Kromek (AIM: KMK), a leading developer of radiation and bio-detection technology solutions for the advanced imaging and CBRN detection segments, announces its final results for the year ended 30 April 2022.
Financial Highlights
• Revenue increased 16% to £12.1m (2021: £10.4m)
• Gross margin was 46.7% (2021: 48.4%)
• Adjusted EBITDA loss reduced to £1.2m (2021: £1.7m loss)*
• Loss before tax reduced to £6.1m (2021: £6.3m loss)
• Cash and cash equivalents at 30 April 2022 were £5.1m (30 April 2021: £15.6m)
*A reconciliation of adjusted EBITDA can be found in the Financial Review.
Operational Highlights
Advanced Imaging
• Strong revenue growth with delivery under component supply agreements and increased customer engagement for future projects
• Sustained delivery in medical imaging:
- Ramp up in delivery continued as planned under medical imaging contract expected to be worth US$58.1m over the seven-year life of the contract that was awarded in 2019
- Completed delivery of a US$600k order from an OEM customer for detectors to be used in niche SPECT applications, with further orders expected
- Commenced commercial development engagement with three new strategic OEM customers
• In security screening, the Group completed a two-year US$1.6m project with the US Department of Homeland Security and entered two new commercial development engagements with OEMs
• Signed a seven-year supply agreement, worth up to US$17m, in industrial screening with a US-based OEM and secured a US$250k repeat order from a US-based aerospace and defence company
CBRN Detection
• Significant momentum in nuclear security, with the winning of new and repeat orders and participation in a greater number of tenders reflecting the growth in global government defence spending:
o Awarded a two-year contract, worth up to US$1.6m, by a US federal entity for the D3S-ID wearable nuclear radiation detector – with a further US$300k order received during the year and US$695k post year end
- Repeat orders received from the European Commission for the D3S-ID
- Received orders from three customers for the D5 RIID
- A four-year contract worth £1.7m was received from a UK government agency customer for CBRN detection products and services
- Invested in developing new channels to market, including the signing, post year end, of a distribution agreement with Smiths Detection Inc. for the North and South American markets
• 32 new customers won in the civil nuclear segment
• Significant progress in the development of bio-security solutions:
- Awarded a US$6m contract extension from the Defense Advanced Research Projects Agency (“DARPA”), an agency of the US Department of Defense, to advance the development of a mobile wide-area bio-security system
- Successfully completed piloting in schools, airports and other locations of an airborne COVID-19 detection system under a project funded by Innovate UK and commenced productisation phase
Procurement, Manufacturing and IP
• Measures implemented to strengthen supply chain, including procurement team expansion and establishing strategic relationships with suppliers
• Increased utilisation of expanded production capacity in the UK and US facilities following enhancement to manufacturing processes in the prior year
• 8 new patents were filed and 9 were granted during the year
Dr Arnab Basu, CEO of Kromek, said: “We are pleased to report a year of good progress as we delivered on existing contracts and development programmes in both the advanced imaging and CBRN detection segments. Our revenues grew by 16% compared to the previous year as we saw increased commercial traction, particularly in the CBRN segment, and ended the year in a better position than we began it.
“Looking ahead, we entered the new financial year with a higher order book than the previous year and the highest level of revenue visibility in our history. The current geopolitical environment is driving greater interest from government agencies for our CBRN family of products and in advanced imaging we are experiencing heightened engagement with OEMs due to our strategic position as the only commercial independent global supplier of CZT. Consequently, for FY 2023 we anticipate substantial year-on-year revenue growth and we look forward to the future with increased confidence.”
