This was a milestone year for Kromek as the Group delivered on all of its objectives, including the key target of growing adjusted EBITDA. For the full year, revenue increased by 23% to £14.5m (2017/18: £11.8m) and adjusted EBITDA grew fourfold to £2.0m (2017/18: £0.5m). In particular, the Group successfully delivered its largest second half of revenue in its history, which was in excess of £10m. This progress was based on Kromek continuing to execute on previously-signed agreements as well as winning new customers, new contracts and repeat orders across its target markets, with growth driven by increasing adoption of the Group’s next-generation molecular imaging single photon emission computed tomography (“SPECT”) products in medical imaging and the D3S family of products in nuclear detection. It also reflects the increasing commercialisation of Kromek’s technology, with product sales accounting for 83% of total revenue (2017/18: 81%), representing growth in value of 25%. Kromek was also awarded one of its most significant contracts to date, expected to be worth a minimum of $58.1m over a seven-year period, to provide cadmium zinc telluride (“CZT”) detectors and associated advanced electronics to be used in state-of-the-art medical imaging systems.
During the year, Kromek significantly strengthened the foundations of the business and ability to deliver on future growth with the successful relocation of its US operations to a new facility that has been purpose-built for high-volume manufacturing of world-class medical imaging products. This was furthered in the second half of the year via a placing and open offer raising £21m to support the growth of the medical imaging business and sales and marketing of the D3S platform. In addition, the fundraise strengthens the balance sheet to provide flexibility to address and capitalise on identified and future opportunities as they emerge.
Here Dr Arnab Basu, CEO of Kromek, talks to Proactive Investors: