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Durham’s Kromek reduces losses following year of significant contract wins

Durham-based Kromek, a radiation detection technology company focusing on the medical, security and nuclear markets, has announced a reduction in its losses before tax.

The Durham-based company, which this morning released its final audited results for the year ended 30 April 2015, revealed loss before tax was reduced from last year’s total of £4.3m to £3.1m.

Moreover, the company also reported a 36% revenue increase to £8.1m, a sharp rise from its £4.3m loss last year.

Kromek chiefly achieved growth through winning significant contracts across three target segments of the business and in multiple geographies, with its nuclear detection segment representing the largest revenue generator.

Additionally, the company won a key contract from U.S. Department of Defense agency, the Defense Advanced Research Projects Agency (“DARPA”).

Other significant contracts were won in the US and UK with U.S. Defense Threat Reduction Agency (“DTRA”) and Innovate UK, whilst Kromek was also successful in strengthening its relationship with global Original Equipment Manufacturers (OEMs)..

Dr Arnab Basu, CEO of Kromek, said: “Kromek achieved another year of strong revenue growth. We were adjusted EBITDA positive in the second half reflecting excellent operational progress and increased sales across all our key target markets.

“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.”

Kromek also announced a conditional firm placing and open offer to raise up to £11m, to fuel further company growth.

Basu explained: “The Company is also pleased to simultaneously announce at the same time as these results a firm placing and an open offer to raise up to £11.0m from both existing and new investors.

“The cash raised from this transaction will assist with the execution of our growth strategy and to leverage our established position and strong partnerships with global OEMs and government agencies.

“With contracted revenues for the year ahead currently totalling 60% of the Directors’ expectations for the year, a clear path to capturing revenue opportunities and a stable cost base, the Board is confident in the prospects of the business and delivering significant shareholder value.”

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