28th Oct 2024 12:23
(Alliance News) - Kromek PLC on Monday said its annual loss narrowed its most recent financial year, following a reduction in expenses and a growth in demand for products amid ongoing geopolitical instability.
The Sedgefield, England-based detection technology supplier said its pretax loss narrowed to GBP3.5 million in the financial year that ended April 30 from GBP7.3 million the year before.
Driving the improved results, revenue grew by 12% to GBP19.4 million from GBP17.3 million, and administrative costs were reduced by 17% to GBP12.1 million from GBP14.6 million the year before.
Shares in Kromek were down 18% at 5.51 pence each in London on Monday afternoon.
Chief Executive Officer Arnab Basu said: "This has been a pivotal 12 months for Kromek where we recorded a third consecutive year of revenue growth and delivered on all our [key performance indicators]. We achieved record revenues, more than halved our losses and our positive adjusted [earnings before interest, tax, depreciation and amortisation] exceeded market expectations.
"We have actively enhanced our operational efficiencies and seen excellent progress in both advanced imaging and [chemical, biological, radiological and nuclear] detection where demand remains strong across both market segments. We expect to be broadly cash neutral in the first half and are comfortable that we have sufficient capital to deliver further growth in 2025.
"Looking ahead, we anticipate demand for our CBRN products will continue to be driven by global geopolitical insecurity and the persistence of nuclear threats. Also, an acceleration in the development and commercialisation of [single-photon emission computed tomography], [computed tomography] and [bone mineral densitometry] utilising [cadmium zinc telluride] by major [original equipment manufacturers] is expected to translate into increased collaborations, strategic partnerships and more contracts for the advanced imaging segment. Consequently, Kromek is well-positioned to deliver future growth and value for shareholders."
Kromek also said it has agreed an additional GBP4.9 million secured term loan with Polymer N2 Ltd. It carries the same terms as the initial GBP5.5 million loan facility agreed in September 2023 and repayment will be due in March 2025. Polymer N2 is controlled by shareholder Graeme Speirs, who currently has a 14% stake in Kromek.
By Emily Parsons, Alliance News reporter
Comments and questions to [email protected]
Copyright 2024 Alliance News Ltd. All Rights Reserved.