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Kromek on course for EBITDA break-even this financial year

It was another period of good progress and upscaling in commercial activities with revenue growth driven by higher product sales in Kromek's key markets
DS3 nuclear radiation detection device
The D3S is the world's most advanced, portable, nuclear radiation detection device used by counter-terrorist agencies

Radiation technology company Kromek Group PLC (LON:KMK) saw a solid increase in revenue in the six months to the end of October.

Revenue rose 27% to £4.8mln from £3.8mln the year before, leading to a significant narrowing of underlying losses (LBITDA) to £0.3mln from a loss the year before of £0.6mln.

The company is targeting break-even at the EBITDA level and remains on course to achieve this.

READ: Kromek expects revenues to jump this year as demand continues to grow

Loss before tax was unchanged at £1.8mln.

At the end of the reporting period, the group had gross cash and cash equivalents of £15mln, down from £20.3mln at the beginning of the period.

“In the first half, we saw growth in sales through executing on our previously-signed agreements while, at the same time, continuing to win new high-value contracts,” said Arnab Basu, the chief executive officer of Kromek.

"We also succeeded in enhancing our reputation in our key target markets. Our D3S product was successfully deployed in high-profile situations for safeguarding against nuclear terrorism; and we achieved a significant milestone in SPECT by finalising the development of a system capable of producing clinical-grade images that will improve early stage diagnosis of diseases such as cancer and dementia,” he added.  

The group has entered the second half of the financial year in a good position to deliver revenue growth for the full-year and achieve EBITDA break-even, in line with market expectations.

READ: Kromek lands five-year contract worth at least US$5.38mln

“This position is underpinned by good visibility of revenues, with a significant proportion under signed contract. With our increasing traction with existing and potential customers, and with a strengthened order book, the board looks to the future with confidence," Basu said.

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Kromek Group PLC Timeline

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