Kromek Group PLC shares jumped on Tuesday, after it said it has entered an initial seven-year agreement with a Tier 1 original equipment manufacturer.

Shares in the Sedgefield, England-based detection technology supplier were up 15% to 6.22 pence each in London on Tuesday around midday.

Kromek left the customer unnamed, but said it was a ‘health-technology company with market-leadership positions in multiple businesses.’

Under the agreement, Kromek said it will work with the customer to develop CZT-based detectors for use in the customer’s advanced medical imaging scanners. Following a short development phase, the agreement will transition into a longer commercial supply phase, it added.

Chief Executive Officer Arnab Basu said: ‘This Tier 1 OEM customer is one of the world’s foremost innovators in health technology and has a significant market leadership position in medical imaging. We share a common vision of improving people’s health through innovation and we have experienced this from the close working relationship we have built with their team over the past few years.’

Kromek separately published a trading update on Tuesday. It said it started the second half of the financial year 2023 with increasing commercial momentum whilst delivering on multi-year contracts.

Further, it expects revenue in its third quarter to be about 50% higher than the corresponding period. Kromek also continues to expect substantial revenue growth for financial 2023 compared with financial 2022.

Looking ahead, Kromek said it expects to trade in line with market expectations through to its fourth quarter.

Kromek said its plans to announce its full-year results in July 2023.

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