Kromek Group (KMK) H1 2026 earnings summary

Executive summary

• Significant growth opportunities in the CZT detector market for medical imaging, with access to 40% of a projected $400 million market by 2030, driven by adoption in SPECT and CT modalities.

• Revenue for the six months ended 31 October 2025 rose to £15.0m from £3.7m year-over-year, driven by both Advanced Imaging and CBRN Detection segments.

• Transition from a cash-burning, R&D-led business to a profitable, licensing-heavy model, notably through a $37.5 million Siemens enablement contract.

• Focus remains on organic growth, with bolt-on M&A considered only if self-funded; no plans for near-term dividends as cash is prioritized for business expansion.

• Commitment to remain an independent supplier, serving a large share of the market as the only independent commercial CZT provider.

Financial highlights

• Achieved profitability and delivered positive results in H1, with licensing revenue from Siemens recognized primarily in FY2025.

• Gross margin improved to 71.7% from 56.9% year-over-year, reflecting a favorable revenue mix and high-margin licensing income.

• Administration costs currently high at ~50% of revenue, but expected to decrease as revenue scales.

• No intention for further equity raises; working capital supported by a £6 million revolving credit facility.

• Cash and cash equivalents at period end were £1.2m, down from £1.7m at 30 April 2025.

Outlook and guidance

• Medium-term revenue target of £60 million with 30% EBITDA margin, aiming for 3–5 years out, aligned with market growth to 2030.

• Full-year performance expected to be in line with market expectations, with continued growth in both segments.

• Advanced Imaging segment to benefit from accelerating adoption of CZT detectors and new product launches by customers.

• Ongoing commitment to cost control and margin sustainability.

• No plans for U.S. listing in the short to medium term; focus remains on AIM listing and scaling profitably.