Kromek 'in good health' with £30 million deal

A technology firm behind equipment used to diagnose serious illness has secured a £30 million health sector boost.

Kromek Group has signed “multi-year agreements” with Siemens Medical Solutions USA to provide detector equipment, knowledge and intellectual property.

Bosses say the “significant” tie-up will help the company – whose technology is used in scanners to help diagnose conditions such as osteoporosis – swing to a profit in its 2025 financial year, with a £20 million instalment set to be paid in its current fiscal period.

According to the terms of its four-year deal, County Durham-headquartered Kromek will send 15 furnaces for production of the semiconductor cadmium zinc telluride (CZT) for use in medical detection equipment to Siemens, which is known as Siemens Healthineers.

It will also supply information and licensing around apparatus production.

However, the agreement has been reached on a non-exclusive basis, meaning Sedgefield-based Kromek can continue working with other operators.

Dr Arnab Basu, chief executive at Kromek, which is also known for wearable radiation detectors used by security forces to foil terror plots, said: “This move underscores our position as the largest independent producer of CZT and CZT-based detectors. 

“Both Kromek and Siemens Healthineers are aligned in our vision to enhance healthcare through technological advancements, and we eagerly anticipate collaborating to bring this to fruition.”

The contract was announced as Durham University spin-out Kromek unveiled interim six-month results for the period to October 31, which showed pre-tax losses had increased to £5.7 million from £3.5 million a year ago, against falling revenue of £3.7 million.

However, Dr Basu said its Siemens Healthineers deal, allied to further agreements struck across the last 12 months, leave the business “confident” of future success.

He added: “The initial £20 million payment from Siemens Healthineers will significantly reduce our debt and strengthen our balance sheet. 

“These significant agreements lay the groundwork for further growth in revenues and sustainable profitability.

“Consequently, the board looks to the future with confidence.”

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