- Kromek, a radiation detection technology company focusing on the medical, security and nuclear markets, says full year revenue growth will fall short of levels anticipated at the interim stage.

Kromek stated in its interim results on 14 January that while the increasing order book and a strong pipeline provided the company with improved visibility going forward, dealing with government agencies and OEMs made it difficult to predict the exact timing of some of the contracts.

It says: "Recently, this has resulted in orders worth £0.6m being contracted, but delivery, and therefore invoicing, being postponed by the customer; £0.4m in orders being received and in the process of being delivered according to the contract specifications, with delivery scheduled for the next fiscal year."

Kromek says it is in an advanced stage in negotiating contracts for further orders worth over £0.5m, which would now be delivered in the next financial year.

Kromek now expects to report full year revenues for the 12 months ending 30 April of £8.1m. It says this represents year-on-year growth of 38% and growth from the first half to the second half of 53% (which, for the reasons specified, is lower than the 100% sequential growth anticipated in the interims).

But it adds: "Consistent with what was stated at the time of the interims, based on current favourable revenue mix and tight cost control the company expects full year EBITDA to be in line with market expectations, including being EBITDA-positive for the second six months of the year."

Separately, the company announce that it has been awarded a modification to its existing contract with the Defense Advanced Research Projects Agency (DARPA), an agency of the US Department of Defense, for the volume supply of radiation network detectors.

The contract modification, to be delivered over a 16-month period, is worth up to an additional $2.02m in aggregate.

The programme with DARPA, which commenced in August 2014, is to develop an advanced personal detection system for gamma and neutron radiation that can be combined with other such systems to form large networks that can provide information on radiation signatures over an extended area. To date, Kromek has been awarded $4.35m in contracted revenues under the SIGMA programme with DARPA.

At 8:01am: [LON:KMK] Kromek Group PLC share price was -6.5p at 29p

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