A TECHNOLOGY firm will intensify efforts to foil global terror attacks in a £2.5m deal.

Kromek is supplying parts for security systems designed to detect homemade bombs.

The five-year contract represents another huge fillip for the company, which has already sent thousands of radiation detectors to an agency of the US Department of Defense (USDD) to help identify extremist acts.

It also comes just days after the firm revealed a £21m shares drive, which officials told The Northern Echo would provide the “rocket fuel” to power fresh growth, and backs up claims from chief executive Dr Arnab Basu that the USDD agreement was the “tip of the iceberg”.

In its latest deal, Kromek, based at NetPark, in Sedgefield, County Durham, will send components capable of being incorporated into a US-based customer’s security screening systems that are designed to detect explosives.

Dr Basu said the tie-up was also representative of Kromek’s development from a research-focused spin out from Durham University’s physics department into a fully-fledged technology provider.

He said: “We are delighted to announce our first long-term contract in the security screening market.

“It is also significant because this is another customer that has moved from research and development to a commercial phase and underpins our belief in the continuing growth of the business.”

Last month, Dr Basu told the Echo that Kromek was ready to expand further after unveiling plans to raise £21m through a shares plan.

Dr Basu said the move would strengthen the business’ standing, with ongoing demand from US agencies and cities for its anti-terrorism technology matched by clamour for its airport bottle scanners and medical equipment, which can help diagnose osteoporosis.

He also said the stock exchange advance would add further ballast to operations and fortify Kromek’s balance sheet, the condition of which has caused some customers previous concern.

Since its inception, the company has incurred losses as officials have worked to build its equipment and repute.

However, Dr Basu said the placing, which will see around £17m go towards the balance sheet and a further £3m towards working capital and patent investments, means the company is closer than ever to recording its first profit, with earnings before interest, tax, depreciation and amortisation expected to break even in the coming months.

He said: “To have a strong balance sheet gives a signal of strength and shows we are here to stay.

“It is rocket fuel for the growth phase; we are busy boys and intend to stay extremely busy.

“When the group has historically engaged in commercial discussions with organisations, concerns have been expressed about the financial strength of the group and its ability to supply significant quantities of detectors over an extended period of time.

“We believe these concerns have delayed or prevented the group from entering into significant supply contracts with potential new and existing customers.”