NETPark-based Kromek increases revenue 16% to £12.1m

NETPark-based Kromek, a world-leading supplier of radiation detection components and devices, has cut its losses and increased revenue in new results out today.

The company said revenue increased 16% to £12.1m (2021: £10.4m), with an adjusted EBITDA loss reduced to £1.2m (2021: £1.7m loss). The loss before tax reduced to £6.1m (2021: £6.3m loss).

Dr Arnab Basu, CEO of Kromek, said: “We are pleased to report a year of good progress as we delivered on existing contracts and development programs in both the advanced imaging and CBRN detection segments.

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“Our revenues grew by 16% compared to the previous year as we saw increased commercial traction, particularly in the CBRN segment, and ended the year in a better position than we began it.

“Looking ahead, we entered the new financial year with a higher order book than the previous year and the highest level of revenue visibility in our history. The current geopolitical environment is driving greater interest from government agencies for our CBRN family of products and in advanced imaging we are experiencing heightened engagement with OEMs due to our strategic position as the only commercial independent global supplier of CZT.

“Consequently, for FY 2023 we anticipate substantial year-on-year revenue growth and we look forward to the future with increased confidence.”

operational highlights

  • Sustained delivery in medical imaging under a contract expected to be worth US$58.1m over seven years.
  • Completed delivery of a US$600k order from an OEM customer for detectors to be used in niche applications, with further orders expected
  • In security screening, the Group completed a two-year US$1.6m project with the US Department of Homeland Security and entered two new commercial development engagements with OEMs
  • Signed a seven-year supply agreement, worth up to US$17m, in industrial screening with a US-based OEM and secured a US$250k repeat order from a US-based aerospace and defense company
  • Awarded a two-year contract, worth up to US$1.6m, by a US federal entity for the D3S-ID wearable nuclear radiation detector – with a further US$300k order received during the year and US$695k post year end.
  • A four-year contract worth £1.7m was received from a UK government agency customer for CBRN detection products and services
  • Awarded a US$6m contract extension from the Defense Advanced Research Projects Agency (“DARPA”), an agency of the US Department of Defense, to advance the development of a mobile wide-area bio-security system.

new orders

Kromek also announced two new orders worth a total of $751k in the medical imaging market. They include a $500k order for the supply of detectors for bone mineral densitometry applications and a $251k order from a US medical imaging customer that is using Kromek’s CZT detectors in their gamma probes for nuclear medical applications.

Dr Basu said: “These latest orders from long-standing OEM customers in our niche medical markets continue the Group’s momentum and underpin the Board’s confidence in meeting current year expectations.

“The Board also believes these orders are indicative of the regular, repeat nature of business in the advanced imaging segment. Once designed into a customer’s next-generation system, we typically continue to receive repeat orders, which can also transition to a multi-year supply agreement.

“Thanks to the value of our technologies for medical screening applications, we have established a strong customer base and we look forward to continuing our robust growth in this market driven by the significant opportunities in the SPECT and CT segment.”

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