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Kromek inks two new contracts with US government

The AIM-listed radiation detection firm said the two contracts are worth a combined minimum of US$2.6mln over the next three years, with a potential two-year extension to US$3.3mln

Radiation detector
The contracts will cover areas including handheld radiation detectors and baggage X-rays

Kromek Group PLC (LON:KMK) has been awarded two new contracts from the US’s Department of Homeland Security (DHS) and the Defense Threat Reduction Agency (DTRA), an agency of the Department of Defense.

The AIM-listed radiation detection firm said the two contracts, aimed at developing next-generation radiation detection solutions for security and national defence, would generate revenue in the current financial year and are worth a combined minimum of US$2.6mln to be delivered over the next three years, with a potential two-year extension to US$3.3mln.

READ: Kromek radiation detectors deployed at Brussels NATO summit

The contract for the DHS is to develop CZT detector modules for commercial off-the-shelf detectors for advanced X-ray systems for passenger baggage screening and is worth US$1.5mln over two years.

Meanwhile, the DTRA contract is for the development of the next generation of handheld nuclear radiation detectors and carried a value of US$1.05mln over three years with a potential US$0.7mln extension for a further two years.

Dr Arnab Basu, Kromek’s chief executive, said the new contract wins reflected the firm’s “long established relationship with the US government” and would “expand the technological capabilities of [Kromek’s] products and enhance [its] market-leading position while also gaining increased revenue visibility”.

Commenting on the news, the UK’s International Trade Secretary, Dr Liam Fox, said: "Kromek is recognised as one of the country's most innovative businesses and its products are making a tangible difference to people's lives across the world. As an international economic department, DIT is committed to helping companies like Kromek grow trade with the US, our single largest trading partner, which is currently worth £100bn in annual exports and supports millions of UK jobs.”

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Price: 17.5 GBX

AIM:KMK
Market: AIM
Market Cap: £60.31 m
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