Kromek looks to further growth

Radiation detection technology company Kromek has revealed a pre-tax loss of £2.3m in the six months to October 31 2014, down from £2.5m last year.

But the Sedgefield-based Durham University spin-out saw revenues up a third over the period to £3.2m.

The company, which supplies patented radiation detection technologies to the medical, security and nuclear markets, said it saw progress across all its target sectors.

Revenue growth resulted from higher nuclear and security product sales and US government contracts, and was supplemented by contracts with OEMs in medical imaging and sale of bottle scanners.

It also successfully progressed to the second year of an exclusive development programme in medical CT market with a "top four global OEM’’.

The period saw a significant contract awarded for providing bottle scanner technology to a number of airports in Asia. More than 40 airports in 10 countries are now using Kromek bottle scanners.

It also doubled cadmium zinc telluride ("CZT") crystal manufacturing capacity by expanding in UK, and demonstrated its ability to rapidly scale up production by successfully replicating the manufacturing process previously being conducted only in US.

Over the period, 10 new patents were granted and 18 new patent applications were filed.

Last month Kromek secured a US$1m contract extension with a leading global security company which provides systems, products and solutions to government and commercial customers worldwide.

Also since the period Kromek won its first contract with another global security technology group and market leader in security solutions, a further contract with an  existing customer for OEM components for baggage screening and its first contract from a leading global healthcare and diagnostics company for development of bone mineral densitometry applications.

Yesterday, it also announced an additional U$1.1m contract by the Defence Advanced Research Projects Agency, DARPA, for enhancing the continued development of advanced networkable radiation detectors.

Chief executive Dr Arnab Basu said: "We are pleased to report another half year of growth against the comparative period as a result of sustained progress in Kromek’s product portfolio approach whilst advancing our strategy of becoming the preferred component supplier to major OEMs in CT and SPECT and in the supply of network sensors in nuclear markets. This has been achieved both by establishing new partnerships and strengthening our existing relationships.

"Looking ahead, investment in enhancing our sales and marketing function is resulting in increased interest in Kromek’s products and technology from a greater number of companies and organisations. We continue to be subject to fluctuations in the timing of certain contracts and revenue recognition as well as the impact of seasonality, with the procurement cycle of many customers resulting in sales being weighted to the second half of the current financial year. Despite this, the company remains confident that it can deliver in excess of 100% revenue growth from the first half to second half of the current financial year."

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