NETPark based technology company Kromek Group Plc, is on track to significantly increase revenue in 2022.
The group delivered on existing contracts, won new orders and experienced greater customer engagement regarding future projects in both of its advanced imaging and CBRN detection segments
Growth and, partly, margin were impacted by supply chain related challenges for components, with certain deliveries being delayed into the second half that are now being recovered. The group took steps to increase the surety of its supply, resulting in increased inventory and working capital, and, accordingly, does not expect revenue to be impacted by similar issues in the second half.
Delivery continued on the group’s existing advanced imaging contracts and new business activity increased, significantly strengthening the pipeline for the second half and beyond:
- Significant increase in medical imaging new business activity as the impact of the pandemic continued to recede – strengthening the pipeline for H2 2022 and beyond
- Ramp up in delivery under the Group’s significant multi-year medical imaging contract
- Entered commercial development engagement with three new strategic OEMs for key medical imaging applications
- Signed a seven-year supply agreement, worth up to $17m, to provide a CZT detector solution for industrial screening
- Received a $250,000 repeat order in industrial screening from a US-based aerospace and defence technology customers.
New and repeat orders won in the CBRN detection segment along with the Group participating in an increasing number of nuclear security tenders and making significant progress in its bio-security development programmes:
- Awarded a two-year contract worth up to $1.6m by a US federal entity for the D3S-ID wearable nuclear radiation detector
Received a £173,000 order for the D5 RIID high-performance handheld radiation detector from a UK government-related customer
Awarded a $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 capable of detecting and identifying airborne pathogens
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
15 new customers won in the civil nuclear market
Three new patents were filed and three were granted during the period.
Dr Arnab Basu, CEO of Kromek, said: “During the first half of the 2022 financial year, we continued to deliver on our existing contracts as well as win new and repeat orders in both our advanced imaging and CBRN detection segments. We also made substantial progress with our existing development programmes and initiated new programmes with a number of strategic partners. While our growth and margin during the period were impacted by challenges related to the supply chain for components, this is being recovered in the second half and we remain on track to deliver a significant increase in revenue for full year 2022, in line with market expectations, with visibility of over 90% of full year forecasts. This would represent our highest ever full year revenue with growth in both segments.
“Looking further ahead, we have significantly strengthened our pipeline in the multiple substantial markets in which we operate. We offer our customers a differentiating technology that supports early medical diagnosis to improve patient outcomes and government vigilance to the threat of terrorism – which are long-term growth drivers. As a result, the Board continues to look to the future with great confidence.”
News source: Kromek.