Kromek Group salutes 'strong performance' as demand boosts revenue

A technology firm behind equipment helping diagnose illness says it is fit for growth after a near fivefold revenue rise.

Kromek Group saw income jump to £15 million in the six months to October 31.

Bosses say the increase was fuelled by a headline £30 million Siemens Healthineers medical partnership and strong security sector demand for anti-terror attack equipment.

The clamour helped swing a £2.3 million adjusted earnings before interest, tax, depreciation and amortisation loss into a £6 million profit.

Pre-tax profit at the firm – headquartered at NETPark, in Sedgefield, County Durham – also moved into the black at £3.1 million, reversing a £5.7 million loss in the previous corresponding reporting period.

Officials say the headline numbers were driven by strong progress across the company’s advanced imaging division known for technology used in scanners to help diagnose conditions such as osteoporosis.

According to its latest results, the department chalked up revenue of £10.8 million thanks to the impact of its Siemens Healthineers deal wherein Kromek Group has supplied furnaces for production of the semiconductor cadmium zinc telluride used in detection equipment.

The firm also enjoyed growth across the chemical, biological, radiological and nuclear sector – where it supplies handheld radiation equipment to global security forces to foil terror plots – with revenues more than doubling to £4.3 million. 

Dr Arnab Basu, chief executive at Kromek Group, which also operates a Huddersfield research and development base, said: “We are pleased with the strong performance delivered in the first half of the year.

“In advanced imaging, our underlying business saw an increase in revenue driven by renewed engagement with our customers following the completion of our deal with Siemens Healthineers. 

“We are seeing good progress as customers prepare for the launch of their next-generation scanners, reaffirming the value and relevance of our solutions in the market.

“Sales in our chemical, biological, radiological and nuclear segment more than doubled, reflecting the growing global focus on national security and the increasing adoption of our market-leading technologies.

“Looking ahead to the second half of the year, with robust customer engagement and a good order book, we expect the momentum to continue.”

The firm has further bases in Pennsylvania and California.

Looking to promote your product/service to SME businesses in your region? Find out how Bdaily can help →