Kromek shares (LON: KMK) have plunged over 17% on Wednesday morning as the detection technology group released results for the year ending 30 April 2020.
Revenue at the group focusing on the medical, security screening, and nuclear markets fell from £14.5m to £13m. Loss before tax, including exceptional items, also widened from £1.3m to £18.2m.
Kromek said they started the year on a positive note and reported a record H1 2019/2020 revenue. This was dented by the impact of the pandemic, which caused disruption and led to projects being postponed.
The company has a positive outlook for the next financial year, with successful orders completed and new contracts won.
The group’s chief executive, Arnab Basu, commented on the results: “We entered 2019/20 in a stronger position than ever before, increasing revenues by 43% in the first half. However, the pandemic caused markets to shut down and materially impacted both our global customer base and supply chain resulting in overall revenues for full-year 2019 to be lower than the previous year. However, the mitigation measures and operational progress we have made during the year means we are well-positioned to rebound strongly.
“We have significantly expanded our production capacity and increased sales of our popular D3S platform that is being deployed in 22 countries, including new contracts with the US Government and European Commission.
“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.
Kromek shares (LON: KMK) are trading -17.74% at 8,53 (0933GMT).
