Kromek Group (KMK) H2 2024 earnings summary

Executive summary

• Achieved record revenue of £19.4m, up 12% year-over-year, with both advanced imaging and CBRN detection segments growing strongly.

• Adjusted EBITDA turned positive at £3.1m, reversing a £1.0m loss in the prior year, ahead of market expectations.

• Gross margin improved to 55.2% from 51.6% year-over-year, driven by higher product volumes and favorable mix.

• Significant contracts secured in both medical imaging and homeland security, including new collaborations with blue-chip OEMs and government agencies.

• Continued investment in R&D and manufacturing automation, with over 210 patents held.

Financial highlights

• Revenue: £19.4m (2023: £17.3m), up 12% year-over-year.

• Gross profit: £10.7m (2023: £8.9m); gross margin: 55.2% (2023: 51.6%).

• Adjusted EBITDA: £3.1m (2023: £1.0m loss); loss before tax: £3.5m (2023: £7.3m loss).

• Cash and equivalents: £0.5m at year-end (2023: £1.1m); net cash generated from financing activities: £7.2m.

• Distribution and administrative expenses reduced by £2.6m to £12.6m.

Outlook and guidance

• Expects another year of significant revenue growth and positive EBITDA in FY2025, with strong contract backlog and visibility.

• Anticipates becoming cash flow positive in H2 2025, driven by contract deliveries and cost control.

• Board confident in funding position and growth prospects, supported by shareholder backing and loan facility extension options.