Kromek Group PLC (AIM:KMK), the North East-based detection technology company, has said it expects to turn a profit for the first half of its financial year, helped by a major contract with Siemens Healthineers.
In a trading update for the six months to 31 October, the company forecast revenue of at least £14.5 million, up sharply from £3.7 million a year earlier. More than half of that came from an “enablement agreement” with Siemens, worth at least £8.2 million.
On an underlying basis, excluding that one-off boost, sales rose by about 70% to £6.3 million.
The deal with Siemens, announced in January, involves supplying advanced imaging components used in medical scanners.
It helped lift Kromek’s gross margins and push the group into the black, with profit before tax and positive adjusted earnings expected for the first half.
That compares with a pre-tax loss of £5.7 million and an adjusted EBITDA loss of £2.3 million last year.
The company, which is listed on London’s AIM market, said growth had been strong in both its chemical, biological, radiological and nuclear (CBRN) detection business and its advanced imaging division.
Kromek said the stronger first-half performance gave its board confidence that full-year results would show further revenue growth and meet market expectations.