Kromek Group PLC (AIM:KMK), a developer of radiation and bio-detection technology solutions, saw steady top-line growth in the six months ending 31 October 2023, with revenues increasing to £7.1 million from £6.8 million in the same period the previous year.
Gross margin growth was the real stand out, with Kromek booking 54.2% compared to 40.4% in the prior year, highlighting enhanced efficiency and cost management strategies.
Furthermore, Kromek reduced its adjusted EBITDA loss to £100,000, a considerable decrease from the £2.7 million loss reported in the same period last year.
In terms of profitability, the company also reported a reduced loss before tax, which stood at £3.5 million, compared to £5.7 million in 2022.
This reduction in losses was attributed to Kromek’s strategic refinancing and fundraising efforts, including a new £5.5 million secured term loan and an £8 million equity fundraise.
Kromek's liquidity position has strengthened, with cash and cash equivalents rising to £3.7 million from £1.1 million.
Regarding operational highlights in the period, Kromek commenced a collaboration agreement with a tier-one original equipment manufacturer (OEM) to provide CZT-based detectors for use in the customer's advanced medical imaging scanners.
Kromek's nuclear radiation detection solutions continued to be deployed by global homeland defence and security forces to protect critical infrastructure, events and urban environments from the threat of 'dirty bombs'.
Post period, Kromek also entered into a new collaboration agreement with a global blue-chip technology solutions provider to develop CZT-based detectors for photon counting CT applications in medical imaging
Chief executive Dr Arnab Basu commented on the outlook for the second half: "Looking ahead, in line with normal seasonality, we will be second-half weighted and remain on track to deliver record revenues for full year 2024 and positive EBITDA.
“We continue to operate in substantial markets and are receiving high demand for our products that are being used every day to save people's lives - from the detection of nuclear threats in Ukraine, to cancer in hospitals around the world.
“As a result, the board continues to look to the future with confidence."