Kromek Group PLC (AIM:KMK), the radiation and bio-detection technology specialist, has posted its first-ever profit, beating market expectations and setting the stage for further growth in the coming year.
The County Durham-based company reported a pre-tax profit of £3.1 million for the 12 months to 30 April, a sharp turnaround from the £3.5 million loss recorded a year earlier.
Revenue rose 37% to £26.5m, with margins improving strongly, lifting adjusted operating earnings to £10.3m from £3.1m.
Arnab Basu, chief executive, described the period as “pivotal” for the group.
He added that profit has exceeded market expectations, and had come with a "significant reduction in debt".
"These achievements were driven by a landmark agreement with Siemens Healthineers, showcasing the strength of our Advanced Imaging division,” Basu went on.
Kromek makes detectors used in medical imaging and for identifying chemical, biological, radiological and nuclear threats.
Its Advanced Imaging arm saw sales more than double to £20.3 million, helped by a $37.5 million contract with Siemens.
The firm received $25 million of that during the year and a further $5 million after the year-end.
The CBRN (chemical, biological, radiological and nuclear) detection business endured a weak first half as elections in the UK and US slowed government orders, but bounced back with a string of contracts in the second half.
These included a £2 million deal with the Ministry of Defence and orders under two new government frameworks designed to bolster national security.
Additional international orders worth about £2.9 million have been secured since the year-end.
Debt reduction has also been a focus. Kromek repaid more than £11 million of loan facilities in February, leaving it with £1.7 million of cash at the year-end, supplemented by a $5 million payment since then.
It also has access to an undrawn £6m credit facility, providing what it said was ample capital to fund expansion.
Looking to 2026, Basu said the group expects to deliver both higher revenue and continued profitability. “The CBRN Detection division is on track for a strong year-on-year revenue increase, while Advanced Imaging is set to deliver growth on a like-for-like basis,” he said.
Kromek holds more than 180 patents and continues to invest in manufacturing automation, aiming to improve productivity and lower costs.