Kromek, a prominent North East technology company, continues to report financial losses despite achieving record revenues.
- The company has seen a 12% increase in revenue amounting to £19.4 million and a positive adjusted Ebitda of £3.1 million.
- Despite financial growth, Kromek’s cash position has declined, necessitating a £4.9 million loan from key shareholder Dr Graeme Speirs.
- CEO Dr Arnab Basu highlights significant advancements in operational efficiencies and anticipation for ongoing demand due to geopolitical tensions.
- Kromek continues to innovate in imaging and CBRN detection technology but faces challenges in fully commercialising its products.
Kromek, a leading technology firm based in the North East, recently announced its financial performance results, revealing a contrasting scenario of record revenues paired with persisting losses. The company, renowned for its radiation and bio-detection equipment, reported a revenue increase of 12%, reaching £19.4 million. However, despite this revenue growth, Kromek has yet to overcome its loss-making status.
In response to its challenging financial situation, Kromek has secured a £4.9 million loan from Polymer N2, an investment vehicle managed by existing shareholder Dr Graeme Speirs. This financial support is essential, given the company’s cash reserve of only £500,000. Such backing underscores the trust and strategic importance attributed to Kromek by its shareholders.
Kromek’s CEO, Dr Arnab Basu, remarked, “This has been a pivotal 12 months for Kromek where we recorded a third consecutive year of revenue growth and delivered on all our KPIs.” Despite more than halving its losses from £7.3 million to £3.5 million and achieving positive adjusted Ebitda exceeding market expectations, the company remains unprofitable since its inception in 2003.
Dr Basu also articulated the company’s operational milestones, noting improvements in advanced imaging and CBRN detection technologies. The firm’s commitment to enhancing operational efficiencies has shown excellent progress. Demand remains robust across both these market areas, driven by global geopolitical insecurity and ongoing nuclear threats. Kromek’s strategic direction appears to be aligned with these macro-environmental factors, suggesting potential for future profitability.
Furthermore, Kromek’s medical imaging sector, marked by a $2.1 million order in the U.S., highlights significant progress. Yet, the firm continues to grapple with the challenge of fully realising the commercial potential of its patented innovations. Expanding production capacity and integrating automation are among the strategies being employed to bolster productivity.
Despite the hurdles, Dr Basu remains optimistic about the company’s trajectory, asserting, “Looking ahead, we anticipate demand for our CBRN products will continue to be driven by global geopolitical insecurity and the persistence of nuclear threats…Consequently, Kromek is well positioned to deliver future growth and value for shareholders.”
Kromek is at a critical juncture, leveraging its innovative capabilities while navigating financial challenges to fulfil its growth potential.
