Shares in Kromek Group PLC (AIM:KMK) rose 11% after the County Durham-based radiation and bio-detection specialist reported its maiden annual profit and set out a confident outlook for 2026.
For the year to 30 April, the company posted a pre-tax profit of £3.1 million, reversing a £3.5 million loss the year before.
Revenue increased 37% to £26.5 million, with adjusted operating earnings more than tripling to £10.3 million.
Chief executive Arnab Basu called the year “pivotal”, pointing to profit that beat market forecasts and a “significant reduction in debt”.
The performance was driven by a $37.5 million contract with Siemens Healthineers, which more than doubled sales in the group’s Advanced Imaging division.
The CBRN detection arm, which makes equipment for identifying chemical, biological and nuclear threats, rebounded strongly in the second half with contracts from the Ministry of Defence and new government security frameworks.
With debt cut by over £11 million and fresh orders secured internationally, Kromek expects further revenue and profit growth in 2026.
Broker Cavendish said: "We believe this provides a solid platform for future growth and we reiterate our investment case."
It reiterated its 26p a share price target in the wake of the results. The shares rose 0.53p to 5.38p.