Proactive Investors - Run By Investors For Investors

Kromek glows as increased orders add US$2.7mln in value to existing contract

The expansion will take the total worth of the five-year contract to US$5.8mln, with the additional value expected to be recognised in the next 24 months
Explosive warning
Under the contract, Kromek provides key components for screening systems that detect explosives

Kromek Group PLC (LON:KMK) shares got a boost on Wednesday after increased orders for an ongoing contract added US$2.7mln to its value.

The firm, which supplies detection software for medical, nuclear and security screening devices, said the order expansion would take the total worth of the five-year contract to US$5.8mln, with the additional value to be recognised in the next 24 months.

READ: Kromek lifted as it inks nuclear security contract with new customer

Originally announced in February 2017, the deal sees Kromek provide key components for screening systems that detect explosives to a US customer operating in the homeland security space.

"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%”, said Arnab Basu, Kromek’s chief executive.

“This latest order expansion is an endorsement of the strength of our detection solution and credentials as a high-quality product supplier. We are gaining traction across all our markets as our customers continue to recognise the value that our technology adds to their products.”

Shares were 3.6% higher at 26.4p in mid-morning.

--Adds share price--

View full KMK profile View Profile

Kromek Group PLC Timeline

Related Articles

machines
July 04 2019
The company has so far in 2019 signed a number of deals for its technology, including an agreement for safety features in self-driving cars
Keywords Studio
June 17 2019
Keywords has a buy-and-build strategy and has been expanding rapidly since its first acquisition in 2014.
Tekcapital
June 26 2019
Tekcapital expects “the quickening pace of innovation” in the portfolio companies to lead to higher service revenues in the future
Copyright © Proactiveinvestors.com, 2019. All Rights Reserved - Proactive Investors North America Inc., Proactive Investors LLC

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use