RNS Number : 5227U Kromek Group PLC 14 September 2026 14 September 2026 Kromek Group plc ("Kromek" or the "Company" or the "Group") Final Results Kromek (AIM: KMK), a global detection company delivering best-in-class solutions for the advanced imaging and CBRN detection markets, announces its final results for the year ended 30 April 2026. Financial Highlights · Revenue increased to £27.1m (2025: £26.5m) o Advanced Imaging revenue was £19.9m (2025: £20.3m); on an underlying basis*, revenue grew by 76% to £6.7m (2025: £3.8m) o CBRN Detection revenue increased by 17% to £7.3m (2025: £6.2m) · Gross margin was 62.8% (2025: 80.9%) due to revenue mix, including high-margin licensing revenue accounting for a higher proportion of revenue in 2025 · Adjusted EBITDA of £8.1m (2025: £10.3m)* · Profit before tax was slightly ahead of expectations at £2.5m (2025: £3.1m) · Cash and cash equivalents at 30 April 2026 were £4.2m (30 April 2025: £1.7m), having secured a three-year revolving credit facility of £6.0m during the year · Net debt (excluding lease liabilities) of £1.5m at 30 April 2026 (30 April 2025: £1.2m net cash (excluding lease liabilities)); primarily reflects delayed receipt of payments totalling £1.0m, which were received shortly post year end, and investment in working capital to support growth in Advanced Imaging * Adjusted to exclude the licensing revenue contribution to both years from the Enablement Agreement signed with Siemens Medical Solutions USA, Inc. ("Siemens Healthineers") in FY 2025 (the "Enablement Agreement") and a non-recurring major new sale to an existing customer delivered in H2 2026 ** A reconciliation of adjusted EBITDA can be found in the Financial Review Operational Highlights Advanced Imaging · Substantial growth on an underlying basis reflecting continued momentum in the business and delivery on long-term contracts, including ramping up deliveries under the Group's contract with Spectrum Dynamics, alongside new orders · Significant contribution to revenue from delivery under the Enablement Agreement with Siemens Healthineers to enable the production of cadmium zinc telluride ("CZT") detectors for single photon emission computed tomography ("SPECT") application · Continued to make good operational and commercialisation progress in photon-counting computed tomography ("PCCT") detector development, with the commercialisation programme on track amid accelerating industry-wide adoption of CZT technology CBRN Detection · Growth driven by execution on strategy to secure key government customers and expand distributor network · Initial order, worth £1.7m, received under the UK Government's Radiological Nuclear Detection Framework for the Group's nuclear security products · Eight new distribution agreements signed with partners across Europe, the Middle East and Asia, including signing first agreement in Germany · Contract secured with the Defence Science and Technology Laboratory of the UK Ministry of Defence ("MoD"), worth £250k, for the development of novel methods of enhancing the detection of biological agents and incidents Manufacturing and IP · Continued to execute on programmes for the expansion of production capacity and process automation, resulting in greater manufacturing productivity and cost efficiency · Applied for three new patents and had seven patents granted, with the total number of patents held being in excess of 190 · The Group continues to operate in attractive growth markets with significant barriers to entry Dr Arnab Basu, CEO of Kromek, said: "FY 2026 was a year of strong operational and commercial progress for Kromek. We delivered increased revenue, with significant underlying growth in Advanced Imaging and further growth in CBRN Detection, reflecting increased delivery on long-term customer programmes, new order wins and the continued expansion of our international distributor network. We also made further progress with major OEMs in next-generation medical imaging, secured an initial order under the UK Government's Radiological Nuclear Detection Framework, and continued to invest in manufacturing capability, automation and our intellectual property portfolio. "We enter FY 2027 with positive momentum, supported by a healthy order book, an encouraging commercial pipeline and strong engagement with customers across both divisions. As demand develops for our Advanced Imaging technologies and government and security customers continue to invest in CBRN detection capabilities, we expect to deliver results in line with market expectations, including significant revenue growth in both divisions, while maintaining disciplined cost control and investment in key growth opportunities. Accordingly, the Board continues to look forward to the year ahead with confidence." Enquiries Investor questions on this announcement We encourage all investors to share questions on this announcement via our investor hub https://investors.kromek.com/link/yMdjZP Kromek Group plc Arnab Basu, CEO Claire Burgess, CFO +44 (0)1740 626 060 Cavendish Capital Markets Limited (Nominated Adviser and Broker) Geoff Nash/Giles Balleny/Seamus Fricker - Corporate Finance Andrew Burdis - ECM Michael Johnson - Sales +44 (0)20 7220 0500 Gracechurch Group (Financial PR) Harry Chathli/Claire Norbury +44 (0)20 4582 3500 Engage with the Kromek management team directly by asking questions, watching video summaries and seeing what other shareholders have to say. Navigate to our interactive investor hub here: https://investors.kromek.com/ Subscribe to our news alert service: https://investors.kromek.com/auth/signup Kromek Group plc Kromek Group plc is a leading developer of radiation detection and bio-detection technology solutions for the advanced imaging and CBRN detection segments. Headquartered in County Durham, UK, Kromek has manufacturing operations in the UK and US, delivering on the vision of enhancing the quality of life through innovative detection technology solutions. The advanced imaging segment comprises the medical (including CT and SPECT), security and industrial markets. Kromek provides its OEM customers with detector components, based on its core cadmium zinc telluride (CZT) platform, to enable better detection of diseases such as cancer and Alzheimer's, contamination in industrial manufacture and explosives in aviation settings. In CBRN detection, the Group provides nuclear radiation detection solutions to the global homeland defence and security market. Kromek's compact, handheld, high-performance radiation detectors, based on advanced scintillation and solid-state readout technology, are primarily used to protect critical infrastructure, events, personnel and urban environments from the threat of 'dirty bombs'. The Group is also developing bio-security solutions in the CBRN detection segment. These consist of fully automated and autonomous systems to detect a wide range of airborne pathogens. Kromek is listed on AIM, a market of the London Stock Exchange, under the trading symbol 'KMK'. The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014. Upon the publication of this announcement via the Regulatory Information Service, this inside information is now considered to be in the public domain. Investor Webinar Arnab Basu, CEO, and Claire Burgess, CFO, will be hosting an investor webinar for investors at 4.00pm BST on Monday 28 September 2026. Details for how to register will be announced via RNS Reach in due course. Operational Review Kromek delivered another year of growth in the twelve months ended 30 April 2026. This was driven by year-on- year revenue growth in CBRN Detection and on an underlying basis in Advanced Imaging. It reflects both delivery of pre-existing orders alongside an increase in commercial momentum. In Advanced Imaging, growth in the underlying business was driven by renewed engagement with customers following the completion of the deal with Siemens Healthineers. In CBRN Detection, the ever-greater global focus on national security resulted in increased demand for Kromek's market-leading technologies for mission-critical applications. Advanced Imaging 2026 2025 £'000 £'000 Revenue £19,853 £20,274 Profit before tax £1,713 £6,883 The Group delivered good underlying revenue growth in Advanced Imaging. Total Advanced Imaging revenue was £19.9m (2025: £20.3m). On an underlying basis, to exclude the contribution from the Enablement Agreement to both years and a non-recurring major sale in H2 2026, revenue in Advanced Imaging increased by 76% to £6.7m compared with £3.8m for 2025. Total profit before tax for Advanced Imaging was £1.7m (2025: £6.9m) with 2025 capturing the higher margin of licensing revenue under the Enablement Agreement. The underlying revenue growth reflects continued delivery on Kromek's long-term contracts, including ramping up deliveries under the Group's contract with Spectrum Dynamics, alongside new orders. As previously announced, the division faced certain supply chain disruptions due to the various global trade and geopolitical tensions. These challenges primarily affected the timing of order fulfilments, and the impact was significantly mitigated by securing and delivering the major new sale to an existing customer in the second half of the year. Management is pleased to report that these disruptions have significantly decreased since year end. Medical Imaging The market is undergoing a structural shift from conventional scintillator technology to CZT, driven by the demand for higher-resolution, spectral imaging - particularly in medical diagnostics. This evolution supports better clinical outcomes and lower system-level costs, making CZT a key enabler of next-generation imaging platforms. Kromek is uniquely positioned as the only independent commercial-scale producer of CZT globally. With rising demand and strategic partnerships in place, this gives the Group a strong competitive advantage and clear leverage in a growing market with high barriers to entry. During the first half of 2026, Kromek successfully delivered the milestones under the Enablement Agreement and received the second payment instalment of $5.0m (being the cash payment received as opposed to the £10.0m recognised as revenue in accordance with accounting standards). Since year end, the Group has delivered the third milestone and received the third payment of $2.5m. To date, the Company has received $32.5m under the Enablement Agreement. The remaining cash payment of $5.0m is payable at completion of delivery, which is expected to occur in the financial year to 30 April 2029, with revenue recognised monthly over the remaining term of the contract. The Group also expects to commence delivering initial orders under the supply agreement with Siemens Healthineers in the current financial year. The Group continued to make good progress in the CT market, especially in PCCT, which is an advanced form of CT. Kromek is progressing key collaboration programmes initiated in prior years, all of which represent significant additional commercial avenues for the Group. Technical progress in these projects enabled the transition of Kromek's PCCT detector development into early-stage commercialisation. Engagements with leading OEMs in both medical and industrial imaging are progressing towards device validation and initial adoption. Kromek's innovation pipeline also continues to advance. The ultra-low dose molecular breast imaging programme, supported by Innovate UK and delivered in partnership with Newcastle Upon Tyne Hospitals NHS Foundation Trust, Newcastle University and University College London, made strong progress. A prototype detector set has been installed at a hospital in Newcastle and is currently undergoing evaluation. In addition, this technology, which aims to improve screening and diagnostics for women with dense breast tissue where mammography is less effective, received excellent results in validation trials conducted during the period with a leading medical clinic headquartered in the US. Security & Industrial Screening In security and industrial screening, the Group continued to deliver under its existing component supply agreements and development programmes. This includes the detector solutions being developed under its collaboration agreement with Analogic Corporation, which will be for security applications as well as medical. CBRN Detection 2026 2025 £'000 £'000 Revenue £7,262 £6,232 Profit/(loss) before tax £829 £(3,804) In the CBRN Detection division, revenue increased by 17% to £7.3m (2025: £6.2m) and generated a profit before tax of £0.8m for the year compared with a loss before tax of £3.8m for the previous year. This growth, which was delivered despite delays in certain governmental contracts progressing to the procurement stage, was built on Kromek's strategic execution in FY 2025, continued global demand for its products and an expansion of its distributor network, including into new territories. During the year, the Group signed eight new distribution agreements with partners across Europe, the Middle East and Asia, and now has representation in over 40 countries. Nuclear Security The Company was pleased to secure its first order under the UK Government's Radiological Nuclear Detection Framework, which was for the supply of the D3S-ID wearable detector, alongside training and maintenance. The majority of the £1.7m of revenue under this order was delivered during the year and the remainder will be received as service revenue over the coming years. The framework, led by the Home Office and which is a four- year programme, facilitates the procurement of radiological detection equipment and services. Kromek was selected as a supplier under the framework in FY 2025 and is pre-qualified in the key categories of handheld, wearable and large-volume static detectors. As mentioned above, Kromek continued to secure new orders globally for its nuclear security products, supported by its enhanced distribution network. These wins underscore the strength of the Group's product portfolio, the trust placed in its technology by leading government agencies and the increasing role Kromek plays in supporting global radiological security infrastructure. Civil Nuclear Activity in the civil nuclear market remained steady, with ongoing sales through Kromek's distributor network and direct channels. As part of the Group's strategy to expand its distribution presence into new territories, a partnership was established with Siegrist GmbH, which is now the official distributor of Kromek civil nuclear products in Germany. Siegrist provides measurement and analysis technology solutions to customers in the fields of occupational health and safety, environmental protection and disaster protection sectors. This is Kromek's first distribution partnership in Germany, under which it has begun to receive orders and which the Group expects will facilitate Kromek in growing its presence in German-speaking markets. Biological-threat Detection During the year, Kromek continued to meet key milestones and deliver successfully under its multi-year contracts with a UK Government agency and the US Department of Homeland Security, focused on developing agent- agnostic biological-threat detection systems. The Group also secured a third programme - an 18-month, £0.25m contract from the UK Ministry of Defence ("MoD") Defence Science and Technology Laboratory funded via the UK Government's Defence and Security Accelerator. The project aims to develop novel methods for enhancing biological agent detection and complements the Group's strategy of pursuing customer-funded R&D in this critical area. To support this development work, Kromek constructed a highly specialised bioaerosol evaluation chamber at its headquarters in Sedgefield, County Durham, one of very few such facilities currently operating in the UK. The new laboratory, which has been purpose-built as part of the programme with the US Department of Homeland Security, closely replicates real-world conditions in a secure and controlled setting to facilitate the effective testing of the Group's biological-threat detection systems. The projects in Biological-threat Detection continue on budget, and as the technology attains full maturity by 2027, the Group intends to scale up production of these platforms, opening up new partnerships and avenues for commercialisation both in the defence industry and other critical sectors. The Board believes these contracts offer significant short- and medium-term opportunities for Kromek. Manufacturing and IP Kromek continued to drive improvements across its manufacturing plants. Further enhancements were made in process automation at its CZT manufacturing facility in the US. These initiatives are driving improved manufacturing productivity and strengthening the Group's competitive position. Kromek has dedicated teams focusing on optimising every stage of the manufacturing process, directly boosting yield, which will support scalable, profitable growth. Kromek remains committed to innovation. During the year, three new patent applications were filed, and seven patents were granted, reinforcing Kromek's technology leadership and protecting critical intellectual property - bringing the total number of patent applications held as at 30 April 2026 to over 190. This ongoing investment in manufacturing excellence and IP development underpins the Group's ability to meet growing market demand. Financial Review Revenue increased by 2% year-on-year to £27.1m (2025: £26.5m). Whilst the Enablement Agreement was a significant contributor to total revenue, excluding this and the contribution from the non-recurring major sale in H2 2026, Group revenue grew by 39% to £13.9m in 2026 (2025: £10.0m) reflecting increased demand for Kromek's products across both the Advanced Imaging and CBRN Detection divisions as described above. The split between product sales, revenue from R&D contracts and revenue from licensing (the Enablement Agreement) is as follows: 2026 2025 £'000 £'000 Product* £13,795 51% £7,006 27% R&D £3,302 12% £3,006 11% Licensing £10,018 37% £16,494 62% Total £27,115 100% £26,506 100% * Included in product revenue is non-recurring revenue from a major new sale to an existing customer (see note 5) Gross margin was lower, as expected, at 62.8% (2025: 80.9%) due to the reduced contribution to revenue from the high-margin Enablement Agreement. On an underlying basis, the gross margins of the two divisions were maintained compared with the prior year and the Group expects margins to remain relatively stable, subject to changes in sales mix. Gross profit was £17.0m (2025: £21.4m). Distribution and administrative expenses were reduced to £14.1m (2025: £16.7m) and therefore accounted for a lower proportion of revenue at 52% (2025: 63%). The decrease in expenses is substantially the net result of: · a decrease of £1.2m in bad debt provision compared with 2025 (all remaining debtor balances are considered recoverable); · a £1.7m reduction in one-off fees and expenses relating to the Enablement Agreement to £0.1m (2025: £1.8m); · a £0.5m increase in property and IT related expenditure; · a decrease of £0.4m in share-based payments expense; · a decrease of £0.1m of capitalised R&D costs; · a £0.1m increase in FX charges; · a £0.1m increase in travel related expenditure; and · a £0.1m net increase relating to all other expenses. Profit before tax was £2.5m (2025: £3.1m). This is slightly ahead of market expectations, which reflects slightly lower-than-expected costs and a higher-than-expected R&D tax credit of £0.8m (2025: £0.6m), which is recognised within administrative expenses. The profit before tax is comprised of £1.7m from the Advanced Imaging division (2025: £6.9m) and £0.8m from CBRN Detection (2025: £3.8m loss). The reduction in Advanced Imaging is due to the exceptional contribution from the Enablement Agreement to 2025, which is higher margin. The improvement in CBRN Detection reflects increased revenue from the division and strong cost control measures. Adjusted EBITDA was £8.1m for 2026 compared with £10.3m for the prior year as set out in the table below: 2026 2025 £'000 £'000 Revenue 27,115 26,506 Gross profit 17,035 21,431 Gross margin (%) 62.8% 80.9% Profit before tax 2,542 3,079 EBITDA Adjustments: Net interest 365 1,658 Depreciation of property, plant & equipment and right-of-use assets 1,535 1,612 Amortisation 3,038 2,956 Share-based payments 607 1,028 Adjusted EBITDA* 8,087 10,333 *Adjusted EBITDA is defined as earnings before interest, taxation, depreciation, amortisation and share-based payments. The change in the value of financial derivatives and share-based payments are adjusted for when calculating the Group's adjusted EBITDA as these items have no direct cash impact on financial performance. Adjusted EBITDA is considered a key metric to the users of the financial statements as it represents a useful milestone that is reflective of the performance of the business resulting from movements in revenue, gross margin and the costs of the business. Included within adjusted EBITDA are £nil (2025: £1.4m) one-off costs relating to the Enablement Agreement (with total costs being £0.1m (2025: £1.8m) as described above). In addition, there is a net charge of £0.1m (2025: £1.3m charge) relating to bad debt provisions. Excluding these one-off costs, adjusted EBITDA would be £8.2m (2025: £13.0m). The Group recorded a net tax charge to the income statement of £1.8m for the year (2025: £0.7m credit). This primarily relates to a non-cash deferred tax charge of £1.7m (2025: £0.6m credit) due to changes in the Group's deferred tax attributes as described in note 16 to the financial statements, and which is expected to unwind over future years. There is a £0.1m corporation tax charge for the year (2025: £nil), which will be offset by the cash receipt of the £0.8m UK Research and Development Tax Credit that is expected to be received in FY 2027. The Group's recognised deferred tax liability at the year-end in the statement of financial position was £0.7m (2025: £0.5m asset), with the movement primarily reflecting the deferred tax charge of £1.7m. In addition, the Group has an unrecognised US deferred tax asset of £14.2m (2025: £11.6m). The Board believes that the deferred tax asset will be utilised in the short to medium term and will capitalise such assets in due course when it is deemed appropriate to do so. Profit after tax was £0.7m (2025: £3.8m) due to the lower profit before tax and £1.7m deferred tax charge as described above. On an adjusted basis, to exclude the deferred tax charge, net profit is £2.4m (2025: £3.2m). Earning per shares ("EPS") for the year on a basic and diluted basis was 0.1p per share compared with 0.6p per share in 2025 reflecting the reduced profit and the non-cash deferred tax charge. Adjusted EPS excluding the non- cash deferred tax charge is 0.4p (2025: 0.5p). The Group invested £4.3m in the year (2025: £4.4m) in technology and product developments that were capitalised on the balance sheet, reflecting the continued investment in new products, applications and platforms for the future growth of the business. This expenditure is 16% of revenue (2025: 17%) and was capitalised in accordance with IAS38 to the extent that it related to projects in the later stage (development phase) of the project life cycle. This investment is comprised of £3.3m within administrative costs and £1.0m within gross profit (2025: £3.4m and £1.0m respectively). Amortisation of capitalised development costs in the year was £2.8m (2025: £2.7m), which results in a net cost of £1.5m from capitalised development costs (2025: £1.7m). During the year, the Group undertook expenditure on patents and trademarks of £0.2m (2025: £0.1m). Capital expenditure in the year, comprising property, plant and equipment and investments in patents, trademarks and other intangibles amounted to £0.7m (2025: £0.3m). The expenditure primarily relates to modest capital expenditure across plant equipment and computer equipment, IT and manufacturing projects. In September 2025, the Group negotiated a three-year, £6.0m revolving credit facility ("RCF") with HSBC bank to support and assist working capital requirements. The RCF carries interest of 2.75% over the Bank of England base rate. In addition, HSBC is providing a £0.5m asset finance facility to support limited capital expenditure within the Group. In June 2025, the Group repaid £0.7m of accrued interest on a repaid secured term loan facility with Polymer N2 Ltd, an existing and significant shareholder in the Company, via the issue of new ordinary shares of 1p each in the Company. This resulted in the issue of 13,440,514 new ordinary shares. At 30 April 2026, the Group had total borrowings of £5.7m (2025: £0.5m), which primarily relate to drawdowns on the RCF to fund working capital requirements. Of the total, £0.1m (2025: £0.5m) relates to Covid-related Economic Injury Disaster Loans that the Group's US operations were eligible to apply for in 2020 and 2021, after a £0.4m repayment in October 2025. Further information can be found in note 19 to the financial statements. In addition, post year-end, the Group has successfully negotiated a £3.0m extension to the RCF to support and assist working capital requirements, and anticipates signing the increased facility documents prior to the end of September 2026. Cash and cash equivalents were £4.2m as of 30 April 2026 (30 April 2025: £1.7m). The increase was due to the combination of the following cash inflows and outflows: · Cash generated in operations, including changes in working capital, of £3.1m; · investment in product development and other intangible assets, with capitalised development costs of £ (4.3)m and other additions, including IP, of £(0.3)m; · capital expenditure of £(0.3)m; · interest received of £0.1m; · net cash generated from financing activities of £4.5m (£6.0m proceeds of new borrowings, less £1.5m of repayment of borrowings, lease repayments financing costs and loan interest payments); and · effect of foreign exchange rate changes of £(0.2)m. At 30 April 2026, the Group had net debt (excluding lease liabilities) of £1.5m (30 April 2025: net cash of £1.2m). Certain payments totalling £1.04m that expected to be received prior to year end were received shortly after year end. Without these timing differences, net debt excluding lease liabilities would have been £0.5m. The difference compared with the prior year primarily reflects investment in working capital to support growth in Advanced Imaging. Outlook The new financial year is progressing well, with a healthy commercial pipeline and order book. This provides good visibility over the coming months and, combined with continued strong customer engagement across both divisions, the Board expects to deliver further growth in FY 2027 and the Group continues to trade in line with market expectations. In Advanced Imaging, revenue growth will be driven primarily by a ramp up in delivery to Spectrum Dynamics as it continues the commercial roll-out of its SPECT scanners, supply to other existing customers, alongside initial revenues from sales of CZT detectors for inclusion in PCCT scanners. During the year, Kromek also expects revenues under its supply agreement with Siemens Healthineers as well as recognising further revenue from the Enablement Agreement. Together, these represent an important step in the transition of the division towards volume commercial supply as the adoption of CZT detectors in SPECT and PCCT continues to accelerate. In CBRN Detection, the Group expects increased revenues from European government agencies, the strong opportunity pipeline across Asia and the delivery of contracts under the UK and US government framework agreements to drive revenue growth. Demand continues to be underpinned by the heightened prioritisation of national and global security strategies, and the Group anticipates further opportunities as governments formalise their approach to CBRN threats. Gross margins are expected to return to the mid-50s, consistent with the level prior to the Enablement Agreement. This underlines the levels of IP in the business and the strength and quality of the Group's underlying product margins, with margin performance now driven by growing commercial product sales across both divisions. The Group continues to maintain tight control of costs, supporting the sustainability of underlying profit margins and the Group's cash position while enabling continued investment in key growth areas. With a growing order book, increased revenue visibility, operational momentum across both divisions and a disciplined approach to costs, the Board looks forward to significant underlying growth in FY 2027 as the Group builds a sustainable and profitable business. Group statement of comprehensive income For the year ended 30 April 2026 Note 2026 £'000 2025 £'000 Continuing operations Revenue 4 27,115 26,506 Cost of sales (10,080) (5,075) Gross profit 17,035 21,431 Other operating income 30 - Distribution costs (460) (470) Administrative expenses (13,698) (16,224) Operating profit 2,907 4,737 Finance income 68 107 Finance costs 7 (433) (1,765) Profit before tax 5 2,542 3,079 Tax (charge)/credit 8 (1,809) 675 Profit for the year from continuing operations 733 3,754 Profit per share 9 - basic (p) 0.1 0.6 - diluted (p) 0.1 0.6 Adjusted profit per share (a non-GAAP measurement) - adjusted basic (p) 0.4 0.5 - adjusted diluted (p) 0.4 0.5 The accompanying notes part of these financial statements. Group statement of other comprehensive income For the year ended 30 April 2026 2026 2025 £'000 £'000 Profit for the year 733 3,754 Items that are or may be subsequently reclassified to profit or loss: Exc