Radiation detection technology firm Kromek has grown its half-yearly sales by 33% to £3.2m after making solid progress across all of its target sectors.
The Durham University spin-out announced its interim results for the six months ended October 31, in which it narrowed its pre-tax loss to £2.3m from a first half of 2013/14 loss of £2.5m.
Adjusted EBITDA improved to a £1.6m loss, compared to a £2m loss in the first half of the last financial year.
The Sedgefield-based firm also said it expects to be EBITDA positive for the second half of the current financial year having announced cash and cash equivalents as of October 31 of £2.86m, with no debt.
During the six months ended October 31 the firm was awarded a number of significant contracts across the business, which covers security, medical and nuclear markets.
Deals clinched included a $1m (£659,000) contract extension from a leading global security company.
The firm successfully completed the first phase for the design of Cadmium Zinc Telluride-based detectors and ASIC (Application Specific Integrated Circuits) aimed at nuclear safeguard markets. Under the terms of the contract for the second phase, it will now focus on the delivery of the new products as well as the testing and characterisation of detector modules.
Kromek also secured a first contract from another global security technology group and market leader in security solutions, as well as a further contract from an existing customer for baggage screening components and a new customer win within the healthcare and diagnostics industry.
A separate market note by the AIM-listed firm also told of a modification to its existing contract with the US Defense Advanced Research Projects Agency (DARPA), an agency of the US Department of Defense, for the development of radiation network detectors.
The programme with DARPA, which started in August 2014, is to develop an advanced portable detection system for gamma and neutron radiation.
The advanced system is being developed to combine with other systems, to form large networks that can give information on radiation signatures over an extended area.
The extension, worth up to $1.1m (£725,000) over 16 months, includes the supply of additional Kromek detector systems.
Chief executive Dr Arnab Basu also said nine patents were granted after the end of the period.
He said: “We are pleased to report another half year of growth against the comparative period as a result of sustained progress in Kromek’s product portfolio approach, whilst advancing our strategy of becoming the preferred component supplier to major OEM (original equipment manufacturers) in CT and SPECT (Single Photon Emission Computed Tomography) and in the supply of network sensors in nuclear markets.
“This has been achieved both by establishing new partnerships and strengthening our existing relationships.
“Looking ahead, investment in enhancing our sales and marketing function is resulting in increased interest in Kromek’s products and technology from a greater number of companies and organisations.
“We continue to be subject to fluctuations in the timing of certain contracts and revenue recognition as well as the impact of seasonality, with the procurement cycle of many customers resulting in sales being weighted to the second half of the current financial year.
“Despite this, the company remains confident that it can deliver in excess of 100% revenue growth from the first half to second half of the current financial year.
“Additionally, the company expects to be EBITDA positive for the second half of this year.”
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