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

Executive summary

• Revenue rose to £27.1m for the year ended 30 April 2026, up 2% year-over-year, with underlying growth in both Advanced Imaging and CBRN Detection divisions.

• Advanced Imaging underlying revenue grew 76% to £6.7m, excluding one-off items, while CBRN Detection revenue increased 17% to £7.3m.

• Gross margin declined to 62.8% from 80.9% due to a lower proportion of high-margin licensing revenue.

• Adjusted EBITDA was £8.1m, down from £10.3m, and profit before tax was £2.5m, slightly ahead of expectations.

• Operational progress included new government contracts, expanded distributor network, and continued investment in manufacturing and IP.

Financial highlights

• Revenue: £27.1m (2025: £26.5m); underlying revenue (excluding major one-offs) up 39% to £13.9m.

• Gross margin: 62.8% (2025: 80.9%), reflecting revenue mix.

• Adjusted EBITDA: £8.1m (2025: £10.3m); profit before tax: £2.5m (2025: £3.1m).

• Net profit: £0.7m (2025: £3.8m); adjusted net profit (excluding deferred tax): £2.4m (2025: £3.2m).

• EPS: 0.1p (2025: 0.6p); adjusted EPS: 0.4p (2025: 0.5p).

• Cash and cash equivalents: £4.2m (2025: £1.7m); net debt (excl. leases): £1.5m (2025: £1.2m net cash).

Outlook and guidance

• Healthy order book and commercial pipeline support expectations for significant revenue growth in FY 2027.

• Advanced Imaging to benefit from ramp-up in SPECT and PCCT scanner deliveries and initial supply to Siemens Healthineers.

• CBRN Detection expects increased revenues from European and Asian government contracts.

• Gross margins anticipated to stabilize in the mid-50s as product sales grow.