Kromek Group (KMK) H2 2026 (Q&A) earnings summary

Executive summary

• Revenue for FY 2027 is expected to be GBP 30.3 million, in line with market consensus from two brokers.

• Midterm revenue target is GBP 60 million by 2030/2031, with continued growth anticipated beyond that period.

• Growth is driven by both Advanced Imaging (notably SPECT and CT) and CBRN segments, with new customer ramp-up and geographic expansion.

• The Siemens enablement agreement has transformed the financial outlook, validated IP, and strengthened OEM relationships.

Financial highlights

• FY 2027 revenue guidance is GBP 30.3 million, with Advanced Imaging and CBRN both contributing to growth.

• High-margin licensing revenue declined from GBP 16.5 million to GBP 10 million year-over-year to April 2026, impacting EBIT and return on capital employed.

• Underlying business margins are being maintained or improved, with tight control on overheads.

• Cash at April 2026 was GBP 4.2 million, with GBP 5.7 million debt; GBP 2 million of debt repaid shortly after year-end.

Outlook and guidance

• Confident in delivering FY 2027 revenue of GBP 30.3 million.

• Midterm target of GBP 60 million revenue and 30% EBITDA margin by 2030/2031, with further growth expected.

• EBITDA margin expected to be maintained as revenue grows.

• Free cash flow is not expected to be positive in FY 2027 due to increased working capital needs in Advanced Imaging.

• Sufficient working capital facilities are in place to support growth without further shareholder dilution.