- First-half cash loss widens from £0.6mn to £2.7mn mainly due to currency and inflationary headwinds
- Contract momentum is strong and the board expects to announce significant OEM orders in medical imaging
- Analysts now predict move to cash profitability in 2023-24
Sedgefield-based Kromek (KMK:9.6p), a radiation detection technology company focused on the medical imaging and nuclear markets, is on track to deliver the step change in revenue in the financial year to April 2023, but not profits.
Ahead of the interim results, analysts at FinnCap and Equity Development had been predicting a small annual cash profit of £0.3mn on 50 per cent higher revenue of £18mn. The revenue estimate is intact, but a lower gross margin of 40 per cent in the first half, down 6.5 percentage points year on year, due to product mix and currency headwinds, and £1.5mn higher operating costs, meant that the first-half cash loss widened from £0.6mn to £2.7mn despite revenue rising 44 per cent to £6.8mn. Analysts at FinnCap expect second-half cash profit of £0.5mn on revenue of £11.2mn, but it still means an annual cash loss of £2.2mn.