Kromek Group PLC (LON:KMK) has updated on the status of its business and its response to the coronavirus pandemic.
In a trading update on Friday, the detection technology specialist said despite the outbreak it will continue to deliver on its multi-year contracts, which it said will give it “good visibility over future revenues”, adding that it also has a healthy pipeline of projects.
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Kromek said that it had started the second half of its current financial year with “increasing commercial momentum” and had not experienced any material impact from the pandemic until the end of February.
Over the last two months, the company said it had experienced a delay in certain projects while two others had been postponed into the new financial year.
As a result, the firm said it now expects to report full-year revenues of £14.5mln, similar to the prior year, while adjusted underlying earnings (EBITDA) are predicted to be breakeven.
Kromek also said it has implemented a number of cost-saving measures to preserve cash during the pandemic, as well as leveraging its manufacturing skills to make ventilators in the UK and globally.
The company said it has received “significant interest” in the ventilators and is on track to produce at least 2,000 units by the end of July.
Looking ahead, the company said it was unable to provide guidance for the coming year due to “the evolving nature of the pandemic and the uncertainty over its length and severity”.
However, Kromek said its fundamentals remained sound and that it is confident in its ability to withstand the current disruption, adding that it has a “robust” balance sheet of around £10mln.
The company's shares were 13.5% lower at 17.5p in early deals on Friday.
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