Technology company sees revenues rise but fails to narrow pre-tax losses

Kromek CEO Arnab Basu
X The Business Desk

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A radiation detection technology company with a Huddersfield research base has reported a 27% rise in revenues to £4.8m for the first half of the year but pre-tax losses remain static.

Kromek this morning announced its results for the six months ended 31 October. Its revenues increased to £4.8m from £3.8m but pre-tax losses stood at £1.8m; the same as the first half of 2016.

The firm said its gross margins had improved to 63% from 53% and that EBITDA losses narrowed from £600,000 to £300,000.

Kromek said the half-year results represented “another period of good progress and upscaling in commercial activities.”

Its medical imaging detection systems significantly advance the early identification of disease, such as cancer, dementia and osteoporosis, by producing superior quality and higher resolution colour digital images from its SPECT cameras.

The firm won a five-year contract, worth a minimum of $5.38m, to provide detector modules for a new product offering for an existing customer. It also secured a four-year contract, post period end, worth a minimum of $1.5m, from a new OEM customer to provide customised gamma cameras.

Kromak also has a nuclear detection division and a security screening division. During the period, five new patents were filed and 18 granted.

Dr Arnab Basu, CEO of Kromek, said: “During the period, Kromek continued to deliver significant revenue growth and took meaningful steps towards our stated aim of achieving EBITDA breakeven this year. 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 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.”

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