NETPark-based technology firm Kromek says it expects to report an increased revenue of £12.1m, up around 16%, but it still lost more than £1m.

CEO Dr Arnab Basu, CEO of Kromek Group plc, said the company had overcome supply chain challenges, and was now 'on track'.

He said: “Recent challenges in the supply chain for electronic components caused some contract deliveries to be temporarily delayed in the period. All of these are now on track to be delivered over the coming months.

Read more: Thanks to Charles for reminding us what business gems we have in North East

"The demand for Kromek’s products continues to grow, with a total of £5.9m of new contracts won in the last three months.

“Kromek enters the new fiscal year with the highest ever revenue visibility, driven by the strength of our offering and demand in our sectors, especially in radiation detection, enhanced as a result of the recent geo-political conditions. We expect to see this trend continuing in the foreseeable future.”

In the Group’s interim results announcement in January, Kromek continued to deliver on its existing contracts as well as win new and repeat orders during the first half of the year. In H2 2022, the commercial momentum increased, ahead of management’s expectations, including £5.9m in new orders being won in the final quarter, primarily in the CBRN detection segment.

Specifically, the late arrival of certain components prevented the completion of orders totalling approximately £2.9m that were scheduled to be delivered before the year end.

These orders have now begun to be shipped and the revenue is expected to be recognised in the first half of the current financial year. As a result, the Group expects to report an adjusted loss for the year ended 30 April 2022 of approximately £1.2m.

The Group continued to maintain tight cost control, improve collections, and manage cash flow. As a result, and despite the significant increase in inventories due to the delayed shipment of certain orders, the Group had cash and cash equivalents at 30 April 2022 of approximately £5.1m. Kromek expects cash inflows following the delivery and payment of the aforementioned £2.9m orders; the unwinding of high inventory levels; and a continued improvement in customer collections. Consequently, the Board believes that the Group has sufficient cash available for the foreseeable future.

For the current financial year, Kromek continues to expect accelerated growth in both its segments and is forecasting substantial revenue growth in the year to 30 April 2023. The Group has excellent visibility over full year revenue forecasts with 50% contracted, 37% going through contract negotiation and the remaining 13% being provided by the Group’s regular repeat order business. This is the highest level of visibility that the Group has ever had at the start of a financial year.

The anticipated growth is based on delivery under existing long-term contracts, new orders won in H2 2022, and the sustained demand being received for its products. In particular, the current geo-political environment is driving increased interest from government agencies in Kromek’s products in the CBRN detection segment. In advanced imaging, Kromek’s CZT-based products continue to be in high demand from both its existing and new OEM customers.

Accordingly, the Board remains confident of the Group’s prospects and of delivering further strong growth in the current year. The level of contracted revenue continues to build, further improving revenue visibility and the Board said it was 'enthused by the substantial opportunities for Kromek and its technology'.


Keep up to date with all the latest news on our website, or follow us on Facebook, Twitter and Instagram.

You can also follow our dedicated County Durham Facebook page for all the latest in the area by clicking here.

For all the top news updates from right across the region straight to your inbox, sign up to our newsletter here.

Have you got a story for us? Contact our newsdesk on or contact 01325 505054