Shares in Kromek Group PLC (AIM:KMK) rose nearly 6% on Thursday morning after the company said it expects to beat full-year revenue and profit forecasts, buoyed by a transformational year across its key imaging and detection segments.
The AIM-listed technology group expects to report revenue of at least £26 million for the year to 30 April, marking growth of more than 34% year-on-year and ahead of market expectations. Profit before tax is also anticipated to come in slightly above forecasts.
Kromek’s Advanced Imaging division was a major driver, boosted by a $25 million upfront payment from its $37.5 million deal with Siemens Healthineers.
Meanwhile, its CBRN detection arm rebounded strongly in the second half, with revenue more than doubling compared to the first six months, thanks to contracts with the UK Ministry of Defence and a place on a four-year nuclear security framework.
The group also expanded its international footprint, delivering orders across the US and Europe.
Broker Cavendish reaffirmed its 26p price target, representing over 350% upside from current levels, and noted that Kromek has visibility on around £20 million of contracted revenue heading into FY26.
The group also announced that Claire Burgess will become CFO from 1 June, replacing Paul Farquhar. Burgess brings over a decade of finance experience across the engineering and tech sectors.
The shares were up 0.32p at 6.07p.