County Durham tech firm Kromek says it is on track to significantly increase full year revenues on the back of new and repeat orders.
The radiation detection specialist, based at NETPark in Sedgefield, has published interim results for the six months ended October 31 2021, showing a small rise in revenue from £4.6m to £4.7m. The company also narrowed its pre-tax losses from £3.4m to £3.1m.
Kromek said it had it delivered on existing contracts, won new orders and experienced greater customer engagement on future projects.
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It also saw a significant increase in new business activity within medical imaging as the impact of the pandemic continued to recede, strengthening its pipeline for the rest of the year and beyond
As well as highlighting commercial development engagement with three new strategic manufacturers for key medical imaging applications, and two within security screening, Kromek highlighted a number of deal wins.
It signed a seven-year supply agreement, worth up to $17m, to provide a CZT detector solution for industrial screening, and also took a $250,000 repeat order in industrial screening from a US-based aerospace and defence technology customer.
Other deals included a two-year contract worth up to $1.6m by a US federal body for its wearable nuclear radiation detector, a £173,000 order for its handheld radiation detector from a UK Government-related customer, plus a $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 bio-security system.
Three new patents were also filed and three were granted during the period.
Although the announcement reveals the company was impacted by supply chain related challenges for components, it is confident about achieving its highest ever full year revenue by the year end.
CEO Dr Arnab Basu said: “During the first half of the 2022 financial year, we continued to deliver on our existing contracts as well as win new and repeat orders in both our advanced imaging and chemical, biological, radiological and nuclear (CBRN) detection segments.
“We also made substantial progress with our existing development programmes and initiated new programmes with a number of strategic partners. While our growth and margin during the period were impacted by challenges related to the supply chain for components, this is being recovered in the second half and we remain on track to deliver a significant increase in revenue for full year 2022, in line with market expectations, with visibility of over 90% of full year forecasts. This would represent our highest ever full year revenue with growth in both segments.
“Looking further ahead, we have significantly strengthened our pipeline in the multiple substantial markets in which we operate.
“We offer our customers a differentiating technology that supports early medical diagnosis to improve patient outcomes and government vigilance to the threat of terrorism – which are long-term growth drivers. As a result, the board continues to look to the future with great confidence.”
