Kromek Group swings to first profit after 'pivotal' year

A technology firm behind equipment helping diagnose illness says it is feeling fit after posting a maiden annual profit.

Kromek Group has moved into the black after a “pivotal” year of agreements.

And bosses say the operator is “well positioned to capitalise on growth opportunities… to deliver further revenue growth and profit”.

According to latest results for the year to April 30, revenue increased 37 per cent to £26.5 million, with pre-tax profit standing at £3.1 million.

Adjusted earnings before interest, tax, depreciation and amortisation more than tripled to £10.3 million.

Officials at the company, based at NETPark, in Sedgefield, County Durham, say its progress was driven by a headline £30 million health sector partnership with Siemens Medical Solutions USA, Inc.

The firm – whose technology is used in scanners to help diagnose conditions such as osteoporosis – is sending furnaces for production of the semiconductor cadmium zinc telluride to be used in detection equipment by the operator, which is known as Siemens Healthineers.

The Durham University spin-out also benefited from demand across its nuclear detection business.

The division – whose handheld radiation equipment is used by global security forces to foil terror plots – overcame a “subdued” start following UK and US political elections to pick up work including a £2 million Ministry of Defence deal to supply radiation detectors and ancillary products.

It also secured a detector order from Merseyside Fire & Rescue Service.

Dr Arnab Basu, chief executive, said: “This year has been pivotal, marked by our maiden profit, which exceeded market expectations, and a significant reduction in debt. 

“These achievements were driven by a landmark agreement with Siemens Healthineers, showcasing the strength of our advanced imaging division.

“Looking ahead, we expect to deliver further revenue growth and profitability. 

“The chemical, biological, radiological and nuclear detection division is on track for a strong year-on-year revenue increase, while advanced imaging is set to deliver growth on a like-for-like basis.

“We are well positioned to drive sustained, long-term profitable growth.”

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