LONDON (Alliance News) - X-ray imaging company Kromek Group PLC Wednesday said its losses widened for the first-half, but revenue increased following the acquisition of x-ray firm eV Products.
The Stockton-on-Tees-based firm posted pretax losses for the period end October 31 2013, of GBP2.5 million compared with losses of GBP2.3 million in 2012. The increase is largely attributable to finance costs of GBP513,000 during the period up from GBP18,000 in 2012, said the firm.
Revenue, however, increased to GBP2.4 million for the period from GBP710,000 a year earlier.
Kromek attributed this to higher nuclear and security product sales from the UK, enhanced by contracts with original equipment manufacturers in the medical imaging sector combined with the impact of the acquisition of eV Products, Inc.
Operating in similar areas to Kromek, eV Products acquired in February 2013, develops and manufactures solid-state room temperature x-ray detectors and gamma-ray detectors.
The firm said as a result of the increase in revenue and a stable cost base its losses before earnings before interest, taxation, depreciation and amortisation fell to GBP1.3 million from a loss of GBP2.0 million in 2012.
During the period, its three divisions also made good progresses with a number of contract wins.
The nuclear detection arm won a contract worth USD1.2 million from the US Domestic Nuclear Defence Office, while the security screening division signed 10 contacts for bottle scanners from UK airports.
The medical imaging arm signed a two year development programme worth up to USD5.3 million in the medical computed technology (CT) market.
Kromek said it was pleased with the progress it had made boosted in part by the acquisition of eV Products.
"We have also cemented strategic relationships with major players in the medical and nuclear detection field," the firm said.
"The uptake of the Bottle Scanner by European airports will also open up adoption of this product into wider global markets where we continue to invest in developing relationships," it added.
The stock was trading at 79.37 pence Wednesday morning, up 0.37 pence or 0.5%.
By Anthony Tshibangu; firstname.lastname@example.org; @AnthonyAllNews
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