Kromek (AIM: KMK), a leading developer of radiation and bio-detection technology solutions for the advanced imaging and CBRN detection segments, announces its final results for the year ended 30 April 2023.
Financial Summary
Revenue increased 44% to £17.3m (2022: £12.1m)
▪ Gross margin improved to 51.6% (2022: 46.7%). Improvement largely due to sale mix and easing of supply chain challenges
▪ Adjusted EBITDA loss reduced to £1.0m (2022: £1.2m loss)* and positive for H2
▪ Loss before tax was £7.3m (2022: £6.1m loss)
▪ Cash and cash equivalents at 30 April 2023 were £1.1m (30 April 2022: £5.1m). Fundraise of £8m (gross) post year end
*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; secured new milestone contracts; and end products launched into the market
▪ Significant progress in medical imaging:
o Signed a landmark 7-year collaboration agreement with a tier 1 OEM to provide CZT-based detectors for use in the customer’s advanced medical imaging scanners
o Entered a collaboration agreement with Analogic Corporation (“Analogic”) to develop CZT-based detectors for photon counting computed tomography (“CT”) applications in medical imaging and security screening
o Launch by Spectrum Dynamics Medical (“Spectrum Dynamics”) of the world’s first digital singlephoton emission computed tomography (“SPECT”)/CT scanner for higher energy imaging, which uses Kromek’s CZT technology
o Received repeat orders totalling over $2.0m for the supply of detectors for bone mineral densitometry (“BMD”) and SPECT applications and the gamma probes market
o Awarded £2.5m from Innovate UK for two programmes to further develop a low dose molecular breast imaging technology based on Kromek’s CZT-based detectors
o Further contract win of $1.4m post year end from a new Asia-based OEM customer for CZT-based detectors to be used in the customer’s SPECT systems
CBRN Detection
▪ Record revenue in nuclear security, with the winning and delivery of new and repeat orders, including:
o A $1.3m contract from a US customer for the D3M and two orders totalling $1.5m from US government customers for the D3S-ID
o Two contracts, totalling £1.5m, for D3M and D3S-based product products for European government end-users
▪ Established distribution partnership with Smiths Detection for the distribution of the Group’s nuclear security products to North and South American markets, the Middle East and certain key markets in Asia and Australasia
▪ Post year end, awarded a $1.5m contract in Asia for a new product in the civil nuclear market Biological Threat Detection
▪ Concluded long-running programme with the Defense Advanced Research Projects Agency to develop a biological-threat detection solution
▪ Received a £4.9m contract from a UK government department for a three-year programme to deliver
Bio-security solutions Manufacturing and IP
▪ Significant progress in improving yield and cost efficiency in CZT crystal growth and detector manufacturing
▪ Nine new patents were filed and four were granted during the year 2
Dr Arnab Basu, CEO of Kromek, said: “We are pleased to have delivered record revenues, with significant growth in advanced imaging and CBRN detection, and achieved positive adjusted EBITDA for the second half. During the year, we experienced our highest levels of customer engagement, with some of this transitioning to major agreements that are great endorsements of our offering as well as demonstrations of our strategy coming to fruition. Accordingly, we ended the year strongly, with enhanced foundations for future growth.
“We entered the 2024 financial year with a much-strengthened balance sheet and heightened commercial momentum – winning new orders in addition to a growing and substantial opportunity funnel. Accordingly, we anticipate a strong year-on-year increase in revenue and we remain on track to be adjusted EBITDA positive for the full year. This growth will be based on both of our segments, with demand continuing to be underpinned by macro-economic and market conditions. In advanced imaging, there is increasing widespread need for the early and accurate medical diagnosis facilitated by our CZT-based products. In CBRN, global insecurity and raised concern over potential nuclear threats continue to underscore the requirement for products such as ours in this sector. Consequently, the Board looks to the future with confidence.”
See an interview with Dr Arnab Basu, here: Kromek Group rounds off “landmark year”.
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