For the year to 30 April 2023 Kromek reported revenue of £17.3m, +44%YoY, and an EBITDA (adj.) loss of £1.0m. The salient feature was the reversal of the H1 (adj.) EBITDA loss of £2.61m to a H2 (adj.) EBITDA profit of £1.63m. Gross profitability also improved, from a 46.8% margin in FY22 to 51.6%, again with a strong H2 improvement at a 59.3% margin. The year-end cash position was £1.1m then post year-end the Group raised £8.0m to fund growth prospects.
We estimate FY23 revenue in the Advanced Imaging division of £7.6m +65%YoY, and in the CBRN segment, £7.4m, +38%YoY. Importantly the balance of revenue generation continued to shift towards Products, comprising 85% of total (FY22: 82%), rather than R&D-related projects.
On 18 April Kromek announced a major 7 year agreement with a Tier 1 OEM to develop and incorporate its CZT-based detectors in advanced medical imaging scanners. We base our outlook on the assumption that the Tier 1 OEM agreement addresses the CT scanner market estimated to be worth c.US$10bn by 20291; and see Kromek potentially adding over £100m to revenue by 2029.
We make no changes to our FY24 outlook, and introduce FY25 forecasts: with estimated revenue of £25.1m and EBITDA of £2.6m indicative of an EV/EBITDA multiple 6x
Our Fair Value is also maintained at 26p/share.
