Tech firm expects to post record revenues

NORTH East tech firm Kromek says it expects to post record revenues later this year on the back of commercial momentum.

The Sedgefield business, which also has a US site, develops radiation and bio-detection technology solutions from its NETPark base and it has announced a number of contract wins so far this year.

As a result, the firm issued a full-year trading update saying it started the second half of FY 2024 with increasing commercial momentum as it delivered on multi-year contracts.

It said both the advanced imaging and CBRN detection segments showed “increased commercial traction” and that the group expects to report record revenues for FY 2024.

The statement said: “Kromek is also experiencing improvements in its gross margin due to the product mix sold. The group continues to exert tight cost control whilst driving further operational efficiencies, particularly within its advanced imaging manufacturing process. Consequently, Kromek expects to report positive Ebitda for FY 2024, and ahead of market expectations.”

The County Durham company expects to release full year results in September.

In January it issued interim results showing revenues rose to £7.1m, up from £6.8m, in the six months to the end of October 2023, saying world geopolitical insecurities and concerns about nuclear threats had helped reinforce the need for its equipment. At the time, its adjusted Ebitda losses narrowed to £100,000 compared with £2.7m in the same period a year before.

The company has announced a number of deals this year, most recently a $2.9m (£2.3m) order from a US federal body for some of its wearable radiation detectors.