Proactive Investors - Run By Investors For Investors

Kromek ‘confident’ for 2017 as losses narrow in first half

“We have entered the second half with significant visibility over revenue in excess of 85% of full year market expectations”
x ray image in airport
Kromek designs develops and produces x-ray and gamma ray imaging and radiation detection products

Radiation detection specialist Kromek Group PLC (LON:KMK) is on track to hit expectations for its current financial year, telling investors it is heading into the second half with excellent visibility over its revenues.

The company said it is looking “to the future with confidence” as it continues to make good progress on the delivery of US$35.5mln of new orders won over the past 18 months.

On top of those contracts already secured, Kromek expects its medical imaging and nuclear detection protection products to be in high-demand over the coming months.

“We have entered the second half with significant visibility over revenue in excess of 85% of full year market expectations,” said chief executive Arnab Basu.

“Overall, our products continue to gain commercial traction resulting from the increasing adoption of cadmium zinc telluride-based technology.”

The ‘confident’ outlook came as Kromek posted a solid set of interim results that continue to demonstrate the improvements being made within the company.

The loss before tax for the six months to October was almost halved to £1.8mln (H1 2016: £3mln), on revenues of £3.8mln – a 19% increase on last year’s number.

Pleasingly for Kromek, product sales accounted for almost three-quarters of those revenues as several research and development programmes moved into the commercialisation phase.

The County Durham-based firm also kept a tight rein on its costs as it managed to shave almost £1mln from its administration expenses.

Underlying losses fell sharply too, down to just £0.7mln compared to £2.3mln a year earlier, while the gross margin remained steady at 53% (H1 2016: 53%).

Kromek still has a decent amount of cash at its disposal as well, with £3.8mln in the bank as of October 31.

“We are pleased to report another period of strong operational progress, continuing the momentum from the previous year as we executed on the significant contracts won in all of our three markets of medical imaging, nuclear detection and security screening,” Basu said.

“We saw high growth in the number of products sold compared with the same period last year and, equally important, a number of R&D programmes have moved into full commercialisation phase.”

View full KMK profile View Profile

Kromek Group PLC Timeline

Related Articles

XTEK: Access latest PPT from Proactive's CEO Sessions
June 18 2017
Philippe Odouard talked growing revenues with investors.
Metal box
March 14 2017
"The improvement in underlying profitability reflected in the increase of £2mln in adjusted EBITDA, reflects the full year impact of last year's cost savings,” executive chairman Ian Jenks said.
US truck
March 07 2017
Revenues from Fleet - Quartix’s largest operation - expanded by 15% in the year to December 31 2016 to hit £14.9mln, boosted by a 19% increase in its subscription base

© Proactive Investors 2017

Proactive Investor UK Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use