The Kromek Group share price closed at 8.5p on 7 August, with the consensus broker target implying a 2.7 times gain and the most bullish forecast pointing to a three-bagger from current levels.
Kromek (LSE: KMK) develops and manufactures radiation-detection and biohazard-detection equipment. Its CBRN Detection division sells handheld radiation detectors to governments and security services. The Advanced Imaging division supplies components to medical scanner manufacturers, covering applications in cancer and Alzheimer’s detection.
A Maiden Profit Changes the Story
For years, Kromek burned cash while investors waited. The year ended 30 April 2025 changed that. Kromek’s FY2025 final results showed revenue of £26.5 million, up 37% from £19.4 million the prior year. Gross margin expanded to 81% from 55%, and adjusted EBITDA reached £10.3 million against £3.1 million previously.
Advanced Imaging drove most of the gain, with divisional revenue rising from £9.0 million to £20.3 million following a landmark agreement with Siemens Healthineers. CBRN Detection revenue fell from £10.4 million to £6.2 million in that year, though the division saw a sharp acceleration in the second half due to contract awards under UK Government frameworks and US federal contracts.
Chief executive Dr Arnab Basu said the outcome exceeded expectations: ‘This year has been pivotal for Kromek, marked by our maiden profit, which exceeded market expectations, and a significant reduction in debt.’
The balance sheet improved in tandem. Kromek repaid a £5.5 million term loan facility and £5.9 million of short-term loan facilities in February 2025, per the FY2025 results. By 30 April 2025, group debt stood at just £0.5 million, down from £12.3 million at 31 October 2024, according to a Kromek trading update issued in May 2025. The company entered FY2026 with approximately £20 million of contracted revenue already secured.
Kromek Group Share Price Up 70% Over Twelve Months
The Kromek Group share price has risen around 70% over the past year. It has eased back as 2026 has progressed, but the interim period provided further evidence of momentum.
For the six months ended 31 October 2025, Kromek’s H1 FY26 interim results showed revenues of £15 million, up from £3.7 million in the comparable prior period. A large payment from Siemens Healthineers for imaging technology expertise drove much of that jump. CBRN Detection revenues more than doubled in the half.
The division also picked up new government business. Kromek received an initial order worth £1.7 million under the UK Government’s Radiological Nuclear Detection Framework for its nuclear security products, and secured a £250,000 contract with the Defence Science and Technology Laboratory of the UK Ministry of Defence for development of novel biological agent detection methods.
FY2026 Full-Year Outlook and Risks
For the full year to 30 April 2026, the FY2026 trading update filed on Investegate cited consensus forecasts of £27.2 million of revenue and approximately £2.15 million of profit before tax, with the company confirming it expects to trade in line with those figures.
That profit figure is substantially below the £3.08 million recorded for FY2025. The FY2026 final results published on the London Stock Exchange (LSE) show the CBRN Detection division grew revenue 17% to £7.3 million and generated a profit before tax of £0.8 million for the year, reflecting continued recovery in that segment.
Earnings per share forecasts suggest a further dip in 2027, though analysts expect the company to move to a net cash position, removing one of the balance sheet concerns that has historically weighed on sentiment.
On the order front, Kromek told investors its CBRN Detection and Advanced Imaging divisions ‘won new orders totaling £8.8m’ in the second half of FY2025, underpinning near-term revenue visibility.
Medium-Term Targets Set a Longer Horizon
Management has set a medium-term revenue target of £60 million with a 30% EBITDA margin, as stated at a capital markets event and referenced in CEO commentary during the interim results process. At FY2025 revenue of £26.5 million, Kromek has substantial ground to cover to reach that goal.
The bull case rests on scale: the company’s cost base is largely fixed, so incremental contract wins in either division flow heavily to profit. The bear case is that the step-down in forecast profit between FY2025 and FY2026 suggests the earnings trajectory is not yet steady.
Full-year results for the year ended 30 April 2026 are expected in September. The trading update’s confirmation of in-line performance narrows the uncertainty, but the direction of FY2027 forecasts will be the sharper test of whether Kromek’s profitability is durable.
