LONDON (Alliance News) - Radiation detection technology company Kromek Group PLC on Friday said its revenue for the full year will be lower than its expectations due to contract delays which will push some revenue into its 2016 financial year, while the group also said it has appointed an interim chairman and has won a further contract in the US.
Kromek said it has experienced some order delays in the second half of its financial year to the end of April which will mean that around GBP1 million worth of revenue will be pushed into the next financial year due to delays to delivering the contract work and ongoing negotiations on the details of other deals.
As a result, Kromek expects to post full year revenue of GBP8.1 million, up 38% year-on-year but with its second half growth against the first half at 53%, compared to the 100% growth the company had anticipated in the second half of the year.
The group said, however, that due to favourable revenue mix and tight cost controls, it expects it full year earnings before interest, taxation, depreciation and amortisation to be in line with market expectations.
Kromek also said it has appointed Lawrence Kinet, an existing director, as its its interim chairman.
In a separate statement Friday, Kromek said it has secured a further contract from the Defense Advanced Research Projects Agency, an arm of the US Department of Defense, to supply radiation network detectors.
The extension to an existing contract is expected to produce a further USD2 million of revenue for Kromek over a 16-month period.
"We are delighted to receive another extension of the current contract from DARPA, which reflects the excellent progress the Kromek team has made," said Chief Executive Arnab Basu.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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Kromek (KMK)