LONDON (Alliance News) - Radiation detection technology company Kromek Group PLC Thursday widened its pretax loss in the year to the end of April, hampered by costs relating to its listing on AIM.
Kromek posted a pretax loss of GBP4.3 million, widened from a GBP1.7 million loss in the previous year, despite seeing revenue rise to GBP6.0 million from GBP2.7 million, as it was hit by listing costs. In the previous year the company saw a GBP2.4 million benefit from negative goodwill released.
Gross margin improved to 65% from 47% the year before, benefiting from the company's acquisition of x-ray firm eV Products Inc.
Kromek said that the year had been challenging as it completed its initial public offering on AIM, and that some contracts would not be booked and shipped in time for revenue to be recognised in the current year, leading it to lower its sales forecast in March.
The company said that it was disappointed with the shortfall, and has taken steps to ensure that its forecasting is improved going forward.
It said that the security market has continued to be challenging, but it is confident in its product. It saw some disappointments in Japan for its nuclear products, but has been able to secure some new contracts with the US government and other customers.
Kromek said it is well positioned for continued growth, and expressed confidence for its future, citing its "robust" financial position and strong order book.
"We have reported a number of new contracts post this period end and we are continuing to convert a strong pipeline with the current order book at an all-time high," the company said.
Shares in Kromek were trading 0.6% lower at 50.20 pence per share Thursday afternoon.
By Hana Stewart-Smith; firstname.lastname@example.org; @HanaSSAllNews
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