Kromek plunges after unveiling plans for placing

Shares Kromek plunged over 15% on Thursday, after the radiation detection technology group unveiled plans to raise £11m via a discounted placing.

The London-listed company said it intends to raise £11m via the placing of 36m at 25p per share as well as an additional 8m shares in an open offer at the same price.

In a separate announcement, the group said its pre-tax loss for the year narrowed 27.9% year-on-year to £3.1m, while revenue surged 36% to £8.1m and the group improved its gross margins from 65% to 69%.

Kromek added it has secured a number of contracts in the nuclear detection field, including a contract with an agency working for the US Department of Defense.

“Our investment in additional sales and marketing resources is bearing fruit as our products gain traction worldwide with strong demand from current and new customers," said group chief executive Arnab Basu.

Kromerk shares were down 15.41% to 29.50p at 1207 BST on Thursday.