17 October 2016
Kromek Group plc
("Kromek" or the "Company")
Six New Contract Wins Across All Business Segments
Contracts totalling approx. $3.1m awarded from three new customers and three existing customers
Kromek (AIM: KMK), a radiation detection technology company focusing on the medical, security and nuclear markets, is pleased to announce that it has won six new contracts totalling approximately $3.1m from new and existing customers including the US Defense Threat Reduction Agency (DTRA) and the UK Ministry of Defence. The contracts awarded were across all business segments and are expected be delivered over the next 6-24 months.
DTRA Contract and Technology Partnership
Kromek has been awarded a $1.6m two-year agreement by the US Defense Threat Reduction Agency, subject to final contract, to build on, and further enhance, the Group's technology platform to develop a ruggedised high performance isotope radiation detector capable of use in military and other harsh environments. The Board believes that this is another major opportunity to adapt its technology base and supply into the U.S. military and security agencies to be used in the field.
Kromek is pleased to announce further enhancement of the D3S platform into disruptive, low cost Radiation Isotope Identification Device (RIID) and mini RIID devices for radiation and nuclear defence systems supporting the worldwide demand for such systems in homeland security and defence markets. In addition, the Board believes there are current publicly announced U.S. Department of Defense programmes where such products could play a significant role.
Other Five Significant Contracts
Nuclear Radiation Detection
· Signed a $430k contract with the UK Ministry of Defence for the supply of nuclear radiation detection products.
· Extension to existing contract to extend the development and delivery of nuclear radiation detection devices for a major civil nuclear partner amounting to $278k.
· Both of these contracts are expected to be delivered over the next six months.
Medical
· Entered into an agreement for the supply of CZT-based gamma radiation detectors with an existing medical customer with a minimum value of $560k over the two-year agreement.
Aviation Security
· Awarded two contracts totalling $265k for the Company's bottle scanners, from an Asian airport group, and components for screening systems, from an existing customer. These contracts are also expected to be executed over the next six months.
Dr Arnab Basu, Chief Executive Officer of Kromek, said: "We are delighted to demonstrate progress in all our business segments gaining new customers as well as deepening our relationship with existing customers. The contract wins add to the visibility of revenues underpinning our belief in the continuing growth of the business and commercial traction resulting from the increasing adoption of CZT-based technology."
Enquiries
Kromek Group plc |
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Arnab Basu, CEO Derek Bulmer, CFO |
+44 (0)1740 626 060 |
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Cenkos Securities plc |
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Bobbie Hilliam (NOMAD) Julian Morse (Sales) |
+44 (0)20 7397 8900 |
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Luther Pendragon Ltd |
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Harry Chathli, Claire Norbury, Alexis Gore |
+44 (0)20 7618 9100 |
About Kromek Group plc
Kromek Group plc is a UK technology company (global HQ in County Durham) and a leading developer of high performance radiation detection products based on cadmium zinc telluride ("CZT"). Using its core CZT technology, Kromek designs develops and produces x-ray and gamma ray imaging and radiation detection products for the medical, security screening and nuclear markets.
The Group's products provide high resolution information on material composition and structure and are used in multiple applications, ranging from the identification of cancerous tissues to hazardous materials, such as explosives, and the analysis of radioactive materials.
The Group's business model provides a vertically integrated technology offering to customers, from the growth of CZT crystals to finished products or detectors, including software, electronics and application specific integrated circuits ("ASICs").
The Group has operations in the UK and US (California and Pennsylvania), and is selling internationally through a combination of distributors and direct OEM sales.
Currently, the Group has over a hundred full time employees across its global operations. Further information on Kromek Group is available at www.kromek.com.
