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LONDON (Alliance News) - Shares in radiation detection technology company Kromek Group PLC were trading lower on Thursday morning after the company said it is planning to raise GBP11 million via a discounted placing, which overshadowed its report of a narrower pretax loss and higher revenue for its financial year to the end of April.
Kromek said it will raise GBP11 million in a firm placing via the issue of 36 million shares at 25 pence per share, plus a further 8 million shares in an open offer at the same price. The discounted placing sent Kromek shares down 25% in early trade to 26.00 pence, one of the worst performers in the AIM All-Share.
The placing announcement came as Kromek said its pretax loss for the year to the end of April narrowed to GBP3.1 million, compared to a GBP4.3 million loss a year earlier. Revenue rose by 36% in the year to GBP8.1 million from GBP6 million, and Kromek improved its gross margin to 69% from 65%.
The company said it won a number of contracts in the nuclear detection sector in the half, including one from an agency under the US Department of Defense, along with other notable public sector wins in the UK.
"Kromek achieved another year of strong revenue growth. We were adjusted EBITDA positive in the second half reflecting excellent operational progress and increased sales across all our key target markets. Our investment in additional sales and marketing resources is bearing fruit as our products gain traction worldwide with strong demand from current and new customers," said Arnab Basu, Kromek's chief executive.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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