Member Article

Kromek warn break even point is delayed

North East radiation detection technology suppliers Kromek have warned that delays to a series of significant contracts will impact revenue in the current financial year.

The company had expected to break even this year, but bosses say drawn out contracts with the UK and US governments, and from Japan will delay this.

Despite the delays, the company’s board say there is enough capital to execute the business plan and deliver growth.

Arnab Basu, chief executive of Kromek said: “I am disappointed that we will not meet market expectations but I am confident that we will harvest real value from our technology going forward. The build up of our sales and marketing resources since the IPO has been slower than expected which has also been a contributory factor in the shortfall.

“We have executed important commercial deals during the year and achieved significant technical developments which will lead to a much wider adoption of our products in our target markets.

“The demand, both for using our technology as a component and for our products remains strong and I am confident that we will continue to add substantially to our order book in the months ahead and realise value for our shareholders in the years that follow.”

Kromek chairman, Richard Morgan, added: “The management team have demonstrated their ability to rapidly grow the business and yet I know they are disappointed that growth will be slower than they had forecast.

“The Board is confident in the medium term prospects for Kromek and the recent advances in our technology development only add to the already substantial market opportunities to create a technology leader and a profitable and valuable business.”

This was posted in Bdaily's Members' News section by Tom Keighley .