Kromek Group (KMK) , a leading developer of radiation and bio-detection technology solutions, announced three further orders totalling over US$1m in the CBRN (chemical, biological, radiological and nuclear) detection sector.
Two of the orders are in nuclear security, and one is for the further development of Kromek's bio-security technology. Kromek expects the majority of the revenue to be recognised in the current financial year.
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More good news from Kromek as it adds 3 orders totalling $1m to its book. As most of the revenue will be recognised this year, the orders underpin FY23 forecasts along with the recent $5.9m contract from the US Department of Homeland Security (DHS) signed 5 days ago.
Two of the orders are from existing customers and one is from a new customer that is a "substantial, global defence corporation" which represents a significant opportunity for further sales. Repeat orders testify to the quality Kromek's detection products and its ability to deploy them quickly.
Investors continue to cheer on Kromek, driving KMK shares 11% higher today and 35% higher over the past month. Geopolitical insecurity continues to drive demand for Kromek's products that help ensure public safety. Last week's large US$5.9m 4-year contract with the US DHS also highlights the US government's increased focus on biological threats, particularly post Covid-19.
Last week, broker Cavendish maintained its target price of 25p (21-31p range) in which the US DHS' biological threat detection programme is valued at £30-50m or 5-8p per fully diluted share, compared to Kromek's current share price of 5p (mkt cap £30m). Cavendish does not believe Kromek's biological threat detection programme is yet reflected in its valuation.
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