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Kromek Loss Narrows Amid Better Gross Margin And More Product Sales

Wed, 28th Jun 2017 09:52

LONDON (Alliance News) - Radiation detection technology company Kromek Group PLC on Wednesday said its annual loss narrowed as revenue was lifted by higher product sales.

Kromek reported a pretax loss for the financial year ended April 30 that narrowed to GBP3.8 million from GBP4.1 million the year before. Revenue grew to GBP9.0 million from GBP8.3 million, driven by higher product sales of GBP6.7 million, up from GBP5.4 million the prior year. This resulted from further traction for its D3S detector, SPECT camera and bone mineral densitometry detector products.

Kromek said the reduced loss also was the result of an improved gross margin to 57% from 53% the year before. The company cited product mix and production efficiencies, as well as the effect of the allocation of product development amortisation, which is expensed on a straight-line estimate instead of being linked to specific product sales.

"We are pleased with the growth in revenues this year, reflecting the delivery of long-term contracts won in previous years and contracts won during the year. Kromek is at the leading-edge in developing commercially-viable radiation detection solutions, and this has, in turn, enabled our customers to successfully launch their new generation of clearly differentiated products in a wide range of markets. Consequently, revenues from the sale of our products now accounts for nearly three quarters of our revenues," said Chief Executive Officer Arnab Basu.

The remaining revenue for Kromek is made up of contract customers and grants.

Shares in Kromek were down 11% at 32.15 pence on Wednesday.

By Dayo Laniyan;

Copyright 2017 Alliance News Limited. All Rights Reserved.

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