Kromek Group (AIM:KMK) reported revenue of £27.1m for the year ended 30 April, up from £26.5m the prior year.
The AIM-listed detection technology company, which serves the advanced imaging and CBRN (chemical, biological, radiological and nuclear) detection markets, said underlying growth was strong once licensing revenue distortions were stripped out.
Advanced Imaging revenue totalled £19.9m, down slightly from £20.3m, but underlying revenue in the division, excluding the Siemens Healthineers licensing deal and a non-recurring major sale, grew 76% to £6.7m from £3.8m.
CBRN Detection revenue rose 17% to £7.3m, helped by an initial £1.7m order under the UK Government's Radiological Nuclear Detection Framework and eight new distribution agreements across Europe, the Middle East and Asia.
Gross margin fell to 62.8% from 80.9% as high-margin licensing revenue made up a smaller share of the mix, while adjusted EBITDA declined to £8.1m from £10.3m.
Profit before tax came in at £2.5m, against £3.1m the prior year but slightly ahead of market expectations.
Cash and cash equivalents rose to £4.2m from £1.7m after Kromek secured a three-year £6m revolving credit facility, though net debt stood at £1.5m, versus net cash of £1.2m a year earlier, reflecting delayed customer payments since received and working capital investment.
"We enter FY 2027 with positive momentum, supported by a healthy order book, an encouraging commercial pipeline and strong engagement with customers across both divisions," chief executive Arnab Basu said.
Kromek expects significant revenue growth in both Advanced Imaging and CBRN Detection in FY 2027, in line with market expectations.
News Intelligence what this means for the company
Kromek reported FY 2026 revenue of £27.1m, essentially flat year-on-year, but underlying growth in its core Advanced Imaging business accelerated sharply to 76% once licensing distortions are removed. The CBRN Detection division grew 17% and secured a £1.7m UK Government order plus eight new European, Middle Eastern and Asian distribution deals. Profit before tax of £2.5m came in ahead of expectations, and management guided to significant revenue growth in both divisions for FY 2027, entering the year with a healthy order book and positive commercial pipeline.
The headline revenue flatness masks a structural shift: high-margin licensing revenue (including the Siemens Healthieers deal) is normalizing, compressing gross margin from 80.9% to 62.8% and adjusted EBITDA from £10.3m to £8.1m, but underlying imaging growth of 76% and CBRN momentum suggest the core business is accelerating. The company moved to net debt of £1.5m from net cash of £1.2m, though this reflects working capital investment and delayed customer payments since received rather than cash burn, and a new £6m revolving credit facility provides liquidity headroom.
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