By Duncan Ferris
Date: Wednesday 11 Dec 2019
LONDON (ShareCast) - (Sharecast News) - Kromek on Wednesday reported a widened loss due to margin pressure, though revenue surged as the company began to deliver on high value contracts.
The detection technology supplier booked a loss before tax of £2.7m for the six months ended 31 October, compared with a loss of £2.1m in the same period last year, as gross margin declined from 67% to 58%.
Kromek attributed this to a lower proportion of research & development revenue, which had been disproportionately high in the first half of the prior year due to the relocation of its US factory operations to a new purpose-built site in Pittsburgh.
Operating costs rose by 17% to £5.2m due to recruitment of new staff and a marketing expenses.
Meanwhile, turnover leapt by 43% to £5.3m after the AIM traded company said it delivered a number of high value, multi-year contracts with commercial and government customers across nuclear detection, medical imaging and security screening.
Product sales, which accounted for 82% of revenue, leapt by 53% following an increase in adoption of Kromek's next-generation medical imaging products and an expansion of applications for its D3S nuclear detection platform.
Chief executive Arnab Basu said: "We continue to experience growing demand for our flagship products, which is expected to convert to further orders. As a result, the group has visibility of 90% of expected revenue for FY 2019/20 based on delivery of the contracts already won and supported by a strong and increasing pipeline.
"The board expects to deliver significant revenue growth and EBITDA profit for full year in line with market expectations."
Kromek shares were up by 8.12% at 18.65p at 1003 GMT.
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Currency | UK Pounds |
Share Price | 6.20p |
Change Today | -0.100p |
% Change | -1.59 % |
52 Week High | 8.00 |
52 Week Low | 3.25 |
Volume | 1,195,521 |
Shares Issued | 641.02m |
Market Cap | £39.74m |
RiskGrade | 527 |
Value |
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Price Trend |
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Income |
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Growth |
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No dividends found |
Time | Volume / Share Price |
16:24 | 500,000 @ 6.33p |
16:29 | 16,394 @ 6.10p |
16:02 | 16,181 @ 6.18p |
15:43 | 100 @ 6.40p |
15:43 | 100 @ 6.40p |
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