Kromek Group PLC (LON:KMK) is on course to deliver record revenues in fiscal 2022 after it received new contracts and repeat orders across all of its target segments.
Concurrent with the release of its full-year results, the company unveiled details of a few of its recent contract wins.
In its nuclear detection business, the company has received an order worth £173,000 from a UK government-related customer for the group's D5 RIID high-performance radiation detector designed for challenging environments. This represents the first major order for the D5 RIID following its launch last year.
The group has also received a €78,000 repeat order from the European Commission for its D3S ID portable radiation detector.
On the medical imaging side, the company has received a repeat order worth US$84,000 from a US customer that is using Kromek’s detectors in its systems for nuclear medicine applications. The customer has now received approval for the system from the US Food and Drug Administration and Kromek is confident this will lead to a multi-year supply contract being awarded.
In Kromek’s new target area of biological-threat detection, the detection specialist has been awarded a £349,000 contract with the UK Ministry of Defence to develop its technology to meet defence and security requirements for wide-area monitoring of biological pathogens. The work will build upon Kromek's existing capabilities in airborne pathogen detection and will run until November 2022.
In security screening for industrial applications, the group has been awarded a US$250,000 repeat order from a US-based customer that is a global leader in aerospace and defence technologies servicing the US Department of Defense. The group expects to receive further orders from this customer over the coming years.
"It is great to be winning contracts and orders across our target markets as our customers increasingly return to pre-pandemic trading patterns. We're proud to be furthering our partnerships with the UK and US defence forces, including receiving our first major order for the D5 RIID, and we're very excited about the prospects for our biological-threat detection solution, with the latest award being particularly focused on emerging and novel threats. At the same time, our medical imaging order is typical of the growing trend of OEM customers receiving approval for their next-generation scanners containing our detectors, which leads to increased demand for our technology as they prepare for rollout. All of this adds to our visibility for the year ahead as we remain on track to deliver significant growth," said Arnab Basu, the chief executive officer (CEO) of Kromek.
As for the group’s full-year results, like many companies its trading was affected by the pandemic.
Revenue in the year to the end of April slipped to £10.35mln from £13.12mln the year before but encouragingly revenue in the second half of the financial year was 26% higher than the first half as more normal trading patterns resumed.
The loss before tax narrowed to £6.33mln from £18.35mln the year before when losses were inflated by an exceptional impairment of £13.06mln.
The adjusted underlying loss (LBITDA) was £1.7mln, versus a loss the previous year of £0.4mln.
Cash and cash equivalents at the end of April had risen to £15.6mln from £9.4mln a year earlier.
"Against a backdrop of significant global uncertainty, Kromek has emerged from the 2021 financial year in a stronger position than when we entered. While the disruption across our markets in the early part of the year impacted our sales, our revenue for the second half was 26% above the first half, with the strong momentum continuing post year end. In particular, we are seeing continued traction in the medical imaging segment as our customers increasingly roll out their products incorporating our technology,” the company’s CEO said.
“As a result, and with excellent visibility over full year forecasts, we are on track to deliver our highest ever annual revenue for the full year to 30 April 2022, representing significant growth over 2021. Consequently, and combined with the successful fundraising completed in the year under review, we are well-placed to capitalise on the substantial opportunities across our business and the board continues to look to the future with increased confidence," Basu added.
Kromek were live on @GBNEWS on Friday, talking about our Biological Threat Detection System https://t.co/xobrNPMVtw#covid19 #covid19detector #countydurham #countydurhambusiness #northeastbusiness #covid #safety #kmk #kromek
— Kromek Group PLC (@kromekgroup) July 5, 2021