Pandemic disruption hits revenues at radiation detection company

Listed radiation detection business, Kromek, has seen its revenues and pre-tax profits fall in its interim results for the six months ended 31 October 2020.

The Huddersfield-based firm reported revenue of £4.6m (H1 2019/20: £5.3m) and a pre-tax loss of £3.4m (H1 2019/20: £2.7m loss).

It has also recorded an adjusted EBITDA loss of £0.9m (H1 2019/20: £0.6m loss) for the same period.

However, Kromek says it has experienced a rise in commercial activity in the final two months of H1 2020/21.

It adds there has been increased momentum continuing into the second half of the year, following a period of disruption caused by the COVID-19 pandemic.

The Group says it is delivering on “a firm commercial pipeline” for the second half of year and is well positioned to meet the backlog in demand for its products in its key nuclear, medical and security segments, as well as emerging opportunities in the biological-threat detection market.

CEO Dr Arnab Basu said: “I am pleased to report that we finished the first half of 2020/21 in a stronger position than we entered the year, resulting from a considerable uptick in trading in the last two months of the period.

“We are starting to see a return to some normality in business patterns as our customers recommence commercial activities.

“In particular, our largest medical OEM customer has begun shipping their next-generation scanner, which, as they continue to ramp up installations in the second half of the year, will enable the fulfilment of the long-term contract we have with them.

 “We have also made substantial progress in the development – for DARPA and other national governments – of an automated bio-detection system capable of detecting airborne pathogens.

“In situ trials are expected to commence during the second half of the year and we believe this new market segment will be a significant contributor to revenues in the short to medium term.”

Kromek has also announced today that it has begun a £1.25m programme to customise its biological threat-detection solution for the automated detection of all airborne viruses, including COVID-19.

The programme is being funded by Innovate UK.

Kromek’s technology is designed for locations such as airports, hospitals, retail outlets and entertainment venues.

It samples the air to detect and analyse airborne pathogens using DNA sequencing. In response to the pandemic, the initial focus is on using the technology to develop a system that will rapidly test for the presence of SARS-CoV-2, the virus that causes COVID-19.

By detecting the virus in the air in real time, rather than relying on testing of individuals, the system will enable earlier identification of potential infection exposure to help reduce transmission.

In addition, it will have the capability to test for a wide spectrum of viruses, including mutations of SARS-CoV-2.

Basu added: “Our system can augment the Government’s Test and Trace by enabling early identification of potential exposure to the virus while supporting the safe return of visitors to public spaces like mass transport, retail outlets and entertainment venues.

“We also believe the continuous monitoring with our system, which can test for a wide spectrum of viruses as well as mutations of COVID-19, has significant potential for protecting against the outbreak of pandemics in the future.”