Kromek, a leading tech firm based in County Durham, has reported record revenue but remains unprofitable. Despite their innovative reputation, the company struggles with commercialization.
- Kromek’s revenue rose by 12% to £19.4 million, yet they still reported a net loss of £3.5 million, an improvement from last year.
- The company’s financial position weakened, with cash reserves down to £500,000, but secured a £4.9 million loan to bolster finances.
- CEO Dr. Arnab Basu emphasized operational improvements and strong demand in imaging and CBRN detection.
- Global insecurity is driving demand for Kromek’s security products, highlighting growth potential despite current challenges.
North East technology company Kromek has been recognized as one of the UK’s most innovative firms, yet it struggles to turn its technological advancements into profit. For the past year ending April 30, the company documented a 12% increase in revenue to £19.4 million but continued to operate at a loss, although it managed to reduce this deficit from £7.3 million in the previous year to £3.5 million.
Despite the impressive revenue figures, Kromek’s financial situation is concerning. Cash reserves dwindled to £500,000, prompting the need for a £4.9 million loan from Polymer N2, an investment entity controlled by Dr. Graeme Speirs, a long-time shareholder. This funding is expected to cushion the company as it navigates its financial challenges.
CEO Dr. Arnab Basu reflected on the past year as pivotal, citing three consecutive years of revenue growth and exceeding market expectations for EBITDA. Dr. Basu noted substantial operational improvements and ongoing strong demand in both advanced imaging systems and CBRN (chemical, biological, radiological, and nuclear) detection, which remain crucial market segments. “We expect to be broadly cash neutral in H1 and are comfortable that we have sufficient capital to deliver further growth in 2025,” he stated.
Further emphasizing Kromek’s trajectory, Dr. Basu pointed out significant progress in medical imaging, illustrated by a $2.1 million order from an established U.S. client. The demand for the company’s nuclear security and biological threat detection products is also increasing, driven by persistent global geopolitical instability, enhancing their market credibility.
Kromek is actively working to expand production capabilities and incorporate more automation in its manufacturing processes to boost productivity. These steps are anticipated to further augment the company’s operational efficiency and support its growth targets for the upcoming year.
Kromek is poised for future growth driven by robust product demand, despite ongoing financial hurdles.
