Revenue rise forecast for detection tech firm

Kromek, which develops radiation and bio-detection technology solutions, expects to report revenue of £12.1m for the year ended 30 April 2022 (FY 2021: £10.4m), an increase of about 16%.

In its update on business and trading for the year period to 30 April, the Huddersfield-based business says commercial momentum increased ahead of expectations in H2 2022, and included £5.9m in new orders being won in the final quarter.

However, the Group notes it continues to be impacted by supply chain issues.

I noted in particular that the late arrival of certain components prevented the completion of orders totalling approximately £2.9m that were scheduled to be delivered before the year end.

These orders have now begun to be shipped and the revenue is expected to be recognised in the first half of the current financial year. As a result, the Group expects to report an adjusted EBITDA loss for the year ended 30 April 2022 of approximately £1.2m.

Its board believes however that the Group has sufficient cash available for the foreseeable future – with cash and cash equivalents of around £5.1m.

For the current financial year, Kromek continues to expect accelerated growth and is forecasting substantial revenue growth over the period t0 30 April 2023.

The Group says it has “excellent” visibility over its full year revenue forecasts with 50% contracted, 37% going through contract negotiation and the remaining 13% being provided by regular repeat order business.

Kromek’s trading update stated: “The Board remains confident of the Group’s prospects and of delivering further strong growth in the current year.

“The level of contracted revenue continues to build, further improving revenue visibility and the Board is enthused by the substantial opportunities for Kromek and its technology.”