1st May 2019 09:55
LONDON (Alliance News) - Radiation detection firm Kromek Group PLC said Wednesday a multi-year security screening contract originally signed in 2017 has seen its value almost double following an extension.
Shares in Kromek were 3.7% higher at 26.45 pence on Wednesday.
Kromek initially signed the USD3.1 million five-year contract in February 2017 to an unnamed customer. Delivery began in 2017 and orders have been as expected over the first two years.
For the third and fourth year, however, the customer has increased its order quantities. As a consequence, the contract has expanded by USD2.7 million to USD5.8 million.
For the year ended April 2018, Kromek reported a pretax loss of GBP2.5 million from revenue of GBP11.8 million.
"This was our first long-term contract in the security screening market and we are pleased to see the value now increase by almost 90%," Kromek Chief Executive Officer Arnab Basu said.
"This latest order expansion is an endorsement of the strength of our detection solution and credentials as a high-quality product supplier," Basu added. "We are gaining traction across all our markets as our customers continue to recognise the value that our technology adds to their products. This customer, like many others, is seeing increasing market adoption of its next-generation equipment that incorporates our detection solutions, and so we will continue to benefit from this growing momentum."
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