Durham technology company Kromek reports 33% revenue increase to £3.2 million
County Durham-headquartered Kromek, a radiation detection technology company, has reported a 33% increase in revenue to £3.2 million.
The company today released its interim results for the 6 months ending 31 October 2014. A statement revealed that loss before tax was £2.3m (H1 2013/14: £2.5m loss), whilst cash and cash equivalents at were £2.86m (30 April 2014: £6.56m; 31 October 2013: £9.96m),
Revenue growth was a result of higher nuclear and security product sales and US Government contracts, supplemented by contracts with OEMs in medical imaging and sale of bottle scanners.
In addition the company was awarded significant new opportunity by US Defense Advanced Research Projects Agency (“DARPA”), winning a $1.1 million project to develop advanced portable detection system for gamma and neutron radiation that can be combined in large networks.
Kromek progressed across all target sectors of medical imaging, nuclear detection and security screening, with increased sales of the company’s product portfolio while developing products and enhancing customer engagements in medical CT, SPECT and portable networkable radiation detectors.
Other highlights included key contracts won in US and UK with US Defense Threat Reduction Agency (“DTRA”) and Innovate UK plus significant contract awarded for providing bottle scanner technology to a number of airports in Asia. Over 40 airports in 10 countries are now using Kromek bottle scanners.
CEO of Kromek, Dr Arnab Basu, said: “We are pleased to report another half year of growth against the comparative period as a result of sustained progress in Kromek’s product portfolio approach whilst advancing our strategy of becoming the preferred component supplier to major OEMs in CT and SPECT and in the supply of network sensors in nuclear markets.
“This has been achieved both by establishing new partnerships and strengthening our existing relationships.
“Looking ahead, investment in enhancing our sales and marketing function is resulting in increased interest in Kromek’s products and technology from a greater number of companies and organisations.
“We continue to be subject to fluctuations in the timing of certain contracts and revenue recognition as well as the impact of seasonality, with the procurement cycle of many customers resulting in sales being weighted to the second half of the current financial year.
“Despite this, the Company remains confident that it can deliver in excess of 100% revenue growth from the first half to second half of the current financial year. Additionally, the Company expects to be EBITDA positive for the second half of this year.”