North East technology company Kromek has announced a £30m deal with a global health corporation which it says will be “transformational” for its fortunes.
The County Durham firm has for a number of years been a high profile leader for the region’s technology sector, being named as one of the Ƶ’s most innovative firms and attracting a visit from then Prince Charles in 2022. But it has struggled to turn its technology into a profit, announcing another loss today in interim results for the six months ended 31 October 2024.
But Kromek has also announced a deal with Siemens Medical Solutions to provide knowledge, intellectual property and equipment that will bring in $37.5m (£30.1m), including $25m (£20.1m) in the current year. The deal will make Kromek profitable in 2025, it said.
Chief executive officer Arnab Basu said: “We are delighted to have entered into these agreements with Siemens Healthineers, a move that underscores Kromek’s position as the largest independent producer of CZT and CZT-based detectors.
"We both have an ongoing commitment to innovation that is critical for developing superior detector solutions that play a vital role in the early detection of serious illnesses. Both Siemens Healthineers and Kromek are aligned in our vision to enhance healthcare through technological advancements, and we eagerly anticipate collaborating to bring this vision to fruition.
Renewable energy firm OnPath Energy has acquired two operational wind farms in its first deals since being formed.
The Sunderland company, which was previously the renewable energy wing of Banks Group until it was bought by Brookfield Asset Management in 2023, has acquired the Milton Keynes wind farm in Buckinghamshire and the Pates Hill wind farm in West Lothian from GCP Infrastructure Investments. The two sites have been operational since 2010 with a capacity of around 28MW, enough to power around 23,000 homes.
The deal means OnPath now owns and operates 12 onshore wind farms across Scotland and England while it also starting work this year on two new wind farms, one in Scotland and one near Leeds. The Yorkshire development will also have an associated solar and battery scheme.
The company also has more than 3GW of renewable energy generation and electricity storage capacity in its development pipeline plus planning permission for up to 368 MW of renewable electricity generation and flexible energy storage projects.
Richard Dunkley, CEO at OnPath Energy, said: “As we continue to develop our own renewable generation projects from first principles, we will also be looking to identify other opportunities at every stage of the lifecycle, from pre-construction right through to operational wind farms and project repowering.
“The Milton Keynes and Pates Hill Wind Farms represented a strong fit with our development framework and their acquisition provides a positive outcome for all concerned, including the local communities that will continue to benefit directly from the revenues that these wind farms generate.”
North East recycling and haulage business GAP Group North East has expanded operations into Scotland on the back of a seven-figure funding package.
The Gateshead-based firm, which specialises in recycling electronic waste, has used the funding from HSBC Ƶ to build a fridge recycling plant near Perth, Scotland. The new site will enable the business to safely break down and recover ferrous and non-ferrous materials along with difficult-to-recycle rigid plastics, producing raw materials which can be sold to manufacturers to be used again in new products.
The site, which will be powered by 100% green energy generated by onsite wind turbines, will open next year, creating 50 jobs over the next 18 months. The new machinery allows the firm to safely break down difficult-to-recycle rigid plastics, melt them and sell the raw material to manufacturers to be recycled for new products. It also means the business no longer has to ship certain parts of waste overseas to be recycled.
Peter Moody, director at GAP Group North East, said: “We have worked with HSBC Ƶ for two years and the team continue to provide support, taking the time to understand our industry and the needs of our business. HSBC Ƶ has helped us to secure the site in Scotland, which has allowed us to expand our recycling plants north of the border.”
Two major industrial schemes in the North East moved forward on the back of significant lettings and planning approvals.
On Wearside, proposals to create new industrial space in Sunderland to support the region’s advanced manufacturing park have been given the go-ahead. Town End Farm Partnership Ltd last year put forward plans to create new space north of the Nissan plant to form part of the International Advanced Manufacturing Park (IAMP) through three units providing more than 860,000sqft of space.
Work on the scheme, which was submitted on behalf of the Durham business by planning and development specialist Hedley Planning, can now get under way after planning approval was granted by Sunderland City Council.
Meanwhile in County Durham, listed business management business Restore Plc has signed a 15-year full lease for space at Integra 61. The company has signed up for Connect 84 - part of the Connect development at the industrial park - to become home to its new storage centre, at an 84,175 sqft unit which property agents described as the largest speculative new build project in the North East in the last two decades.
A County Durham entrepreneur who is bottling success despite being turned down in the Dragons’ Den is on track to treble his target from a £500,000 crowdfund campaign. Former Durham University student Mark Wong went before the fearsome panel on the BBC One show in 2022 in an attempt to secure investment for mood-enhancing booze-free brew company Impossibrew, but he left empty handed as the Dragons said it was simply “too early” for them to invest.
Mr Wong, who moved to the Ƶ from Hong Kong when he was 13, had launched the business from his Durham University bedroom after being told in 2019 that he had to quit drink for health reasons.
In search of other ways to take a tipple, he tried hundreds of non-alcoholic beers, but wasn’t getting the same effect, then he hit upon a solution after going back to Asia to learn about a world of functional plants his ancestors would use for medicinal benefits. He began brewing beer in his Durham University room using the ingredients, and teamed up with Dr Paul Chazot, a leading biosciences professor at Durham University who supported his vision, to develop Social Blend, using patent-pending technology.
Now Impossibrew’s lager and hazypale has sold more than a million cans in the last year, buoyed by the continuing increase in people switching away from alcohol. The Dry January initiative is helping the firm to record sales, with this month’s revenue expected to come in art £700,000, more than double last January’s £340,000.
The firm, which outsources its brewing to a North East firm, has this month launched a Crowdcube campaign aimed at raising a £500,000 investment. Less than an hour after launching the fund it reached its target and it is currently way over-subscribed, standing at £1.4m from more than 1,000 investors.
Mr Wong said: “We’re overwhelmed by the incredible support, from our existing investors and community, reaching our funding target of £500,000 in just 35 minutes during the priority access phase, and surpassing £1.2m within 24 hours of public launch."
County Durham subsea specialist Tekmar Group won a £5m deal with a Ƶ offshore wind project. The Newton Aycliffe business, which makes products and solutions for the global offshore energy market, will design and supply its flagship Generation 10 cable protection system and associated products, including cable hang-off clamps.
The project starts immediately and it is expected to be completed during this calendar year.
CEO Richard Turner said: “We are delighted to be partnering with this client for the first time on a project of this size as part of their Engineering Procurement, Construction and Installation (“EPCI”) scope of supply. Tekmar has been selected because of our integrated offering, including our early-stage engineering support, our customer focus and our track record which is unrivalled in the industry.
"We will design and deliver next generation protection solutions to this landmark project in the Ƶ, this is testament to the differentiated value that Tekmar brings to protecting offshore assets. This contract is also an important step in delivering our ambitious plans for order book development in FY25 and beyond as we look to outperform an improving and growing market.”
The £2m transformation of a spa hotel near Darlington into a wedding and events venue has been completed following funding support from North East investor Tier One Capital.
The Apartment Group's redevelopment of The Croft Hotel in Croft-on-Tees has already created 17 jobs, with the expectation of more in the future. The Newcastle-based leisure group, which owns and operates hotels, restaurants and bars across the North East, acquired the Grade II listed property in early 2023 for an undisclosed sum and set about upgrading it to fit its portfolio of wedding venues.
Funding from the Develop North fund has helped the firm carry out extensive renovations including the building of six new bedrooms to add to the 24 at The Croft, a refurbished function suite, upgrades to the hotel's restaurant, wellness facilities, landscaped gardens and an 'enchanted wedding chapel'.
It is the latest project for The Apartment Group which has specialised in renovating historic properties for the wedding market, including Grade II listed Whitworth Hall and in County Durham, among others. The Croft Hotel was originally built in the early 19th century as a spa hotel and lies close to key tourism areas including the North York Moors and North Pennines Area of Outstanding Natural Beauty.
Stuart Bailey, CEO of The Apartment Group, said: "The Croft Hotel has become an outstanding addition to our portfolio, and the investment has delivered a spectacular setting for weddings and events. It’s been incredible to see how the venue is now flourishing with couples from across the region choosing to celebrate their special day here. Develop North’s support was invaluable in realising our vision for the hotel, which has created new jobs and provided a real boost to the local economy. It’s fantastic to partner with a fund that truly believes in the potential of businesses like ours."
