Detection technology company forecasts its highest ever full year revenue

Radiation and bio-detection technology business, Kromek, says it is on track to deliver significant revenue growth for the full year, as it publishes its interim results for the six months ended 31 October 2021.

The listed Huddersfield-based business has recorded revenues of £4.7m (H1 2021: £4.6m), while its loss before tax reduced to £3.1m (H1 2021: £3.4m loss).

Dr Arnab Basu, CEO, said: “While our growth and margin during the period were impacted by challenges related to the supply chain for components, this is being recovered in the second half and we remain on track to deliver a significant increase in revenue for full year 2022, in line with market expectations, with visibility of over 90% of full year forecasts.

“This would represent our highest ever full year revenue with growth in both segments.

“Looking further ahead, we have significantly strengthened our pipeline in the multiple substantial markets in which we operate.”

Kromek adds that its adjusted EBITDA improved to £0.6m loss (H1 2021: £0.9m loss).

In response to supply chain problems, the business says it took steps to increase the surety of its supply, resulting in increased inventory and working capital. The company notes it does not expect revenue to be impacted by similar issues in the second half.

Kromek reports a significant increase in medical imaging new business activity as the impact of the pandemic continued to recede – strengthening its pipeline for H2 2022 and beyond.

Highlights for the business during the period included signing a seven-year supply agreement, worth up to $17m/£12.5m, to provide a radiation detector solution for industrial screening.

The firm was awarded a $6m/£4.4m contract extension from the Defense Advanced Research Projects Agency, an agency of the US Department of Defense, to advance development of a mobile wide-area bio-security system capable of detecting airborne pathogens.

And Kromek won 15 new customers in the civil nuclear market.