Losses narrow at Kromek as big contract wins drive revenue growth
North East radiation detection technology firm, Kromek, has hailed a ‘step change’ in its business as big contract wins have helped to grow revenues and slim its losses.
In its final results released today, the Sedgefield-based business revealed a 7.5% growth in revenue, rising to £9m for the year ending 30 April 2017, fuelled by order growth across its medical imaging, nuclear detection and security screening businesses.
Elsewhere, losses before tax narrowed to £3.8m from £4.1m while EBITDA marked a £1.5m loss also down from the £2.4m loss in 2015/16.
Dr Arnab Basu, Chief Executive Officer at Kromek, commented: “We are pleased with the growth in revenues this year, reflecting the delivery of long-term contracts won in previous years and contracts won during the year.
“Kromek is at the leading-edge in developing commercially-viable radiation detection solutions and this has, in turn, enabled our customers to successfully launch their new generation of clearly differentiated products in a wide range of markets.
“Consequently, revenues from the sale of our products now accounts for nearly three quarters of our revenues.”
Contract wins including a $430k contract win with the Ministry of Defence and a $1.6m agreement with DTRA, along with a string security screening contracts in the US have helped propel the County Durham business in the last 12 months, with even bigger things expected for the next 12 months.
Basu added: “In the 2017/18 fiscal year, Kromek is seeing a step change across all its business segments as we continue to execute on the large-scale contracts that have been secured over the last 24 months.
“Additionally, we expect OEM customers to launch products incorporating our technology, prompting additional orders to be placed as sales of these products accelerate. As a result, the Group expects to report year-on-year revenue growth of approximately 40%, in-line with market expectations.”