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Kromek Shares Crash 26% on £18.3M Full Year Loss

Simon Mugo trader
Updated 7 Oct 2020

Practice Stock Trading

Shares of Kromek Group PLC (LON: KMK) today fell 26% after the company, which supplies radiation detection technology, announced its financial results for the 2019/20 fiscal year ended April 30.

The company’s pre-tax losses widened to £18.3 million from the £1.3 million loss a year earlier as revenues fell to £13.1 million from £14.5 million.

The firm books an exceptional expense of £13.1 million related to the impact of the coronavirus pandemic, which persisted into the first four months of its current financial year.

Kromek’s board said that it is “cautiously optimistic” about the current year as business patterns return to normal

Arnab Basu, Kromek’s CEO said: “We entered 2019/20 in a stronger position than ever before, increasing revenues by 43% in the first half. However, the pandemic caused markets to shut down and materially impacted both our global customer base and supply chain resulting in overall revenues for full-year 2019 to be lower than the previous year. However, the mitigation measures and operational progress we have made during the year means we are well-positioned to rebound strongly.”

Kromek share price

Tradingview chart of Kromek share price 07102020

Kromek shares today fell 26% to trade at 7.65p having dropped from Tuesday’s closing price of 10.35p.

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Simon has over six years of professional trading experience across FX, commodities and equities. He has a strong passion for financial markets and is particularly focused on price action trading