Kromek secures US government contracts worth at least $2.6m

Radiation detection technology firm Kromek Group was on Monday awarded two new contracts from the US department of homeland security (DHS) and the defense threat reduction agency (DTRA).

Under the terms of the contracts, which are worth a minimum of $2.6m to be delivered over the next three years with a potential two-year extension to $3.3m, the AIM-traded firm will develop next generation radiation detection solutions for the purposes of national defence and security.

Arnab Basu, chief executive of Kromek, said: "Through these agreements, we will expand the technological capabilities of our products and enhance our market-leading position while also gaining increased revenue visibility. We look forward to continuing our strong relationship with the US government."

The $1.5m contract with DHS is to develop CZT detector modules for the purposes of X-ray customer baggage screening systems as Kromek’s technology can enhance the detection of a range of threat materials and reduce false alarm situations during airport security checks.

The DTRA contract will see Kromek develop a new generation of handheld nuclear radiation detectors in collaboration with the University of Glasgow, University of Liverpool and University of Manchester.

The contract is worth $1.05m over a period of three years, with a potential $0.7m extension for two further years.

Liam Fox MP, international trade secretary, 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."

Kromek shares were up 2.69% at 28.65p at 1326 BST.