StockMarketWire.com - Kromek, a radiation detection technology company focusing on the medical, security and nuclear markets, posts pre-tax losses of £3.1m for the year to the end of April, down from £4.3m last time.

The group has also raised £11.0mm gross, through a conditional firm placing and open offer.

Revenue increased by 36% to £8.1m (FY 2013/14: £6.0m) as the company continued to establish its position as a key supplier of CZT detection systems both to commercial and government customers globally, winning contracts across all three of its target segments and in multiple geographies.

From H1 2014/15 to H2 2014/15, revenues increased by 56% through expansion in the number and scope of customer-funded development projects as well as direct sales of both end-user and component-level products for OEMs. At the same time, tight control was maintained over the cost base with administration expenses (including operational expenses) growing by only 4% despite the 36% increase in revenue. This, combined with improved gross margin, resulted in EBITDA loss falling to £1.6m compared with £3.0m loss for the prior year.

The fundraising comprises a firm placing of 36,000,000 ordinary shares at 25p apiece and an open offer of 8,012,836 shares on the basis of 2 new ordinary shares for every 27 existing ordinary shares, at 25p each. The firm placing has been undertaken with new and existing institutional investors and was over-subscribed.

Chairman Lawrence Kinet said: "Kromek has made good progress this year, in which we achieved a lot of important operational targets, increasing our customer base and strengthening our relationship with our OEM partners. This fundraise underpins our plans to realise the value of our technology and offers all shareholders the chance to participate. The Board recommends all shareholders to vote in favour of the proposals, which we believe will allow us to deliver increased value to our shareholders."


At 9:07am: [LON:KMK] Kromek Group PLC share price was -7.88p at 27p



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