1st May 2020 11:37
(Alliance News) - Shares in Kromek Group PLC dropped on Friday as it said that delays in projects due to Covid-19 related constraints imposed upon sub-contractors, suppliers and customers will have an effect on its annual financial performance.
Shares in the detection technology supplier were 8.3% lower at 18.35 pence on Friday in London.
In addition to supply constraints, Kromek also noted that two of its key contracts will be postponed into the new financial year. As a result, adjusted earnings before taxes, depreciation and amortisation for the year ended April 30 is expected to be breakeven, while revenue is set to be GBP14.5 million.
For the year before, adjusted Ebitda was GBP2.0 million, while revenue was GBP14.5 million.
In response to Covid-19, some of Kromek's employees in the UK and the US have been transitioned to remote working, and the group already has virtualised applications and storage on the cloud, meaning that there has been no significant reduction in its delivery capability for clients.
In addition, Kromek has taken several measures to bolster the liquidity of the business and its financial position, including curtailing all travel and non-essential spend and securing a short-term rent concession on its leased properties.
As at April 30, Kromek has cash of GBP10 million, including GBP5.0 million in facilities. Looking ahead, the group is unable to provide accurate guidance for its new financial year.
By Dayo Laniyan; [email protected]
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