A NORTH-EAST firm that helps fight cancer, terrorism and nuclear pollution has reported rising revenues and plans for an £11m shareholder offering.

Kromek, based on the NetPark technology site at Sedgefield, County Durham, showed a 36 per cent rise in revenues from £6m to £8.1m in its end of year results. The firm has yet to show a profit since it spun out of Durham University and became one of the brightest hopes for the North-East innovation sector. Bosses at the business, which has bases in Germany and the US, are confident it will soon edge into the black as its patented technology wins new business and repeat orders from clients, including the US homeland security services. It specialises in producing highly sensitive scanners used in the medical, security and nuclear industries.

During the year, Kromek undertook significant steps to invest in its manufacturing capabilities, which included doubling its production capacity and recruiting more sales staff.

Alongside its end of year update, Kromek confirmed it is set to undertake a firm placing and open offer to raise up to £11m, subject to shareholders' approval.

Dr Arnab Basu, the firm's chief executive, said: “Kromek achieved another year of strong revenue growth. We were adjusted EBITDA (earnings before interest, tax, depreciation and amortisation) 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.

“The company is also pleased to simultaneously announce at the same time as these results a firm placing and an open offer to raise up to £11.0m from both existing and new investors. The cash raised from this transaction will assist with the execution of our growth strategy and to leverage our established position and strong partnerships with global OEMs (original equipment manufacturers) and government agencies. With contracted revenues for the year ahead currently totalling 60 per cent of the directors’ expectations for the year, a clear path to capturing revenue opportunities and a stable cost base, the Board is confident in the prospects of the business and delivering significant shareholder value.”

Kromek started as a two-man business that started at Durham University’s physics department in 2003, and raised £15m in 2013 from a flotation on the AIM stock exchange.