Interim Results - H1 24: profitability up, costs reduced

Results highlight the emergence of demand for Kromek’s Advanced Imaging and CBRN detection, evidenced by contract wins and collaboration agreement momentum. Supported by strong financial discipline and persistent geopolitical risk, our fair value remains at 26p/ share.

For the six months to 31 October 2023, Kromek reported revenue of £7.1m, +5%YoY, gross profit of £3.9m, +41%, a 54.2% margin compared to 40.4% a year earlier, and an (adj.) EBITDA loss of £0.1m (H1 23: £(2.7)m loss). The loss before tax was £(3.5)m, reduced from £(5.7)m a year earlier. As of October 2023 the cash position was £3.7m, with net debt at £5.2m (H1 23: 8.3m). Significant cost controls are also evident, with administration and distribution costs reduced from £7.6m in H1 23 to £6.2m (-20%).