by no means all from commercial activities .

This is the real contributory reason for the apparent jump in revenues

"Other Income

The Group generated total other operating income of GBP1.4m (2021: GBP0.4m), which predominantly comprises the forgiveness of Paycheck Protection Programme (PPP) loans in the US. The Group had been granted PPP loans totalling US$1.8m (GBP1.4m) in the prior year and, during the period under review, applied for, and received, forgiveness for repayment from the US Government. In the prior year period, GBP0.3m of the GBP0.4m of other operating income comprised UK Government grants in response to COVID-19. The balance of remaining other operating income relates to grants received from the Coronavirus Job Retention Scheme provided by the UK Government in response to COVID-19's economic impact on businesses and other small miscellaneous grants."


ALL IMO. DYOR.
QP

[aqc888] 29/7/2022 13:20

The biological pathogen detector technology clearly works after winning prizes from the institute of physics, getting an accreditation and a nato innovation award. Why there’s no update is perplexing. I fortunately reduced my holding at 16p where it was 10% of my portfolio and still hold a small amount (2% of portfolio). I feel there could well be a significant government order in the next year. Governments can be very slow moving and we were advised by the ceo they were in “serious discussions with multiple governments”. Definitely a high risk investment in my opinion, but still a little hope left here. I think that view represents the market opinion of Kromek. Could well be further losses if history is to repeat itself in the meantime.

While significant share price gains could materialise should an order come through - the ceo spoke of multi-billion pound fees to network a country with the devices - analysts seem to be of the opinion Kromek are due to make a small profit at the next results. While the tie up with Smiths detection was promising I’ve no idea in reality what’s going on with this share, but I believe it’s worth a small gamble still. I think the current valuation is fair until there’s some news. Could drop to 4p if further losses and no new sales are announced - while I believe it could reach 50p with some biological pathogen detector sales.

[b00mb0y] 29/7/2022 09:06

Nail on the head,QuePassa.

[quepassa] 29/7/2022 08:08

Kromek.


Talk-the-Talk 10/10

Walk-the-Talk 0/10



all imo. dyor.
qp

[2trying] 27/7/2022 00:34

No offence buddy , but this works better

[strategicinvestor2] 26/7/2022 19:34

hxxps://www.thisisardee.ie/2022/07/26/explosive-trace-detection-market-is-booming-worldwide-kromek-group-westminster-international-implant-sciences-elbit-systems-tongfang-weishi-technology-and-more/

[estienne] 21/7/2022 11:34

No but I'd like to see what spin Simon Thompson puts on them

[strategicinvestor2] 19/7/2022 12:42

Year end results - anyone got news or contacted company for an update ?