Technology company set to raise £21m in share placing

Radiation detection technology manufacturer Kromek is raising up to £21m with a share placing.

It will be placing 100m shares at the offer price of 20p per share and an open offer for around of 5.13m offer shares.

The Sedgefield business bases its R&D operations in Huddersfield at the 3M Buckley Innovation Centre.

At the end of last year it announced that revenues for the six month to October 2016 had increased 19% to £3.8m, and had nearly halved pre-tax losses to £1.8m from £3m in the first half of its 2015/16 year.

Sir Peter Williams, chairman of Kromek, said: “We are pleased with the support shown by our current shareholders and we welcome new blue-chip institutions to our register.

“The present fundraising will considerably strengthen our balance sheet, underpinning our plans for the sustained growth of the business and supporting increasing commercial activity through the deployment of our proprietary technology.

“Kromek has made good progress this year, in which we achieved a number of important operational targets, enlarging our customer base and strengthening our relationship with our OEM partners.

“This resulted in significant contract wins over the past 18 months which have given us forward visibility over revenues in excess of 85% of market expectations for the current year. The Board has great confidence in the future of Kromek and recommends all shareholders to vote in favour of the proposals, which we believe will allow us to deliver increased value to our investors.”

Alison Starr and Jon Wharam of Eversheds advised Kromek on the placing.