Revenues up 43% at listed radiation detection company

Huddersfield-based radiation detection firm Kromek has seen its revenues rise by 43% to £5.3m (H1 2018/19: £3.7m).

The company, which is a supplier of detection technology for the medical, security screening and nuclear markets, has announced its interim results for the six months ended 31 October 2019.

It has also recorded a loss before tax of £2.7m (H1 2018/19: £2.1m loss).

Product sales accounted for 82% of total revenue (H1 2018/19: 78%), while adjusted EBITDA was £0.6m loss (H1 2018/19: £0.6m loss).

Kromek said its record half one revenue was driven by delivery of high value, multi-year contracts with commercial and large government customers worldwide across nuclear detection, medical imaging and security screening.

A substantial expansion programme was implemented at its UK headquarters, while it also received and successfully delivered orders of £2.1m from a European government-related company as well as secured further contracts won from the US government and European Commission.

The business has begun delivering a $58.1m (£44.3m) contract to provide a customer with CZT detectors and associated advanced electronics for its state-of-the-art medical imaging systems.

It signed multi-year contracts totalling about £100m in the three years to 31 October 2019 compared with around £50m and £30m for the three years to 31 October 2018 and 2017 respectively.

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.

“Consequently, our product sales have seen a year-on-year increase of 53% and account for 82% of revenues in the first half.

“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.

“The Board expects to deliver significant revenue growth and EBITDA profit for full year in line with market expectations.”