Radiation detection specialist Kromek has upgraded revenue and pre-tax profit expectations following what it says has been a transformational year.
The County Durham manufacturer pointed to this year's multimillion-dollar deal with Siemens Healthineers as a key driver of growth, having received an initial payment of $25m out of a total $37.5m - with the remaining sums to come over the next four years.
The agreement has boosted the NETpark-based firm's Advanced Imaging business and helped it slash debts.
In its chemical, biological, radiological and nuclear (CBRN) detection division, Kromek said that had been an uptick following a slow start to the year.
Revenues in the second half were more than double those of the first half, with bosses highlighting two milestone agreements with º£½ÇÊÓƵ Government customers for nuclear security technologies, including one with the MoD.
Kromek was also selected as a supplier under a four-year º£½ÇÊÓƵ Government framework contract, with initial orders expected to start this year.
Outside of the country, the firm had secured orders from customers in the US and Europe in the second half of the year, and Kromek delivered two multi-year bio-security technology contracts for º£½ÇÊÓƵ and US government agencies.
In a trading update ahead of full results for the year to the end of April, Kromek said is expected revenue of at least £26m - a year-on-year rise of at least 34% and pre-tax profits slightly ahead of expectations.
At the end of the period, group debt was £500,000, down from £12.3m at the end of October 2024.
Arnab Basu, chief executive officer of Kromek, said: "FY 2025 has been a transformative year for Kromek. Our landmark agreement with Siemens Healthineers not only validates our leadership in Advanced Imaging technology but has also significantly strengthened our financial position - enabling us to substantially reduce debt and report pre-tax profitability for the first time.
"While the CBRN Detection segment experienced a slower start, momentum returned in the second half, supported by º£½ÇÊÓƵ Government frameworks, US federal contracts, and a healthy international sales pipeline. This gives us confidence in sustainable growth for the year ahead.
"Looking forward, with contracted revenues of approximately £20m, we have strong visibility for FY 2026 and are well-positioned to deliver another year of revenue growth, at least in line with market expectations, driving long-term value for our shareholders."
