REG - Kromek Group PLC - Interim Results
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RNS Number : 5105P Kromek Group PLC 20 January 2026
20 January 2026
Kromek Group plc
("Kromek" or the "Group")
Interim Results
Kromek Group plc (AIM: KMK), a leading developer of radiation and
bio-detection technology solutions for the advanced imaging and CBRN detection
segments, announces its unaudited interim results for the six months ended 31
October 2025.
Financial Highlights
· Revenue increased substantially to £15.0m (H1 2025: £3.7m)
o Advanced Imaging revenue of £10.8m; revenue of £2.5m excluding Siemens
Healthineers contribution, representing a 41% increase on an underlying basis
(H1 2025: £1.7m)
o CBRN Detection revenue more than doubled to £4.3m (H1 2025: £2.0m)
· Gross margin improved to 71.7% (H1 2025: 56.9%)
· Adjusted EBITDA* of £6.0m (H1 2025: £2.3m loss)
· Profit before tax of £3.1m (H1 2025: £5.7m loss)
· Cash and cash equivalents at 31 October 2025 were £1.2m (30 April
2025: £1.7m)
· Secured a revolving credit facility of £6.0m - of which £1.0m had
been drawn as at 31 October 2025 - plus a £0.5m asset finance facility to
ensure there is sufficient capital to drive further growth
· Board remains confident in the outlook for the year as the business
continues to perform in line with market expectations
*A reconciliation of adjusted EBITDA can be found in the Financial Review.
Operational Highlights
Advanced Imaging
· Substantial growth due to delivery under landmark agreements signed
in FY 2025 with Siemens Medical Solutions USA, Inc. ("Siemens Healthineers")
to enable the production of cadmium zinc telluride ("CZT") detectors
for single photon emission computed tomography ("SPECT") application
· Sustained delivery under collaboration contracts and other component
supply agreements, with customers including recognised Tier 1 OEMs, Analogic
Corporation and Spectrum Dynamics
· Continued to make good operational and commercialisation progress in
its photon-counting computed tomography ("PCCT") detector development, with
the commercialisation programme on track amid accelerating industry-wide
adoption of CZT technology
· Excellent results achieved in validation trials with a leading
medical clinic headquartered in the US of technology developed under the
ultra-low dose molecular breast imaging programme funded by Innovate UK
CBRN Detection
· Growth driven by execution on strategy to secure key government
customers and expand distributor network alongside market recovery
· Initial order, worth £1.7m, received under the UK Government's
Radiological Nuclear Detection Framework for the Group's nuclear security
products
· Contract secured with the Defence Science and Technology Laboratory
of the UK Ministry of Defence ("MoD"), worth £250k, for the development of
novel methods of enhancing the detection of biological agents and incidents
· Received new CBRN Detection orders in the year from customers
globally, including from the UK, Europe, the US, Japan, Canada and Australasia
Manufacturing and IP
· Continued to execute on programmes for the expansion of production
capacity and process automation, resulting in greater manufacturing
productivity and cost efficiency
· Applied for three new patents and had three further patents granted,
with the total number of patents held being in excess of 190
Dr Arnab Basu, CEO of Kromek, said: "We are pleased with the strong
performance delivered in the first half of the year, with growth achieved
across both Advanced Imaging and CBRN Detection. Sales in our CBRN segment
more than doubled during the period, reflecting the growing global focus on
national security and the increasing adoption of our market-leading
technologies. In Advanced Imaging, our underlying business saw an increase in
revenue driven by renewed engagement with our customers following the
completion of our deal with Siemens Healthineers. We are seeing good progress
as our Advanced Imaging customers prepare for the launch of their
next-generation scanners, reaffirming the value and relevance of our
cutting-edge solutions in the market.
"Looking ahead to the second half of the year, with robust customer engagement
and a good order book, we expect the momentum achieved in H1 to continue. As a
result, we remain on track to deliver a full-year performance in line with
market expectations, supported by focused execution of our strategy and the
continued demand for our innovative technologies."
For further information, please contact:
Kromek Group plc
Arnab Basu, CEO +44 (0)1740 626 060
Claire Burgess, CFO
Cavendish Capital Markets Limited (Nominated Adviser and Broker)
Geoff Nash/Giles Balleny/Seamus Fricker - Corporate Finance +44 (0)20 7220 0500
Tim Redfern - ECM
Michael Johnson - Sales
Gracechurch Group (Financial PR)
Harry Chathli/Claire Norbury +44 (0)20 4582 3500
Kromek Group plc
Kromek Group plc is a leading developer of radiation detection and
bio-detection technology solutions for the advanced imaging and CBRN detection
segments. Headquartered in County Durham, UK, Kromek has manufacturing
operations in the UK and US, delivering on the vision of enhancing the quality
of life through innovative detection technology solutions.
The advanced imaging segment comprises the medical (including CT and SPECT),
security and industrial markets. Kromek provides its OEM customers with
detector components, based on its core cadmium zinc telluride (CZT) platform,
to enable better detection of diseases such as cancer and Alzheimer's,
contamination in industrial manufacture and explosives in aviation
settings.
In CBRN detection, the Group provides nuclear radiation detection solutions to
the global homeland defence and security market. Kromek's compact, handheld,
high-performance radiation detectors, based on advanced scintillation
technology, are primarily used to protect critical infrastructure and urban
environments from the threat of 'dirty bombs'.
The Group is also developing bio-security solutions in the CBRN detection
segment. These consist of fully automated and autonomous systems to detect a
wide range of airborne pathogens.
Kromek is listed on AIM, a market of the London Stock Exchange, under the
trading symbol 'KMK'.
The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulation
(EU) No. 596/2014. Upon the publication of this announcement via the
Regulatory Information Service, this inside information is now considered to
be in the public domain.
Investor webinar
Arnab Basu, CEO, and Claire Burgess, CFO, will be hosting an online Q&A
session for investors at 4.00pm GMT on Monday 26 January 2026 on the Investor
Meet Company platform. A recording of the results presentation will be
uploaded to the Investor Meet Company platform ahead of the webinar by midday
on Friday 23 January 2026.
Questions can be submitted pre-webinar via the Investor Meet Company platform
or at any time during the live webinar. Investors can sign up to Investor Meet
Company for free and register to attend the Kromek Q&A session
via: https://www.investormeetcompany.com/kromek-group-plc/register-investor
(https://www.investormeetcompany.com/kromek-group-plc/register-investor)
Operational Review
The Group made progress across the business during the six months ended 31
October 2025. While the main contributor to growth was revenue generated under
the Group's agreement with Siemens Healthineers, signed in the prior year, to
enable the production of CZT detectors for SPECT application (the "Enablement
Agreement"), there was also a significant increase in revenue in the
underlying Advanced Imaging business and in CBRN Detection. This reflects
delivery of pre-existing orders as well as increased commercial momentum. In
addition, the Group continued to implement operational improvements,
particularly within the CZT manufacturing process.
Advanced Imaging
(Unaudited) H1 2026 H1 2025
£'000 £'000
Revenue £10,762 £1,712
Operating profit/(loss) £3,494 £(4,126)
Revenue in Advanced Imaging grew substantially to £10.8m (H1 2025: £1.7m),
with the contribution from delivery under the Enablement Agreement accounting
for £8.3m (H1 2025: £nil). It also reflects increased revenue in the
underlying business with the regular sales activity in the first half of the
prior year having been impacted by the discussions leading to the Enablement
Agreement. Since the signing of the agreement in H2 2025, the Group has
experienced renewed commercial momentum in Advanced Imaging, including ramping
up the deliveries under its contract with Spectrum Dynamics. As a result of
the increase in revenue, and the licensing revenue under the Enablement
Agreement carrying a higher margin, the Group generated an operating profit in
Advanced Imaging of £3.5m compared with an operating loss of £4.1m for H1
2025.
Medical Imaging
The market is undergoing a structural shift from conventional scintillator
technology to CZT, driven by the demand for higher-resolution, spectral
imaging - particularly in medical diagnostics. This evolution supports better
clinical outcomes and lower system-level costs, making CZT a key enabler of
next-generation imaging platforms. Kromek is uniquely positioned as the only
independent commercial-scale producer of CZT globally. With rising demand and
strategic partnerships in place, this gives the Group a strong competitive
advantage and clear leverage in a growing market with high barriers to entry.
This is validated, in particular, by the Group's agreements with Siemens
Healthineers.
During the first half of 2026, the Group successfully delivered the milestones
under the Enablement Agreement and received the second payment instalment of
$5.0m (being the cash payment received as opposed to the £8.3m recognised as
revenue in accordance with accounting standards). Including the payment
received in FY 2025, the Group has received $30.0m to date under the
Enablement Agreement. The remaining aggregate payments of $7.5m are payable
over the next c.3 years, with the third instalment expected to be received in
the Group's financial year to 30 April 2027.
The Group continues to make good progress in the computed tomography ("CT")
market, especially in PCCT, which is an advanced form of CT. The Group
advanced key collaboration programmes initiated in prior years with a
blue-chip Tier 1 health technology OEM and three other companies in this
segment, all of which represent significant additional commercial avenues for
Kromek. Technical progress in these projects enabled the transition of the
Group's PCCT detector development into early-stage commercialisation.
Engagements with leading OEMs in both medical and industrial imaging are
progressing towards device validation and initial adoption.
Kromek's innovation pipeline also continues to advance. The ultra-low dose
molecular breast imaging programme, supported by Innovate UK and delivered in
partnership with Newcastle Upon Tyne Hospitals NHS Foundation Trust, Newcastle
University and University College London, made strong progress. A prototype
detector set has been installed at a hospital in Newcastle and is currently
undergoing evaluation. In addition, this technology, which aims to improve
screening and diagnostics for women with dense breast tissue where mammography
is less effective, received excellent results in validation trials conducted
during the period with a leading medical clinic headquartered in the US.
Security & Industrial Screening
In security and industrial screening, Kromek continued to deliver under its
existing component supply agreements and development programmes. This includes
the detector solutions being developed under its collaboration agreement with
Analogic, which will be for security applications as well as medical.
CBRN Detection
(Unaudited) H1 2026 H1 2025
£'000 £'000
Revenue £4,251 £1,964
Operating loss £(294) £(662)
In CBRN Detection, revenue grew to £4.3m (H1 2025: £2.0m) as market
conditions recovered from the impact in H1 2025 of the elections in the UK and
US on government defence spending. This also reflects the Group's strategic
execution in CBRN Detection in FY 2025, which was marked by multiple contract
wins and increasing adoption and selection of Kromek's nuclear security
solutions by key government and international customers, as well as expansion
of its distributor network. As a result of the increased revenue, operating
loss was reduced to £0.3m (H1 2025: £0.7m).
Kromek made good progress in executing on its strategy to expand its
distribution presence, including into new territories, for its nuclear
security and civil nuclear products. This year the Group has signed
distribution agreements with five new partners across Europe, the Middle East
and Asia, and now has representation in 39 countries.
This is already contributing to an increase in commercial momentum. During the
current year to date, the Group has received new CBRN Detection orders
totalling c.£4.8m from customers globally, including from the UK, Europe, the
US, Japan, Canada and Australasia. These orders are predominantly scheduled
for delivery within the current financial year - with approximately half still
to be delivered - and reflect growing global demand for Kromek's
mission-critical detection solutions.
Nuclear Security
During the period, the Group secured its first order - worth £1.7m - under
the UK Government's Radiological Nuclear Detection Framework, which is for the
supply of Kromek's D3S-ID wearable detector, along with training and
maintenance. The majority of revenue from this order will be recognised in the
current financial year. This framework, led by the Home Office, facilitates
the procurement of radiological detection equipment and services. Kromek was
selected as a supplier under the framework, which is a four-year programme, in
FY 2025 and is pre-qualified in three key categories: handheld, wearable and
large-volume static detectors.
As noted above, the Group has continued to secure new orders globally for its
nuclear security products, supported by its enhanced distribution network.
These wins also underscore the strength of the Group's product portfolio, the
trust placed in its technology by leading government agencies and the
increasing role Kromek plays in supporting global radiological security
infrastructure.
Civil Nuclear
Activity in the civil nuclear market remained steady, with ongoing sales
through Kromek's distributor network and direct channels. As part of its
strategy to expand its distribution presence into new territories, the Group
established a partnership with Siegrist GmbH (https://siegrist.de/) , which
is now the official distributor of Kromek civil nuclear products in Germany.
Siegrist provides measurement and analysis technology solutions to customers
in the fields of occupational health and safety, environmental protection and
disaster prevention. This is the first distribution partnership that Kromek
has established in Germany, which is expected to facilitate the
Group in growing its presence in German-speaking markets.
Biological-threat Detection
The Group continued to deliver successfully under its multi-year contracts
with a UK Government agency and the US Department of Homeland Security,
focused on developing agent-agnostic biological-threat detection systems.
During the period, Kromek secured a third programme - an 18-month, £0.25m
contract from the MoD's Defence Science and Technology Laboratory, funded via
the UK Government's Defence and Security Accelerator. This project aims to
develop novel methods for enhancing biological agent detection and complements
the Group's strategy of pursuing customer-funded R&D in this critical
area.
To support this development work, the Group has built a highly-specialised
bioaerosol evaluation chamber at its headquarters in Sedgefield, County
Durham, which is one of very few such facilities currently operating in the
UK. The new lab, which has been purpose-built as part of the programme with
the US Department of Homeland Security, enables Kromek to closely replicate
real-world conditions in a secure and controlled setting to facilitate the
effective testing of its biological-threat detection systems.
The projects in Biological-threat Detection continue on budget. As the
technology reaches full maturity by 2027, the Group intends to scale up
production of these platforms, opening up new partnerships and avenues for
commercialisation both in the defence industry and other critical sectors. The
Group believes these contracts offer significant short- and medium-term
opportunities for Kromek.
Manufacturing and IP
Kromek continued to drive improvements across the Group's manufacturing
plants. Further enhancements were made in process automation at the Group's
CZT manufacturing facility in the US. These initiatives are driving improved
manufacturing productivity and strengthening the Group's competitive position.
Dedicated teams focus on optimising every stage of the manufacturing process,
directly boosting yield, which will support scalable, profitable growth.
Kromek's commitment to innovation remains robust. During the period, Kromek
filed three new patent applications and a further three patents were granted
reinforcing the Group's technology leadership and protecting critical
intellectual property. The total number of patents held at 31 October 2025
was in excess of 190. This ongoing investment in manufacturing excellence and
IP development underpins Kromek's ability to meet growing market demand.
Financial Review
Revenue for the six-month period ended 31 October 2025 increased significantly
to £15.0m (H1 2025: £3.7m). This is primarily due to the £8.3m contribution
to revenue from the Enablement Agreement (H1 2025: £nil), but also reflects
underlying growth in Advanced Imaging and in CBRN Detection as detailed above.
The split between product sales, revenue from R&D contracts and revenue
from licensing (the Enablement Agreement) is as follows:
H1 2026 H1 2025
(Unaudited) (U
na
ud
it
ed
)
£'000 £'000
Product £4,894 33% £2,347 64%
R&D £1,770 12% £1,329 36%
Licensing £8,349 55% - -
Total £15,013 100% £3,676 100%
Gross margin improved to 71.7% compared with 56.9% for H1 2025. The increase
is largely due to the mix of revenue in the period - including the high-margin
contribution from licensing revenue as a result of the Enablement Agreement.
On an underlying basis, the gross margins for the two divisions were
comparable with the first half of the prior year. As a result of the increase
in revenue and gross margin, gross profit was substantially higher at £10.8m
(H1 2025: £2.1m).
Administrative expenses and distribution costs were £7.6m (H1 2025: £6.9m),
representing a significantly lower proportion of revenue compared with H1
2025. The absolute increase is primarily due to a £0.2m rise in non-cash
share-based payments due to directors electing to take bonuses in the form of
options over ordinary shares, £0.2m increased property-related costs, £0.1m
increased travel spend as well as a £0.2m reduction in the capitalisation of
development costs. The Group's focus remains on tight cost control.
The Group generated an operating profit of £3.2m compared with a £4.8m loss
for H1 2025, which is primarily due to the significant increase in revenue.
After net finance costs of £0.1m (H1 2025: £1.0m), profit before tax was
£3.1m (H1 2025: £5.7m loss).
The adjusted EBITDA for the period was £6.0m (H1 2025: £2.3m loss). Adjusted
EBITDA is calculated as follows:
H1 2026 H1 2025 FY 2025
(Unaudited) (Unaudited) (Audited)
£'000 £'000 £'000
Profit/(loss) before tax 3,057 (5,742) 3,079
EBITDA adjustments:
Net interest 143 954 1,658
Depreciation 760 808 1,612
Amortisation 1,522 1,475 2,956
Share-based payments 493 245 1,028
Adjusted EBITDA* 5,975 (2,260) 10,333
*Adjusted EBITDA is defined as earnings before interest, taxation,
depreciation, amortisation, exceptional items and share-based payments.
Share-based payments are added back when calculating the Group's adjusted
EBITDA as this is currently an expense with a zero direct cash impact on
financial performance. Adjusted EBITDA is considered a key metric to the users
of the financial statements as it represents a useful milestone that is
reflective of the performance of the business resulting from movements in
revenue, gross margin and the costs of the business.
The Group invested £2.1m in product development in the six-month period (H1
2025: £2.2m) that was capitalised on the balance sheet, which largely
reflects:
· the continuing investment in cost reduction and productivity
improvements in CZT crystal growth and detector manufacturing in Advanced
Imaging; and
· the development of automated and autonomous biological-threat
detection technology to detect airborne pathogens for the purposes of national
security and protecting public health.
This expenditure was capitalised in accordance with IAS38 to the extent that
it related to projects in the later stage (development phase) of the project
life cycle.
Cash and cash equivalents at 31 October 2025 were £1.2m (30 April 2025:
£1.7m). The £0.5m decrease in cash over the six-month period was due to the
combination of the following cash inflows and outflows:
· £1.5m cash generated from operations, including changes in working
capital;
· £(2.5)m investment in development costs, patents and capital
expenditure;
· £0.3m net cash generated from financing activities (£1.0m net
proceeds of new borrowings, less £0.7m of repayment of borrowings, lease
repayments financing costs and loan interest payments); and
· £0.2m effect of foreign exchange rate changes.
Included within changes in working capital is a £5.4m decrease in payables
and deferred income to £4.2m at 31 October 2025 (30 April 2025: £9.6m). This
movement is primarily due to the accounting treatment of the Enablement
Agreement, with trade and other payables of £3.6m resulting from the timing
difference between revenue recognition and cash receipt. £0.7m of the
movement related to payment of accrued interest on a secure term loan facility
that was converted into shares during the period. The remaining £1.1m of the
movement has arisen in the normal course of business.
Also included within changes in working capital is a £0.2m decrease in
receivables to £6.3m (30 April 2025: £6.4m). This is the net effect of a
£1.1m increase in relation to the accounting treatment of the Enablement
Agreement and a £1.3m decrease from the normal course of business.
During the period, the Group secured a three-year, £6.0m revolving credit
facility ("RCF") with HSBC bank. The RCF carries interest of 2.75% over the
Bank of England base rate. In addition, HSBC is providing a £0.5m asset
finance facility to support limited capex within the Group. The RCF will
provide a stable platform for growth and supports the working capital
requirements of the Group for the foreseeable future. At 31 October 2025,
total borrowings included in current liabilities were £1.0m (30 April 2025:
£0.0m), which represents the Group's drawdown of the RCF.
Outlook
Kromek continues to make good progress across both Advanced Imaging and CBRN
Detection as it delivers on its growing order book and substantial market
opportunity.
In CBRN Detection, interest in Kromek's industry-leading solutions continues
to grow, driven by the heightened prioritisation of national and global
security strategies. The Group expects the growth in the second half of the
year in this segment to be based on delivery under current contracts and
agreements in the UK and US as well as the winning of new orders. As
governments and organisations formalise their approach to CBRN threats as
geopolitical tensions continue to rise on a global scale, Kromek anticipates
further opportunities to capitalise on this expanding market.
In Advanced Imaging, market conditions remain favourable, driven by the
adoption of new products launched by Kromek's customers, which are gaining
increasing traction. Building on the momentum achieved in the underlying
business in H1, growth is set to continue into the second half of the year.
Adoption of CZT detectors in PCCT and SPECT is accelerating as major players
continue to introduce new products, further reinforcing Kromek's opportunities
and adoption timelines in this segment.
The Group remains committed to maintaining tight control of costs, ensuring
the sustainability of underlying profit margins and preserving the Group's
cash position. This disciplined approach supports the Group's ability to
navigate the current macroeconomic environment effectively while continuing to
invest in key growth areas.
With operational momentum, a strong pipeline of opportunities and effective
cost management, the Group looks forward to continuing to execute on its
strategy and deliver results for FY 2026 in line with market expectations.
Consolidated condensed income statement
For the six months ended 31 October 2025
Six months ended 31 October Six months Year
2025 ended 31 October ended
£'000 2024 30 April 2025
£'000 £'000
(Unaudited) (Unaudited) (Audited)
Note
Continuing operations
Revenue 4 15,013 3,676 26,506
Cost of sales (4,246) (1,583) (5,075)
Gross profit 10,767 2,093 21,431
Distribution costs (273) (219) (470)
Administrative expenses (7,294) (6,662) (16,224)
Operating profit/(loss) 3,200 (4,788) 4,737
Finance income 20 2 107
Finance costs (163) (956) (1,765)
Profit/(loss) before tax 3,057 (5,742) 3,079
Tax 5 - 50 675
Profit/(loss) from continuing operations 3,057 (5,692) 3,754
Profit/(loss) per share 7
0.5 (0.9) 0.6
-basic (p)
-diluted (p) 0.5 (0.9) 0.6
Consolidated condensed statement of comprehensive income
For the six months ended 31 October 2025
Six months ended 31 October Six months Year
2025 ended ended
£'000 31 October 30 April 2025
(Unaudited) 2024 £'000
£'000 (Audited)
(Unaudited)
Profit/(loss) for the period 3,057 (5,692) 3,754
Items that may be recycled to the income statement
Exchange gains/(losses) on translation of foreign operations 413 (1,011) (1,988)
Total comprehensive profit/(loss) for the period 3,470 (6,703) 1,766
Consolidated condensed statement of financial position
31 October 31 October 30 April
2025 2024 2025
£'000 £'000 £'000
Note (Unaudited) (Unaudited) (Audited)
Non-current assets
Goodwill 1,275 1,275 1,275
Other intangible assets 34,331 33,076 33,422
Property, plant and equipment 8 6,775 8,036 7,066
Right-of-use asset 2,657 3,085 2,778
Deferred tax asset 474 - 474
45,512 45,472 45,015
Current assets
Inventories 12,021 11,051 12,108
Trade and other receivables 6,261 9,321 6,436
Current tax assets 708 422 608
Cash and bank balances 1,248 577 1,704
20,238 21,371 20,856
Total assets 65,750 66,843 65,871
Current liabilities
Trade and other payables (3,481) (6,738) (8,821)
Lease obligation (306) (436) (387)
Borrowings 10 (1,003) (11,773) (12)
(4,790) (18,947) (9,220)
Net current assets 15,448 2,424 11,636
Non-current liabilities
Deferred income (768) (869) (819)
Lease obligation (3,195) (3,436) (3,173)
Borrowings 10 (112) (503) (481)
(4,075) (4,964) (4,473)
Total liabilities (8,865) (23,911) (13,693)
Net assets 56,885 42,932 52,178
As at 31 October 2025
Equity
Share capital 11 6,550 6,415 6,415
Share premium account 82,120 81,511 81,511
Merger reserve 21,853 21,853 21,853
Translation reserve 330 894 (83)
Accumulated losses (53,968) (67,741) (57,518)
Total equity 56,885 42,932 52,178
Consolidated condensed statement of changes in equity
For the six months ended 31 October 2025
Share
Share Capital Premium Merger Reserve Translation Accumulated Losses
£'000 Account £'000 Reserve £'000 Total
£'000 £'000 £'000
Balance at 1 May 2025 6,415 81,511 21,853 (83) (57,518) 52,178
Profit for the period - - - - 3,057 3,057
Exchange difference on translation of foreign operations
- - - 413 - 413
Total comprehensive profit for the period - - - 413 3,057 3,470
Issue of shares 135 609 - - - 744
Credit to equity for equity-settled share-based payments
- - - - 493 493
Balance at 31 October 2025 6,550 82,120 21,853 330 (53,968) 56,885
Balance at 1 May 2024 6,410 81,480 21,853 1,905 (62,294) 49,354
Loss for the period - - - - (5,692) (5,692)
Exchange difference on translation of
foreign operations - - - (1,011) - (1,011)
Total comprehensive loss for the period - - - (1,011) (5,692) (6,703)
Conversion of convertible loan notes 5 31 - - - 36
Credit to equity for equity-settled share-based payments
- - - - 245 245
Balance at 31 October 2024 6,415 81,511 21,853 894 (67,741) 42,932
Balance at 1 May 2024 6,410 81,480 21,853 1,905 (62,294) 49,354
Profit for the period - - - - 3,754 3,754
Exchange difference on translation of foreign operations
- - - (1,988) - (1,988)
Total comprehensive (loss)/gain for the period
- - - (1,988) 3,754 (1,766)
Conversion of convertible loan notes 5 31 - - 36
Credit to equity for equity-settled share-based payments - - - - 1,028 1,028
Deferred tax movement - - - - (6) (6)
Balance at 30 April 2025 6,415 81,511 21,853 (83) (57,518) 52,178
Consolidated condensed statement of cash flows
For the six months ended 31 October 2025
Note Six months ended 31 October Six months Year
2025 ended 31 October ended 30 April
£'000 2024 2025
£'000 £'000
(Unaudited) (Unaudited) (Audited)
Net cash from/(used in) operating activities 9 1,488 (64) 15,901
Investing activities
Interest received 20 2 107
Purchases of property, plant and equipment (214) (58) (186)
Purchases of patents and trademarks (130) (57) (106)
Capitalisation of research and development costs (2,087) (2,177) (4,369)
Net cash used in investing activities (2,411) (2,290) (4,554)
Financing activities
New borrowings 1,000 3,400 4,400
Interest paid (15) (164) (1,440)
Payment of loan and borrowings (387) (35) (11,438)
Finance lease repayments (271) (221) (660)
Financing costs (45) - (55)
Net proceeds on issue of shares 1 - -
Net cash generated from/(used in) financing activities 283 2,980 (9,193)
Net (decrease)/increase in cash and cash equivalents (640) 626 2,154
Cash and cash equivalents at beginning of period 1,704 466 466
Effect of foreign exchange rate changes 184 (515) (916)
Cash and cash equivalents at end of period 1,248 577 1,704
Notes to the unaudited interim statements
For the six months ended 31 October 2025
1. Basis of preparation
This interim financial report does not constitute statutory accounts as
defined in section 434 of the Companies Act 2006. The auditors reported on the
Kromek Group plc financial statements for the year ended 30 April 2025, their
report was unqualified and did not contain a statement under section 498(2) or
(3) of the Companies Act 2006. The Group's consolidated annual financial
statements for the year ended 30 April 2025 have been filed with the Registrar
of Companies and are available on the Group's website: www.kromek.com
(http://www.kromek.com) .
2. Interim report
This interim financial report will be available from the Group's website at
www.kromek.com (http://www.kromek.com) .
3. Going concern
The Directors have a reasonable expectation that the going concern basis of
accounting remains appropriate and that the Group has adequate resources and
facilities to continue in operation for the next 12 months based on its cash
flow forecasts prepared. Accordingly, the Group's unaudited interim statements
for the six months ended 31 October 2025 have been prepared on a going concern
basis, which contemplates the realisation of assets and the settlement of
liabilities and commitments in the normal course of operations.
4. Operating segments
Products and services from which reportable segments derive their revenues
For management purposes, the Group is organised into two geographical
operating segments from which the Group currently operates (US and UK). Whilst
there are two operating segments (US and UK), the Group recognises three
cash-generating units ("CGUs") (CBRN Detection, Advanced Imaging and
Biological-threat Detection) on the basis that operating segments can consist
of multiple CGUs. Both operating segments serve the three principal key
markets. However, typically, the US business unit focuses principally on
Advanced Imaging, and the UK focuses on CBRN Detection and Biological-threat
Detection. However, this arrangement is flexible and can vary based on the
geographical location of the Group's customer.
The chief operating decision maker is the Board of Directors, which assesses
the performance of the operating segments using the following key performance
indicators: revenues, gross profit and operating profit. The amounts provided
to the Board with respect to assets and liabilities are measured in a way
consistent with the financial statements.
Analysis by geographical area
A geographical analysis of the revenue from the Group's customers, by
destination, is as follows:
Six months ended 31 October Six months ended 31 October Year
2025 2024 ended
£'000 £'000 30 April 2025
£'000
(Unaudited) (Unaudited) (Audited)
United Kingdom 2,329 1,323 6,055
North America 10,267 1,396 18,134
Asia and Middle East 99 141 118
Europe 2,318 796 2,178
Other - 20 21
Total revenue 15,013 3,676 26,506
Analysis by business segment
The Group has aggregated its CGUs, being CBRN Detection, Advanced Imaging and
Biological-threat Detection, into two reporting segments being
CBRN/Biological-threat Detection and Advanced Imaging. The Board currently
considers this to be the most appropriate aggregation due to the main markets
that are typically addressed by the business units and the necessary skillsets
and expertise.
A business segmental analysis of the Group's performance is as follows:
Six months ended 31 October 2025
Advanced Imaging CBRN/Bio Total for Group
£'000 £'000 £'000
Revenue from sales 2,219 2,619 4,838
Revenue by segment:
-Sale of goods and services
-Revenue from grants 193 139 332
-Revenue from contract customers 8,350 1,493 9,843
Total sales 10,762 4,251 15,013
Segment result - operating profit/(loss) 3,494 (294) 3,200
Net interest (109) (34) (143)
Profit/(loss) before tax 3,385 (328) 3,057
Tax credit - - -
Profit/(loss) for the period 3,385 (328) 3,057
Other segment information
Property, plant and equipment additions 167 47 214
Depreciation of property, plant and equipment 649 111 760
Intangible asset additions 895 1,322 2,217
Amortisation of intangible assets 939 583 1,522
Six months ended 31 October 2024
Advanced Imaging CBRN/Bio Total for Group
£'000 £'000 £'000
Revenue from sales 1,511 911 2,422
Revenue by segment:
-Sale of goods and services
-Revenue from grants 201 80 281
-Revenue from contract customers - 973 973
Total sales 1,712 1,964 3,676
Segment result - operating loss (4,126) (662) (4,788)
Net interest (463) (491) (954)
Loss before tax (4,589) (1,153) (5,742)
Tax credit 5 45 50
Loss for the period (4,584) (1,108) (5,692)
Other segment information
Property, plant and equipment additions 36 22 58
Depreciation of property, plant and equipment 684 128 812
Intangible asset additions 830 1,404 2,234
Amortisation of intangible assets 891 584 1,475
The accounting policies of the reportable segments are the same as the Group's
accounting policies. Segment result represents the result reported by each
segment. This is the measure reported to the Group's Chief Executive for the
purpose of resource allocation and assessment of segment performance.
5. Tax
The Group has recognised R&D tax credits of £nil for the six months ended
31 October 2025 (six months ended 31 October 2024: £50k).
6. Dividends
The Directors do not recommend the payment of a dividend (six months ended 31
October 2024: £nil).
7. Earnings per share
The calculation of the basic and diluted earnings per share is based on the
following data:
Profit for the year
Six months ended 31 October Six months Year
2025 ended 31 October ended
£'000 2024 30 April 2025
£'000 £'000
(Unaudited) (Unaudited) (Audited)
Profit/(loss) for the purposes of basic and diluted earnings per share being (5,692) 3,754
net profit/(loss) attributable to owners of the Group
3,057
Six months Year
Six months ended 31 October ended 31 October ended
2025 2024 30 April 2025
'000 '000 '000
(Unaudited) (Unaudited) (Audited)
Number of shares
Weighted average number of ordinary shares for the purposes of basic earnings 651,773 641,431 641,489
per share
Effect of dilutive potential ordinary shares:
Share options 10,017 1,059 1,050
Weighted average number of ordinary shares for the purposes of diluted 661,790 642,490 642,539
earnings per share
Basic earnings/(loss) per share (p) 0.5 (0.9) 0.6
Diluted earnings/(loss) per share (p) 0.5 (0.9) 0.6
Basic earnings per share is calculated by dividing the profit attributable to
shareholders by the weighted average number of ordinary shares in issue during
the period. IAS 33 requires presentation of diluted EPS when a company could
be called upon to issue shares that would decrease earnings per share or
increase the loss per share. For a loss-making company with outstanding share
options, net loss per share would be decreased by the exercise of options.
Therefore, the anti-dilutive potential ordinary shares are disregarded in the
calculation of diluted EPS.
8. Property, plant and equipment
During the six months ended 31 October 2025, the Group acquired property,
plant and equipment with a cost of £214k (six months ended 31 October 2024:
£58k).
9. Notes to the cash flow statement
Six months ended 31 October Six months Year
2025 ended 31 October ended
£'000 2024 30 April 2025
£'000 £'000
(Unaudited) (Unaudited) (Audited)
3,057 (5,692) 3,754
Profit/(loss) for the period
Adjustments for:
Finance income (20) (2) (107)
Finance costs 163 956 1,765
Income tax credit (100) (50) (640)
Deferred tax movement - - (630)
Depreciation of property, plant and equipment 760 812 1,612
Amortisation of intangible assets 1,522 1,475 2,955
Disposal of fixed assets - - 435
Share-based payment expense 493 245 1,028
Other non-cash movements 742 74 -
Operating cash flows before movements in working capital 6,617 (2,182) 10,307
87 (756) (1,813)
Decrease/(increase) in inventories
Decrease in receivables 175 3,662 6,547
(Decrease)/increase in payables and deferred income (5,391) (788) 469
Cash generated from/(used in) operations 1,488 (64) 15,510
Income taxes received - - 391
Net cash from/(used in) operating activities 1,488 (64) 15,901
10. Borrowings
Six months ended 31 October Six months Year
2025 ended 31 October ended
£'000 2024 30 April 2025
£'000 £'000
(Unaudited) (Unaudited) (Audited)
Secured borrowing at amortised cost
Revolving credit facility 1,000 - -
Term loan facility - 6,103 -
Other borrowings 115 6,173 493
Total borrowings 1,115 12,276 493
Amount due for settlement within 12 months 1,003 11,773 12
Amount due for settlement after 12 months 112 503 481
During the period, the Group secured a £6.0m revolving credit facility with
HSBC to support and assist working capital requirements, of which £1.0m had
been drawn down as at 31 October 2025. The facility is for a 36-month period.
The facility is secured by a debenture and a composite guarantee across the
Group. The interest rate on the revolving credit facility is Bank of England
Base Rate +2.75%.
Other borrowings only relate to Covid-related Economic Injury Disaster Loans
that the Group's US operations were eligible to apply for in 2020 and 2021. A
loan of £0.1m was approved and secured in June 2020 and a further loan of
£0.4m was approved and secured in August 2021. These loans attract interest
at a rate of 3.75% per annum and the maturity date is 30 years from the date
of the loan note. During the period, the Group repaid in full the £0.4m loan.
11. Share capital
During the period, 110,000 ordinary shares (six months ended 31 October 2024:
nil) were issued to satisfy the exercise of employee share options. In June
2025, the Group exercised its option to repay the total accrued interest on
the £5.5m secured term loan facility with Polymer N2 Ltd through the issue of
new ordinary shares at the trailing 10-day volume weighted average price of
the Company's ordinary shares on the date that payment fell due. This resulted
in the issue of 13,440,514 new ordinary shares.
12. Events after the balance sheet date
The Group has drawn down a further £2.0m on the revolving credit facility
with HSBC since the period-end to support and assist working capital
requirements.
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