Kromek, a technology company based in County Durham, showcases impressive revenue growth but remains unprofitable.
- The firm reported a revenue increase of 12%, reaching £19.4m, yet struggles to commercialise its innovations effectively.
- Despite a positive adjusted Ebitda of £3.1m, Kromek’s losses, although reduced, still present a hurdle.
- A loan from existing shareholder Dr Graeme Speirs aims to bolster the company’s financial position.
- Global geopolitical tensions continue to drive demand for Kromek’s advanced detection technologies.
County Durham’s technology company, Kromek, has announced record revenue figures, yet it continues to face financial challenges. The company’s revenue increased by 12% to £19.4m, driven by demand in both medical imaging and radiation detection products. Despite the promising revenue figures, the company still reported a loss for the year, although these losses have decreased significantly, from £7.3m last year to £3.5m this year.
The financial outlook is underpinned by an adjusted Ebitda of £3.1m, which surpassed market predictions and marked a significant improvement in operational efficiencies. However, Kromek’s cash reserves have dwindled to £500,000, prompting the firm to secure a £4.9m loan from Polymer N2, an investment vehicle led by Dr Graeme Speirs. This loan is intended to stabilise Kromek’s financial grounding and support further growth initiatives into 2025.
Kromek has sustained its position as a leader in innovation within the UK, underpinned by a broad portfolio of patents. Despite this recognition, the company has struggled to fully commercialise its suite of products, which include advanced imaging and CBRN detection tools used in high-profile international events and conflict zones like Ukraine. CEO Dr Arnab Basu expressed confidence in the company’s trajectory, citing increased operational efficiency and strong market demand as key growth drivers.
There is a noted increase in demand for Kromek’s CBRN products, spurred by ongoing geopolitical tensions and nuclear threats. Additionally, the medical imaging segment has seen substantial progress, including securing a $2.1m order from a long-standing US customer. To keep up with market demand, Kromek is expanding its production capabilities and integrating more automation to boost productivity.
Kromek remains optimistic about future growth, leveraging its technological advancements and strategic financial initiatives.
