Business
Full Year Trading Update and Response to COVID-19
Full Year Trading Update and Response to COVID-19.
About this update from Kromek Group Plc
[{"type":"text","content":"\n \n \n RNS Number : 5838L\n Kromek Group PLC\n 01 May 2020\n \n \n \n 1 May 2020\n \n \n Kromek Group plc\n \n \n (\"Kromek\" or the \"Group\")\n \n \n Full Year 2019/20 Trading Update and Response to COVID-19\n \n Kromek (AIM: KMK), a worldwide supplier of detection technology focusing on the medical, security screening and nuclear markets, provides an update on trading for the 12-month period ended 30 April 2020 and its business response to COVID-19.\n \n \n FY 2019/20 Trading Update\n \n \n As previously announced in its interim results on 11 December 2019, Kromek started the second half of the financial year 2019/2020 with increasing commercial momentum and delivering on multi-year contracts won over the previous three years. Until the end of February 2020, the Group did not experience any material impact on its businesses as a result of the COVID-19 outbreak. However, in the subsequent two months, it has experienced a delay in certain projects due to constraints imposed upon sub-contractors, suppliers and customers. Also, it has been informed that two of its key contracts will now be postponed to the new financial year. As a result, Kromek expects to report revenues of £14.5m, similar to FY 2018/2019 revenues, and adjusted EBITDA is expected to be breakeven. The Group will continue to deliver on its multi-year contracts, which give it good visibility over future revenues, and it has a healthy pipeline of projects. At 30 April 2020, the Group had a robust balance sheet and cash of approximately £10m, including £3m utilised under its revolving credit facility due for renewal in 2024 as well as a £2m five-year term-loan.\n \n \n \n \n \n Response to COVID-19\n \n \n In the middle of March 2020, Kromek activated its business continuity plan in response to the COVID-19 outbreak. In order to protect the health and safety of its workforce, some of the Group's employees in the UK and US were transitioned to remote working. Kromek uses \n virtualised applications and storage on the cloud, which has enabled easier remote working and therefore there has been no significant reduction in the Group's delivery capability for clients. Sales and marketing activities have also adapted to current market conditions. \n \n \n \n \n \n Furthermore, a number of temporary mitigation measures have been im...