Radiation and biological threat detection specialist Kromek has narrowed losses having pointed to growing global insecurity driving demand for its products.
The County Durham firm, which also offers advanced imaging systems, said it was confident having boosted revenues to £7.1m, up from £6.8m, in the six months to the end of October. That came as adjusted Ebitda losses fell to £100,000 compared with £2.7m in the same period a year before as pre-tax losses fell to £3.49m from £5.7m previously.
Bosses underscored tight cost controls, saying the firm had heavily focussed on driving efficiencies. The results showed total operating costs were lowered from £8m to £6.2m.
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Kromek said world geopolitical insecurities and concerns about nuclear threats had helped reinforce the need for its equipment. It highlighted the benefit of a distribution partnership with Smiths Detection, and two new orders, including one with global defence firm, during the period.
Across its medical imaging business, the firm said repeat orders and work through collaboration agreements had provided a boost. And in the biosecurity division, which creates kit for detecting airborne diseases, Kromek talked up deals with the º£½ÇÊÓƵ and US governments.
Meanwhile, investment in product development had been maintained at £2.6m across the period including development of more efficient manufacturing processes and new technologies to underpin its products.
Dr Arnab Basu, CEO of Kromek, said: "I am pleased to report another period of growth for Kromek as we continued to deliver on our long-term agreements and development programmes as well as win new orders. We advanced our strategy by signing a significant collaboration agreement with a global blue-chip technology solutions provider in advanced imaging and through expanding our customer base in CBRN detection, including securing our first order with a substantial global defence corporation. At the same time, we heavily focused on managing our cost base and increasing the efficiency within our business, which remains a key priority.
"Looking ahead, in line with normal seasonality, we will be second half weighted and remain on track to deliver record revenues for full year 2024 and positive Ebitda. We continue to operate in substantial markets and are receiving high demand for our products that are being used every day to save people's lives - from the detection of nuclear threats in Ukraine, to cancer in hospitals around the world. As a result, the board continues to look to the future with confidence."
