Member Article

Kromek continues to make losses despite 27% revenue increase

North East radiation detection technology firm Kromek has hailed a period of revenue growth as the business ‘looks to the future with confidence’ despite prevailing losses.

Today releasing its interim results for the six months ended 31 October 2017, the Sedgefield-based business revealed a 27% increase in revenues, up from £3.8m last year to £4.8m.

However, the firm announced a £1.8m loss before tax, an unchanged figure from the same period last year.

Dr Arnab Basu, CEO of Kromek, which won a raft of new contracts in the medical, security screening and nuclear markets during the period, hailed the significant revenue growth.

He explained: “In the first half, we saw growth in sales through executing on our previously-signed agreements while, at the same time, continuing to win new high-value contracts.

“We also succeeded in enhancing our reputation in our key target markets. Our D3S product was successfully deployed in high-profile situations for safeguarding against nuclear terrorism; and we achieved a significant milestone in SPECT by finalising the development of a system capable of producing clinical grade images that will improve early stage diagnosis of diseases such as cancer and dementia.

“We have entered the second half of 2017/18 well-positioned to deliver revenue growth for the full year and achieve EBITDA breakeven, in-line with market expectations.

“This position is underpinned by good visibility of revenues, with a significant proportion under signed contract. With our increasing traction with existing and potential customers, and with a strengthened order book, the Board looks to the future with confidence.”