Kromek releases end of year results

Kromek, a leading developer of radiation and bio-detection technology solutions for the advanced imaging and CBRN detection segments, has announced its final results for the year ended 30 April 2022.

Kromk have had a particulalry good year in terms of receiving new, and renewed, contracts for their CBRN products. 

Financial Highlights

  • Revenue increased 16% to £12.1m (2021: £10.4m)
  • Gross margin was 46.7% (2021: 48.4%)
  • Adjusted EBITDA loss reduced to £1.2m (2021: £1.7m loss)*
  • Loss before tax reduced to £6.1m (2021: £6.3m loss)
  • Cash and cash equivalents at 30 April 2022 were £5.1m (30 April 2021: £15.6m)

*A reconciliation of adjusted EBITDA can be found in the Financial Review.

Operational Highlights

Advanced Imaging

  • Strong revenue growth with delivery under component supply agreements and increased customer engagement for future projects
  • Sustained delivery in medical imaging:
  • Ramp up in delivery continued as planned under medical imaging contract expected to be worth US$58.1m over the seven-year life of the contract that was awarded in 2019
  • Completed delivery of a US$600k order from an OEM customer for detectors to be used in niche SPECT applications, with further orders expected
  • Commenced commercial development engagement with three new strategic OEM customers
  • In security screening, the Group completed a two-year US$1.6m project with the US Department of Homeland Security and entered two new commercial development engagements with OEMs
  • Signed a seven-year supply agreement, worth up to US$17m, in industrial screening with a US-based OEM and secured a US$250k repeat order from a US-based aerospace and defence company

CBRN Detection

  • Significant momentum in nuclear security, with the winning of new and repeat orders and participation in a greater number of tenders reflecting the growth in global government defence spending:
  • Awarded a two-year contract, worth up to US$1.6m, by a US federal entity for the D3S-ID wearable nuclear radiation detector – with a further US$300k order received during the year and US$695k post year end
  • Repeat orders received from the European Commission for the D3S-ID
  • Received orders from three customers for the D5 RIID
  • A four-year contract worth £1.7m was received from a UK government agency customer for CBRN detection products and services
  • Invested in developing new channels to market, including the signing, post year end, of a distribution agreement with Smiths Detection Inc. for the North and South American markets
  • 32 new customers won in the civil nuclear segment
  • Significant progress in the development of bio-security solutions:
  • Awarded a US$6m contract extension from the Defense Advanced Research Projects Agency (“DARPA”), an agency of the US Department of Defense, to advance the development of a mobile wide-area bio-security system
  • Successfully completed piloting in schools, airports and other locations of an airborne COVID-19 detection system under a project funded by Innovate UK and commenced productisation phase

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