Kromek Group PLC (AIM:KMK) CEO Arnab Basu joined Proactive's Stephen Gunnion with a breakdown of the company's first-half financial and operational performance.
The company reported increased revenue, improved gross margin, and a notably reduced loss in the first half of the year. Basu attributed this progress to a focus on profitability through cost control and enhanced business margins. He emphasized the growth in advanced imaging and CBRN (Chemical, Biological, Radiological, and Nuclear defense) segments as key drivers.
In Advanced Imaging, Kromek is gaining traction in medical imaging, particularly in SPECT (nuclear medicine modality) and CT (diagnostic imaging). The company has seen a shift towards the adoption of its CZT material in these sectors, enhancing digital spectrums and CT capabilities. This advancement is marked by new product launches and significant partnerships, including with a CT Original Equipment Manufacturer (OEM). Additionally, Spectrum Dynamics, a key customer, launched a new product that enhances market and user capabilities.
The CBRN segment is growing due to heightened global security concerns and the demand for handheld radiation detection tools. Kromek has secured contracts and developed strong pipelines in this area, including partnerships for biosecurity projects with the US and UK governments.
Looking ahead, Basu remains optimistic about Kromek's growth trajectory, expecting record revenues and continued focus on cost control and margin improvement for the full year 2024.