Reporting full-year results, the supplier of detection technology for the medical, security screening and nuclear markets said two key customers whose material contracts were postponed from the previous year have now issued instructions to recommence.
Kromek said there is increased visibility from customers as evidenced by its largest customer in the medical imaging segment providing the group with their plans for the full fiscal year, while demand for the D3S family of products continues to increase and there is renewed procurement activities in the US, Asia and Europe.
Meanwhile, the new emerging segment of biological-threat detection has significant long-term implications, the company added.
The numbers showed revenue in the year ended April 30, 2020, was £13mln, from £14mln the year before, while its loss before tax widened to £18mln from £1mln in 2019 due to the economic and operational impacts of COVID-19.
“In medical, we expect product cycles to continue to refresh as early and better diagnostics is increasingly recognised as critical to more effectively managing diseases like cancer and cardiac conditions. These are substantial addressable markets underpinned by fundamental long-term growth drivers,” Kromek chief executive Dr Arnab Basu said in the results statement.
“It is greatly encouraging that we are now starting to see a return to normal business patterns, and this is feeding through into increased activity from our customers around the world. As a result, the board is cautiously optimistic for the year ahead and will provide updates to the market as the outlook becomes clearer moving forward,” he added.