What Kromek does
The company’s products are based on cadmium zinc telluride (CZT), an alloy used primarily for x-ray and gamma radiation detection, as well as other technologies.
The group has operations in the UK and the US and sells its products internationally through a network of distributors, original equipment manufacturers (OEMs) and direct sales.
How is it doing
In the first months of 2021, the company has been making steady progress with new contracts, announcing in early March that it had been awarded a contract worth a minimum of US$960,000 by a customer that wants to use its radiation technology.
This followed two new orders worth a total of US$750,000. The first order, from an existing OEM customer, is worth $600,000 and is for the supply of detectors to be used in niche SPECT applications. The second order is a repeat order from a US customer worth US$150,000 for specialised CZT detectors for a nuclear application.
Kromek has also recently boosted its cash resources, raising £13mln through a through a firm placing, directors’ subscription and open offer at 15p per share that was originally announced in mid-February.
The company said the money is earmarked for its range of bio-security/pathogen detectors and to increase the rate of commercialisation, sales and marketing of its nuclear detection and medical imaging ranges.
Reporting its results for the six months to October 31, 2020, Kromek said it is expecting “significant revenue growth” in the second half of the year thanks to “increased trading and improved visibility” as commercial activity rebounded.
For the first half, the company reported an adjusted (EBITDA) loss of £0.9mln compared to a £0.6mln loss in the prior year, while revenues moved to £4.6mln from £5.3mln.
Despite the wider loss, Kromek said orders and shipments had resumed across all of its segments in the final two months of the period as business patterns began to return to normal and commercial activity increased into the second half.
What the boss says: Arnab Basu, chief executive
Commenting on the new orders in early March, Basu said: “These latest orders reflect the beginning of the return to normal business activities as our customers increasingly resume commercial activity.”
“These repeat orders, in our core commercial markets of medical imaging and nuclear security, reflect the value of our technology to our customers in these areas. In addition, with $375,000 due to be delivered this financial year, they provide us with greater visibility over our full-year forecasts.”
- Additional orders in all three divisions
- Airport safety standards tightening around the world
- New opportunities in biological detection