Kromek Group PLC
LSE:KMK
Kromek Group PLC
Kromek Group Plc engages in the development of radiation detectors based on cadmium zinc telluride. The firm through its technology platforms designs, develops and produces x-ray and gamma-ray imaging and radiation detection products for the medical, security screening and nuclear markets. The firm's segments are UK Operations and US Operations (California and Pennsylvania). The firm is focused on providing a vertically integrated technology offering to customers, from radiation detector materials to finished products or detectors, including software, electronics and application-specific integrated circuits (ASICs). Its geographical areas include North America, Asia, Europe and Australasia. The Company’s wholly owned subsidiary is Kromek Limited.
Kromek Group Plc engages in the development of radiation detectors based on cadmium zinc telluride. The firm through its technology platforms designs, develops and produces x-ray and gamma-ray imaging and radiation detection products for the medical, security screening and nuclear markets. The firm's segments are UK Operations and US Operations (California and Pennsylvania). The firm is focused on providing a vertically integrated technology offering to customers, from radiation detector materials to finished products or detectors, including software, electronics and application-specific integrated circuits (ASICs). Its geographical areas include North America, Asia, Europe and Australasia. The Company’s wholly owned subsidiary is Kromek Limited.
Pipeline Opportunity: Kromek sees accelerating demand for its CZT detectors in medical imaging, with access to about 40% of a projected $400 million CZT detector market by 2030.
Growth Strategy: Management targets GBP 60 million in revenue and 30% EBITDA margin in the medium term, driven by strong Advanced Imaging prospects and ongoing CBRN contracts.
Licensing & Profitability: The company shifted to a profitable, licensing-heavy model in H1, including a major $37.5 million Siemens contract, with future growth expected from scalable product sales.
Capacity Expansion: Kromek has spare production capacity for early ramp-up but will require a significant furnace expansion funded through supply contracts as demand grows.
No Further Dilution: Management ruled out future equity raises, instead relying on debt facilities and contract structures for funding, aiming to avoid further shareholder dilution.
Margin Outlook: While Kromek is the only independent CZT supplier for part of the market, pricing is dictated by established medical imaging market norms; margin gains will come from internal efficiency.
U.S. Presence: The company already manufactures in both the UK and U.S. and, for now, plans to remain listed on AIM rather than pursuing a U.S. exchange listing.
No Dividend Plans: Cash flow will be reinvested in growth and potential bolt-on M&A rather than paying dividends in the near future.
