County Durham-based technology firm Kromek hits crucial ‘profitability’ landmark
A COUNTY Durham firm which helps fight cancer and terror threats around the world is edging closer to making its first profit.
Dr Arnab Basu, boss of Sedgefield-based Kromek, says the scanner firm is primed for further growth after strengthening its international reputation with a raft of contracts.
He also confirmed the business is close to registering its first pre-tax profit, with earnings before interest, tax, depreciation and amortisation (EBITDA) showing their first positive result since the company was founded.
Kromek, which began as a research-focused spin out from Durham University’s physics department in the early 2000s, reported that revenue in the financial year just ended rose 32% to £11.8m from £9.0m the year before, despite unfavourable exchange rate movements. Product sales rose 44% year-on-year and accounted for 81% of total revenues, up from 74% the year before.
The business has grown in recent years, with contracts to supply equipment capable of diagnosing medical ailments complemented by security agreements to supply airport bottle scanners capable of spotting explosives.
It has also sent thousands of radiation detectors to US security chiefs to help identify threats including ‘dirty bombs’, and is a qualified contractor on a US Department of Defense framework.
Dr Basu, chief executive of the NETPark-based business, said: “I am very pleased to report that Kromek had another good year of delivering revenue growth and developing our customer base who continue to launch next-generation products incorporating our advanced radiation detectors. We also achieved one of our key targets for the year by becoming EBITDA positive for the first time in our history. This is an important milestone towards cash flow breakeven and pre-tax profits.
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