Kromek secures work from US government agency

Kromek today revealed it had secured work from a US government agency which helped it deliver revenue growth over the last year.

Tuesday, 11th May 2021, 1:52 pm
Kromek Group has delivered a trading update for the City of London

Kromek, which is a worldwide supplier of detection technology focusing on the medical, security screening and nuclear markets, has provided an update on business and trading ahead of announcing its results for the year ended 30 April 2021, in July 2021.

The statement said: "As noted in the group's interim results announcement, orders and shipments across all of the group's segments resumed in the final two months of the first half of the year and as such the board was pleased to enter H2 2020/21 with an extensive commercial pipeline and experiencing increased commercial activity.

"This momentum continued throughout the second half as the group delivered on previously awarded contracts and won new orders. As a result, the group has achieved significant sequential revenue growth in H2 over H1 2020/21 and expects to report revenue and EBITDA for the year ended 30 April 2021 in line with market expectations.

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"The group continues to maintain tight cost control, improve collections and manage cash flow, and this conscientious management has resulted in the group's cash position at 30 April 2021 being slightly ahead of market expectations.

The statement added: "Specifically, in the second half of the year, progress was made in all of the group's business units. In the Medical Imaging segment, Kromek's customers increasingly rolled out their next-generation products, based on the group's technology, such as the group's OEM customer that previously awarded a medical imaging contract expected to be worth up to $58.1m. The installation of the customer's medical imaging scanners, which is occurring in multiple countries, saw a ramp up in the second half of the year as planned.

"In the nuclear security segment, the group received new orders from government customers for D3S-related technologies. This includes a contract extension from the group's European-government related company customer, working with a European government, to detect and protect against potential nuclear threats.

"The group added a new customer, a US government agency, for its D3S-ID product, received repeat orders from a US government customer for its CZT detectors for nuclear security applications, and received orders from the European Commission's Directorate-General for Migration and Home Affairs for the Group's D3S Drone radiation detectors. Kromek also received orders in the Security Screening segment, including for CZT modules to be designed into an advanced baggage screening system of a new US-based customer.

The statement added: "Furthermore, the group remains excited about the potential for its new market segment of Biological Threat Detection. During the second half of the year, the group commenced piloting its airborne COVID-19 detection solution at an airport and at another public place, which are progressing according to plan and the board looks forward to providing an update on the next steps in due course.

"Consequently, and combined with the successful fundraising completed in the second half of 2020/21, the group is well-placed to capitalise on the opportunities across its business and the board continues to look to the future with increased confidence.