Kromek Group plc 
Annual report and accounts 2014 Kromek is a leading 
provider of patented 
radiation technologies to 
the medical imaging, nuclear 
detection and security 
screening markets.
Our vision
To be the world-leading provider 
of multispectral radiation detection 
products and technologies enabling our 
customers and users to take more timely 
decisions based on superior information.
We operate in three large, growing 
global markets:
Medical imaging
Improved and earlier 
diagnoses, better patient 
outcomes and lowering 
overall cost of healthcare.
Nuclear detection
More accurate information 
leads to better safeguarding 
of people and increases 
in operational efﬁciency.
Security screening
More detailed, reliable 
and efﬁcient detection of 
threats whilst maintaining 
operational efﬁciencies of 
airports.
Read more in the business 
model on page 11
Read more in the 
at a glance on page 2
Overview
IFC Overview
1 Highlights of our year
2 At a glance
4 Chairman’s statement
6 Chief Executive’s Q&A
Strategic report
8 Business review
10 Our key strengths
11 Our business model
12 Our strategy
14 Our technology
16 Our markets
Corporate governance
20 Board of Directors
22 Review of principal risks
24 Corporate governance report
26 Directors’ report
28 Directors’ remuneration report
Financial statements
30  Independent auditor’s report
32 Consolidated income statement
32  Consolidated statement 
of comprehensive income
33  Consolidated statement 
of ﬁnancial position
34  Consolidated statement of changes 
in equity
35 Consolidated statement of cash ﬂows
36  Notes to the consolidated 
ﬁnancial statements
61 Company statement of ﬁnancial position
62 Company statement of changes in equity
63 Company statement of cash ﬂows
64  Notes to the Company ﬁnancial statements
68 Ofﬁcers and professional advisors Kromek Group plc  Annual report and accounts 2014 1
Highlights of our year
 Year on year revenue growth of 122%
 Product-based revenue increased from £1.8m to £4.7m
 Strong cash position of £6.6m
  Successful IPO providing access to wider shareholder base 
and platform for future growth
  Completed successful operational integration of eV Products, Inc., 
our second US acquisition
  Further improvements in CZT material and detector 
manufacturing processes
 28 new patents were ﬁled or awarded
 Investment in expanded sales and marketing capability
  Multiple new and signiﬁcant contract wins in the medical imaging 
market: for CT , including a development contract with a top four OEM; 
in BMD; and also an agreement for the supply of imaging modules 
in China
  A number of important contracts from both commercial and 
government customers won in the nuclear detection market
  The start of phase one of the implementation of the EU regulatory 
framework on 31 January 2014, which is the key to sales of the 
bottle scanner product in Europe
2014 revenue (£m)
£6.0
+122%
2014 adjusted EBITDA (£m)
£
(
2.5
)
+22%
Visit us online
 www.kromek.com
2013 revenue (£m)
£2.7
2013 adjusted EBITDA (£m)
£
(
3.2
)
2014 cash (£m)
£6.6
2014 debt (£m)
£0.0
2013 cash (£m)
£0.3
2013 debt (£m)
£2.5
Strategic report Corporate governance Financial statements Overview Kromek Group plc  Annual report and accounts 2014 2
Employees
100+
Patents
240+
For a more in-depth look 
at our business model, 
turn to page 11
Read more about our 
markets on page 16
The Group’s business model provides a 
vertically integrated technology offering 
to customers. From the growth of cadmium 
zinc telluride (“CZT”) crystals to ﬁnished 
products or detectors, including software, 
electronics and application speciﬁc 
integrated circuits (“ASICs”).
Channel
Existing products and 
strong customer base
Demand
Large market with 
unmet needs
Production
World-leading CZT 
delivery capability
Experience
Experienced 
management team 
with 250 combined 
years’ experience
Integration
Vertically integrated 
technology offering
 Global customer base
  Meeting needs of customers through providing both end user products (“EUPs”) 
and original equipment manufacturer (“OEM”) components
Kromek designs, develops and produces 
x-ray and gamma-ray imaging and 
radiation detection products.
At a glance
Overview Kromek Group plc  Annual report and accounts 2014 3
Kromek’s major operational facilities are in California, 
Pennsylvania and Durham. In addition to our sales ofﬁce 
in Germany, we have established sales and distribution 
relationships covering Europe, North America and 
Asia Paciﬁc.
Where we operate
Corporate facilities and sales Sales and distribution partners
1 2 3 4
NOVA R&D, Inc.
California
eV Products, Inc.
Pennsylvania
Group headquarters, UK
Durham
Kromek Germany Limited
Düsseldorf
North America Europe and Africa Asia Paciﬁc
1
2
3
4
We constantly evaluate new 
opportunities for our existing 
and complementary technologies.
Strategic report Corporate governance Financial statements Overview Kromek Group plc  Annual report and accounts 2014 4
The Group has seen revenue growth 
across all three trading entities.
 Richard Morgan, Chairman
Introduction
2013–14 was a very challenging year for Kromek but one 
in which important transformational changes were achieved. 
In addition to the successful rationalisation and integration 
of eV Products, which approximately doubled the number of 
employees in the Company, important achievements were made 
in the marketplace. The progress in the contractual partnership with 
one of the leading CT system manufacturers was an important 
step forward for the Company in the medical diagnostic imaging 
market, which is dominated by just four major companies. 
The foundations of this and other advances were laid while 
the Company was preparing for and successfully completing 
its initial public offering (“IPO”) and admission to AIM. 
Unfortunately, it became clear to the Board that some of 
the contracts that had been expected (most of which have 
subsequently been conﬁrmed) were not going to be booked and 
shipped in time for the revenue to be recognised in the ﬁscal 
year to the end of April. This included a promising alliance with 
an emerging Chinese company to develop novel components 
for the medical imaging market in China. As a result, the Board 
realised that the revenue was going to fall short of the budget 
prepared last summer and this was the subject of a public 
announcement on 28 March. While we have met the 
subsequently lowered sales forecast, which shows a signiﬁcant 
growth from the previous year, we are disappointed with the 
shortfall and have taken steps to ensure that our forecasting 
is much improved in the future. The Board continues to spend 
a lot of time reviewing in considerable detail both the strategic 
framework of the business and the operational procedures that 
feed into the ﬁnancial planning and budgeting system. I am 
pleased to report that the changes that were made to the Board 
at the time of the IPO and subsequently have strengthened it 
considerably and we are united in our commitment to improve 
all aspects of our business going forward.
Completing the IPO and raising the amount of funding aimed 
for was a critical step for Kromek. The Company managed to 
achieve a lot of progress in the years leading up to the IPO with 
barely adequate ﬁnancial resources. This culminated in the 
acute ﬁnancial challenges we faced in completing the acquisition 
of eV Products, which we regarded as a vital strategic step in many 
different dimensions. That belief has been more than justiﬁed by 
subsequent events, and the funding raised in the public offering 
has allowed the Company for the ﬁrst time to focus on a number 
of fundamental aspects of the business and improve our 
operational and strategic capability.
Good progress has been made in most of our target markets 
and the Company has started to build on the headway achieved 
in all three major sectors, with the addition of key sales and 
marketing personnel. While the security market (bottle scanners 
for the analysis of liquids, aerosols and gels or “LAGs”) has 
continued to prove challenging, we have conﬁdence in the 
performance capabilities of the Kromek product, which has been 
further reﬁned in the last two years. We have made progress 
in penetrating this market, which only started to become active 
in the second half of last year. Despite having seen some 
disappointments in Japan for our nuclear products, we have 
managed to build on the underlying product platform and have 
won some important new contracts from the US Government 
and other customers. Alongside the progress we have made 
in medical imaging, we feel conﬁdent that the basic metrics 
underpinning the business are moving in the right direction.
Chairman’s statement
Overview Kromek Group plc  Annual report and accounts 2014 5
Financial results
The results for 2013–14 show an increase in revenue to £6.0m 
(2012–13: £2.7m), with the Group returning an adjusted loss 
before tax of £4.3m (2012–13: loss of £4.1m). This represents 
strong revenue growth across the business, up £3.3m on the 
prior year, with second half revenues of £3.7m, ahead of those 
in the ﬁrst half by over 60%. This increase was driven by both 
product sales and revenues from government contracts, as well 
as commercial technology development agreements. The result 
for the year is stated after internal research and development costs 
of £2.0m (2012–13: £0.5m), which have been expensed through 
the income statement. These costs relate to investment in core 
technology, platform development and driving manufacturing 
efﬁciency to provide a strong and enhanced base for future 
proﬁtability. The Group reported a basic and diluted loss per 
share of 5p (2012–13: loss of 8p per share) and an adjusted 
loss per share of 5p (2012–13: loss of 40p per share). At the balance 
sheet date, Group cash stood at £6.6m (2012–13: £0.3m).
Employees and partners
I would like to take this opportunity to thank all of our stakeholders 
– customers, suppliers, employees and shareholders – whose 
continued efforts and support have been key to our success. 
I would also like to extend my thanks to Charlotta Ginman for 
taking over the audit committee chair in March of this year and 
to Jerel Whittingham for chairing the remuneration committee.
Outlook
Kromek’s area of expertise, radiation detection and imaging, 
represents one of the most basic and important techniques used 
globally for gaining better information about objects and the 
environment. Its importance can be seen on a daily basis in 
hospitals and airports throughout the world, as well as in its 
importance to those, both civil and military, serving to keep 
us safe from threats of various sorts. 
Our ﬁnancial position is robust with no debt and a strong cash 
position. With a strong order book and such a rich opportunity 
set given the Group’s key proprietary technologies, international 
scope and integrated business model, the Board believes the 
Group is well positioned for continued growth and looks forward 
to the future with conﬁdence.
Richard Morgan
Chairman
27 August 2014
Strategic report Corporate governance Financial statements Overview
“A transformational year.” Kromek Group plc  Annual report and accounts 2014 6
 Dr Arnab Basu MBE,  
Chief Executive Ofﬁcer
How would you describe the last year for the Group?
Busy is the ﬁrst word that comes to mind! The business has 
moved from a technology development phase into a period where 
we are now focused on growth that years of investment in our 
technology have enabled. This has required us to be successful 
on several fronts: making good progress on customer-funded 
product development projects; completing the very successful 
operational integration of eV Products; attracting some important 
senior hires; and, of course, the IPO and admission to the 
AIM market.
What has the IPO achieved?
Joining the AIM market gave us capital, liquidity and credibility; 
all of these will help us grow. As well as accessing the capital 
needed for our expansion and scaling-up of activities, meeting 
the stringent requirements needed to successfully complete 
admission to a regulated market gives customers a higher level 
of trust and conﬁdence in us as potential partners. We have also 
beneﬁted from the greater proﬁle. Additionally, if any attractive 
merger and acquisition (“M&A”) opportunities present themselves, 
such as the eV Products and NOVA acquisitions, then our listing 
can only help.
What do you see as Kromek’s key competitive advantages?
Of course the market is competitive but we choose opportunities 
that best utilise our differentiators. We have deep experience, 
know-how and patent-protected manufacturing techniques, 
which allow us to produce world-leading CZT-based radiation 
detectors, as well as the electronics and software which 
analyse the improved information they capture.
With our vertical integration we can put solutions together 
using our range of capabilities in different ways, like “Lego bricks”. 
This allows us to meet the new, emerging needs of our customers 
quickly and can deliver components and products that meet 
their challenges. Collectively I believe these give us a signiﬁcant 
competitive advantage in our target markets.
Is the market adopting your products 
and technologies at the rate you expected?
We are pleased to have seen strong growth and traction this 
year, but at the same time, have had delays that impacted our 
revenues for the year, which we notiﬁed to the market in March. 
We were obviously disappointed that some contracts were 
delayed and we weren’t able to recognise the revenues in the 
period where they were expected within the ﬁscal year. There 
is, however, a strong match between our speciﬁc capabilities 
and urgent customer needs in our target sectors of medical 
imaging, nuclear detection and security screening.
Accurate, quarter by quarter proﬁling can be a challenge when 
dealing with very large organisations and government departments. 
We are proud to be selected by such large-scale organisations 
as there is no better validation of our technology, but what goes 
with that is working to their schedules. This is a lesson that we 
have had to learn. The pipeline and our ability to capitalise on it 
is as strong as ever and the focus for 2014–15 is to build on that.
Why do your customers choose you? 
What beneﬁts does Kromek bring?
Well, that can be answered in several ways, from our technology 
and performance differentiators to our offering of ready-to-use 
solutions. Ultimately, however, in all our application markets, 
the pressing need is for more useful and better quality information 
to make improved assessments of risks, whether that be of cancer, 
radiation contamination or a bomb. This allows either more 
rapid and effective interventions or, equally important, more 
conﬁdent reassurance that all is well.
It is this basic need for deeper insight that Kromek’s imaging 
and detection products are repeatedly demonstrating that they 
can satisfy, evidenced both by new customer sales and by daily 
use of our products in airports and scores of hospitals.
Chief Executive’s Q&A
Overview Kromek Group plc  Annual report and accounts 2014 7
“ Technology leadership forms the basis of our ability to deliver superior 
value to our customers. It comes from focused investment and a deep 
understanding of how to produce, manipulate and engineer CZT into 
cost-effective products for use in multiple applications.”
Is your business model scalable?
Our development of future products and our manufacturing 
capacity are scalable and our approach was designed this way. 
We can share base technologies to a broad degree across sectors. 
This also reduces development cost and risk for us and our partners. 
Our manufacturing can also be stepped up incrementally in line 
with demand. As a result, we will never have to make massive 
capital-intensive generational “bets” as is typical in the 
microprocessor world. Of course, careful investment choices 
will still be required at various stages of our growth.
Do you have the right team in place?
We are always alert to attracting and retaining the right talent 
to help take us further, for example, we focused especially on our 
sales and marketing team this year. Our acquisition of eV Products 
brought in a lot of additional talent too. We have more than 
100 employees across the globe and 19 PhDs amongst them. 
We have a very accomplished and industry-experienced 
technology and product development team.
Why are you in your chosen markets? 
How were they selected?
Key factors are opportunity size and potential for growth and 
the match of the customer needs with our technology strengths. 
Additionally, we seek synergy overlaps in the base technologies 
required to address the selected segments. With competition 
and so many applications and needs for radiation detection, 
we cannot try to meet every possibility in every ﬁeld. We have 
to be disciplined and focused.
Does any one of your core markets excite you more 
than the others?
They excite me equally but in different ways. Medical is our 
biggest opportunity medium term in that, in the last year, we 
have made the biggest advances since the Company was founded. 
The development deal in CT with one of the top four OEMs is 
strategically important and potentially very rewarding.
Shorter term, the aviation security LAGs market is expanding, 
effectively playing catch-up after a period of regulatory delay. 
That, at least, gave us an opportunity to even further strengthen 
our product. Over the next few years, signiﬁcant opportunities 
are still to come in Europe and the rest of the world. Our unique 
ability to become fully integrated into OEM partners’ checkpoint 
scanners, once the current transitional phase of standalone 
equipment is over, is also exciting.
Finally, we are seeing some further opportunities in nuclear 
detection, which is already a large market and has developed 
a lot in the previous 12 months alone.
What are the challenges of being a young company 
competing in large and growing international markets?
Optimal channels to market can be a stretch for a youthful 
company with global opportunities in large markets. We cannot 
afford to ignore the terriﬁc opportunities that OEM partnerships 
offer, albeit with ultimate market access and time dependent on 
them. Our revenues this year represent considerable growth 
but we are still a small company in large competitive markets. 
However, despite these and other challenges, the foundation 
stones have now been laid for the success of the Company 
and the real growth phase is ahead of us. 
Are there further target markets?
In terms of applications markets, our technology platform has 
multiple areas where it could make a difference, but we are 
extremely focused on the three sectors that we have selected. 
In terms of geographic markets, Asia is a very large and attractive 
market and we are working hard to increase penetration. We have 
experienced some encouraging early traction, as evidenced 
by recent contract wins announced since the year end.
What are you hoping to achieve in the next 12 months?
With so many opportunities that could be addressed we will 
certainly need to stay very focused. The coming year is about 
growing revenues, strengthening our capabilities and ensuring 
Kromek is recognised as the radiation detection specialist of 
choice in our target sectors. We want to demonstrate the full 
potential of Kromek by securing further blue-chip contracts with 
world-leading companies and deliver on our existing commercial 
agreements. The combination of those can deliver signiﬁcant 
value back to our shareholders.
Strategic report Corporate governance Financial statements Overview Kromek Group plc  Annual report and accounts 2014 8
Overview
During the ﬁnancial year to 30 April 2014 the Group experienced 
a period of signiﬁcant change and took a number of steps towards 
becoming the leading provider of patented radiation technologies 
to the medical imaging, nuclear detection and security 
screening markets.
The Company acquired eV Products, Inc. in the US in February 2013, 
and the ﬁnancial and operational integration of the business 
has been successfully completed. The Group now has greater 
technological and production capability and has secured a strong 
range of products for the medical market to supplement those which 
it had previously. The management of the Group and the team in 
the US have successfully integrated the eV Products business 
during the year and executed a challenging turnaround, resulting 
in year on year growth and EBITDA proﬁtability for this business 
in a very short timescale.
The Group’s shares were also successfully admitted to trading 
on AIM during October 2013 following a successful IPO, which 
raised £13.4m net from new investors. This provides funding 
capital for the Group to drive its growth through the expansion 
of its product portfolio and technology platform; an increase 
and investment in its sales and marketing process and capacity; 
and the opportunity to undertake further capital expenditure in 
both the UK and US to facilitate continued efﬁciency and 
capacity improvements.
The results for 2013–14 show revenue of £6.0m (2012–13: £2.7m) 
and an adjusted EBITDA loss of £2.5m (2012–13: loss of £3.2m). 
Adjusted loss before tax was £4.3m (2012–13: loss of £4.1m), 
with cash at the balance sheet date of £6.6m. The Group 
is now debt free.
Revenue grew £3.3m on the prior year, an increase of over 122% 
(with like-for-like growth of over 40%, assuming a full year’s prior 
annual revenue of eV Products). The second half revenue of £3.7m 
represents growth on the ﬁrst half revenue to 31 October 2013 
of 60%.
Despite absorbing eV Products, which was previously loss making, 
the Group managed to return an adjusted loss before tax of £4.3m 
against a loss of £4.1m for the prior year.
Sales
Sales in the year were £6.0m (2012–13: £2.7m), representing 
growth across all of the trading entities of the Group, with the 
UK showing growth of 18% and the US growing nearly 228% 
year on year (47% on a like-for-like basis) despite the challenges 
set by contract delays and adoption rates during the period 
as noted in the trading update to the market in March 2014. 
Details of the sales growth can be seen in note 6 to the 
ﬁnancial statements.
The growth in sales resulted from contract wins with the bottle 
scanner, with devices installed in over 25 airports across Europe 
and Australia. The Group also saw growth in a range of medical 
products sold to businesses in the US, as well as securing and 
commencing a number of US Government contracts.
Growth in revenue is a fundamental driver for any business but 
especially so for one that seeks to commercialise its technology. 
The level of sales, despite being below original estimates, indicates 
accelerating traction and growing adoption of the products and 
technology offerings that the Group provides across our target 
markets. The Group has invested in expanding its sales and marketing 
team and has recruited both senior and ﬁeld sales personnel.
2013–14 2012–13
£’000 £’000
Revenue 5,972 2,691
Gross margin (%) 65% 47%
EBITDA (2,483) (773)
Exceptional items — 2,418
Adjusted EBITDA (2,483) (3,191)
Result before tax (4,295) (1,656)
Adjusted result before tax (4,295) (4,074)
Tax 1,106 1,013
Result after tax (3,189) (643)
Adjusted result after tax (3,189) (3,061)
Net cash 6,563 309
Business review
Strategic report
 with Dr Arnab Basu MBE, CEO, and Derek Bulmer, CFO CFO
Strategic report Kromek Group plc  Annual report and accounts 2014 9
Recent announcements relating to government contracts, the 
sale of bottle scanners into Asia and a number of contracts for 
the sale of the Group’s range of nuclear products and technology 
solutions provide clear evidence of the Group’s developing sales 
and marketing operations.
Gross margin
The gross margin (before direct overheads and labour costs) on 
sales for the year of 65% (2012–13: 47%) was favourably affected 
by the full-year impact of the acquisition of eV Products, stronger 
levels of product sales plus higher levels of revenue from 
government contracts and commercial development agreements.
The Group continually reviews and develops efﬁciency models 
and considers capital expenditure options to retain and improve 
the margins that are achieved. This is manifest in the year and 
also in the Company’s continued commitment to research and 
development, not only into core technology and products, but 
also production processes and methodology.
Research and development
As noted above, the Group continues to invest in the development 
of products and its technology platform in order to advance its 
commercial advantage and increase margin on sales. During the 
year the Group undertook a total expenditure on research and 
development of £3.1m (2012–13: £1.4m) with £1.9m undertaken 
in the UK (2012–13: £1.4m) and £1.2m in the US (2012–13: £nil). 
The increase in the US reﬂects the impact of eV Products and 
NOVA, where several products have been developed in the year.
Of the £3.1m spent on research and development during the year, 
£1.1m relates to commercial near-term product development that 
has been capitalised (2012–13: £0.9m). This expenditure saw eight 
new nuclear products and ﬁve new medical products developed. 
This provides further short and medium-term opportunities for sales 
and reﬂects the capability of the Group to draw from its technology 
platform and rapidly develop bespoke, need-speciﬁc products, 
utilising the vertical integration model that is reﬂected in the skill 
set and proﬁle of the employee base.
The balance of R&D expenditure of £2.0m for the year  
(2012–13: £0.5m) was expensed through the income statement 
and reﬂects further investment in Kromek’s core technology, 
platform developments and improved manufacturing efﬁciency. 
This investment provides a strong and enhanced basis for efﬁciency 
and proﬁtability in future years and strengthens the market position 
of the Group’s technology. During the period, a total of 28 patents 
were ﬁled or awarded.
All research and technology programmes, whether for product 
development or core technology, are subject to tightly controlled 
and monitored processes and project management. 
Result before tax 
Despite absorbing the full results of eV Products during the year 
(which was previously loss making), the Group managed to return 
an adjusted loss before tax of £4.3m (2012–13: loss of £4.1m) – see 
table opposite. Whilst the growth and change in the mix in revenue 
year on year has enhanced margin and resulted in an improved 
adjusted EBITDA of a loss of £2.5m (2012–13: loss of £3.2m), 
the result for the year was impacted by the level of depreciation 
and amortisation of intangible and tangible assets which rose to 
£1.3m (2012–13: £0.7m), largely due to the full impact of eV Products 
for the year. Further, the result was also subject to a higher interest 
charge of £0.5m (2012–13: £0.2m), which will not recur following 
the repayment of loans. The operating and overhead cost base 
of the business remained stable on a comparable basis, other 
than the impact of the recurring costs resulting from the admission 
to AIM, which were in line with expectations. 
Tax
The Group beneﬁts from the UK Research and Development Tax 
Credit and recorded a credit of £0.7m for the year (2012–13: £0.8m). 
In addition, the Group saw a movement in the deferred tax 
provision of £0.4m, resulting in an overall tax credit to the 
income statement of £1.1m (2012–13: £1.0m).
Earnings per share (“EPS”)
EPS are recorded in the year on a basic and diluted basis of a loss 
of 5p per share (2012–13: loss of 8p per share) and an adjusted 
basic and diluted loss of 5p per share (2012–13: loss of 40p per 
share). Due to the Group having losses in each of the two years, 
the diluted EPS for disclosure purposes is the same as the 
basic EPS.
Cash and debt 
Group cash stood at £6.6m following net receipts from the IPO of 
£13.4m and repayment of debt and accrued interest of £3.0m. The 
Group repaid all previously outstanding loans by 31 October 2013 
and consequently removed the debenture held over the assets 
of the Group by Polymer Holdings. 
Capital expenditure
Capital expenditure for the year amounted to £0.2m, of which 
£0.1m was supported by receipts of a grant from the Regional 
Growth Fund awarded during 2012–13.
Employees
Employee numbers are an important measure in the cost 
management of the business, representing expenditure in the year 
of £5.1m (2012–13: £3.4m). The average employee numbers 
for the year were 101 (2012–13: 75), though the actual number 
at the year end, excluding Non-Executive Directors, was 105 
(2012–13: 101), indicating that staff numbers remained broadly 
in line on a pro-rata basis.
During the year, Derek Bulmer (CFO), was appointed to the Board 
as an Executive Director and Lawrence Kinet, Peter Bains and 
Charlotta Ginman joined the Board as Non-Executive Directors. 
We would also like to extend our gratitude to all of our customers, 
suppliers and employees across the Group who have contributed 
to the growth and development of the business and we look forward 
to their valued input as we commercialise the technology during 
the next year.
Strategic report Corporate governance Financial statements Overview Kromek Group plc  Annual report and accounts 2014 10
Our key strengths
1. Established and growing blue-chip 
customer base
The Group’s customer base is global and includes market leading 
OEMs in the medical imaging sector, government agencies, 
nuclear power plant operators and decommissioning contractors 
in the nuclear sector. Kromek also has an increasing customer 
base in the security market, which includes international 
airport groups and OEMs. 
2. Proprietary CZT production technology
Kromek is the world’s only multi-site, multipurpose CZT 
developer and supplier. The Company’s UK and US facilities 
have both been chosen by the US Government for materials 
delivery programmes. The Group has over 20 years of experience 
(the most extensive in the world) with successive generations 
of CZT production technology. In addition to its leading current 
capabilities in the travelling heater method (“THM”) (a method of 
producing CZT), the Group is the only organisation to have developed 
a patented vapour phase growth technique vital to its capability 
of producing bulk CZT material with good structural integrity, 
uniform composition and high purity, which are all important 
qualities for future product and market needs.
3. Vertical integration 
Kromek’s OEM customers are involved in developing and 
making x-ray or gamma-ray based detection and imaging 
systems. These systems are designed to have signiﬁcantly higher 
performance and functionalities, in order to aid better detection 
and identiﬁcation of harmful materials such as explosives, 
cancerous cells or special nuclear materials. These advanced 
systems require multispectral detection capabilities and the 
means to interpret the data they collect. 
Kromek’s ability to provide the complete chain of technologies 
(detectors, electronics, simulators and application design) required 
by the customer to adopt multispectral or CZT detectors lowers 
the adoption barrier and provides lower cost and a faster path 
to ﬁnal product for the customer. Having the “semiconductor to 
solutions” model also allows Kromek to be a value-added partner 
to OEMs. Kromek also utilises the vertical integration model, its 
technology building blocks, to develop and compete at selected 
EUP levels in our core markets. 
4. Large and growing target markets 
with signiﬁcant unmet needs
Kromek’s products address three key sectors: medical imaging, 
nuclear detection and security screening. There is a growing need 
within each of these markets for improved radiation resolution and 
sensitivity, to provide accurate materials identiﬁcation or differentiate 
between closely related materials (e.g. harmful versus benign 
liquids, cancerous versus normal tissue). These needs are well 
matched to the Group’s capabilities. 
The Group’s products are in commercial use in all of its three 
target markets. Scanners with Kromek’s detection systems are 
being used to diagnose cancer, osteoporosis and other diseases 
in hospitals around the world; its detectors are being used in 
nuclear power plants, research centres and nuclear decommissioning 
sites; and its bottle scanners are in daily use to screen liquids 
in European airports. 
We are an experienced team delivering 
differentiated beneﬁts to an established 
and increasing customer base in large 
and growing world markets.
Strategic report Kromek Group plc  Annual report and accounts 2014 11
Medical
imaging
Nuclear
detection
Security
screening
End user 
products
OEM 
components
Patents Trademarks Trade secrets
People and infrastructure
eV Products Kromek UK NOVA R&D
Kromek 
Germany
Materials and detectors
Bonding and hybridisation
Detector fabrication
ASICs and electronics
Applications development
Algorithms and software
Systems engineering
Technology
Intellectual property (“IP”)
Organisation
Markets
Products
Our business model
5. Experienced management 
and technology team
Kromek’s management team has a combined 
experience of over 250 years in relevant technical, 
commercial and operational areas. Members of 
senior management have worked in both large global 
corporates and successful high-growth start-ups, a 
combination that is important for the current growth 
phase of the Group. The team has also executed 
a number of successful M&A transactions and been 
active in managing post deal integration. The Board 
has a diverse and international background with 
substantial public market experience.
Cumulative market in 
Kromek’s target segments*
$2.67bn
* See page 13 for deﬁnition and further information.
Contract 
development
Strategic report Corporate governance Financial statements Overview Kromek Group plc  Annual report and accounts 2014 12
Our strategy
We operate in three of the largest segments 
in radiation detection within very selective 
sub-segments of those markets based on:
 Existing or deﬁned need in a sizeable and growing market
 Match of core competency to market need
  Synergy: strong overlap in base technologies required to serve these markets 
Our strategy is based on maximising the potential 
of our CZT technology and focusing on market 
segments where it can have most impact.
Element
Integration up the value 
chain with a “semiconductor 
to solutions” model
Element
Address three core markets: 
medical imaging, nuclear detection 
and security screening
Element
Revenue from both end product 
and OEM sales
1 2 3
Driver
 Enhance value capture and increase 
barriers to entry
 Ease end user adoption in a specialised 
and non-commoditised technology
 Product optimisation given close 
relationship between technology layers
Driver
 Three of the largest growth sectors 
in radiation detection
 Good match to capability and strong 
technology synergies
 Balance focus and diversify 
market risks
Driver
 Revenue optimisation of technology 
and product evolution
Example execution during the year
Further strengthening of key areas. For 
example, additional CZT capacity in the 
UK, improvement in production process 
efﬁciency and further strengthening in 
software and simulation capabilities. 
Integrated offering allowed Kromek 
to effectively respond to several new 
opportunities, which resulted in new 
business wins.
Example execution during the year
Kromek’s activity remains focused 
only in these markets and in carefully 
chosen sub-segments of each. There are 
signiﬁcant growth opportunities in each.
Example execution during the year
Additional contract wins in both OEM 
and EUP segments. 
Signiﬁcant new contract announcements 
in OEM medical imaging market.
Strategic report Kromek Group plc  Annual report and accounts 2014 13
Medical  
imaging
$1.1bn
Nuclear 
detection
$1.2bn
Security  
screening
$370m
Strategy will be formally reviewed 
on an annual basis to reﬂect technology 
and market developments.
Element
Focus only on applications 
where Kromek’s IP can have 
major commercial impact 
and utilise common product 
platforms where possible
Element
Use both organic growth and 
selective acquisition for growth
Element
Evolve towards a more sector-
focused divisionalised structure
4 5 6
Driver
 Higher margins and reduced adoption 
risk. Given broad opportunities, focus 
on those with highest differentiation 
and value
 Reduce cost and lower 
development time
Driver
 Maximising growth opportunity 
and rate
 Access channels to market
 Consolidation of capabilities
Driver
 Maximise the efﬁcacy of core technology 
and IP investments whilst recognising 
and addressing different cultures, buying 
cycles and needs in end user markets
 Better serve customers within 
the individual sectors
 Enhance sector expertise
Example execution during the year
Winning contract to supply Kromek’s 
CZT imaging modules in China.
New products developed (e.g. Quant for 
GR1) based on common core technology.
Example execution during the year
Completion of highly successful operational 
integration and turnaround of eV Products 
post acquisition in the second half of the 
previous ﬁnancial year with sales growth 
and advances made in CZT growth and 
detector manufacturing techniques.
Example execution during the year
Review of IP management processes 
and review of IP assets versus market 
needs and competition.
Investment in key additional sector-focused 
sales capability and resources.
Cumulative market size of sub-segments addressed by Kromek.
Strategic report Corporate governance Financial statements Overview Kromek Group plc  Annual report and accounts 2014 14
Our technology
Kromek has a diverse, IP-rich technology base 
and is continuing to build expertise based on 
its core competencies of materials technology 
and advanced x-ray imaging architectures.
Why CZT?
High energy 
radiation
High energy 
radiation
ASIC signal readout
High resolution 
spectra and images
CZT directly 
converts radiation 
to electrical signals
Scintillator converts 
radiation to light
Light is collected 
by photomultiplier 
or photodiode
Photodetector 
electronics
Low resolution 
spectra and images
Kromek’s products are predominately based on CZT. CZT is 
a compound semiconductor made from the elements cadmium, 
zinc and tellurium and has long attracted strong market 
interest as the basis for advanced radiation detectors or 
imagers, due to its ability to absorb radiation efﬁciently and 
directly convert incoming radiation to an electronic signal. 
CZT is very dense, absorbing x-ray and gamma-ray radiation 
effectively, improving the sensitivity of positive detection 
and providing the ability to use lower doses in active 
imaging applications. 
The direct generation of an electronic signal eliminates the 
need for the two stage process used in scintillations, providing 
a signiﬁcantly improved spacial and energy resolution. The 
improved spacial resolution provides the ability to resolve 
smaller features within an image, while better energy resolution 
is key to identify and differentiate materials in the image. CZT 
detectors have the additional advantage of being operational 
at room temperature, which reduces the cost and increases 
the versatility of its implementation, an important aspect 
to its commercial application.
CZT’s electrical properties allow the material to reveal sensitive 
information about the different energies of radiation being 
detected. The ability to detect and display different energies 
is analogous to detecting different colours of the spectrum 
of light. Energy discrimination in x-ray and gamma-ray 
detection, combined with Kromek’s additional proprietary 
technologies, can be used to reveal advanced information 
about the material content of an object or the environment, 
which aids detection of harmful substances such as explosives, 
cancerous cells or nuclear materials emitting dangerous 
levels of radiation.
Strategic report Kromek Group plc  Annual report and accounts 2014 15 Group plc  Annual report and ac
The Group has a deep expertise in CZT detector production 
combined with a complete set of closely integrated capabilities 
to utilise them in meeting customers’ needs.
Our competitive advantage
Multispectral technology leadership based on 
CZT semiconductor capabilities and a complete 
“semiconductor to solutions” offering for customer 
applications and development.
Medical imaging
 Gamma probe
 CT
 SPECT/Molecular 
breast image
 BMD
Security screening
 Liquid scanning
 Carry-on luggage
 Checked baggage
Nuclear detection
Nuclear safeguard
 Handheld
 Network detectors
Civil nuclear
 Environmental 
monitoring 
 Health physics
 Waste management
Commercial methods 
for the production for CZT:
High pressure 
Bridgman (“HPB”)
A mature method reaching the end of its lifespan. This method 
requires extraction of usable materials from a mixed quality boule; 
the quality of crystals are generally lower compared to other 
methods and it is limited to single-crystal grain size. The small 
single-crystal sizes are, however, well matched to x-ray applications.
Travelling heater 
method (“THM”)
Currently the most commonly used method. Further process 
improvements have been made by the Group during the past 
ﬁnancial year. The process takes longer than HPB; however 
little material extraction is required. Material uniformity offers 
beneﬁcial properties for gamma-ray applications.
Multi-tube physical 
vapour transport (“MTPVT”)
The most recently developed, its advantages are ﬂexibility and the 
ability to adapt to large wafer sizes with a high purity crystal boule 
requiring limited material extraction processes. One of the principal 
advantages of this process is the ability to tailor-make material 
properties. Kromek has the only vapour-based bulk growth method 
developed worldwide, developed over 25 years, initially at 
Durham University. Kromek’s technical lead in this emerging 
production process is critical in relation to its non-recurring 
engineering offerings and is an enabling technology for 
future products.
Strategic report Corporate governance Financial statements Overview Kromek Group plc  Annual report and accounts 2014 16
Our markets
Kromek operates in three key global 
markets: medical imaging, nuclear 
detection and security screening.
The Group has developed and enhanced its 
market presence in 2013–14, resulting in revenue 
growth of 122% and important new contract wins.
Medical imaging, nuclear detection and security screening all have three common and 
growing trends: improved radiation resolution and sensitivity; the ability to identify different 
radiation energies (colour); and the direct and timely identiﬁcation of materials. The Group’s 
products are focused on addressing each of these needs within each market.
Medical imaging Nuclear detection Security screening
Market CT SPECT BMD
Gamma 
probe
Safeguard Civil Liquid Checkpoint Checked
Kromek 
offering
Type OEM component
EUP and 
component
EUP EUP
OEM component 
and algorithm
Channel strategy Direct
Distribution/
white labelling/
direct
Distribution Distribution Direct
Regulatory 
framework
Approval based but procurement not 
inﬂuenced by regulation
Standards-based 
regulations 
Low inﬂuence 
on procurement
Framework for 
customer high
Low inﬂuence 
on procurement
Approval and implementation 
time scales
In US, Transport Safety 
Administration (“TSA”) both 
regulator and procurement agency
Nature of 
customer
Global OEMs
Niche 
OEMs
Government 
agencies/OEMs
Private nuclear 
companies and 
government 
agencies
Public and 
private airport 
groups
Global OEMs
Competition
Niche component level 
companies for new generation
Established component 
level companies
Established OEMs
New EUP companies
Niche EUP 
companies
Established component 
level companies
The Group has a diverse and international customer base, 
including a number of leading international OEMs within the 
medical sector, international research institutions and end 
product users within the medical imaging, nuclear detection 
and security screening markets.
Strategic report Kromek Group plc  Annual report and accounts 2014 17
Medical imaging
This is a large and diverse global market estimated to be worth 
over $23bn p.a. with demand underpinned by growing global 
living standards and ageing populations. An average growth 
of around 5% contains signiﬁcant variation between markets. 
End users include hospitals, clinics and diagnostic centres. 
Regulators and large OEMs are both inﬂuential in market 
development. Various techniques involving ionising radiations 
(x-ray, etc.) jointly represent the largest market share. Kromek 
is involved only in certain sub-segments of these, including CT, 
bone mineral densitometry (“BMD”) and single photon emission 
computed tomography (“SPECT”). 
The largest vendors in the space are GE, Siemens, Toshiba 
and Philips, with over 80% market share in total. The US remains 
the single most important geographical market for medical 
diagnostic imaging (circa 35%) but the highest growth is in Asia, 
which already accounts for a little under 30% of the market.
Drivers include the increased efﬁciency of digital rather than 
analogue imaging, the desire for richer diagnostic information 
capture, a focus on reduced diagnostic radiation doses in OECD 
countries and the general rapid growth in health expenditure 
in BRIC economies.
Asia has the highest growth 
driven by the increasing 
size, average age and health 
of its population
has Asia h
ven b driv
aver size, a
of it
Strategic report Corporate governance Financial statements Overview
Potential addressable 
market for Kromek’s products
$1.1bn
Adoption driver
Functional information-rich imaging, 
lower doses, earlier diagnosis, 
more efﬁcient treatment and lower 
cost of care, resulting in better 
clinical outcomes.
Example Kromek beneﬁt to customers
Better diagnosis because there is 
new and better quality information 
for detection of cancer, cardiac 
abnormalities and bone mineral 
density in the human body. Kromek Group plc  Annual report and accounts 2014 18
Our markets continued
Nuclear detection
 Nuclear safeguard
First responders, military and civil defence
In addition to standalone devices, Kromek has developed 
the capability to address the rapidly increasing interest in 
portable networked sensors for both civil and defence applications. 
There is an increasing trend towards establishing high performance 
detector networks that can provide real-time position and 
radiation information. 
As is common in this sector Kromek also has component level 
products businesses. Components provide revenue generation 
opportunities and are also the building blocks of EUPs 
in the portfolio.
Adoption driver
More accurate radiation detection 
and proﬁling of radioactive sources 
for increasing drive to improve 
safety for people and the environment.
Example Kromek beneﬁt to customers
Better information on radiation 
and source type through use of high 
resolution CZT detectors; design 
allows for a small portable instrument 
suitable for ﬁeld and in situ use as 
single or networked detectors.
 Civil nuclear
Active and new reactors, decommissioning
Kromek is active in the health physics, environmental monitoring, 
and waste management sub-segments. Kromek can meet user 
needs for portable radiation detectors that are both sensitive 
and versatile in usage, to both monitor and characterise any 
hazards. Kromek’s products enable our customers to cut operational 
time and carry out monitoring and investigative work in a ﬁeld 
that is often challenging with existing products.
Globally, there are around 950 power stations in operation, 
plus approximately 250 research reactors and around 200 
nuclear reactors on ships and submarines. Over 130 nuclear 
reactors have been shut down around the world, but fewer than 
20 have been fully decommissioned. Drivers come from both 
old and new infrastructure. Signiﬁcant new build programmes are 
underway, especially in Asia which is driven by a desire for energy 
independence and a lower carbon footprint. In the US and Europe 
the driver is both the monitoring of current plants and the 
multibillion decommissioning programmes that are to be 
completed over the next two decades. Costs per plant vary; 
they are in the order of a few hundred million dollars per plant. 
West Europe alone has 150 plants to decommission by 2030 
and GlobalData has estimated that it will cost at least $81bn.
Strategic report
Potential addressable 
market for Kromek’s products
$1.2bn Kromek Group plc  Annual report and accounts 2014 19
Kromek focuses on these areas of the security screening market: 
standalone liquid screening equipment, carry-on baggage screening 
and checked-in baggage screening. The total security screening 
market is estimated to be worth roughly $875m p.a. with a growth 
rate of about 5% with considerable variation between segments.
It is a strongly regulated environment with the TSA in the US and 
the European Regulatory Committee for Civil Aviation Security 
(“ECAC”) in Europe being the most inﬂuential standard setters 
worldwide, with considerable co-ordination between them. 
Regulation acts not only to set standards but as a driver of 
replacement and upgrade cycles.
Other growth drivers include: speciﬁc events (such as new 
threats), a steady increase in passenger volumes and airport 
expansion – especially in the Middle East and Asia – and the 
globalisation of trade boosting airfreight volumes.
Material identiﬁcation is a primary focus for aviation security 
with regards to LAGs that are carried in hand luggage. EU 
legislation (EU Regulation 246/2013) that came into effect 
from 31 January 2014 states that it is mandatory to screen 
all LAGs obtained at an airport or on board an aircraft and then 
presented at airport security for onward travel with equipment 
approved by ECAC. This ability to carry such cleared materials 
between ﬂights is the ﬁrst part of an overall programme to relax 
restrictions on passenger LAGs by 2016. The market is at an 
early stage in its development with the majority of the global 
procurement still to occur.
Signed on behalf of the Board of Directors
Dr Arnab Basu MBE  Derek Bulmer
Chief Executive Ofﬁcer  Chief Financial Ofﬁcer
27 August 2014
w
ort 
the 
rity 
ct 
n 
d then 
ment 
Chief Executive Ofﬁcer Chief Financial Ofﬁcer
27 August 2014
The LAGs market is at an 
early stage in its development 
with the majority of the global 
procurement still to occur
Strategic report Corporate governance Overview
Security screening
Adoption driver
Improved baggage scanning, 
lowering false alarms. Mandated 
demand (EU and other geographic 
areas) for LAGs scanners since 
January 2014.
Example Kromek beneﬁt to customers
Simple to use with high 
performance in terms of explosive 
detection and low false alarm rate 
through more accurate content 
characterisation and ability to scan 
all container types, including cans.
Potential addressable 
market for Kromek’s products
$370m Kromek Group plc  Annual report and accounts 2014 20
Board of Directors
Mr Richard Morgan, Chairman
is the CEO of Amphion Innovations plc, 
a London and New York-based venture 
capital ﬁrm listed on AIM. Richard has been 
directly involved in the start-up and 
development of more than 30 companies 
in the IT and medtech industries, including 
Celgene, MediSense, Sequus, Quidel and 
Vortech Data. He spent 15 years with British 
merchant bank Schroders plc, as a board 
member and founding head of the Schroder 
Strategy Group. Richard has a B.Eng ﬁrst 
class honours from Auckland University, 
New Zealand, and has completed the 
Advanced Management Program at 
Harvard Business School. He chaired 
the audit committee in an interim capacity 
until Charlotta Ginman’s appointment.
Mr Peter Bains, Director
had a 23-year career at GlaxoSmithKline, 
where he held senior strategic and operational 
roles including general manager of China, 
head of global marketing and senior VP 
of international commercial operations. 
A consultant since 2009, he specialises 
in supporting strategic growth opportunities 
in small/medium-sized innovation-based 
life science companies serving as 
non-executive director for Tokyo listed 
biotech company, Sosei, and Biocon 
subsidiary, Syngene, and as non-executive 
chairman of Fermenta Biotech Ltd. 
Peter holds a BSc combined honours 
in physiology/zoology from 
Shefﬁeld University.
Dr Arnab Basu MBE, 
Chief Executive Ofﬁcer
has a PhD in physics from Durham 
University, specialising in semiconducting 
sensor materials. Arnab held senior 
management positions in his family 
business, which manufactured materials 
for the electronics industry serving over 
250 major telecommunications and 
consumer electronics manufacturers, 
including Siemens, GEC. He worked 
in commercial product development 
for Elmwood Sensors Ltd (Honeywell 
Group, UK). A prominent ﬁgure within 
the business community, he was awarded 
Ernst and Young Entrepreneur of the Year 
(2009) and received an MBE for services 
to regional development and international 
trade (2014).
Professor Brian Tanner, Director
is dean for university enterprise and 
professor of physics at Durham University. 
With an international reputation in x-ray 
characterisation of materials, and in 
particular semiconductors, he has published 
over 375 papers in international peer-
reviewed journals and is the author or 
co-author of four books. He received the 
Queen’s Award for Enterprise Promotion 
(2012) and the Barrett Award of the 
International Centre for Diffraction Data 
(2005). Brian holds, or has held, several 
directorships in addition to Kromek. He 
was a member of the governing council 
of Durham University for 15 years.
Mr Derek Bulmer, Executive 
Director and Chief Financial Ofﬁcer
is a qualiﬁed chartered accountant and 
barrister. Derek has worked with KPMG 
and undertaken a number of senior 
management roles with blue-chip PLCs 
including Bass plc, AWG plc and Ibstock plc. 
Additionally, and more recently, a number 
of roles as ﬁnance director of privately 
owned groups in both the IT and oil and 
gas industries have provided a wealth of 
experience in executing and managing 
business acquisitions plus signiﬁcant 
aspects of the commercial and legal 
disciplines of corporate management.
Mr Jerel Whittingham, Director and 
remuneration committee chairman
has extensive experience in investor, 
operational and strategy roles with 
technology-rich companies including 
Incuvest LLC, Generics Group PLC, 
Durlacher PLC, Inmarsat plc and a 
number of start-ups. He has been involved 
with Kromek since 2003 as its ﬁrst external 
advisor before joining the Board in 2005. 
Currently he combines non-executive director 
and operational roles in technology growth 
companies. Jerel is former managing 
director and then non-executive director 
of Amphion Innovations plc (AIM). He 
also served as CEO and later executive 
chairman of Myconostica Ltd. 
Corporate governance Kromek Group plc  Annual report and accounts 2014 21
Professor Max Robinson, 
Founder Director
provided business angel ﬁnance in order to 
establish Kromek. He is a highly respected 
academic and a pioneer, inventor and 
visionary in the ﬁeld of 3D x-ray imaging. 
He has been involved in the management 
of the interface between academic research 
and the commercialisation of its ﬁndings 
for 35 years. Max has been named as one 
of the top 100 academic entrepreneurs by 
the Times Higher Education supplement and 
currently holds the position of entrepreneur 
in residence at Newcastle University.
Ms Charlotta Ginman, Director 
and audit committee chairman 
brings substantial experience in ﬁnancial 
and operational management gained 
during her career in investment banking 
and global telecommunications. Joining 
Ernst & Young and later appointed to senior 
roles with JP Morgan, Deutsche Bank 
and UBS, Charlotta progressed to director 
of ﬁnance at Nokia Corporation, overseeing 
a number of acquisitions and leading the 
successful sale of Nokia’s luxury mobile 
phone division, Vertu Corporation, to a 
private equity group. A chartered accountant, 
Charlotta also holds an MSc in Economics 
from the Swedish School of Economics 
and Business Administration in Helsinki.
Dr Graeme Speirs, Director
is an experienced entrepreneur and 
owner of the Polymer Holdings Group 
and Polymer N2, an investment company 
focused on UK start-ups in the technology, 
life sciences and energy sectors. Graeme 
graduated with ﬁrst class honours in 
chemistry and a PhD in molecular physics 
from Aberdeen University, and holds 
a masters degree in technology and 
economics from Birmingham University. 
Involved in the oil and gas industry, 
Graeme is an expert in the design 
and manufacture of polymer 
composite products.
Mr Lawrence Kinet, Director
has 40 years’ experience in the medical 
device and bio-pharmaceutical industry 
in leadership positions, most recently as 
group chief executive of LMA International 
NV and president of Smiths Medical, 
London. Lawrence has raised more than 
$100m in funding for early stage companies, 
taking one through an IPO, and made over 
$1bn worth of acquisitions. His career began 
at Baxter International, running a number 
of overseas operations, eventually becoming 
president of Baxter’s international division. 
He holds a BSc from the University of 
Birmingham (UK) and an MBA from the 
University of Chicago.
Strategic report Corporate governance Financial statements Overview Kromek Group plc  Annual report and accounts 2014 22
Risk description Mitigation
Risks associated with competition
Kromek faces competition from two types of competitor: 
specialised companies targeting discrete markets and divisions 
of large integrated device manufacturers. 
The Group’s current and future competitors may develop 
superior technology or offer superior products, sell products 
at a lower price or achieve greater market acceptance in the 
Group’s target markets. Competitors may have longer operating 
histories, greater name recognition and access to larger customer 
bases and resources and so be able to respond more quickly 
to changing customer demands or to devote greater resources 
to the development, promotion and sale of their products 
than Kromek can.
To the extent possible, Kromek carefully monitors 
competing technologies and product offerings. The Group 
intends to continue to make commercially driven investments 
in developing new technologies and products to maintain a 
strong technology position and is investing in further and more 
specialised marketing and sales resources. Group IP gives some 
additional protection and we have invested in new IP management 
systems and processes in the last ﬁnancial year.
Risks associated with management of the Group’s growth strategy
The ability of the Group to implement its strategy in rapidly 
evolving and competitive markets will require effective 
management planning and operational controls. Signiﬁcant 
expansion will be required to respond to market opportunities 
and the Group’s future growth and prospects will depend on 
its ability to manage this growth and to continue to expand 
and improve operational and ﬁnancial performance, whilst 
at the same time maintaining effective cost controls. 
Kromek’s experienced management team is well versed in 
the current markets available to the Group and well positioned 
to adapt to any changes in those markets. The Company 
also has detailed control systems including R&D cost control 
and extensive project management criteria.
The Group has demonstrated its ability to identify, execute and 
integrate M&A opportunities with its two successful US acquisitions.
Risks associated with product and technology adoption rates
The rate of market acceptance of the Group’s products is 
uncertain as many factors inﬂuence the adoption of new 
products including changing needs, regulation, marketing 
and distribution, users’ habits and business systems 
and product pricing.
With a widely applicable technology base the Group only 
chooses opportunities in which it believes there is a good 
match between its rare or unique capabilities and strong 
adoption drivers in growing large markets. The use of 
common technology platforms across multiple markets 
and applications reduces the investment risk in any given 
market segment and diversiﬁes overall adoption risk.
Risks are reviewed on a regular basis by the 
Board to identify any changes in risk proﬁles and to 
consider the optimal range of mitigation strategies.
Review of principal risks
Corporate governance Kromek Group plc  Annual report and accounts 2014 23
Risk description Mitigation
Risks associated with timing of customer or third party projects
The Group’s strategy includes co-development with, or licensing 
its technologies to, large OEM partners for additional development, 
manufacturing or subsequent marketing. Consequently the 
Group will be increasingly reliant on securing and retaining 
such partners, and delays in the progress of the development, 
manufacturing or marketing of the end product, as a result 
of a partner’s action or inaction, may delay the receipt 
of product-related revenues.
The Group has a diversiﬁed customer base and operates in a 
carefully selected portfolio of markets with different adoption 
risk and cycles. As part of its business model it also more directly 
controls a certain fraction of its revenues via the sale of complete 
EUPs in nine competing market segments.
Exchange rate ﬂuctuations
As a consequence of the international nature of its business, 
the Group is exposed to risks associated with changes in foreign 
currency exchange rates on both sales and operations. The 
Group is based in the UK and presents its ﬁnancial statements 
in pounds sterling. However, its subsidiaries eV Products, Inc. 
and NOVA R&D, Inc., operate in the US and earn revenues 
and incur costs in US dollars. A growing proportion of the 
Group’s future revenues are expected to be denominated in 
currencies other than pounds sterling. Exchange rate variations 
between currencies in which the Group operates could have a 
signiﬁcant impact on the Group’s reported ﬁnancial results.
Kromek is predominantly exposed to currency risk on sales 
and purchases made from customers and suppliers. Sales 
and purchases from customers and suppliers are made on 
a central basis and the risk is monitored centrally but not 
hedged utilising any forward exchange contracts. Apart from 
these particular cash ﬂows, the Group aims to fund expenses 
and investments in the respective currency and to manage 
foreign exchange risk at a local level by matching the currency 
in which revenue is generated and expenses are incurred.
Strategic report Corporate governance Financial statements Overview Kromek Group plc  Annual report and accounts 2014 24
As an AIM listed company, Kromek Group plc is not obliged 
to comply with the UK Corporate Governance Code published 
in September 2012 (the “Code”). However, the Board follows, 
as far as practicable, the recommendations on corporate 
governance of the Quoted Companies Alliance for companies 
with shares traded on AIM.
The Board
The Board normally meets at least eight times per year. Its 
direct responsibilities include setting annual budgets, reviewing 
trading performance, approving signiﬁcant capital expenditure, 
ensuring adequate funding, setting and monitoring strategy and 
reporting to shareholders. Between meetings there are monthly 
telephonic meetings between the Chairman, Chief Executive 
Ofﬁcer, Chief Financial Ofﬁcer and individual Non-Executive 
Directors. The Non-Executive Directors have a particular 
responsibility to ensure that the strategies proposed by the 
Executive Directors are fully considered.
Audit committee 
The audit committee is chaired by Charlotta Ginman, an 
Independent Non-Executive Director. The audit committee was 
previously chaired by Richard Morgan, the Chairman of the Group, 
who is currently a member of the audit committee. The other 
members are Peter Bains, an Independent Non-Executive Director, 
and Graeme Speirs, a large shareholder and Director of the Board. 
The committee meets at least once a year, but in practice, 
strives to meet at least four times a year. 
The audit committee is responsible for reviewing the half-year 
and annual ﬁnancial statements, interim management statements, 
preliminary results announcements and any other formal 
announcement or presentation relating to the Group’s ﬁnancial 
performance. The audit committee also reviews signiﬁcant 
ﬁnancial returns to regulators and any ﬁnancial information 
covered in certain other documents such as announcements 
of a price sensitive nature. 
The audit committee advises the Board on the appointment 
of external auditors and on their remuneration (both for audit 
and non-audit work) and discusses the nature, scope and 
results of the audit with the auditors. The audit committee 
reviews the extent of the non-audit services provided by the 
auditors and reviews with them their independence and 
objectivity. The Chairman of the audit committee reports 
the outcome of audit committee meetings to the Board 
and the Board receives minutes of the meetings.
Remuneration committee 
The remuneration committee is chaired by Jerel Whittingham, 
an Independent Non-Executive Director. The other members are 
Brian Tanner and Lawrence Kinet, Independent Non-Executive 
Directors. The committee is responsible for making recommendations 
to the Board, within agreed terms of reference, on the Group’s 
framework of executive remuneration and its cost. The committee 
determines the contract terms, remuneration and other beneﬁts 
for each of the Executive Directors, including performance 
related bonus schemes and pension rights. Further details 
of the Group’s policies on remuneration and service contracts 
are given in the Remuneration report. 
Relations with shareholders 
Communication with shareholders is given high priority. There 
is regular dialogue with major and/or institutional shareholders 
including presentations after the Group’s announcements of the 
half-year and full-year results. Presentations are also made to 
analysts at those times to present the Group’s results and report 
on developments. This assists with the promotion of knowledge 
of the Group in the investment marketplace and with shareholders. 
The Board uses both the annual report and ﬁnancial statements 
and the Annual General Meeting to communicate directly with 
private and institutional investors and welcomes their participation. 
The Chairman aims to ensure that the Chairs of the audit and 
remuneration committees are available at the Annual General 
Meeting to answer questions.
Corporate governance report
Corporate governance Kromek Group plc  Annual report and accounts 2014 25
Internal control 
The Board is responsible for establishing and maintaining 
the Group’s system of internal control and for reviewing its 
effectiveness. The system is designed to manage rather than 
eliminate the risk of failure to achieve the Group’s strategic 
objectives and can only provide reasonable and not absolute 
assurance against material misstatement or loss. As an AIM 
listed company, the Group does not need to comply with Code 
provision C2.1 regarding the Directors giving a summary of the 
process applied by the Board in reviewing the effectiveness of 
the system of internal control. Instead, the Directors have set 
out below some of the key aspects of the Group’s internal 
control procedures.
An ongoing process has been established for identifying, 
evaluating and managing the signiﬁcant risks faced by the 
Group. The process has been in place for the full year under 
review and up to the date of approval of the annual report and 
ﬁnancial statements. The Board regularly reviews this process 
as part of its review of such risks within its meetings. Where any 
weaknesses are identiﬁed, an action plan is prepared to address 
the issues and is then implemented. 
Each year the Board approves the annual budget. Key risk 
areas are identiﬁed, reviewed and monitored. Performance is 
monitored against budget, relevant action is taken throughout 
the year and updated forecasts are prepared as appropriate. 
Capital and development expenditure is regulated by a budgetary 
process and authorisation levels. For expenditure beyond 
speciﬁed levels, detailed written proposals have to be submitted 
to the Board for approval. Reviews are carried out after the 
purchase is complete. The Board requires management to 
explain any major deviations from authorised capital proposals 
and to seek further sanction from the Board. 
The Board has reviewed the need for an internal audit function 
and concluded that this is not currently necessary in view of the 
small size of the Group and the close supervision by the senior 
leadership team of its day-to-day operations. The Board will 
continue to keep this under review.
The Group has a whistle-blowing policy and procedures to 
encourage staff to contact the audit committee if they need to 
raise matters of concerns other than via the Executive Directors 
and senior leadership team. 
Going concern 
The Board of Directors has conﬁdence that the Group has 
adequate resources to continue in operational existence for 
the foreseeable future. Accordingly, it continues to adopt the 
going concern basis in preparing the annual report and 
ﬁnancial statements.
The Group has no external debt and at the statement of 
ﬁnancial position date had £6.6m of cash reserves. The Group 
prepares forecasts which show, taking into account reasonably 
possible changes in trading performance, that it has sufﬁcient 
resources to settle all of its liabilities as they fall due.
Strategic report Corporate governance Financial statements Overview Kromek Group plc  Annual report and accounts 2014 26
The Directors present their annual report on the affairs of the 
Group, together with the ﬁnancial statements and auditor’s 
report, for the year ended 30 April 2014. 
Principal activities 
Kromek Group plc is the leading developer of radiation detectors 
based on cadmium zinc telluride, providing improved detection 
and characterisation capabilities within the medical imaging, 
nuclear detection and security screening markets.
Future development 
Our development objectives for 2014–15 are disclosed in the 
Overview on page 7. 
Capital structure
The capital structure is intended to ensure and maintain strong 
credit ratings and healthy capital ratios in order to support the 
Group’s business and maximise shareholder value. It includes 
the monitoring of cash balances, available bank facilities 
and cash ﬂows.
No changes were made to these objectives, policies 
or processes during the year ended 30 April 2014. 
Results and dividends
The consolidated income statement is set out on page 32. 
The Group’s loss after taxation amounted to £3. 2m (2013: £0.6m). 
The Directors do not recommend the payment of a dividend 
for the year ended 30 April 2014.
During the year ended 30 April 2014, the Group made political 
donations of £nil (2013: £nil) and charitable donations of £nil 
(2013: £nil).
Directors
The Directors of the Group are shown on pages 20 and 21. All of 
the Directors were Directors for the whole of the year, with the 
exception of the following: Derek Bulmer, who was appointed 
Executive Director on 10 December 2013; Charlotta Ginman, who 
was appointed as a Non-Executive Director on 18 February 2014; 
and Peter Bains and Lawrence Kinet, who were appointed 
Non-Executive Directors on 30 August 2013. The emoluments 
and interests of the Directors in the shares of the Group are set 
out in the Remuneration report. 
Details of signiﬁcant events since the balance sheet date are 
contained in note 35 to the ﬁnancial statements. 
Information about the use of ﬁnancial instruments by the Group and 
its subsidiaries is given in note 34 to the ﬁnancial statements. 
The Directors, who served throughout the year except as noted, 
were as follows:
Dr A Basu MBE
Mr D Bulmer (existing CFO, joined the Board on 10 December 2013)
Mr R C E Morgan
Professor M Robinson
Professor B K Tanner
Mr J H Whittingham
Dr G K Speirs
Mr L Kinet (appointed 30 August 2013)
Mr P Bains (appointed 30 August 2013)
Ms C Ginman (appointed 18 February 2014)
Directors’ indemnities
The Group has made qualifying third party indemnity provisions 
for the beneﬁt of its Directors, which were made during the year 
and remain in force at the date of this report. 
Directors’ report 
Corporate governance Kromek Group plc  Annual report and accounts 2014 27
Statement of Directors’ responsibilities in respect 
of the Directors’ report and the ﬁnancial statements
The Directors are responsible for preparing the annual report 
and the ﬁnancial statements in accordance with applicable law 
and regulations. Group law requires the Directors to prepare 
ﬁnancial statements for each ﬁnancial year. Under that law the 
Directors have elected to prepare Group and parent company 
ﬁnancial statements in accordance with International Financial 
Reporting Standards (“IFRSs”) as adopted by the European Union. 
Under Group law the Directors must not approve the ﬁnancial 
statements unless they are satisﬁed that they give a true and fair 
view of the state of affairs of the Group and the parent company 
and of the proﬁt or loss of the Group and the parent company for 
the period. The Directors are also required to prepare ﬁnancial 
statements in accordance with the rules of the London Stock 
Exchange for companies trading securities on the AIM. In preparing 
these ﬁnancial statements, the Directors are required to:
 select suitable accounting policies and then apply 
them consistently;
 make judgements and estimates that are reasonable 
and prudent;
 state whether applicable IFRSs have been followed, subject 
to any material departures disclosed and explained in the 
ﬁnancial statements; and
 prepare the ﬁnancial statements on the going concern basis 
unless it is inappropriate to presume that the Group will 
continue in business.
The Directors are responsible for keeping adequate accounting 
records that are sufﬁcient to show and explain the Group’s 
transactions and disclose with reasonable accuracy at any time 
the ﬁnancial position of the Group and enable them to ensure that 
the ﬁnancial statements comply with the Companies Act 2006. 
They are also responsible for safeguarding the assets of the 
Group and hence for taking reasonable steps for the prevention 
and detection of fraud and other irregularities.
The Directors conﬁrm that:
 so far as each Director is aware, there is no relevant audit 
information of which the Group’s auditors are not aware; and
 the Directors have taken all steps that they ought to have taken 
to make themselves aware of any relevant audit information 
and to establish that the auditors are aware of that information.
The Directors are responsible for ensuring the annual report 
and the ﬁnancial statements are made available on a website. 
Financial statements are published on the Group’s website in 
accordance with legislation in the United Kingdom governing 
the preparation and dissemination of ﬁnancial statements, which 
may vary from legislation in other jurisdictions. The Directors 
are responsible for the maintenance and integrity of the corporate 
and ﬁnancial information included on the Group’s website.
Auditors
Each of the persons who is a Director at the date of approval 
of this annual report conﬁrms that:
 so far as the Director is aware, there is no relevant audit 
information of which the Group’s auditors are unaware; and
 the Director has taken all the steps that he/she ought to 
have taken as a Director in order to make himself/herself 
aware of any relevant audit information and to establish 
that the Group’s auditors are aware of that information.
This conﬁrmation is given and should be interpreted in accordance 
with the provisions of Section 418 of the Companies Act 2006. 
Deloitte LLP have expressed their willingness to continue in 
ofﬁce as auditors and a resolution to reappoint them will be 
proposed at the forthcoming Annual General Meeting.
By order of the Board
Dr Arnab Basu MBE
Chief Executive Ofﬁcer
27 August 2014
Strategic report Corporate governance Financial statements Overview Kromek Group plc  Annual report and accounts 2014 28
As the Group is AIM listed, the Directors are not required, under 
Section 420(1) of the Companies Act 2006, to prepare a Directors’ 
remuneration report for each ﬁnancial year of the Group and so 
Kromek Group plc makes the following disclosures voluntarily, 
which are not intended to, and indeed do not, comply with the 
requirements of the Companies Act 2006. 
The remuneration committee is responsible for recommending 
the remuneration and other terms of employment for the 
Executive Directors of Kromek Group plc.
In determining remuneration for the year, the committee has 
given consideration to the requirements of the UK Corporate 
Governance Code. 
Remuneration policy 
The remuneration of Executive Directors is determined by the 
committee and the remuneration of Non-Executive Directors is 
approved by the full Board of Directors. The remuneration of the 
Chairman is determined by the Independent Non-Executive Directors. 
The remuneration packages of Executive Directors comprise 
the following elements: 
Basic salary and beneﬁts 
Basic salaries for Executive Directors are reviewed annually having 
regard to individual performance and market practice. In most 
cases beneﬁts provided to Executive Directors comprise the 
provision of a Group car, or appropriate allowance, health insurance 
and contributions to a Group personal pension scheme. 
Annual bonus 
A bonus may be awarded at the end of each ﬁnancial year, 
at the discretion of the remuneration committee, currently 
ranging from a maximum of 25–75% of basic salary to reward 
for Executives’ contribution to the growth in revenue, and 
speciﬁc targeted or strategic objectives.
Long-Term Incentive Plan (“L TIP”) 
The Group believes that share ownership by Executive Directors 
and employees strengthens the link between their personal 
interests and those of the Group and the shareholders. 
The Group has executive share option and incentive schemes, 
which are designed to promote long-term improvement in the 
performance of the Group, sustained increase in shareholder 
value and clear linkage between executive reward and the 
Group’s performance. 
The LTIP is based on total shareholder return (“TSR”) relative to an 
AIM peer group. Any awards made vest only after three years.
Service contracts 
Arnab Basu and Derek Bulmer each have a service contract with a 
notice period (to the Company) of nine and six months respectively.
The committee considers the Directors’ notice periods to be 
appropriate as they are in line with the market and take account 
of the Directors’ knowledge and experience. 
Non-Executive Directors 
The fees of the Non-Executive Directors are determined by 
the full Board within the limits set out in the Memorandum 
and Articles of Association. The Non-Executive Directors are 
not eligible for bonuses, pension beneﬁts or share options. 
Directors’ emoluments 
Emoluments of the Directors for the year ended 30 April 2014 
are shown below. 
Pension contributions 
During the year, the Group made annual pension contributions 
for Arnab Basu and Derek Bulmer to a personal pension scheme 
(i.e. a deﬁned contribution scheme). Neither beneﬁts in kind nor 
bonuses are pensionable. 
Details of contributions payable by the Group are: 
30 April 2014 30 April 2013
Director £’000 £’000
Arnab Basu 30 24
Derek Bulmer 4 —
Directors’ shareholdings 
Beneﬁcial interests of the Directors in the shares of the Group are shown below:
30 April 2014 30 April 2013
Number % Number %
Arnab Basu 2,000,000 1.9 2,000,000 2.6
Richard Morgan* 12,782,730 11.8 12,782,730 16.3 
Graeme Speirs** 14,792,730 13.8 14,792,730 18.9 
Jerel Whittingham 110,450 0.1 110,450 0.1
Brian Tanner 750,000 0.7 750,000 1.0
Max Robinson 9,500,000 8.8 9,720,000 12.4
*  Richard Morgan is interested in Kromek Group plc through Amphion Innovations plc which owns 12,450,420 ordinary shares amounting to 11.5% of the issued share capital.
**  Graeme Speirs is interested in Kromek Group plc through Polymer Holdings Ltd which owns 11,377,790 ordinary shares amounting to 10.6% of the issued share capital.
Directors’ remuneration report
Corporate governance Kromek Group plc  Annual report and accounts 2014 29
Directors’ emoluments for the year ended 30 April 2014
Total Total
Pension emoluments emoluments
Salary Fees Beneﬁts Bonus contributions 2014 2013
£’000 £’000 £’000 £’000 £’000 £’000 £’000
Non-Executive Chairman
Richard Morgan — 39 — — — 39 —
Executive
Arnab Basu 177 — 4 — 30 211 205
Derek Bulmer* 48——— 4 52 —
Non-Executive
Graeme Speirs — 22——— 22 —
Max Robinson — 20——— 20 —
Brian Tanner — 22 — — — 22 —
Jerel Whittingham — 24 — — — 24 —
Charlotta Ginman** — 8——— 8 —
Peter Bains*** — 28 — — — 28 —
Lawrence Kinet*** — 28 — — — 28 —
225 191 4 — 34 454 205
*  Derek Bulmer joined the Board on 10 December 2013.
** Charlotta Ginman joined the Board on 18 February 2014.
***  Peter Bains and Lawrence Kinet joined the Board on 30 August 2013.
Executive Directors’ share incentive scheme 
Share incentive scheme for Arnab Basu, Chief Executive 
Ofﬁcer, and Derek Bulmer, Chief Financial Ofﬁcer
The remuneration committee agreed, in October 2013, an incentive 
award scheme for Arnab Basu and Derek Bulmer, to offer them 
shares up to 372,057 and 158,292 respectively, at a price of 
1p per share to vest based on speciﬁed performance criteria. 
These are measured by a TSR condition, calculated as the 
average total return in comparison to a peer group. The Board 
receives specialist advice from the Group’s accountants.
As at 30 April 2014, no shares had vested under this 
incentive scheme.
Share price during the year 
During the year to 30 April 2014, the highest share price was 
81.0p and the lowest share price was 36.0p. The market price 
of the shares at 30 April 2014 was 41.5p. 
Directors’ interests in material contracts 
No Director was materially interested either at the year end 
or during the year in any contract of signiﬁcance to the Group 
other than their employment or service contract.
Executive Directors’ share options 
Exercise AwardedExercised At 30 April
Date price 2013 during the during the 2014 Expiry
Director of grant p Number year year Number date
Arnab Basu 22 September 2006 1.5 720,000 — — 720,000 22 September 2016
Arnab Basu 15 May 2007 1.5 160,000 — — 160,000 15 May 2017
Arnab Basu 20 November 2011 20.0 1,000,000 — — 1,000,000 20 November 2021
Derek Bulmer 13 September 2010 20.0 500,000 — — 500,000 13 September 2020
Derek Bulmer 15 October 2012 20.0 125,000 — — 125,000 15 October 2022
Derek Bulmer 31 May 2013 20.0 — 250,000 — 250,000 31 May 2023
Strategic report Corporate governance Financial statements Overview Kromek Group plc  Annual report and accounts 2014 30
Independent auditor’s report
To the members of Kromek Group plc
We have audited the ﬁnancial statements of Kromek Group plc for the year ended 30 April 2014 which comprise the consolidated 
income statement, the consolidated statement of comprehensive income, the consolidated and company statements of ﬁnancial 
position, the consolidated and company statements of changes in equity, the consolidated and company statements of cash ﬂows 
and the related notes 1 to 51. The ﬁnancial reporting framework that has been applied in their preparation is applicable law and 
IFRSs as adopted by the European Union.
This report is made solely to the Company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. 
Our audit work has been undertaken so that we might state to the Company’s members those matters we are required to state to them 
in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility 
to anyone other than the Company and the Company’s members as a body, for our audit work, for this report, or for the opinions 
we have formed.
Respective responsibilities of Directors and auditor
As explained more fully in the Directors’ responsibilities statement, the Directors are responsible for the preparation of the ﬁnancial 
statements and for being satisﬁed that they give a true and fair view. Our responsibility is to audit and express an opinion on the 
ﬁnancial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards 
require us to comply with the Auditing Practices Board’s Ethical Standards for Auditors.
Scope of the audit of the ﬁnancial statements
An audit involves obtaining evidence about the amounts and disclosures in the ﬁnancial statements sufﬁcient to give reasonable 
assurance that the ﬁnancial statements are free from material misstatement, whether caused by fraud or error. This includes an 
assessment of: whether the accounting policies are appropriate to the Group’s and the parent company’s circumstances and have 
been consistently applied and adequately disclosed; the reasonableness of signiﬁcant accounting estimates made by the Directors; 
and the overall presentation of the ﬁnancial statements. In addition, we read all the ﬁnancial and non-ﬁnancial information in the 
annual report to identify material inconsistencies with the audited ﬁnancial statements and to identify any information that is 
apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by us in the course of performing 
the audit. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report.
Opinion on ﬁnancial statements
In our opinion:
 the ﬁnancial statements give a true and fair view of the state of the Group’s and of the parent company’s affairs as at 30 April 2014 
and of the Group’s and the parent company’s loss for the year then ended;
 the Group ﬁnancial statements have been properly prepared in accordance with IFRSs as adopted by the European Union;
 the parent company ﬁnancial statements have been properly prepared in accordance with IFRSs as adopted by the European 
Union and as applied in accordance with the provisions of the Companies Act 2006; and
 the ﬁnancial statements have been prepared in accordance with the requirements of the Companies Act 2006 and, as regards 
the Group ﬁnancial statements, Article 4 of the IAS Regulation.
Financial statements Kromek Group plc  Annual report and accounts 2014 31
Separate opinion in relation to IFRSs as issued by the IASB
As explained in note 3 to the Group ﬁnancial statements, the Group, in addition to complying with its legal obligation to apply IFRSs 
as adopted by the European Union, has also applied IFRSs as issued by the International Accounting Standards Board (“IASB”).
In our opinion the Group ﬁnancial statements comply with IFRSs as issued by the IASB.
Opinion on other matters prescribed by the Companies Act 2006
In our opinion the information given in the Strategic report and the Directors’ report for the ﬁnancial year for which the ﬁnancial 
statements are prepared is consistent with the ﬁnancial statements.
Matters on which we are required to report by exception
We have nothing to report in respect of the following:
Under the Companies Act 2006 we are required to report to you if, in our opinion:
 adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been 
received from branches not visited by us; or
 the parent company ﬁnancial statements and the part of the Directors’ remuneration report to be audited are not in agreement 
with the accounting records and returns; or
 certain disclosures of Directors’ remuneration speciﬁed by law are not made; or
 we have not received all the information and explanations we require for our audit.
David Wilkinson FCA CF (Senior Statutory Auditor)
For and on behalf of Deloitte LLP
Chartered Accountants and Statutory Auditors
Newcastle upon Tyne, United Kingdom
27 August 2014
Strategic report Corporate governance Financial statements Overview Kromek Group plc  Annual report and accounts 2014 32
Consolidated statement of comprehensive income
For the year ended 30 April 2014
Year Year
ended ended
2014 2013
Note £’000 £’000
Continuing operations
Revenue 5 5,972 2,691
Cost of sales (2,101) (1,431)
Gross proﬁt 3,871 1,260
Other operating income 5 719 25
Distribution costs (144) (110)
Administrative expenses (including operating expenses) (8,226) (5,077)
Operating loss (3,780) (3,902)
Finance income 10 15 —
Finance costs 11 (530) (171)
Negative goodwill released to the income statement — 2,417
Loss before tax (4,295) (1,656)
Tax 12 1,106 1,013
Loss for the year from continuing operations (3,189) (643)
Losses per share: 14
– Basic and diluted (£) (0.05) (0.08)
– Adjusted basic and diluted (£)* (0.05) (0.40)
* The adjusted losses per share do not take into account the negative goodwill released to the income statement in 2013.
Year Year
ended ended
2014 2013
£’000 £’000
Loss for the year (3,189) (643)
Exchange differences on translation of foreign operations (641) 200
Total comprehensive losses for the year (3,830) (443)
Consolidated income statement 
For the year ended 30 April 2014
Financial statements Kromek Group plc  Annual report and accounts 2014 33
30 April 30 April
2014 2013
Note £’000 £’000
Non-current assets
Goodwill 15 1,275 1,275
Other intangible assets 16 6,965 6,137
Property, plant and equipment 17 2,285 3,005
10,525 10,417
Current assets
Inventories 19 2,389 2,098
Trade and other receivables 20 1,907 1,579
Current tax assets 12 696 767
Cash and bank balances 6,563 309
11,555 4,753
Total assets 22,080 15,170
Current liabilities
Trade and other payables 23 (3,210) (3,149)
Current tax liabilities — (1)
Borrowings 21 — (2,449)
(3,210) (5,599)
Net current assets/(liabilities) 8,345 (846)
Non-current liabilities
Deferred tax liabilities 22 (1,134) (1,544)
Total liabilities (4,344) (7,143)
Net assets 17,736 8,027
Equity
Share capital 25 1,080 1,175
Share premium account 26 34,612 22,278
Capital redemption reserve 27 1,175 —
Translation reserve 28 (482) 159
Accumulated losses 29 (18,649) (15,585)
Total equity 17,736 8,027
The ﬁnancial statements of Kromek Group plc (registered number 8661469) were approved by the Board of Directors and authorised 
for issue on 27 August 2014. They were signed on its behalf by:
Dr Arnab Basu MBE
Chief Executive Ofﬁcer
Consolidated statement of ﬁnancial position
As at the year ended 30 April 2014
Strategic report Corporate governance Financial statements Overview Kromek Group plc  Annual report and accounts 2014 34
Consolidated statement of changes in equity
For the year ended 30 April 2014
Equity attributable to equity holders of the Company
Share Capital
Share premium redemption Translation Accumulated Total
capital account reserve reserve losses equity
£’000 £’000 £’000 £’000 £’000 £’000
Balance at 1 May 2012 1,175 20,330 — (41) (15,064) 6,400
Loss for the year — — — — (643) (643)
Other comprehensive income for the year — — — 200 — 200
Total comprehensive income/(losses) 
for the period ——— 200 (643) (443)
Issue of share capital — 1,948——— 1,948
Credit to equity for equity-settled 
share-based payments ———— 122 122
Balance at 30 April 2013 1,175 22,278 — 159 (15,585) 8,027
Loss for the year ———— (3,189) (3,189)
Other comprehensive losses for the year — — — (641) — (641)
Total comprehensive losses for the period ——— (641) (3,189) (3,830)
Issue of share capital net of expenses 301 13,113 — — — 13,414
Share reorganisation 779 (779) — — — —
Share buyback (1,175) — 1,175 — — —
Credit to equity for equity-settled 
share-based payments ———— 125 125
Balance at 30 April 2014 1,080 34,612 1,175 (482) (18,649) 17,736
Financial statements Kromek Group plc  Annual report and accounts 2014 35
Consolidated statement of cash ﬂows
For the year ended 30 April 2014
Year Year
ended ended
2014 2013
Note £’000 £’000
Net cash used in operating activities 30 (2,149) (1,245)
Investing activities
Interest received 15 —
Purchases of property, plant and equipment (187) (58)
Purchases of patents and trademarks (567) (400)
Capitalisation of research and development costs (1,061) (906)
Acquisition of overseas trade and assets — (1,272)
Deferred consideration — (53)
Net cash used in investing activities (1,800) (2,689)
Financing activities
Loans (paid)/received (2,449) 1,949
Proceeds on issue of shares 13,414 1,948
Interest paid (530) (171)
Net cash from ﬁnancing activities 10,435 3,726
Net increase/(decrease) in cash and cash equivalents 6,486 (208)
Cash and cash equivalents at beginning of year 309 477
Effect of foreign exchange rate changes (232) 40
Cash and cash equivalents at end of year 6,563 309
Strategic report Corporate governance Financial statements Overview Kromek Group plc  Annual report and accounts 2014 36
Notes to the consolidated ﬁnancial statements
For the year ended 30 April 2014
1. General information
Kromek Group plc is a company incorporated in the United Kingdom under the Companies Act. The address of the registered ofﬁce is 
given on page 68. The nature of the Group’s operations and its principal activities are set out in the Strategic report on pages 8 to 19.
These ﬁnancial statements are presented in pounds sterling because that is the currency of the primary economic environment 
in which the Group operates. Foreign operations are included in accordance with the policies set out in note 3.
2. Adoption of new and revised standards
During the current reporting period there were no new standards or amendments that had a material impact on the net assets 
of the Group. 
The following standards and interpretations issued by the IASB or IFRIC have not been adopted by the Group as these are not 
effective for the current year. The Group is currently assessing the impact these standards and interpretations will have on the 
presentation of its consolidated results in future periods:
 IFRS 15 ‘Revenue from Contracts with Customers’ (effective for accounting periods beginning on or after 1 January 2017). 
This amendment has not yet been endorsed for use in the EU.
3. Signiﬁcant accounting policies
Basis of preparation
The ﬁnancial statements have been prepared in accordance with IFRSs as adopted by the European Union and IFRIC interpretations. 
Therefore the Group ﬁnancial statements comply with Article 4 of the EU IAS Regulation.
The ﬁnancial statements have been prepared on the historical cost basis, except for the revaluation of certain properties and 
ﬁnancial instruments. Historical cost is generally based on the fair value of the consideration given in exchange for the assets. 
The principal accounting policies adopted are set out below.
Basis of consolidation
The consolidated ﬁnancial statements incorporate the results and net assets of the Group and entities controlled by the Group 
(its subsidiaries) made up to 30 April each year. Control is achieved where the Group has the power to govern the ﬁnancial 
and operating policies of an investee entity so as to obtain beneﬁts from its activities.
The results of subsidiaries acquired during the year are included in the consolidated income statement from the effective date of 
acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to results of subsidiaries 
to bring the accounting policies used into line with those used by the Group. All intra-group transactions, balances, income and 
expenses are eliminated on consolidation.
Merger accounting
In October 2013, when Kromek Group plc was included as the new ultimate parent entity as part of a Group reconstruction 
arrangement, the reconstructed Group was consolidated using merger accounting principles as outlined in Financial Reporting 
Standard 6 (“FRS”) “Acquisitions and Mergers” (UK) and treated the reconstructed Group as if it had always been in existence. 
The Company has taken advantage of merger relief available under Companies Act 2006 in respect of the share for share 
exchange as the issuing company has secured more than 90% equity in the other entity. The carrying value of the investment 
is carried at the nominal value of the shares issued.
Financial statements Kromek Group plc  Annual report and accounts 2014 37
3. Signiﬁcant accounting policies continued
Going concern
The Board of Directors has conﬁdence that the Group has adequate resources to continue in operational existence for the foreseeable 
future. Accordingly, it continues to adopt the going concern basis in preparing the annual report and ﬁnancial statements. 
The Group has no external debt and at the statement of ﬁnancial position date had £6.6m of cash reserves. The Group prepares 
forecasts which show, taking into account reasonably possible changes in trading performance, that it has sufﬁcient resources 
to settle all of its liabilities as they fall due. 
Business combinations 
The Group ﬁnancial statements consolidate those of the Company and its subsidiary undertakings. Subsidiaries are entities controlled 
by the Group. Control exists when the Group has the power, directly or indirectly, to govern the ﬁnancial and operating policies of an 
entity so as to obtain beneﬁts from its activities. In assessing control, potential voting rights that are currently exercisable or convertible 
are taken into account. The ﬁnancial information of subsidiaries is included from the date that control commences until the date that 
control ceases. Intra-group balances and transactions, and any unrealised income and expenses arising from intra-group transactions, 
are eliminated in preparing the consolidated ﬁnancial information. 
Acquisitions on or after 1 May 2010
For acquisitions on or after 1 May 2010, the Group measures goodwill at the acquisition date as:
 the fair value of the consideration transferred; plus
 the recognised amount of any non-controlling interests in the acquiree; plus
 the fair value of the existing equity interest in the acquiree; less
 the net recognised amount (generally fair value) of the identiﬁable assets acquired and liabilities assumed.
When the excess is negative, the negative goodwill is recognised immediately in proﬁt or loss.
Costs related to the acquisition, other than those associated with the issue of debt or equity securities, are expensed as incurred.
Goodwill
Goodwill arising in a business combination is recognised as an asset at the date that control is acquired (the acquisition date). 
Goodwill is measured as the excess of the sum of the consideration transferred, the amount of any non-controlling interest in the 
acquiree and the fair value of the acquirer’s previously held equity interest (if any) in the entity over the net of the acquisition-date 
amounts of the identiﬁable assets acquired and the liabilities assumed.
If, after reassessment, the Group’s interest in the fair value of the acquiree’s identiﬁable net assets exceeds the sum of the 
consideration transferred, the amount of any non-controlling interest in the acquiree and the fair value of the acquirer’s previously 
held equity interest in the acquiree (if any), the excess is recognised immediately in proﬁt or loss as a bargain purchase gain.
Goodwill is not amortised but is reviewed for impairment at least annually. For the purpose of impairment testing, goodwill is allocated 
to each of the Group’s cash-generating units (“CGUs”) expected to beneﬁt from the synergies of the combination. CGUs to which 
goodwill has been allocated are tested for impairment annually, or more frequently when there is an indication that the unit may be 
impaired. If the recoverable amount of the CGU is less than the carrying amount of the unit, the impairment loss is allocated ﬁrst to 
reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the 
carrying amount of each asset in the unit. An impairment loss recognised for goodwill is not reversed in a subsequent period.
On disposal of a subsidiary, the attributable amount of goodwill is included in the determination of the proﬁt or loss on disposal.
Strategic report Corporate governance Financial statements Overview Kromek Group plc  Annual report and accounts 2014 38
3. Signiﬁcant accounting policies continued
Revenue recognition
Revenue is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods 
and services provided in the normal course of business, net of discounts, VAT and other sales related taxes and comprises:
i)  Sale of goods
The Group’s income derives from the sale of goods and from the research and development contracts that are typically with 
government agencies. Revenue on product sales is recognised when the risk and reward of ownership pass to the customer. 
The terms of sale are agreed with each customer on an individual basis, which is generally when the goods are dispatched 
to the carrier. Revenue from research and development contracts is recognised as revenue in the accounting period in which 
the milestones and performance are achieved. 
ii) Long-term contracts
The Group reﬂects revenue from long-term contracts by reference to the stage of completion of the contract activity at the 
statement of ﬁnancial position date. Revenue and proﬁts are determined by estimating the outcome of the contract and determining 
the costs and proﬁt attributable to the stage of completion. Any expected contract loss is recognised immediately.
iii) Exclusivity contracts
The Group reﬂects exclusivity payments as revenue at the point that it contractually agrees to become exclusive. Where terms 
of exclusivity require performance the Group reﬂects the revenue as performance is delivered.
iv) Interest revenue
Interest income is recognised when it is probable that the economic beneﬁts will ﬂow to the Group and the amount of revenue 
can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective 
interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the 
ﬁnancial asset to that asset’s net carrying amount on initial recognition.
Leases
Leases are classiﬁed as ﬁnance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership 
to the lessee. All other leases are classiﬁed as operating leases.
The Group as lessee
Rentals payable under operating leases are charged to income on a straight-line basis over the term of the relevant lease except 
where another more systematic basis is more representative of the time pattern in which economic beneﬁts from the lease asset 
are consumed. Contingent rentals arising under operating leases are recognised as an expense in the period in which they are incurred.
In the event that lease incentives are received to enter into operating leases, such incentives are recognised as a liability. 
The aggregate beneﬁt of incentives is recognised as a reduction of rental expense on a straight-line basis, except where another 
systematic basis is more representative of the time pattern in which economic beneﬁts from the leased asset are consumed.
Foreign currencies 
The individual results of each Group company are presented in the currency of the primary economic environment in which it operates 
(its functional currency). For the purpose of the consolidated ﬁnancial statements, the results and ﬁnancial position of each Group 
company are expressed in pounds sterling, which is the functional currency of the Company, and the presentation currency for 
the consolidated ﬁnancial statements.
In preparing the results of the individual companies, transactions in currencies other than the entity’s functional currency (foreign 
currencies) are recognised at the rates of exchange prevailing on the dates of the transactions. At each statement of ﬁnancial 
position date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing at 
that date. Non-monetary items carried at fair value that are denominated in foreign currencies are translated at the rates prevailing 
at the date when the fair value was determined. Non-monetary items that are measured in terms of historical cost in a foreign 
currency are not retranslated.
Notes to the consolidated ﬁnancial statements continued
For the year ended 30 April 2014
Financial statements Kromek Group plc  Annual report and accounts 2014 39
3. Signiﬁcant accounting policies continued
Foreign currencies continued
Exchange differences are recognised in proﬁt or loss in the period in which they arise.
For the purpose of presenting consolidated ﬁnancial statements, the assets and liabilities of the Group’s foreign operations are 
translated at exchange rates prevailing on the statement of ﬁnancial position date. Income and expense items are translated at the 
average exchange rates for the period, unless exchange rates ﬂuctuate signiﬁcantly during that period, in which case the exchange 
rates at the date of transactions are used. Exchange differences arising, if any, are recognised in other comprehensive income 
and accumulated in equity. 
On consolidation, the results of overseas operations are translated into sterling at rates approximating to those ruling when the 
transactions took place. All assets and liabilities of overseas operations, including goodwill arising on the acquisition of those 
operations, are translated at the rate ruling at the statement of ﬁnancial position date. Exchange differences arising on translating 
the opening net assets at opening rate and the results of overseas operations at actual rate are recognised directly in other 
comprehensive income and are credited/(debited) to the retranslation reserve.
Government grants
Government grants are not recognised until there is reasonable assurance that the Group will comply with the conditions attaching 
to them and that the grants will be received.
Government grants towards job creation (“GBI”) costs are recognised as income over the periods necessary to match them with 
the related costs and are deducted in reporting the related expense.
Government grants relating to research and development (“GRD”) costs are treated as deferred income and released to proﬁt 
or loss over the expected useful lives of the assets concerned.
Operating result
Operating loss is stated as loss before tax, ﬁnance income and costs and other gains and losses.
Retirement beneﬁt costs 
The Group operates a deﬁned contribution pension scheme for employees.
Payments to deﬁned contribution retirement beneﬁt schemes are charged as an expense as they fall due. For these schemes 
the assets of the schemes are held separately from those of the Group in independently administered funds. Payments made 
to state-managed retirement beneﬁt schemes are dealt with as payments to deﬁned contribution schemes where the Group’s 
obligations under the schemes are equivalent to those arising in a deﬁned contribution retirement beneﬁt scheme.
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax. Tax is recognised in the income statement 
except to the extent that it relates to items recognised directly in equity, in which case it is recognised in equity.
i) Current tax
The tax currently payable is based on taxable proﬁt for the year. Taxable proﬁt differs from net proﬁt as reported in the income 
statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items 
that are never taxable or deductible. The Group’s liability for current tax is calculated using tax rates that have been enacted or 
substantively enacted by the statement of ﬁnancial position date.
Strategic report Corporate governance Financial statements Overview Kromek Group plc  Annual report and accounts 2014 40
Notes to the consolidated ﬁnancial statements continued
For the year ended 30 April 2014
3. Signiﬁcant accounting policies continued
Taxation continued
ii) Deferred tax
Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities 
in the statement of ﬁnancial position and the corresponding tax bases used in the computation of taxable proﬁt, and is accounted 
for using the statement of ﬁnancial position liability method. Deferred tax liabilities are generally recognised for all taxable temporary 
differences and deferred tax assets are recognised to the extent that it is probable that taxable proﬁts will be available against which 
deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary difference arises from 
the initial recognition of goodwill or from the initial recognition (other than in a business combination) of other assets and liabilities 
in a transaction that affects neither the taxable proﬁt nor the accounting proﬁt.
Deferred tax liabilities are recognised for taxable temporary differences arising on investments in subsidiaries and associates, and 
interests in joint ventures, except where the Group is able to control the reversal of the temporary difference and it is probable that 
the temporary difference will not reverse in the foreseeable future.
The carrying amount of deferred tax assets is reviewed at each statement of ﬁnancial position date and reduced to the extent that 
it is no longer probable that sufﬁcient taxable proﬁts will be available to allow all or part of the asset to be recovered.
Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised 
based on tax laws and rates that have been enacted or substantively enacted at the statement of ﬁnancial position date. Deferred 
tax is charged or credited in the income statement, except when it relates to items charged or credited in other comprehensive income, 
in which case the deferred tax is also dealt with in other comprehensive income. Deferred tax assets and liabilities are offset when 
there is a legally enforceable right to set off current tax assets against current tax liabilities and when they relate to income taxes 
levied by the same taxation authority and the Group intends to settle its current tax assets and liabilities on a net basis.
Property, plant and equipment
Fixtures and equipment are stated at cost less accumulated depreciation and any recognised impairment loss.
Depreciation is recognised so as to write off the cost or valuation of assets (other than land and properties under construction) 
less their residual values over their useful lives, using the straight-line method, on the following bases:
Plant and machinery  25%
Fixtures, ﬁttings and equipment 15%
Computer equipment  25%
The gain or loss arising on the disposal or scrappage of an asset is determined as the difference between the sales proceeds 
and the carrying amount of the asset and is recognised in income.
Internally generated intangible assets – research and development expenditure
Expenditure on research activities is recognised as an expense in the period in which it is incurred.
An internally generated intangible asset arising from the Group’s product development is recognised only if all of the following 
conditions are met:
 an asset is created that can be identiﬁed (such as crystal production methodology);
 it is probable that the asset created will generate future economic beneﬁts; and
 the development cost of the asset can be measured reliably.
Research expenditure is written off as incurred. Development expenditure is also written off, except where the Directors are satisﬁed 
as to the technical, commercial and ﬁnancial viability of individual projects. In such cases, the identiﬁable expenditure is deferred 
and amortised over the period during which the Group is expected to beneﬁt. This period normally equates to the life of the products 
the development expenditure relates to. Provision is made for any impairment.
Financial statements Kromek Group plc  Annual report and accounts 2014 41
3. Signiﬁcant accounting policies continued
Patents and trademarks
Patents and trademarks are measured initially at purchase cost and are amortised on a straight-line basis over their estimated 
useful lives. 
Impairment of tangible and intangible assets excluding goodwill
At each statement of ﬁnancial position date, the Group reviews the carrying amounts of its tangible and intangible assets to 
determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the 
recoverable amount of the asset is estimated to determine the extent of the impairment loss (if any). Where the asset does not 
generate cash ﬂows that are independent from other assets, the Group estimates the recoverable amount of the CGU to which 
the asset belongs. When a reasonable and consistent basis of allocation can be identiﬁed, corporate assets are also allocated to 
individual CGUs, or otherwise they are allocated to the smallest group of CGUs for which a reasonable and consistent allocation 
basis can be identiﬁed. 
An intangible asset with an indeﬁnite useful life is tested for impairment at least annually and whenever there is an indication that 
the asset may be impaired.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future 
cash ﬂows are discounted to their present value using a pre-tax discount rate that reﬂects current market assessments of the time 
value of money and the risks speciﬁc to the asset for which the estimates of future cash ﬂows have not been adjusted.
If the recoverable amount of an asset (or CGU) is estimated to be less than its carrying amount, the carrying amount of the asset 
(or CGU) is reduced to its recoverable amount. An impairment loss is recognised immediately in proﬁt or loss, unless the relevant 
asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Where an impairment loss subsequently reverses, the carrying amount of the asset (or CGU) is increased to the revised estimate 
of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been 
determined had no impairment loss been recognised for the asset (or CGU) in prior years. A reversal of an impairment loss is recognised 
immediately in proﬁt or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment 
loss is treated as a revaluation increase.
Inventories
Inventories are stated at the lower of cost and net realisable value. Costs comprise direct materials and, where applicable, direct 
labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. Cost is 
calculated in the statement of ﬁnancial position at standard cost, which approximates to historical cost determined on a ﬁrst in, ﬁrst 
out basis. Net realisable value represents the estimated selling price less all estimated costs of completion and costs to be incurred 
in marketing, selling and distribution. Work in progress costs are taken as production costs, which include an appropriate proportion 
of attributable overheads.
Financial instruments
Financial assets and ﬁnancial liabilities are recognised in the Group’s statement of ﬁnancial position when the Group becomes 
a party to the contractual provisions of the instrument.
i) Financial assets
All ﬁnancial assets are recognised and derecognised on a trade date where the purchase or sale of a ﬁnancial asset is under a 
contract whose terms require delivery of the ﬁnancial asset within the timeframe established by the market concerned, and are 
initially measured at fair value, plus transaction costs, except for those ﬁnancial assets classiﬁed as at fair value through proﬁt 
or loss, which are initially measured at fair value. 
Financial assets are classiﬁed into the following speciﬁed category: “loans and receivables”. The classiﬁcation depends on 
the nature and purpose of the ﬁnancial assets and is determined at the time of initial recognition. The Group held no fair value 
through proﬁt and loss (“FVTPL”), available for sale (“AFS”) or held-to-maturity (“HTM”) ﬁnancial assets during the historical 
ﬁnancial information period.
Strategic report Corporate governance Financial statements Overview Kromek Group plc  Annual report and accounts 2014 42
Notes to the consolidated ﬁnancial statements continued
For the year ended 30 April 2014
3. Signiﬁcant accounting policies continued
Financial instruments continued
ii) Loans and receivables
Trade receivables, loans, and other receivables that have ﬁxed or determinable payments that are not quoted in an active market 
are classiﬁed as “loans and receivables”. Loans and receivables are measured at amortised cost using the effective interest method, 
less any impairment. Interest income is recognised by applying the effective interest rate, except for short-term receivables when 
the recognition of interest would be immaterial.
iii)  Impairment of ﬁnancial assets
Financial assets, other than those at FVTPL, are assessed for indicators of impairment at each statement of ﬁnancial position date. 
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial 
recognition of the ﬁnancial asset, the estimated future cash ﬂows of the investment have been affected. 
iv)  Derecognition of ﬁnancial assets
The Group derecognises a ﬁnancial asset only when the contractual rights to the cash ﬂows from the asset expire, or when it 
transfers the ﬁnancial asset and substantially all the risks and rewards of ownership of the asset to another entity. If the Group 
neither transfers nor retains substantially all the risks and rewards of ownership and continues to control the transferred asset, the 
Group recognises its retained interest in the asset and an associated liability for amounts it may have to pay. If the Group retains 
substantially all the risks and rewards of ownership of a transferred ﬁnancial asset, the Group continues to recognise the ﬁnancial 
asset and also recognises a collateralised borrowing for the proceeds received.
v)  Financial liabilities and equity
Debt and equity instruments are classiﬁed as either ﬁnancial liabilities or as equity in accordance with the substance 
of the contractual arrangement. 
vi)  Equity instruments
An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. 
Equity instruments issued by the Group are recognised at the proceeds received, net of direct issue costs.
vii)  Financial liabilities 
Financial liabilities are classiﬁed as “other ﬁnancial liabilities”. The Group held no ﬁnancial liabilities that would be classiﬁed as FVTPL.
viii)  Other ﬁnancial liabilities 
Other ﬁnancial liabilities, including borrowings, are initially measured at fair value, net of transaction costs. Other ﬁnancial liabilities 
are subsequently measured at amortised cost using the effective interest method, with interest expense recognised on an effective 
yield basis. 
The effective interest method is a method of calculating the amortised cost of a ﬁnancial liability and of allocating interest expense 
over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments through the 
expected life of the ﬁnancial liability, or, where appropriate, a shorter period, to the net carrying amount on initial recognition.
ix)  Derecognition of ﬁnancial liabilities
The Group derecognises ﬁnancial liabilities when, and only when, the Group’s obligations are discharged, cancelled or they expire.
Share-based payments
Equity-settled share-based payments to employees and others providing similar services are measured at the fair value of the 
equity instruments at the grant date and spread over the period during which the employees become unconditionally entitled 
to the options, which is based on a period of employment of three years from grant date. Details regarding the determination 
of the fair value of equity-settled share-based transactions are set out in note 32.
The fair value determined at the grant date of the equity-settled share-based payments is expensed on a straight-line basis over the 
vesting period, based on the Group’s estimate of equity instruments that will eventually vest. The vesting date is determined based 
on the date an employee is granted options, usually three years from date of grant. At each statement of ﬁnancial position date, 
the Group revises its estimate of the number of equity instruments expected to vest as a result of the effect of non-market-based 
vesting conditions. The impact of the revision of the original estimates, if any, is recognised in proﬁt or loss such that the cumulative 
expense reﬂects the revised estimate, with a corresponding adjustment to equity reserves.
Financial statements Kromek Group plc  Annual report and accounts 2014 43
3. Signiﬁcant accounting policies continued
Cash
Cash, for the purposes of the statement of cash ﬂows, comprises cash in hand and deposits repayable on demand, less overdrafts 
repayable on demand.
4. Critical accounting judgements and key sources of estimation uncertainty
In the application of the Group’s accounting policies, which are described in note 3, the Directors are required to make judgements, 
estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. 
The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. 
Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in 
the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods 
if the revision affects both current and future periods.
Critical judgements in applying the Group’s accounting policies
The following are the critical judgements that the Directors have made in the process of applying the Group’s accounting policies 
and that have the most signiﬁcant effect on the amounts recognised in the ﬁnancial statements.
Development costs
As described in note 3, the Group expenditure on development activities is capitalised if it meets the criteria as per IAS 38. 
These capitalised assets are amortised on a straight-line basis over their useful lives. Where no internally generated intangible 
asset can be recognised, development expenditure is recognised as an expense in the period in which it is incurred. 
Impairment of non-ﬁnancial assets
The Group assesses whether there are any indicators of impairment as at the transition date and thereafter for all non-ﬁnancial 
assets at each reporting date. Goodwill is tested for impairment annually and at other times when such indicators exist, such as 
negative cash ﬂows and operating losses of subsidiaries. Other non-ﬁnancial assets are tested for impairment when there are 
indicators that the carrying amounts may not be recoverable.
When value in use calculations are undertaken, management must estimate the expected future cash ﬂows from the asset 
or cash-generating unit and choose a suitable discount rate in order to calculate the present value of those cash ﬂows.
Valuation of acquired intangible assets
Acquisitions may result in identiﬁable intangible assets such as customer relationships, supplier relationships, licences and 
technology being recognised. These are valued by professional valuation ﬁrms, using discounted cash ﬂow methods that require 
the application of certain key judgements, and estimates are required to be made in respect of discount rates and future cash ﬂows.
Key sources of estimation uncertainty
The key assumptions concerning the future, and other key sources of estimation uncertainty at the statement of ﬁnancial position 
date, that have a signiﬁcant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next 
ﬁnancial year are discussed below.
i) Development costs
Development costs are capitalised in accordance with the accounting policy noted above. Initial capitalisation of costs is based on 
management’s judgement that technological and economic feasibility is conﬁrmed, usually when a product development project has 
reached a deﬁned milestone.
ii) Impairment of goodwill
The Group determines whether goodwill is impaired on at least an annual basis or more frequently when there are indications 
of possible impairment. The impairment review requires a value in use calculation of the CGUs to which the goodwill is allocated. 
In estimating the value in use, management is required to make an estimate of the expected future cash ﬂows attributable to the 
CGU and to choose an appropriate discount rate to calculate the present value of those cash ﬂows. The carrying amount of goodwill 
at 30 April 2014 was £1,275k (2013: £1,275k). Further details are given in note 15.
Strategic report Corporate governance Financial statements Overview Kromek Group plc  Annual report and accounts 2014 44
Notes to the consolidated ﬁnancial statements continued
For the year ended 30 April 2014
5. Revenue
An analysis of the Group’s revenue is as follows:
Year Year
ended ended
2014 2013
£’000 £’000
Continuing operations
Sales of goods and other services 5,329 2,691
Other revenue 643 —
Total revenue 5,972 2,691
Grant income 229 —
Insurance claims — 25
Legal settlement 490 —
Total income 6,691 2,716
6. Operating segments
Products and services from which reportable segments derive their revenues
For management purposes, the Group is organised into two business units (US and UK) and it is on these operating segments 
that the Group is providing disclosure.
The chief operating decision maker is the Board of Directors, which assesses performance of the segments using the following key 
performance indicators: revenues, gross proﬁt and operating proﬁt. The amounts provided to the Board with respect to assets 
and liabilities are measured in a way consistent with the ﬁnancial statements.
The turnover, proﬁt on ordinary activities and net assets of the Group are attributable to one business segment, i.e. the development 
of digital colour x-ray imaging enabling direct materials identiﬁcation, as well as developing a number of detection products in the 
industrial and consumer markets.
Analysis by geographical area
A geographical analysis of the Group’s revenue by destination is as follows:
Year Year
ended ended
2014 2013
£’000 £’000
United Kingdom 385 85
North America 3,416 1,240
Asia 1,089 1,165
Europe 1,054 199
Australasia 28 2
Total revenue 5,972 2,691
Financial statements Kromek Group plc  Annual report and accounts 2014 45
6. Operating segments continued
Analysis by geographical area continued
A geographical analysis of the Group’s revenue by origin is as follows:
UK US Total for
operations operations Group
Year ended 30 April 2014 £’000 £’000 £’000
Revenue from sales
Revenue by segment:
– Sale of goods and services 1,832 3,764 5,596
– Other revenue —643 643
Total sales by segment 1,832 4,407 6,239
Removal of inter-segment sales (10) (257) (267)
Total external sales 1,822 4,150 5,972
Segment result – operating loss (3,143) (637) (3,780)
Interest received 15 — 15
Interest expense (530) — (530)
Loss before tax (3,658) (637) (4,295)
Tax credit 1,106 — 1,106
Loss for the year (2,552) (637) (3,189)
Adjusted EBITDA (2,526) 43 (2,483)
Other segment information
Property, plant and equipment additions 98 89 187
Depreciation of property, plant and equipment 364 373 737
Intangible asset additions 1,230 398 1,628
Amortisation of intangible assets 253 307 560
Statement of ﬁnancial position
Total assets 15,290 6,790 22,080
Total liabilities (3,649) (695) (4,344)
Strategic report Corporate governance Financial statements Overview Kromek Group plc  Annual report and accounts 2014 46
Notes to the consolidated ﬁnancial statements continued
For the year ended 30 April 2014
6. Operating segments continued
Analysis by geographical area continued
UK US Total for
operations operations Group
Year ended 30 April 2013 £’000 £’000 £’000
Revenue from sales
Revenue by segment:
– Sale of goods and services 1,548 1,343 2,891
Removal of inter-segment sales — (200) (200)
Total external sales 1,548 1,143 2,691
Segment result – operating loss (3,407) (495) (3,902)
Interest received —— —
Interest expense (148) (23) (171)
Gain on a bargain purchase 2,417 — 2,417
Loss before tax (1,138) (518) (1,656)
Tax credit 765 248 1,013
Loss for the year (373) (270) (643)
Adjusted EBITDA (2,909) (282) (3,191)
Other segment information
Property, plant and equipment additions 58 2,222 2,280
Depreciation of property, plant and equipment 346 101 447
Intangible asset additions 1,298 2,114 3,412
Amortisation of intangible assets 152 112 264
Statement of ﬁnancial position
Total assets 8,370 6,800 15,170
Total liabilities (5,108) (2,035) (7,143)
Inter-segment sales are charged at prevailing market prices.
No other additions of non-current assets have been recognised during the year other than property, plant and equipment 
and intangible assets. 
No impairment losses were recognised in respect of property, plant and equipment and goodwill.
The accounting policies of the reportable segments are the same as the Group’s accounting policies described in note 3. Segment 
loss represents the loss earned by each segment without allocation of the share of losses of associates, central administration costs 
including Directors’ salaries, investment revenue and ﬁnance costs, and income tax expense. This is the measure reported to the 
Group’s Chief Executive for the purpose of resource allocation and assessment of segment performance.
Financial statements Kromek Group plc  Annual report and accounts 2014 47
6. Operating segments continued
Revenues from major products and services
The Group’s revenues from its major products and services were as follows:
Year Year
ended ended
2014 2013
£’000 £’000
Product revenue 4,746 1,786
Research and development revenue 1,226 905
Consolidated revenue (excluding investment revenue) 5,972 2,691
Information about major customers
Included in revenues arising from US operations are revenues of approximately £1,249k (2013: £899k) which arose from sales 
to the Group’s largest customer.
7. Loss for the year 
Loss for the year has been arrived at after (crediting)/charging:
Year Year
ended ended
2014 2013
£’000 £’000
Net foreign exchange gains (84) (1)
Research and development costs recognised as an expense 2,020 580
Depreciation of property, plant and equipment 737 447
Amortisation of internally generated intangible assets 560 264
Release of negative goodwill to income statement — (2,417)
Cost of inventories recognised as expense 1,911 1,023
Staff costs (see note 9) 5,104 3,431
8. Auditor’s remuneration
The analysis of the auditor’s remuneration is as follows:
Year Year
ended ended
2014 2013
£’000 £’000
Fees payable to the Company’s auditor and their associates for other services to the Group
– The audit of the Company’s subsidiaries 35 38
Total audit fees 35 38
– Audit related assurance services — 40
– Taxation compliance services 6 6
– Other taxation advisory services 107 3
– Corporate ﬁnance transaction services 139 —
Total non-audit fees 252 49
Strategic report Corporate governance Financial statements Overview Kromek Group plc  Annual report and accounts 2014 48
Notes to the consolidated ﬁnancial statements continued
For the year ended 30 April 2014
9. Staff costs
The average monthly number of employees (including Executive Directors) was:
Year Year
ended ended
2014 2013
Number Number
Directors 4 6
Research and development, production, sales and distribution 81 58
Administration 16 11
101 75
Their aggregate remuneration comprised:
Year Year
ended ended
2014 2013
£’000 £’000
Wages and salaries 4,177 2,806
Social security costs 439 218
Pension scheme contributions 363 285
Share-based payments 125 122
5,104 3,431
Further details on the remuneration of the Directors are included in the Directors’ remuneration report on pages 28 and 29.
Key management compensation:
Year Year
ended ended
2014 2013
£’000 £’000
Wages and salaries and other short-term beneﬁts 790 575
Social security costs 99 55
Pension scheme contributions 76 99
Share-based payment expense 45 70
1,010 799
Key management comprises the Executive Directors and senior operational staff.
10. Finance income
Year Year
ended ended
2014 2013
£’000 £’000
Interest revenue 15 —
Investment revenue earned on ﬁnancial assets, analysed by category of asset, is as follows:
Year Year
ended ended
2014 2013
£’000 £’000
Loans and receivables (including cash and bank balances) 15 —
Total interest income for ﬁnancial assets not designated at FVTPL 15 —
Financial statements Kromek Group plc  Annual report and accounts 2014 49
11. Finance costs
Year Year
ended ended
2014 2013
£’000 £’000
Interest on bank overdrafts and loans 17 59
Interest on loans due to related parties 513 112
Total interest expense 530 171
12. Tax
Recognised in the income statement
Year Year
ended ended
2014 2013
£’000 £’000
Current tax credit:
– UK corporation tax on losses in the year 696 767
– Adjustments in respect of previous years — (2)
– Foreign taxes paid (1) (1)
Total current tax 695 764
Deferred tax:
– Origination and reversal of timing differences 411 201
– Adjustment in respect of previous years — 48
Total deferred tax 411 249
Total tax credit in income statement 1,106 1,013
Corporation tax is calculated at 22.83% (2013: 23.92%) of estimated taxable loss for the year. Taxation for other jurisdictions 
is calculated at the rates prevailing in the respective jurisdictions.
Reconciliation of tax credit
The charge for the year can be reconciled to the proﬁt in the income statement as follows:
Year Year
ended ended
2014 2013
£’000 £’000
Loss before tax 4,295 1,656
Tax at the UK corporation tax rate of 22.83% (2013: 23.92%) 981 396
Expenses not deductible for tax purposes (57) (14)
Effect of R&D 791 195
Rate differences effect of R&D (727) —
Negative goodwill non-taxable write-off — 578
Income not taxable 155 —
Unrecognised movement on deferred tax (360) (248)
Effects of overseas tax rates 323 60
Adjustments in respect of previous periods — 46
Total tax credit for the year 1,106 1,013
Strategic report Corporate governance Financial statements Overview Kromek Group plc  Annual report and accounts 2014 50
12. Tax continued
Reconciliation of tax credit continued
Deferred tax liabilities of £1,329k (2013: £1,612k) arose on the acquisition of eV Products, Inc. during the year ended 30 April 2013. 
Further details of deferred tax are given in note 22. There are no tax items charged to other comprehensive income.
The Finance Act 2013 enacted a rate reduction in the main rate of corporation tax to 21% from 1 April 2014 and to 20% from 1 April 2015. 
As there is no UK deferred tax recognised there is no impact on the tax provisions reported in these accounts.
There is a potential deferred tax asset on excess tax deductions arising from share-based payments on exercise of share options 
of £1,147k (2013: £1,420k). The asset has not been recognised as it is not considered probable that there will be future proﬁts available. 
13. Dividends
The Directors do not recommend the payment of a dividend (2013: £nil). 
14. Losses per share
The calculation of the basic and diluted earnings per share is based on the following data:
Losses
Year Year
ended ended
2014 2013
£’000 £’000
Losses for the purposes of basic and diluted losses per share being net losses attributable to owners 
of the Group (3,189) (643)
Number of shares
Year Year
ended ended
2014 2013
Number Number
Weighted average number of ordinary shares for the purposes of basic losses per share 61,870,643 7,572,337
Effect of dilutive potential ordinary shares:
– Share options 5,080,789 341,429
Weighted average number of ordinary shares for the purposes of diluted losses per share 66,951,432 7,913,766
Year Year
ended ended
2014 2013
£ £
Basic and diluted (0.05) (0.08)
Adjusted basic and diluted (0.05) (0.40)
Due to the Group having losses in each of the years, the fully diluted loss per share for disclosure purposes, as shown in the income 
statement, is the same as for the basic loss per share.
15. Goodwill
£’000
Cost
At 1 May 2013 1,275
At 30 April 2014 1,275
Accumulated impairment losses
At 1 May 2013 —
At 30 April 2014 —
Carrying amount
At 30 April 2014 1,275
At 30 April 2013 1,275
Notes to the consolidated ﬁnancial statements continued
For the year ended 30 April 2014
Financial statements Kromek Group plc  Annual report and accounts 2014 51
15. Goodwill continued
Goodwill acquired in a business combination is allocated, at acquisition, to the CGUs that are expected to beneﬁt from that business 
combination. Before recognition of impairment losses, the carrying amount of goodwill had been allocated as follows:
Year Year
ended ended
2014 2013
£’000 £’000
US operations 1,275 1,275
The goodwill arose on the acquisition of NOVA R&D, Inc. in 2011 and represents the excess of the fair value of the consideration 
given over the fair value of the identiﬁable assets and liabilities acquired. 
Goodwill has been allocated to NOVA R&D, Inc. as a CGU and is reported in note 6 within the segmental analysis of the US operations. 
Negative goodwill arose on the acquisition of eV Products, Inc. which has been released to the income statement in 2013.
The Group tests goodwill annually for impairment or more frequently if there are indications that goodwill might be impaired, by 
comparing the net book value of the goodwill and non-current assets for the CGU to its value in use on a discounted cash ﬂow basis.
The recoverable amount has been determined on a value in use basis on each CGU using the management approved ﬁve year 
forecasts for each CGU. The base ﬁve year projection is year on year growth over the next ﬁve years, with overheads remaining 
relatively stable. The growth rate of the CGU is expected to increase to 50% in year two as a result of the CGU continuing to develop 
its technical capabilities in the forthcoming year. Growth is then expected to fall to 7% in year two, 38% in year three and 2% in year four 
as a result of the rapid growth in year two, and 10% in year ﬁve. These cash ﬂows are then discounted at the Company’s weighted 
average cost of capital of 16% (2013: 18%).
Based on the results of the current year impairment review, no impairment charges have been recognised by the Group in the year 
ended 30 April 2014 (2013: £nil). Management has considered various sensitivity analyses in order to appropriately evaluate the 
carrying value of goodwill. 
Having assessed the anticipated future cash ﬂows the Directors do not consider there to be any reasonably possible changes in 
assumptions that would lead to such an impairment charge in the year ended 30 April 2014. Purely for illustrative purposes, a compound 
reduction in revenue of 5% in each of years one to ﬁve whilst holding overheads constant would not affect the conclusion of the review.
The Directors have reviewed the recoverable amount of the CGU and do not consider there to be any indication of impairment in 2014 or 2013.
16. Other intangible assets
Patents,
trademarks
Development and other
costs intangibles Total
£’000 £’000 £’000
Cost
At 1 May 2013 2,477 4,296 6,773
Additions 1,061 567 1,628
Exchange differences —(278) (278)
At 30 April 2014 3,538 4,585 8,123
Amortisation
At 1 May 2013 —636 636
Charge for the year 56 504 560
Exchange differences —(38) (38)
At 30 April 2014 56 1,102 1,158
Carrying amount 
At 30 April 2014 3,482 3,483 6,965
At 30 April 2013 2,477 3,660 6,137
The amortisation period for development costs incurred on the Group’s product development is over the period during which the 
Company is expected to beneﬁt and the amortisation will be based on the number of units sold over the expected product lifetime.
Patents and trademarks are amortised over their estimated useful lives, which is on average 10 years.
Strategic report Corporate governance Financial statements Overview Kromek Group plc  Annual report and accounts 2014 52
Notes to the consolidated ﬁnancial statements continued
For the year ended 30 April 2014
17. Property, plant and equipment
Computer Plant and Fixtures
equipment* machinery* and ﬁttings* Total
£’000 £’000 £’000 £’000
Cost or valuation
At 1 May 2013 520 4,529 144 5,193
Additions 71 112 4 187
Exchange differences (5) (215) (4) (224)
At 30 April 2014 586 4,426 144 5,156
Accumulated depreciation and impairment
At 1 May 2013 272 1,859 57 2,188
Charge for the year 127 583 27 737
Exchange differences (1) (53) — (54)
At 30 April 2014 398 2,389 84 2,871
Carrying amount
At 30 April 2014 188 2,037 60 2,285
At 30 April 2013 248 2,670 87 3,005
*  The Directors have reviewed the property, plant and equipment in 2013, and have reclassiﬁed, at cost, £2,174k of computer equipment and £13k of ﬁxtures and ﬁttings 
into plant and machinery. Accumulated depreciation has also been reclassiﬁed in 2013, with £103k being reclassiﬁed from computer equipment into plant and machinery.
18. Subsidiaries
A list of the signiﬁcant investments in subsidiaries, including the name, country of incorporation, and proportion of ownership 
interest, is given in note 39 to the Company’s separate ﬁnancial statements.
19. Inventories
Year Year
ended ended
2014 2013
£’000 £’000
Raw materials 465 408
Work in progress 1,391 790
Finished goods 533 900
2,389 2,098
The cost of inventories recognised as an expense during the year in respect of continuing operations was £1,911k (2013: £1,023k).
The Directors have reviewed the inventory in 2013 and have reclassiﬁed £790k of ﬁnished goods into work in progress to ensure 
the correct disclosure of inventory between the three components disclosed above. 
20. Trade and other receivables
Year Year
ended ended
2014 2013
£’000 £’000
Amount receivable for the sale of goods 1,501 1,161
Other receivables 90 324
Prepayments 316 94
1,907 1,579
Financial statements Kromek Group plc  Annual report and accounts 2014 53
20. Trade and other receivables continued
Trade receivables
Trade receivables disclosed above are classiﬁed as loans and receivables and are therefore measured at amortised cost.
The average credit period taken on sales of goods is 60 days. No interest is charged on the receivables. The Group recognises an 
allowance for doubtful debts of 100% against all receivables over 120 days because historical experience has been that receivables 
that are past due beyond 120 days are not recoverable. Allowances against doubtful debts are recognised against trade receivables 
between 30 days and 120 days based on estimated irrecoverable amounts determined by reference to past default experience 
of the counterparty and an analysis of the counterparty’s current ﬁnancial position. 
Before accepting any new customer, the Group uses an external credit scoring system to assess the potential customer’s credit 
quality and deﬁnes credit limits by customer. 
The Group does not hold any collateral or other credit enhancements over any of its trade receivables nor does it have a legal right 
of offset against any amounts owed by the Group to the counterparty.
Ageing of past due but not impaired receivables:
Year Year
ended ended
2014 2013
£’000 £’000
31–60 days 70 111
61–90 days 13 26
91–120 days 550 109
Total 633 246
Included within receivables past due but not impaired of 91–120 days are amounts relating to a distributor for whom the Group 
is supporting during the commercialisation process.
In determining the recoverability of a trade receivable the Group considers any change in the credit quality of the trade receivable 
from the date credit was initially granted up to the reporting date. The concentration of credit risk is limited due to the customer base 
being large and unrelated.
The Directors consider that the carrying amount of trade and other receivables is approximately equal to their fair value.
21. Borrowings
Year Year
ended ended
2014 2013
£’000 £’000
Total borrowings
Amount due for settlement within 12 months — 2,449
Amount due for settlement after 12 months — —
Amounts included within loans and borrowings of £nil (2013: £1,060k) carry interest of nil% (2013: 5%) per month charged 
on the outstanding loan balances. 
22. Deferred tax liabilities
The following are the major deferred tax liabilities and assets recognised by the Group and movements thereon during the current 
and prior reporting period.
Accelerated Short-term
Revaluation capital timing Tax
of intangibles allowances differences losses Total
£’000 £’000 £’000 £’000 £’000
At 1 May 2013 1,765 441 (74) (588) 1,544
Charge/(credit) to proﬁt or loss (307) 186 57 (346) (410)
At 30 April 2014 1,458 627 (17) (934) 1,134
Strategic report Corporate governance Financial statements Overview Kromek Group plc  Annual report and accounts 2014 54
Notes to the consolidated ﬁnancial statements continued
For the year ended 30 April 2014
22. Deferred tax liabilities continued
Deferred tax assets and liabilities are offset where the Group has a legally enforceable right to do so. The following is the analysis 
of the deferred tax balances (after offset) for ﬁnancial reporting purposes:
Year Year
ended ended
2014 2013
£’000 £’000
Deferred tax liabilities 2,085 2,206
Deferred tax assets (951) (662)
1,134 1,544
At the statement of ﬁnancial position date, the Group has unused tax losses of £12,075k (2013: £9,869k) available for offset against 
future proﬁts. A deferred tax asset has been recognised in respect of £3,845k (2013: £2,220k) of such losses. No deferred tax asset 
has been recognised in respect of the remaining £8,230k (2013: £7,650k) as it is not considered probable that there will be future 
taxable proﬁts available. All losses may be carried forward indeﬁnitely subject to a signiﬁcant change in the nature of the Group’s 
trade with US losses having a maximum life of 20 years.
23. Trade and other payables
Year Year
ended ended
2014 2013
£’000 £’000
Trade payables and accruals 3,210 3,149
Trade payables and accruals principally comprise amounts outstanding for trade purchases and ongoing costs. The average credit 
period taken for trade purchases is 175 days. For all suppliers no interest is charged on the trade payables. The Group has ﬁnancial 
risk management policies in place to ensure that all payables are paid within the pre-agreed credit terms.
The Directors consider that the carrying amount of trade payables approximates to their fair value.
24. Derivatives, ﬁnancial instruments and hedge accounting
At 30 April 2014 and 30 April 2013 the Group had no derivatives in place for cash ﬂow hedging purposes.
25. Share capital
Year Year
ended ended
2014 2013
£’000 £’000
Allotted, called up and fully paid
108,010,790 ordinary shares of £0.01 each 1,080 —
453,841 ordinary shares of £0.00004 each — —
950,000 A ordinary shares of £0.00004 each — —
600,000 B ordinary shares of £0.00004 each — —
550,000 C ordinary shares of £0.00004 each — —
174,962 D ordinary shares of £1 each — 175
1,000,000 E ordinary shares of £0.00004 each — —
358,500 F ordinary shares of £0.00004 each — —
421,000 F preference shares of £0.00004 each — —
1,000,000 G ordinary shares of £0.99996 each — 1,000
297,500 H ordinary shares of £0.00004 each — —
577,593 H preference shares of £0.00004 each — —
658,956 J ordinary shares of £0.00004 each — —
1,526,181 J preference shares of £0.00004 each — —
279,768 K ordinary shares of £0.00004 each — —
64,762 K preference shares of £0.00004 each — —
1,080 1,175
Financial statements Kromek Group plc  Annual report and accounts 2014 55
25. Share capital continued
During the year, a capital restructure was undertaken as part of the IPO. The class D and G shares of total nominal value of 
£1.175m in Kromek Limited were acquired by the Group for £1 each and then cancelled, thus creating a capital redemption reserve. 
The remaining ordinary share capital in Kromek Limited of 0.004p per share were merged into a single class of ordinary 1p shares 
and a bonus issue of 10% was also issued for the K ordinary and preference shares. The ordinary shares were then exchanged 
on a 10:1 basis for shares in Kromek Group plc. In addition, a further 29m shares were issued for a net consideration of £13.4m.
During the year 532,000 shares (2013: 2,619,000) were allotted under EMI share option schemes.
Unpaid share capital
At the year ended 30 April 2014, unpaid share capital amounted to £nil (2013: £241k).
26. Share premium account
£’000
Balance at 1 May 2013 22,278
Premium arising on issue of equity shares 14,460
Transfer to capital redemption reserve (779)
Expenses of issue of equity shares (1,347)
Balance at 30 April 2014 34,612
27. Capital redemption reserve
During the year, a capital restructure was undertaken as a result of the IPO. The class D and G shares of total nominal value of 
£1.175m in Kromek Limited were acquired by the Group for £1 each and then cancelled, thus creating a capital redemption reserve.
28. T ranslation reserve
£’000
Balance at 1 May 2013 159
Exchange differences on translating the net assets of foreign operations (641)
Balance at 30 April 2014 (482)
Exchange differences relating to the translation of the net assets of the Group’s foreign operations, which relate to subsidiaries only, 
from their functional currency into the parent’s functional currency, being sterling, are recognised directly in the translation reserve.
29. Accumulated losses
£’000
Balance at 1 May 2013 (15,585)
Net loss for the year (3,189)
Effect of share-based payment credit 125
Balance at 30 April 2014 (18,649)
Strategic report Corporate governance Financial statements Overview Kromek Group plc  Annual report and accounts 2014 56
Notes to the consolidated ﬁnancial statements continued
For the year ended 30 April 2014
30. Notes to the cash ﬂow statement
Year Year
ended ended
2014 2013
£’000 £’000
Loss for the year (3,189) (643)
Adjustments for:
– Finance income (15) —
– Finance costs 530 171
– Income tax credit (1,106) (1,013)
– Depreciation of property, plant and equipment 737 447
– Amortisation of intangible assets 560 264
– Negative goodwill released to income statement — (2,417)
– Share-based payment expense 125 122
Operating cash ﬂows before movements in working capital (2,358) (3,069)
Increase in inventories (291) (284)
Increase in receivables (386) (625)
Increase in payables 120 1,374
Cash used in operations (2,915) (2,604)
Income taxes received 766 1,359
Net cash used in operating activities (2,149) (1,245)
Cash and cash equivalents
Year Year
ended ended
2014 2013
£’000 £’000
Cash and bank balances 6,563 309
Cash and cash equivalents comprise cash and short-term bank deposits with an original maturity of three months or less, 
net of outstanding bank overdrafts. The carrying amount of these assets is approximately equal to their fair value.
31. Operating lease arrangements
The Group as lessee
Year Year
ended ended
2014 2013
£’000 £’000
Lease payments under operating leases recognised as an expense in the year 577 333
At the statement of ﬁnancial position date, the Group had outstanding commitments for future minimum lease payments under 
non-cancellable operating leases, which fall due as follows:
Year Year
ended ended
2014 2013
£’000 £’000
Within one year 310 386
In the second to ﬁfth years inclusive 68 391
378 777
Operating lease payments represent rentals payable by the Group for certain of its ofﬁce properties. Leases are negotiated for an 
average term of ﬁve years.
At 30 April 2014 and 2013, the Group had no capital commitments or contingencies.
Financial statements Kromek Group plc  Annual report and accounts 2014 57
32. Share-based payments
Equity-settled share option scheme
The Company has a share option scheme (EMI scheme) for all employees of the Group. Options are exercisable at a price equal to 
the average quoted market price of the Company’s shares on the date of grant. The average vesting period is three years. If the options 
remain unexercised after a period of 10 years from the date of grant the options expire. Options are forfeited if the employee leaves 
the Group before the options vest. 
Details of the share options outstanding during the year are as follows:
2014 2013
Weighted Weighted
average average
exercise exercise
Number of price Number of price
share options £ share options £
Outstanding at beginning of the year 3,556,656 1.13 937,656 1.13
Effect of share reorganisation 8,146,754 1.13 — —
Granted during the year 532,000 0.24 2,619,000 1.98
Exercised during the year (522,500) 0.07 — —
Outstanding at the end of the year 11,712,910 0.16 3,556,656 1.34
Exercisable at the end of the year 7,360,160 0.18 678,356 1.34
The weighted average share price at the date of exercise for share options exercised during the year was £0.20 (2013: £nil). 
The options outstanding at 30 April 2014 had a weighted average exercise price of £0.18 (2013: £0.13) and a weighted average 
remaining contractual life of six years. In 2014, the aggregate of the estimated fair values of the options granted is £37k 
(2013: £112k). The inputs into the Black-Scholes model are as follows:
2014 2013
Weighted average share price 39p 20p
Weighted average exercise price 16p 4.9p
Expected volatility 55.33% 53.13%
Expected life 6 years 6 years
Risk-free rate 0.37% 0.42%
Expected dividend yields 0% 0%
Expected volatility was determined by calculating the historical volatility of similar listed businesses over the previous three years. 
The expected life used in the model has been adjusted, based on management’s best estimate, for the effects of non-transferability, 
exercise restrictions and behavioural considerations.
The Group recognised total expenses of £117k (2013: £122k) related to equity-settled share-based payment transactions.
The Kromek Group plc 2013 L TIP
On 10 October 2013 a new LTIP was adopted. Under the plan, awards will be made annually to key employees. Subject to the 
satisfaction of the required TSR performance criteria, these grants will vest at the end of a three year reporting period with the ﬁrst 
ending on 30 April 2016. 
On 10 October 2013 735,093 (2013: nil) options were granted under the 2013 LTIP to a number of key employees, including 
two Executive Directors of the Group. The fair value of these options granted was £70k (2013: £nil), and the amount recognised 
as a share-based payment expense for the year ended 30 April 2014 was £8k (2013: £nil). 
Strategic report Corporate governance Financial statements Overview Kromek Group plc  Annual report and accounts 2014 58
Notes to the consolidated ﬁnancial statements continued
For the year ended 30 April 2014
32. Share-based payments continued
The Kromek Group plc 2013 L TIP continued
The 2013 LTIP award was valued using the Monte Carlo pricing model. The inputs into the Monte Carlo pricing model are as follows:
2014 2013
Weighted average share price 20p —
Weighted average exercise price 1p —
Expected volatility 53.13% —
Expected life 3 years —
Risk-free rate 0.42% —
Expected dividend yields 0% —
33. Retirement beneﬁt schemes
Deﬁned contribution schemes
The Group operates deﬁned contribution retirement beneﬁt schemes for all employees. Where there are employees who leave the schemes 
prior to vesting fully in the contributions, the contributions payable by the Group are reduced by the amount of forfeited contributions.
The employees of the Group’s subsidiaries in the US are members of a state-managed retirement beneﬁt scheme operated by 
the Government of the US. The subsidiaries are required to contribute a speciﬁed percentage of payroll costs to the retirement 
beneﬁt scheme to fund the beneﬁts. The only obligation of the Group with respect to the retirement beneﬁt scheme is to make 
the speciﬁed contributions. 
The total cost charged to income of £363k (2013: £285k) represents contributions payable to these schemes by the Group at rates 
speciﬁed in the rules of the schemes. As at 30 April 2014, contributions of £27k (2013: £22k) due in respect of the current reporting 
period had not been paid over to the scheme.
34. Financial instruments
The Group’s principal ﬁnancial instruments are cash and trade receivables. 
The Group has exposure to the following risks from its operations:
Capital risk 
The Group manages its capital to ensure that entities in the Group will be able to continue as going concerns while maximising 
the return to shareholders through the optimisation of the debt and equity balance. The Group’s overall strategy has remained 
unchanged between 2013 and 2014.
The capital structure of the Group consists of net debt, which includes the borrowings disclosed in note 21 after deducting cash 
and cash equivalents, and equity attributable to equity holders of the Company, comprising issued capital, reserves and accumulated 
losses as disclosed in notes 25 to 29. 
The Group is not subject to any externally imposed capital requirements.
The Group’s primary source of capital is equity. By pricing products and services commensurately with the level of risk and focusing 
on the effective collection of cash from customers, the Group aims to maximise revenues and operating cash ﬂows. 
Cash ﬂow is further controlled by ongoing justiﬁcation, monitoring and reporting of capital investment expenditures and regular 
monitoring and reporting of operating costs. Working capital ﬂuctuations are managed through employing the overdraft facility 
available, which at the year end was £nil (2013: £nil). 
The Group considers that the current capital structure will provide sufﬁcient ﬂexibility to ensure that appropriate investment 
can be made, if required, to implement and achieve the longer-term growth strategy of the Group. 
Financial statements Kromek Group plc  Annual report and accounts 2014 59
34. Financial instruments continued
Market risk
The Group may be affected by general market trends, which are unrelated to the performance of the Group itself. The Group’s success 
will depend on market acceptance of the Group’s products and there can be no guarantee that this acceptance will be forthcoming.
Market opportunities targeted by the Group may change and this could lead to an adverse effect upon its revenue and earnings.
Foreign currency risk 
The Group’s operations are split between the UK and the US, and as a result the Group incurs costs in currencies other than its 
presentational currency of pounds sterling. The Group also holds cash and cash equivalents in non-sterling denominated bank accounts.
The following table shows the denomination of the year-end cash and cash equivalents balance:
Year Year
ended ended
2014 2013
£’000 £’000
Pounds sterling 6,342 249
US dollar sterling equivalent 200 60
Euro sterling equivalent 21 —
Had the foreign exchange rate between sterling, US dollar and euro changed by 5%, this would affect the loss for the year and net 
assets of the Group by £34k (2013: £23k).
Credit risk
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in ﬁnancial loss to the Group. 
The Group has adopted a policy of only dealing with creditworthy counterparties and obtaining sufﬁcient collateral, where appropriate, 
as a means of mitigating the risk of ﬁnancial loss from defaults. The Group only transacts with entities that are rated the equivalent 
of investment grade and above. This information is supplied by independent rating agencies where available, and if not available, 
the Group uses other publicly available ﬁnancial information and its own trading records to rate its major customers. The Group’s 
exposure and the credit ratings of its counterparties are continually monitored and the aggregate value of transactions concluded 
is spread amongst approved counterparties. Credit exposure is controlled by counterparty limits that are reviewed and approved 
by the risk management committee annually. 
Trade receivables consist of a small number of customers, spread across diverse industries and geographical areas. Ongoing credit 
evaluation is performed on the ﬁnancial condition of accounts receivable and, where appropriate, credit guarantee insurance cover 
is purchased.
The Group’s standard credit terms are 30 to 60 days from date of invoice. Invoices greater than 60 days old are assessed as 
overdue. The maximum exposure to credit risk is the carrying value of each ﬁnancial asset included on the statement of ﬁnancial 
position as summarised in note 20.
The Group’s management considers that all the above ﬁnancial assets that are not impaired or past due for each of the reporting 
dates under review are of good quality.
Liquidity risk
Ultimate responsibility for liquidity risk management rests with the Board of Directors, which has established an appropriate liquidity 
risk management framework for the management of the Group’s short, medium and long-term funding and liquidity management 
requirements. The Group manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, 
by continually monitoring forecast and actual cash ﬂows, and by matching the maturity proﬁles of ﬁnancial assets and liabilities.
The table overleaf details the Group’s remaining contractual maturity for its non-derivative ﬁnancial liabilities with agreed repayment 
periods. The table has been drawn up based on the undiscounted cash ﬂows of ﬁnancial liabilities based on the earliest date on 
which the Group can be required to pay. The table includes both interest and principal cash ﬂows. The contractual maturity is based 
on the earliest date on which the Group may be required to pay.
Strategic report Corporate governance Financial statements Overview Kromek Group plc  Annual report and accounts 2014 60
34. Financial instruments continued
Liquidity risk continued
Weighted
average
effective Less than 3 months
interest rate 1 month 1–3 months to 1 year 1–5 years 5+ years Total
% £’000 £’000 £’000 £’000 £’000 £’000
1 May 2013 60 53 158 2,502 — — 2,713
Repayments — (53) (158) (2,502) — — (2,713)
30 April 2014 —————— —
Signiﬁcant accounting policies
Details of the signiﬁcant accounting policies and methods adopted (including the criteria for recognition, the basis of measurement 
and the bases for recognition of income and expenses) for each class of ﬁnancial asset, ﬁnancial liability and equity instrument 
are disclosed in note 3.
Categories of ﬁnancial instruments
Year Year
ended ended
2014 2013
£’000 £’000
Financial assets
Cash and bank balances (including cash and bank balances in a disposal group held for sale) 6,563 309
Loans and receivables 1,907 1,579
Financial liabilities
Amortised cost (including trade payables balance in a disposal group held for sale) (3,210) (5,599)
35. Events after the balance sheet date
Since the end of the ﬁnancial year, the Directors are not aware of any other matter or circumstance not otherwise dealt within 
this report or the ﬁnancial statements that has signiﬁcantly or may signiﬁcantly affect the operations of the Group. 
36. Related party transactions
Balances and transactions between the Company and its subsidiaries, which are related parties, have been eliminated on 
consolidation and are not disclosed in this note. Transactions between the Group and its related parties are disclosed below. 
During the year, Amphion Innovations charged the Group £154k (2013: £20k) in relation to management fees. At the year end 
the Group owed Amphion Innovations £nil (2013: £nil).
Directors’ transactions
During the year Professor M Robinson, a Director, charged the Group £72k (2013: £72k) for consultancy fees. At the year end 
the Group owed Professor M Robinson £7k (2013: £44k). This amount was included within trade payables. 
Loans from related parties
Year Year
ended ended
2014 2013
£’000 £’000
Michael McBraida (shareholder) — 150
Russell Grant (shareholder) — 445
Max Robinson (Director) — 48
Roger Kendrick (shareholder) — 300
Arnab Basu (Director) — 146
Amphion Innovations (shareholder) — 365
Polymer Holdings (shareholder) — 830
There have been no other transactions with related parties other that what has been disclosed within this note.
Notes to the consolidated ﬁnancial statements continued
For the year ended 30 April 2014
Financial statements Kromek Group plc  Annual report and accounts 2014 61
30 April
2014
Note £’000
Non-current assets
Investment in subsidiaries 39 —
—
Current assets
Trade and other receivables 40 14,765
Cash and cash equivalents 257
15,022
Total assets 15,022
Current liabilities
Trade and other payables 41 (66)
—
Total liabilities (66)
Net assets 14,956
Equity
Share capital 45 1,080
Share premium account 46 13,934
Accumulated losses 47 (58)
14,956
The ﬁnancial statements of Kromek Group plc (registered number 8661469) were approved by the Board of Directors and authorised 
for issue on 27 August 2014. They were signed on its behalf by:
Dr Arnab Basu MBE
Chief Executive Ofﬁcer
Company statement of ﬁnancial position
As at 30 April 2014
Strategic report Corporate governance Financial statements Overview Kromek Group plc  Annual report and accounts 2014 62
Company statement of changes in equity
For the period ended 30 April 2014
Equity attributable to equity holders of the Company
Share
Share premium Accumulated Total
capital account losses equity
£’000 £’000 £’000 £’000
Balance at 1 September 2013 ——— —
Loss for the period — — (58) (58)
Other comprehensive income for the period — — — —
Total comprehensive losses for the period —— (58) (58)
Share reorganisation 779 — — 779
Shares issued on IPO 294 14,706 — 15,000
Issue of ordinary shares 7 34 — 41
IPO costs recognised in equity — (806) — (806)
Balance at 30 April 2014 1,080 13,934 (58) 14,956
Financial statements Kromek Group plc  Annual report and accounts 2014 63
Period
ended
30 April
2014
Note £’000
Net cash used in operating activities 44 (14,743)
Financing activities
Proceeds from issue of share capital 15,000
Net cash from ﬁnancing activities 15,000
Net increase in cash and cash equivalents 257
Cash and cash equivalents at beginning of period —
Cash and cash equivalents at end of period 257
Company statement of cash ﬂows
For the period ended 30 April 2014
Strategic report Corporate governance Financial statements Overview Kromek Group plc  Annual report and accounts 2014 64
37. Signiﬁcant accounting policies
The separate ﬁnancial statements of the Company are presented as required by the Companies Act 2006. As permitted by that Act, 
the separate ﬁnancial statements have been prepared in accordance with IFRSs adopted by the European Union.
The ﬁnancial statements have been prepared on the historical cost basis except for the remeasurement of certain ﬁnancial 
instruments to fair value. The principal accounting policies adopted are the same as those set out in note 3 to the consolidated 
ﬁnancial statements except as noted below.
Investments in subsidiaries are stated at cost less, where appropriate, provisions for impairment.
38. Auditor’ s remuneration
The auditor’s remuneration for audit and other services is disclosed in note 8 to the consolidated ﬁnancial statements.
39. Subsidiaries
Details of the Company’s direct and indirect subsidiaries as at 30 April 2014 are as follows:
Place of Proportion of Proportion of
incorporation ownership voting power
(or registration) interest held
Name and operation % %
Kromek Limited United Kingdom 100 100
Kromek Germany Limited United Kingdom 100 100
Kromek, Inc. United States of America 100 100
NOVA R&D, Inc. United States of America 100 100
eV Products, Inc. United States of America 100 100
The investments in subsidiaries are all stated at cost.
40. Trade and other receivables
Period
ended
30 April
2014
£’000
Amount receivable for the sale of goods —
Allowance for doubtful debts —
—
Amounts due from subsidiary undertakings 14,749
Prepayments 16
14,765
Amounts due from subsidiary undertakings are due within one year.
41. Trade and other payables
Period
ended
30 April
2014
£’000
Trade payables and accruals (66)
Trade payables and accruals principally comprise amounts outstanding for trade purchases and ongoing costs. The average credit 
period taken for trade purchases is 30 days. For all suppliers no interest is charged on the trade payables. The Group has ﬁnancial 
risk management policies in place to ensure that all payables are paid within the pre-agreed credit terms.
The Directors consider that the carrying amount of trade payables approximates to their fair value.
Notes to the Company ﬁnancial statements
For the period ended 30 April 2014
Financial statements Kromek Group plc  Annual report and accounts 2014 65
42. Financial assets
Inter-company balances
The carrying amount of these assets approximates their fair value. There are no past due or impaired receivable balances.
Cash and cash equivalents
These comprise cash held by the Company and short-term bank deposits with an original maturity of three months or less. 
The carrying amount of these assets approximates their fair value.
43. Financial liabilities
Trade and other payables
Trade payables principally comprise amounts outstanding for trade purchases and ongoing costs. The average credit period taken 
for trade purchases is 30 days.
The carrying amount of trade payables approximates to their fair value.
44. Notes to the statement of cash ﬂows
Period
ended
30 April
2014
£’000
Loss for the year (58)
Adjustments for:
– Increase in receivables (14,751)
– Increase in payables 66
Net cash from operating activities (14,743)
45. Share capital
Period
ended
30 April
2014
£’000
Allotted, called up and fully paid
108,010,790 ordinary shares of £0.01 each 1,080
1,080
46. Share premium account
£’000
Balance at 1 October 2013 —
Premium arising on issue of equity shares 14,740
Expenses of issue of equity shares (806)
Balance at 30 April 2014 13,934
47. Accumulated losses
£’000
Balance at 1 October 2013 —
Net loss for the year (58)
Balance at 30 April 2014 (58)
Strategic report Corporate governance Financial statements Overview Kromek Group plc  Annual report and accounts 2014 66
48. Financial instruments
The Company’s principal ﬁnancial instruments are cash and trade receivables. 
The Company has exposure to the following risks from its operations:
Capital risk 
The Company manages its capital to ensure that entities in the Company will be able to continue as going concerns while 
maximising the return to shareholders through the optimisation of the debt and equity balance. 
The capital structure of the Company consists of equity attributable to equity holders of the Company, comprising issued capital, 
reserves and accumulated losses as disclosed in notes 25 to 29. 
The Company is not subject to any externally imposed capital requirements.
Cash ﬂow is controlled by ongoing justiﬁcation, monitoring and reporting of capital investment expenditures and regular monitoring 
and reporting of operating costs. 
The Company considers that the current capital structure will provide sufﬁcient ﬂexibility to ensure that appropriate investment 
can be made, if required, to implement and achieve the longer-term growth strategy of the Company. 
Market risk
The Company may be affected by general market trends, which are unrelated to the performance of the Company itself. 
The Company’s success will depend on market acceptance of the Company’s products and there can be no guarantee 
that this acceptance will be forthcoming. 
Market opportunities targeted by the Company may change and this could lead to an adverse effect upon its revenue and earnings.
Foreign currency risk 
The Company currently does not undertake transactions denominated in foreign currencies. 
Credit risk 
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in ﬁnancial loss to the Company. 
The Company has adopted a policy of only dealing with creditworthy counterparties and obtaining sufﬁcient collateral, where 
appropriate, as a means of mitigating the risk of ﬁnancial loss from defaults. The Company only transacts with entities that are rated 
the equivalent of investment grade and above. This information is supplied by independent rating agencies where available, and if 
not available, the Company uses other publicly available ﬁnancial information and its own trading records to rate its major customers. 
The Company’s exposure and the credit ratings of its counterparties are continually monitored and the aggregate value of transactions 
concluded is spread amongst approved counterparties. Credit exposure is controlled by counterparty limits that are reviewed 
and approved by the risk management committee annually. 
The Company’s management considers that all the above ﬁnancial assets that are not impaired or past due for each of the reporting 
dates under review are of good quality.
Liquidity risk
Ultimate responsibility for liquidity risk management rests with the Board of Directors, which has established an appropriate liquidity 
risk management framework for the management of the Company’s short, medium and long-term funding and liquidity management 
requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, 
by continually monitoring forecast and actual cash ﬂows, and by matching the maturity proﬁles of ﬁnancial assets and liabilities. 
Notes to the Company ﬁnancial statements continued
For the period ended 30 April 2014
Financial statements Kromek Group plc  Annual report and accounts 2014 67
49. Ultimate controlling parent and party
In the opinion of the Directors, there is no ultimate controlling parent or party.
50. Events after the balance sheet date
Since the end of the ﬁnancial year, the Directors are not aware of any other matter or circumstance not otherwise dealt 
within this report or the ﬁnancial statements that has signiﬁcantly or may signiﬁcantly affect the operations of the Company. 
51. Related party transactions
No transactions have been noted with Directors during the period ended 30 April 2014.
No dividends were paid in the period in respect of ordinary shares held by the Company’s Directors.
Strategic report Corporate governance Financial statements Overview Kromek Group plc  Annual report and accounts 2014 68
Ofﬁcers and professional advisors
Directors 
Dr A Basu MBE
Mr D Bulmer
Mr R C E Morgan
Professor M Robinson
Professor B K Tanner
Mr J H Whittingham
Dr G K Speirs
Mr L Kinet
Mr P Bains
Ms C Ginman
Secretary
Mr D Bulmer
Registered ofﬁce
NETPark
Thomas Wright Way
Sedgeﬁeld
County Durham
TS21 3FD
Bankers
HSBC Bank Plc
1 Saddler Street
Durham
County Durham
DH1 3NR
Auditors
Deloitte LLP 
Chartered Accountants and Registered Auditors
Newcastle upon Tyne
NE1 2HF
Legal advisors
Pinsent Masons LLP
1 Park Row
Leeds
LS1 5AB
Financial statements  Kromek Group plc 
NETPark
Thomas Wright Way
Sedgeﬁeld
County Durham
TS21 3FD
Tel: +44 (0) 1740 626060
Fax: +44 (0) 1740 626061