Kromek losses widen but margins improve

Detection technology supplier Kromek saw losses widen in the first half of its trading year despite improving margins and narrowing costs throughout the period.

Kromek turned in a 16.6% wider pre-tax loss of £2.1m in the six months ended 31 October, principally due to a slide in revenues of 22.9% to £3.7m.

On a more positive note, despite the fall in revenues, Kromek saw operating costs contract 4.1% to £4.6m and gross margins improve four points to 67%.

Despite the lacklustre performance Kromek kept its full-year outlook unchanged and assured investors it was on track to achieve revenue growth and EBITDA profit in line with market expectations.

Chief executive Dr Arnab Basu said: "As we continue to deliver on existing contracts as well as win new orders, our visibility of revenue for the next six to 24 months continues to increase, which includes visibility of approximately 86% of the forecast revenue for 2018/19."

"As a result, the board is confident of delivering full-year revenue growth and positive EBITDA, in line with market expectations."

As of 0820 GMT, Kromek shares had tumbled 12.51% to 24.06p.