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LONDON (Alliance News) - Radiation detection technology firm Kromek Group PLC on Tuesday reported a widened pretax loss for the financial year to the end of April due to a substantially weaker gross margin.
Kromek said its pretax loss was GBP4.1 million, compared to the GBP3.1 million loss made a year earlier. Revenue grew to GBP8.3 million from GBP8.1 million, but this was wiped out by a rise in the company's cost of sales to GBP3.9 million from GBP2.5 million.
Kromek said the higher cost of sales and, subsequently, decline in its gross margin to 53% from 69% was caused by an adverse, lower-margin revenue mix and a one-off GBP600,000 exclusivity payment it received the prior year which did not recur.
The firm said it secured more than GBP30.0 million in new contracts over the course of the year, with nearly two-thirds of these coming from medical imaging work. Nuclear detection work also remained strong, including a new contract with the US Department of Defense.
"Overall, the group's products continue to gain traction across the globe as Kromek deepens its relationships with long-term customers and expands its reach. With a strengthened order book in place and improved revenue visibility, the board looks to the future with confidence," said Chief Executive Arnab Basu.
Kromek shares were up 2.0% to 25.49 pence Tuesday.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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