Kromek Group glows after slashing losses
By Duncan Ferris
Date: Thursday 27 Jun 2019
(Sharecast News) - Kromek Group's shares climbed on Thursday after it reported double-digit revenue growth and said it remained confident of further growth in the year ahead.
The radiation detection technology supplier achieved revenue of £14.5m for the year ended 30 April, which was 23% higher than in the year before, as product sales grew by 25% to £12.1m and revenue from research & development contracts increased by 14% to £2.5m.
Higher revenues helped the AIM traded company narrow its loss before tax from £2.5m to £1.3m.
During the yea, Kromek also relocated its US operations to new purpose-built premises near Pittsburgh, Pennsylvania, which the company said would allow for further capacity expansion, while also investing in expanding capacity at its UK manufacturing facility and significantly increasing process automation in both the UK and US.
Arnab Basu, chief executive of Kromek, said: "Looking ahead, we entered the 2019/20 fiscal year in a stronger position than ever before. With the increasing market adoption of customers' next-generation products that incorporate our radiation detection solutions, we are receiving increasing demand from existing customers as well as interest from potential customers - and we are well-placed to capitalise on these opportunities. The momentum of new contract wins has continued, providing us with greater visibility over revenue."
Basu added that, as a result, the board were confident of delivering growth for full year 2019/20, in line with market expectations and continued to look to the future with confidence.
Kromek Group's shares were up 11.21% at 24.19p at 1606 BST.
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