Detection tech firm Kromek says it is on track to generate substantial revenue growth this year having seen a 50% rise in its third quarter results.
The Sedgefield-based maker of radiation detection and bio-detection equipment told investors on the London Stock Exchange that it was experiencing "momentum" and had seen improvements in its gross margin due to the mix of products it has sold. Kromek said it now expected to be EBITDA positive in the second half of 2023.
It follows results published in January in which the firm said EBITDA losses had widened from £600,000 to £2.7m on the back of inflation-related costs and foreign exchange movements. In its latest update, Kromek said it had been trading broadly cash neutral and expected that to continue throughout the final quarter of this year.
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Meanwhile, another contract for the firm will see it provide its CZT-based detectors - sensitive gamma spectrometers - for use in an unnamed customer's advanced medical imaging scanners. The seven-year deal, with what is described as a tier 1 original equipment manufacturer (OEM), includes a short development phase that is then intended to move into a longer term supply period.
The customer is said to be a leading healthcare tech provider with "market leading positions" in different businesses. Kromek said the deal will strengthen the customer's advanced medical imaging portfolio and pave the way for future innovations that may bring about a new generation of imaging-based precision diagnosis and therapy. If successful, such innovations could play a part in the earlier detection of diseases such as heart disease and cancer.
Arnab Basu, CEO of Kromek Group, said: "This tier 1 OEM customer is one of the world's foremost innovators in health technology and has a significant market leadership position in medical imaging.
"We share a common vision of improving people's health through innovation and we have experienced this from the close working relationship we have built with their team over the past few years. We look forward to working with them to produce best-in-class detector solutions for their advanced medical imaging scanners and enable advancements in early detection of life-threatening illnesses."
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