Kromek Regulatory News (KMK)

8 May 2025

Kromek Group plc 

("Kromek" or the "Group") 

Full Year 2025 Trading Update

Kromek to deliver revenue and profits ahead of market expectations

Kromek Group plc (AIM: KMK), a leading developer of radiation and bio-detection technology solutions for the Advanced Imaging and CBRN Detection segments, provides the following update on trading for the 12-month period ended 30 April 2025.

FY 2025 has been a transformational year as Kromek made significant strategic progress in both its Advanced Imaging and CBRN Detection segments.

In the Advanced Imaging segment, the Group signed a significant partnership agreement with Siemens Healthineers and received the initial payment of $25.0 million out of a total of $37.5 million, with the remaining amount to be received over the next four years. Consequently, revenue in the Advanced Imaging segment grew significantly year-on-year.

In the second half of FY 2025, Kromek's CBRN Detection segment demonstrated a clear recovery following a subdued start to the year. Revenues in H2 2025 were more than double those of H1 2025, albeit from a low base, reflecting a strong rebound in activity. During the year, the Group secured two milestone agreements with UK Government entities for its nuclear security technologies. Notably, Kromek was awarded and successfully delivered a contract from the UK Ministry of Defence-one of the Group's key strategic customers. Additionally, Kromek was selected as a supplier under a four-year UK Government framework contract, with initial orders under this programme expected to commence in the current financial year and continue throughout the contract duration. Beyond the UK, Kromek continued to strengthen its global footprint, securing and delivering multiple orders in the second half of FY 2025 from customers in the US and Europe. The Group also continued to successfully deliver on the two multi-year contracts from UK and US government agencies in its bio-security technology area.

As a consequence of the positive financial impact of the partnership with Siemens Healthineers, Kromek expects to report FY 2025 revenue ahead of market expectations, of not less than £26 million, representing year-on-year growth of at least 34%. Profit before tax is also expected to be slightly ahead of market expectations. As at 30 April 2025, Group debt was £0.5 million compared with £12.3 million at 31 October 2024, and the Group expects to report net cash in line with market expectations.

Looking beyond FY 2025, Kromek anticipates delivering revenue growth for the fifth consecutive year in FY 2026, while also maintaining profitability. This positive outlook is underpinned by contracted revenue of approximately £20 million and a substantial near-term revenue pipeline.

Arnab Basu, Chief Executive Officer of Kromek, said: "FY 2025 has been a transformative year for Kromek. Our landmark agreement with Siemens Healthineers not only validates our leadership in Advanced Imaging technology but has also significantly strengthened our financial position - enabling us to substantially reduce debt and report pre-tax profitability for the first time. While the CBRN Detection segment experienced a slower start, momentum returned in the second half, supported by UK Government frameworks, US federal contracts, and a healthy international sales pipeline. This gives us confidence in sustainable growth for the year ahead.

"Looking forward, with contracted revenues of approximately £20 million, we have strong visibility for FY 2026 and are well-positioned to deliver another year of revenue growth, at least in line with market expectations, driving long-term value for our shareholders."

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Kromek Group plc 

Kromek Group plc is a leading developer of radiation detection and bio-detection technology solutions for the advanced imaging and CBRN detection segments. Headquartered in County Durham, UK, Kromek has manufacturing operations in the UK and US, delivering on the vision of enhancing the quality of life through innovative detection technology solutions.

The advanced imaging segment comprises the medical (including CT and SPECT), security and industrial markets. Kromek provides its OEM customers with detector components, based on its core cadmium zinc telluride (CZT) platform, to enable better detection of diseases such as cancer and Alzheimer's, contamination in industrial manufacture and explosives in aviation settings.

In CBRN detection, the Group provides nuclear radiation detection solutions to the global homeland defence and security market. Kromek's compact, handheld, high-performance radiation detectors, based on advanced scintillation and solid-state readout technology, are primarily used to protect critical infrastructure, events, personnel and urban environments from the threat of 'dirty bombs'.

The Group is also developing bio-security solutions in the CBRN detection segment. These consist of fully automated and autonomous systems to detect a wide range of airborne pathogens.

Kromek is listed on AIM, a market of the London Stock Exchange, under the trading symbol 'KMK'.