Kromek reports wider losses as revenue growth offset by higher costs

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Kromek reported wider losses as a jump in revenue was offset by higher costs.

For the six months ended 31 October, pre-tax losses widened to £2.7m from £2.1m on-year, while revenue increased by 43% to £5.3m.

Product revenue increased by 53% to £4.4m and R&D revenue grew 16% to £1.0m.

Operating costs increased by £0.8m to £5.4m due to the planned recruitment of new staff and marketing costs to drive the growth, the company said.

Gross margin was 58%, down from 67%. But last year's margin growth was 'disproportionately high' amid the US factory relocation throughout that period, the company said. Looking ahead, Kromek said it expected to deliver 'significant' revenue growth and earnings (EBITDA) profit for full year in line with market expectations.