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Kromek Group PLC

Kromek confident of hitting full-year targets

"The progress of 2017/18 was sustained into the current fiscal year as Kromek remained at the forefront in developing solutions to combat some of the greatest security and health challenges that are faced by society today," said Dr Arnab Basu, the CEO of Kromek.

Radiation detection
The company's position has been strengthened by its new state-of-the-art facility in the US

Radiation detection solutions specialist Kromek Group PLC (LON:KMK) is on track to achieve revenue growth and in-line underlying earnings (EBITDA) over the full year.

The company said visibility of revenue for the next six to 24 months continues to increase, which includes visibility of around 86% of the forecast revenue for 2018/19.

WATCH: Kromek Group fully focused on commercialisation; on track to achieve revenue growth

In its results statement for the six months to the end of October, the company noted it had won several new contracts and repeat orders during the reporting period, while in the final two months of the year it moved further into the bio-threat detection market through another contract with the US Department of Defense.

Half-year revenue dipped to £3.69mln from £4.80mln the year before, due to the temporary downtime in manufacturing in the US as a result of the relocation of the company’s US facility, which is now fully operational and delivering orders.

The relocation means that the full-year performance will be weighted more to the second half than usual.

The reduction in revenue led a widening of the loss before tax, to £2.13mln from £1.85mln the previous year, although a reduction in operational cuts meant the losses were not as severe as they might have been.

READ: Kromek jumps as it secures bio-threat detection contract with DARPA

Cash and cash equivalents at the end of October stood at £6.3mln, down from £15mln a year earlier.

The company said it continues to benefit from its customers commercially launching next-generation products that use cadmium zinc telluride (CZT) and from the increasing adoption of CZT-based technology across its target markets.

“Over the last three fiscal years, we have won US$80mln of contracts, across all of our core sectors, demonstrating the successful conversion of our growing order pipeline. They also demonstrate the strong and long-lasting partnerships that we are continuing to build with our commercial and large government customers across the globe,” said Dr Arnab Basu, the chief executive officer of Kromek.

“The board is confident of delivering full-year revenue growth and positive EBITDA, in line with market expectations," he added.

Quick facts: Kromek Group PLC

Price: £0.25

Market: AIM
Market Cap: £86.16 m
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