Tech group Kromek reveals 'record' revenue with latest interim results

Detection technology group Kromek has announced its interim results for the six months to October 31 2019.

The County Durham-based company has increased its revenue by 43 per cent to £5.3m. In 2018/19, this stood at £3.7m.

Product sales have been accounted for 82 per cent of this revenue, while Kromek’s gross margin was 58 per cent. Loss-before-tax stood at £2.7m.

Dr Arnab Basu, CEO of Kromek, said: “This year has seen a focus on executing on the previously-signed agreements and commencing delivery on the multi-year contracts won in recent years.

“This has resulted in record first half revenues. We have seen an increase in adoption of our next-generation products in the medical imaging market and an expansion of applications for our D3S platform.

“Kromek entered the second half well-positioned to report its highest ever full year revenues as delivery of high value, multi-year contracts continues to ramp up.

“We are delivering on contracts worth nearly £100m won over the past three fiscal years in our target markets… Additionally, we continue to experience growing demand for our flagship products, which is expected to convert to further orders.”

The company’s gross cash and cash equivalents - at October 31 2019 - were £13.4m, with the key movement being planned capex of £5.5m primarily to expand production capacity to fulfill customer demand.

There is said to be an unchanged outlook for FY 2019/20. The group is supposedly on track to achieve revenue and EBITDA profit in line with market expectations.