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What Kromek does

Kromek Group PLC (LON:KMK) is a developer and supplier of radiation detection products for the medical, security screening and nuclear markets.

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

Kromek has won £100mln of multi-year orders over the three years to the end of October, it revealed at its half-year results, with that order-book doubling over the past 12 months.

This includes the largest order in the company’s history, worth US$58.1mln, to supply CZT medical scanners to an OEM customer over the next seven years.

More recently there were two contract extensions for its D3S nuclear detection platform worth a combined £1.6mln in the current year.

There were two US government awards worth a combined US$1mln so far this year, plus a contract with the European Commission using D3S drone radiation detectors across multiple locations to cover venues such as airports, train stations and other public areas.

In the second half of the current year, Kromek won a competitive tender to provide its D3S platform to a national civil defence agency of a European country, worth up to €0.2mln.

Revenues in the year to last April rose 23% to £14.5mln and then December’s results for the historically quieter first half showed 43% growth to £5.3mln, with EBITDA losses flat at £0.6mln.

Watch the interview

What the boss says: Arnab Basu, chief executive

Speaking about the half-year’s record revenues, Basu said: “This is all as a result of the order pipeline and the contract wins. We have secured £100mln over the last three years, and that is flowing through as revenue.”

“More importantly, we now have over 90% visibility of our full year revenues, because of contracts we have built up, which gives us a real confidence in meeting an trading in line with market expectations in the full year.”

He added: “This time last year, we had 88% visibility. That equated to about £12mln of visibility, whereas standing here now in December for the full year we have nearly £16.5mln of visibility.”

 

Inflexion points

  • Additional orders in all three divisions
  • Airport safety standards tightening around the world
  • Nuclear detection system now being incorporated into drones
  • New opportunities in biological detection
  • The company has new manufacturing plants in the US and UK