Kromek wins $2.1m security screening contract
() , a leading developer of radiation and bio-detection technology solutions, announced a £2.1m order from an existing US-based OEM customer. The order is for the supply of key detector components for the customer's advanced security screening system for the detection of explosives. Delivery will begin in 2024 and complete in H1 2025.
Kromek has been supplying the OEM since 2017 when it was awarded a 5-year delivery contract, following an R&D phase to design components to the customer's spec. Kromek said it expects to enter another long-term delivery contract with the customer.
Arnab Basu, CEO of Kromek, commented: "We are pleased to have received this latest order from a long-standing customer in the security screening market. It demonstrates the strength of our advanced imaging business where, after an initial design phase, we continue to receive orders for years to come."
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Kromek has scored a US$2.1m security screening order from an existing OEM customer and leader in the US homeland security marketplace. The contract adds to Kromek's growing FY25 pipeline, helping deliver another year of growth.
In its most recent interim results, Kromek reported another period of growth, with a year-on-year revenue increase of 4.4% to £7.1m and a significant gross margin improvement to 54% from 40% the previous year. Adjusted EBITDA loss narrowed to £0.1m from £2.7m in H1 2023 and loss before tax similarly shrunk to £3.5m from £5.7m. Cash increased to £3.7m on October 31, 2023 from £1.1m on April 30, 2023.
The company remains on track to deliver material revenue growth and positive EBITDA in FY24, at minimum in line with market expectations. In line with seasonality, sales will be H2 weighted. With the recovery of the global aviation market, Kromek expects another long-term delivery contract in the coming months, which will further bolster visibility into FY25.
Kromek already has good visibility of FY revenue forecasts, comprising 72% contracted or already shipped, 10% awarded and going through contract negotiation, 2% being provided by its regular repeat order business, and the remaining 16% expected to be generated from the known pipeline of opportunities.
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