Member Article

Kromek points towards ‘medium and long term growth’ amidst widening losses and board changes

Kromek, the Durham-based radiation detection technology business, has revealed widening losses of £3m, up from £2.3m on the first half of last year, although Chairman Sir Peter Williams has said that the firm is ‘entering a new chapter in its development’.

Announcing its interim results for the six months ended 31 October 2015, the company’s revenue has remained consistent at £3.2m, as CEO Arnab Basu also pointed towards the future saying ‘that the group is well positioned for future growth in the medium and long term.’

The firm, which focuses its work on the medical, security and nuclear markets, has celebrateda sustained raft of new contract wins in the period, supporting Basu and the board’s outlook.

Highlights for Kromek included new contracts totalling $7.0m were booked in the Medical and Nuclear markets, whilst it secured two new contracts from global Original Equipment Manufacturers (OEMs), with orders totalling $452,000.

Moreover, the company signed a cross licensing agreement with one of the world’s leading manufacturers of medical equipment, earlier this month.

Dr Arnab Basu, CEO of Kromek (pictured below), said: “We are pleased to report significant progress made in all three key target areas of CT, SPECT and portable advanced radiation detectors, where our proprietary technologies bring important and differentiated performance advantages.

“Particularly pleasing is that we report an increase in underlying revenues which more than offset the absence of income we had received last year as part of the exclusivity payment by an OEM, demonstrating the advances made in the underlying business.

“Looking ahead, we have entered the second half with a significantly better visibility of revenue compared to last year. With an increased and diversified customer base, continued progress with global OEM customers, and the doubling of our manufacturing capacity, the Board believes that the Group is well positioned for future growth in the medium and long term.”

Moving forward

Outside of the period, Kromek has entered into two agreements with CANBERRA Industries, Inc., a worldwide provider of nuclear measurement solutions headquartered in the US, for R&D collaboration, worth $900k, and product distribution.

The business also revealed a simplification in its board structure today, to reflect the size of the group.

Non-Executive Directors, Prof Max Robinson, Prof Brian Tanner, Ms. Charlotta Ginman and Mr. Peter Bains, have agreed to step down with immediate effect.

Professor Max Robinson and Professor Brian Tanner will be the founding members of the Science Advisory Committee starting in early 2016 and continue to advise the Company in that capacity.

The reduction in the size of the board reportedly reflects a major step in the company’s objective of creating a more efficient, lean and focussed board, designed to move the company forward into the next stage of its development.

Sir Peter Williams, Chairman of Kromek, said: “Kromek is entering a new chapter in its development and the Board changes reflect this. We thank Max Robinson and Brian Tanner for their 12 years of support and look forward to their continuing guidance as members of our Science Advisory Committee.

“The Board would also like to thank Charlotta Ginman and Peter Baines for the wise counsel and sage guidance they have provided and we offer them our best wishes for the future.”