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(Alliance News) - Kromek Group PLC on Wednesday said it expects to deliver full-year earnings ahead of market expectations, thanks to improvements in both commercial momentum and gross margin in the second half.
Shares in the Sedgefield, England-based detection technology supplier were up 11% to 7.50 pence each in London on Wednesday morning, following the announcement.
Kromek, as highlighted in its interim report, started the second half with increased momentum "whilst delivering on multi-year contracts". Both the advanced imaging and chemical, biological, radiological and nuclear - or CBRN - detection segments showed increased commercial traction.
As such, Kromek expects to report "record revenues" for the year ended April 30. The year previously, it had reported revenue of GBP17.3 million, up 44% from GBP12.1 million in financial 2022.
The group also noted improvements in its gross margin "due to the product mix sold". It said that it continues "to exert tight cost control whilst driving further operational efficiencies", particularly within its advanced imaging manufacturing process.
Accordingly, Kromek expects to report positive earnings before interest, tax, depreciation and amortisation for the financial year just ended, and ahead of market expectations, though it didn't specify what these were. Last year, it reported an adjusted Ebitda loss of GBP1.0 million, versus GBP1.2 million the year prior.
Kromek plans to release its full-year results in September.
By Holly Beveridge, Alliance News reporter
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