Kromek grows underlying product sales but reports lower annual earnings

Kromek ($KMK) reported annual revenue of £27.1 million, up from £26.5 million, while adjusted EBITDA fell to £8.1 million from £10.3 million. Pre-tax profit declined to £2.5 million from £3.1 million. Gross margin dropped to 62.8% from 80.9%, reflecting a less favorable mix after unusually high licensing income in the comparison period.

Underlying advanced-imaging revenue increased 76% to £6.7 million, excluding licensing and one-off items, while chemical, biological, radiological and nuclear detection revenue rose 17% to £7.3 million. Management expects the following financial year to meet market expectations with continued revenue growth. The strong underlying product performance therefore should not be confused with growth in total adjusted earnings, which declined in the reported year.

Sources:

• Kromek — final results