Kromek Group plc
NETPark
Thomas Wright Way
Sedgefield
County Durham
TS21 3FD
Kromek Group plc  Annual report and accounts 2015
Kromek Group plc
Annual report and accounts
for the year ended 30 April 2015 Advancing CZT manufacture to target 
significant growth opportunities in CT, SPECT 
and networked nuclear detection applications
SPECT
CT
Nuclear 
Safeguard 
$100m+ market
$900m+ market
$1bn+ market
GROWTH AREA
GROWTH AREA
GROWTH AREA
SPECT – Nuclear Medicine diagnostic 
imaging where the patient is injected 
with a radio-pharmaceutical. The 
pharmaceutical then congregates at 
tumour sites
CT – (photon counting) is an x-ray based 
diagnostic imaging technique where 
slices of images are taken and then 
can be rendered into a 3D image – for 
detection of cancers, cardiac and other 
pathologies
Nuclear Safeguard – D3S a portable 
combined gamma neutron detector 
which is networked via mobile phone 
linked to a central server. Prevention 
against nuclear terrorism threat
2
1
3 CONTENTS
Directors, Secretary & Advisors 4
Financial & Operational Highlights   5
Business Review & Strategic Report 6-13
Chairman’s Statement 6
Chief Executive Officer’s Review 7
Chief Financial Officer’s Review 9
Directors’ Biographies 14
Directors’ Report 16
Corporate Governance Report 18
Directors’ Remuneration Report 20
Independent Auditor’s Report 24
Consolidated income statement  25
Consolidated statement of comprehensive income 26
Consolidated statement of financial position  27
Consolidated statement of changes in equity  28
Consolidated statement of cash flows 29
Notes to the consolidated financial statements  30 Directors, Secretary & Advisers
4
KROMEK Annual Report & Accounts 2015
Directors, Secretary & Advisers
Directors
Dr. Arnab Basu MBE   
Chief Executive Officer
Mr. Derek Bulmer  
Chief Financial Officer
Mr. Lawrence Kinet   
Chairman
Mr. Peter Bains    
Non-Executive Director
Ms. Charlotta Ginman  
Non-Executive Director 
Prof. Max Robinson  
Non-Executive Director 
Dr. Graeme Speirs 
Non-Executive Director
Prof. Brian Tanner  
Non-Executive Director 
Mr. Jerel Whittingham   
Non-Executive Director
Company Secretary
Mr. Derek Bulmer
Registered Office
NETPark
Thomas Wright Way
Sedgefield
County Durham
TS21 3FD
 
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Financial & Operational Highlights
Financial Highlights
■ Revenue increased 36% to £8.1m (2013/14: £6.0m)
■  Gross margin* was 69% (2013/14: 65%) 
■  Adjusted EBITDA**-breakeven/positive for the second half of the year, resulting in an adjusted EBITDA improvement 
to £1.6m loss (2013/14: £3.0m loss) 
■ Loss before tax was  reduced to £3.1m (2013/14: £4.3m loss)
■ Loss per share was 2p (2013/14: 5p loss)
■ Cash and cash equivalents at 30 April 2015 were £1.2m (31 October 2014 were £2.9m; 30 April 2014: £6.6m)  
■ £3.0m revolving credit facility announced in April 2015  
■  The Group entered into an agreement to raise £9m through a Firm Placing and up to a further £2m through an  
Open Offer
 * *  As with prior periods, gross margin is calculated before labour and overhead recovery. 
 **  Adjusted EBITDA eliminates non-recurring other income and share-based payment expenses. See the ‘Chief Financial Officer’s Review’ below 
for a reconciliation of adjusted EBITDA. 
Operational Highlights
■ Achieved growth through winning significant contracts across all three target segments and in multiple geographies
■ Nuclear Detection segment experienced significant growth and represented the largest segment by revenues
	 —    Key contract won from U.S. Department of Defense agency, the Defense Advanced Research Projects Agency 
(“DARPA”)
	 —   Other significant contracts in US and UK with U.S. Defense Threat Reduction Agency (“DTRA”) and Innovate UK
■  Medical Imaging segment represented the second largest contributor to revenues as it strengthened its relationship 
with OEMs globally
	 —   Exclusive development programme in medical CT extended to a second year  
	 —    Secured multiple orders from leading OEMs, both new and existing customers, for dual energy x-ray bone 
mineral densitometry (DEXA BMD) applications
	 —    Post period, launched eVance™, a new generation of SPECT cameras based on CZT
■  Significant progress made in providing products and components for Security Screening at airports
	 —    Increased sales of bottle scanners, including first contract in Asia – now deployed in 46 airports across 10 
countries (2013/14: six airports in four countries)  
	 —    Commenced supplying OEM components for baggage screening
■  Doubled manufacturing capacity by expanding in the UK. Demonstrated ability to rapidly scale up production by 
successfully replicating the manufacturing process which was previously being conducted only in the US  
■ 23 new patents were granted and 18 new patent applications were filed during the period Chairman’s Statement
6
KROMEK Annual Report & Accounts 2015
I am pleased to present our Annual Report 
for the year ended 30 April 2015, following 
being appointed to the role of Chairman 
in April and having been a Non-Executive 
Director of the Company since August 
2013. Whilst it was a mixed year for 
Kromek, it was characterised by good 
progress as we achieved our operational 
targets, resulting in good revenue growth, 
albeit not as strong growth as we had 
anticipated at the start of the year. 
It is increasingly evident that CZT-based detectors 
are set to replace the well-established scintillator-
based detectors (scintillators are based on 
a material that fluoresces when struck by a 
charged particle or high-energy photon). CZT 
is a semiconductor that directly converts x-ray 
or gamma-ray photons into electrons, at room 
temperature, creating a spectroscopic resolution 
that clearly outperforms any commercially-
available scintillator. This unique combination of 
spectroscopy and very high-count rate capability 
at room temperature renders CZT an ideal 
detector solution for medical, industrial and 
homeland security applications – the markets 
that Kromek focuses on. The key breakthrough 
that Kromek has achieved is to produce CZT into a 
stable material in economically viable quantities.
Achieved four key 
operational targets
At the beginning of the year, we set 
ourselves four primary operational targets:
T  Replicate the US manufacturing process in 
the UK to enable the scale up of our business
T  Achieve attractive economic costs 
for the manufacture of CZT
T  Increase our number of customers 
T  Penetrate the US market with our cutting-
edge nuclear imaging detectors
I am pleased to say that we succeeded in 
meeting all four of these targets. Arnab Basu, 
our Chief Executive Officer, provides details 
on how we achieved this on pages 7-8. 
Progress towards 
mass adoption
I am particularly pleased about the replication 
of the manufacturing process as this will enable 
us to scale our business and enhance security 
of supply as well as benefit from efficiencies 
in production, which supports our efforts 
to drive down the price point of CZT-based 
detectors. The market is moving towards mass 
adoption of CZT-based detectors as customers 
are demanding the extra functionality and 
economics from CZT products. As such, 
whilst CZT will remain more expensive than 
scintillators in the short term, the growing 
demand for colour and digital detection of x-rays 
and gamma rays – for applications such as the 
earlier and more accurate detection of cancer 
or protection against ‘dirty bombs’ – is driving 
the utilisation of CZT. That Kromek is making 
significant progress in driving down the cost, 
through improving yield levels, increases the 
competitiveness of our offering and means that 
we are well-positioned to benefit from the trend 
towards mass adoption of CZT-based detectors.
Timing of revenues 
difficult to predict
Whilst we have seen our order book increasing, 
and a strong pipeline provides Kromek with 
improved visibility going forward, dealing 
with government agencies and OEMs renders 
it difficult to predict the exact timing and 
magnitude of some of the contracts. Hence 
we have received orders but then had 
delivery postponed to the next financial year. 
Consequently, our growth in revenues in 2014/15 
was less than we expected at the beginning of 
the financial year. However, there is no doubt 
in my mind that we are at the cusp of a new 
adoption cycle where CZT-based products will 
replace scintillators, presenting Kromek with 
material revenue opportunities over the next 
two to three years. Because a majority of our 
contracts are with government agencies and 
OEMs, we have also learned to be cautious 
with our revenue forecasting models.
Well positioned in 
high-growth markets
During the year, Kromek won a significant contract 
with the U.S. Defense Advanced Research Projects 
Agency (DARPA) who have already extended 
the contract twice since the initial contract was 
awarded early in the year. We believe that DARPA 
represents a significant radiation detection 
opportunity that will gain momentum over the 
next 12 to 18 months. DARPA is concerned, as 
are other government agencies around the world, 
by the threat of a “dirty” bomb placement.
Kromek’s products for the nuclear medical 
Single Photon Emission Computed T omography 
(“SPECT”) market are likely to mature over the next 
two-year period. A third large growth opportunity 
of computerised tomography (“CT”) components, 
also in medical imaging equipment, is likely to 
see Kromek’s products delivered from 2017/18.
In these areas of CT and SPECT, we believe our 
addressable opportunity stands at $900m and 
$100m p.a. respectively. In the area of portable 
advanced radiation detectors for nuclear 
safeguarding, we believe our market opportunity 
is more than a billion dollars. We have already 
made significant progress within all three of these 
markets, particularly within the last six months. As 
such, we continue to develop our portfolio of end-
use products whilst advancing our longer-term 
strategy of becoming the preferred component 
supplier to major OEMs in CT and SPECT and 
in the supply of network sensors in nuclear 
markets through existing and new relationships.
The other distinct competitive advantage that 
Kromek possesses, in all three markets, is the 
capability to develop and supply the electronics 
to convert the signals, with proprietary 
algorithms, into meaningful detection alerts. 
Employees and Partners
As we look to the future, I would also like to 
express gratitude to those who have enabled 
us to reach this point. In particular, on behalf of 
the Board, I would like to thank all of our staff 
and shareholders for their on-going support. 
With the strengthening of Kromek’s foundations 
and the long-term growth drivers showing no 
sign of abating, we look forward to leveraging 
our technical expertise and ability to innovate 
to grow our business and deliver shareholder 
value. Kromek is, today, a stronger and better 
company than the day we went public. We have 
the market opportunities, we have the products 
and technology, and we have the cost position. 
The next two to three years will be exciting 
as we deliver on these strong foundations.
Lawrence Kinet, 
Chairman, July 2015
Business Review & Strategic Report Chief Executive 
Officer’s Review
7
Kromek is pleased to report another 
period of revenue growth. For the full 
year 2014/15, revenue increased by 36% 
to £8.1m (FY 2013/14: £6.0m) as we 
continued to establish our position as a 
key supplier of CZT detection systems 
both to commercial and government 
customers globally. From H1 to H2, the 
revenues increased by 56% through 
expansion in the number and scope 
of customer-funded development 
projects as well as direct sales of 
both end-user and component-level 
products for OEMs. Notably, we won 
contracts across all three of our target 
segments and in multiple geographies.   
Medical Imaging 
We made good progress this year with our 
mutually exclusive contract with a top four 
global OEM in the CT market for developing 
and supplying CZT-based multispectral 
(colour) detectors for producing high 
resolution colour x-ray images by CT scanners. 
In September 2014, based on sustained 
progress towards meeting the aims of the 
development programme, the OEM confirmed 
its decision to progress to the second year of 
the programme and awarded Kromek a $1m 
exclusivity payment for this next stage. 
Kromek gained further traction during the year 
in our other significant market opportunity 
in the medical imaging segment, SPECT 
where it has been demonstrated that use 
of CZT provides more specificity due to 
higher resolution, which enhances detection 
capabilities. We commenced initial supply of 
our CZT-based modules to an established 
SME manufacturer of x-ray diagnostics and 
analysis equipment in China, under our long-
term contract that we signed last year, for 
application in China and Chinese territories. 
Another significant development for Kromek 
was the continued growth of sales attributable 
to the dual energy x-ray bone mineral 
densitometry (DEXA BMD) segment. DEXA 
BMD is the most accurate imaging technique 
to diagnose the strength and health of bones, 
allowing clinicians to accurately detect, 
monitor and treat Osteoporosis in patients. 
We started a new programme with a leading 
global healthcare and diagnostics company 
for adopting our detectors in their machines. 
In addition, we received further contracts 
from two of our existing OEM customers 
for CZT-based detector modules for BMD 
applications. In the second half, we received 
new orders to supply radiation detectors 
and integrated electronic components to a 
leading global OEM of dual energy x-ray bone 
mineral density (“DEXA BMD”) systems. 
During the year, we received contracts worth 
£150,000 to develop an enhanced detection 
system for breast imaging in conjunction 
with the UK’s Centre for Process Innovation. 
The contracts were awarded by Innovate UK 
(formerly the Technology Strategy Board), 
an executive non-departmental public body 
sponsored by the UK Government’s Department 
for Business, Innovation & Skills. Following the 
successful collaboration on these, and other 
projects, Innovate UK awarded us a further 
contract worth approximately £200,000 for 
an 18-month programme for the development 
of a novel radiation detector for the medical 
and nuclear markets. We are pleased with the 
progress we are making on these programmes.
Market opportunity in 
Medical Imaging
T  SPECT – ongoing discussions with 
several OEMs following recent 
launch of eVance
TM
 family of 
products for Thyroid, Breast, Cardiac 
and General Purpose imaging
T  CT – we have developed our CT 
capability with a major OEM over the 
last two years under an exclusive 
joint development agreement
T  BMD – recurring revenue with good 
margin with existing customers and 
developing new customer relationships
 
Nuclear Detection
We continued to grow our sales in the nuclear 
segment, being awarded contracts across 
multiple partners in the US and worldwide to 
supply innovative nuclear detection products 
for civil nuclear and safeguarding applications 
following the increased threat of ‘dirty bombs’. Of 
particular importance, however, was the signing, 
during the year, of four new and extension 
contracts for a total value of $5.8m with the 
U.S. Department of Defense. In August 2014, 
we were awarded up to $1.2m for a 12-month 
programme with DARPA to develop an advanced 
portable detection system for gamma and 
neutron radiation that can be combined in large 
networks, providing information on radiation 
signatures over an extended area. This contract 
was extended by a further $1.1m by DARPA 
in January 2015 following strong progress on 
the first phase, which signifies the customer’s 
confidence in Kromek as a strong solution 
provider. In April 2015, DARPA further modified 
the contract for volume supply of radiation 
network detectors, worth another $2.02m, 
bringing the total value of the contract to $4.4m. 
Kromek’s solution is based on its ‘Discreet Dual 
Detector’ – the D3 – a handheld hybrid gamma/
neutron detector that can be networked with 
other such devices. Kromek also secured a 
two-year $1.5m contract with DTRA for the 
design, manufacture and optimisation of high 
sensitivity, next generation, solid state detectors 
for the homeland security radiation detection 
market. The project has progressed well and we 
are delivering on all of the target milestones. 
We continued to work under, and successfully 
completed, the first phase of a contract with a 
leading global security company, which provides 
innovative systems, products and solutions 
to government and commercial customers 
worldwide, to design CZT-based detectors and 
ASICs for nuclear safeguard markets. This 
resulted in Kromek being awarded a $1.0m 
contract extension to focus on the delivery of the 
new ASICs and detectors as well as the testing 
and characterisation of detector modules. 
Arnab Basu
Chief Executive Officer, July 2015
Business Review & Strategic  Report
Continued on page 8 Chief Executive Officer’s Review continued
8
Market opportunity in 
Nuclear Detection
T  Continuing to penetrate civil nuclear 
markets with our own branded products
T  Ongoing discussions for partnerships 
with two OEMs in civil nuclear market
T  Further implementation of second 
generation D3 – the small form 
factor D3S – in homeland security 
applications post heightened 
threat of ‘dirty bombs’
T  Total value of market opportunity 
is expected to be $1bn+
Security Screening
In the security screening market, Kromek was 
awarded a significant contract to provide its 
advanced bottle scanner technology to a number of 
airports in Asia. This initial contract, worth 
$620,000, represents entry into a new geographical 
market that we believe offers considerable scope for 
future growth. Kromek’ s bottle scanner is now 
installed in 46 airports in 10 countries in Asia, Europe 
and Australia.
Kromek has also expanded its customer base 
during the year with new contracts from additional 
global security technology groups for the supply of 
OEM components for baggage screening products, 
including a new contract worth approximately 
$0.3m for the supply of OEM components for a 
baggage screening product for aviation security. 
We also received a repeat order from a recognised 
OEM in the US to supply our patented detection 
modules to enhance the OEM’s radiation detection 
capabilities for its security applications.  
Market opportunity in 
Security Screening
T  Discussion with global OEM on 
licensing liquid detection technology 
and development of OEM module 
for baggage screening
T  Further sales of bottle scanner product
T  Total value of market opportunity 
is expected to be $450m+
Doubling of 
Manufacturing Capacity 
and Driving Down Cost
During the period, Kromek reached an 
important milestone as it successfully 
replicated in the UK the CZT manufacturing 
processes that had previously been utilised 
in the US, which enabled a doubling of 
the Company’s production capacity. 
Specifically, 24 new CZT growth systems 
were installed and qualified for production 
at our Sedgefield, UK manufacturing site. 
Additionally, four new CZT systems were 
installed and qualified for production 
and R&D purposes at our Saxonburg, 
US manufacturing site. We also made 
significant yield improvements in materials 
for SPECT detectors through a new CZT 
sensor assembly technique, which has 
led to a lowering of the cost of detector 
production. Long-term supply agreements 
were negotiated with critical suppliers to 
secure pricing and supply of raw materials.
In addition to improvements in the 
production of CZT material, we were able 
to further improve the fabrication process 
for detectors resulting in higher fabrication 
yields at the Saxonburg plant. At the 
Sedgefield plant we qualified production 
processes for silicon photomultiplier-
based gamma and neutron detectors. 
There were significant efficiencies made in 
the assembly and testing for our nuclear 
products. Multiple electronic component 
subassembly suppliers were qualified in 
Eastern Europe and Asia to improve costs. 
Advanced automated testing for nuclear 
detection instruments were developed, with 
multiple resources trained and qualified to 
carryout procedures at the Sedgefield plant. 
Both manufacturing sites at Sedgefield and 
Saxonburg were re-certified for ISO9001:2008 
through ISO audits and successfully 
passed several key customer audits.
Outlook
The doubling in manufacturing capacity, increased 
customer base, and significant progress with 
new OEMs and U.S. Department of Defense, 
provides a strong base for growing the business 
over the medium to long term. We believe that 
Kromek has the market-leading technology, 
products and personnel that will enable us 
to win further contracts across the three 
transformational market opportunities of CT, 
SPECT and portable advanced radiation detectors.
We have entered the new financial year with 
a significantly higher backlog than at the 
equivalent period last year with contracts signed 
in the previous year providing 60% visibility 
on the Directors’ expectations for the year 
ahead. We are continuing to make progress and 
receive increasing interest across all three of 
our segments. In Security Screening, we have 
numerous revenue opportunities from the 
sale of bottle scanners in Europe and RoW. In 
Medical Imaging and Nuclear Detection, we are 
especially excited about the increasing traction, 
with both new and existing customers, we are 
making in the three key growth opportunities 
of CT, SPECT and portable advanced radiation 
detection. In particular, the Directors expect the 
recently-launched eVance
TM
 family of SPECT 
cameras and OEM units to gain traction and be 
a significant contributor to revenues over the 
next 12-18 months. We are making significant 
progress with our projects with the U.S. 
Department of Defense, and continue to penetrate 
civil nuclear markets with Kromek-branded 
products and through white labelling channels.       
Kromek’s management team is committed to 
maintaining tight cost control whilst continuing to 
invest in sales & marketing and targeted product 
development. The business has operational 
leverage reflected in a rise in revenue year-on-
year of 36% but a rise in the administrative costs 
(including operating costs) of only 4% year-on-year. 
This is further demonstrated by revenue growing 
by £2.1m year-on-year and adjusted EBITDA 
improving by £1.4m to a loss of £1.6m from a 
loss of £3.0m for the prior year. As a result, the 
Board is confident in the prospects of the business 
and delivering significant shareholder value.
KROMEK Annual Report & Accounts 2015
Business Review & Strategic Report 9
Chief Financial  
Officer’s Review
The financial performance for the year 
ended 30 April 2015 was characterised 
by growth in revenue whilst tight control 
was maintained over the cost base. 
Revenue increased by 36% to £8.1m 
(2013/14: £6.0m) due to significant 
progress on government contracts, 
especially in development of products 
for homeland security through the D3 
product, supplemented by sales to OEMs 
in the medical imaging sector and sales 
of bottle scanners in Asia. 
Gross margin, before labour and overhead 
recovery, increased to 69% (2013/14: 65%) 
due to the increase in government contracts, 
plus yield efficiencies and product mix. 
Year-on-year, administration expenses 
(including operational expenses) grew by only 
4% to £8.5m (2013/14: £8.2m) despite a 36% 
increase in revenue. The slight increase was 
largely due to a full year of costs associated 
with being a listed entity compared with only 
six months in the prior period. Additionally, 
employee numbers grew to 107 (2013/14: 
101), primarily due to the expansion of 
the sales & marketing team, increasing 
employment costs (excluding Non-Executive 
Director costs) by 3%.
Summary of results
As a result of increased revenue, improved 
margin and tight cost control, the loss before 
interest, tax, depreciation and amortisation 
(EBITDA), excluding non-recurring other 
income and share-based payment expenses, 
fell to £1.6m compared with a loss of £3.0m 
for the prior year. Loss before tax was reduced 
by 28% to £3.1m (2013/14: £4.3m loss). 
The results for the year, including 
reconciliation to adjusted EBITDA (which 
eliminates non-recurring other income and 
share-based payment expenses), are as 
follows:
Year 2014/15 2013/14
£’000 £’000
Revenue 8,101 5,972
Gross margin (%) 69% 65%
LBT (3,135) (4,295)
EBITDA Adjustments:-
Net interest 71 515
Depreciation 673 737
Amortisation 711 560
EBITDA (1,680) (2,483)
Share-based payments 181 125
Other income (58) (649)
Adjusted EBITDA (1,557) (3,007)
Cash and cash equivalents at 30 April 2015 
were £1.2m (31 October 2014: £2.9m; 30 
April 2014: £6.6m). During the second half 
of the year, the Company secured a £3.0m 
revolving credit facility with HSBC Bank plc. 
The funds available will be used for working 
capital to support the growth of the business, 
and facilitate the Company in capitalising 
on the large and increasing opportunities 
that it continues to develop across its target 
markets. As at 30 April 2015, £1.0m had been 
drawn down under the credit facility.
Tax
The Company benefits from the UK Research 
and Development Tax Credit and recorded a 
credit of £1.0m for the year (2013/14: £0.7m). 
In addition, the Company saw a movement in 
the deferred tax provision of £nil (2013/14: 
£0.4m), resulting in an overall tax credit to the 
income statement of £1.0m (2013/14: £1.1m).
Earnings per 
share (“EPS”)
EPS is recorded in the year on a basic and 
diluted basis producing a loss of 2p per 
share (2013/14: loss of 5p per share) and 
an adjusted basic and diluted loss of 2p per 
share (2013/14: loss of 5p per share). Due to 
the Company having losses in each of the two 
years, the diluted EPS for disclosure purposes 
is the same as the basic EPS.
R&D
As noted above, the Company continues to invest 
in the development of products and its technology 
platform to advance its commercial advantage 
and increase margin on sales. T otal expenditure 
on research and development was £4.4m 
(2013/14: £3.1m), comprising £2.6m in the UK 
(2013/14: £1.9m) and £1.8m in the US (2013/14: 
£1.2m). This consists of £1.8m (2013/14: £1.1m) 
attributable to near-term product development 
and £2.6m (2013/14: £2.0m) reflecting investment 
in Kromek’s core technology, platform and 
manufacturing capabilities.
The expenditure on commercial near-term 
product development, which has been 
capitalised, resulted in new and further 
development of existing products. This 
provides further short- and medium-term sales 
opportunities, and reflects Kromek’s ability to 
draw from its technology platform to rapidly 
develop bespoke and need-specific products.
The investment in Kromek’s core materials 
technology, platform developments and 
improved manufacturing and engineering 
processes, was expensed through the income 
statement. This provides a strong and enhanced 
basis for efficiency and profitability in future 
years, and strengthens the market position of 
Kromek’s technology. 
During the period, Kromek was awarded 23 new 
patents and filed 18 new patent applications.
Capital expenditure
Capital expenditure for the year amounted 
to £2.6m (2013/14: £0.2m), of which £0.8m 
(2013/14: £0.1m) was supported by awards 
from the Regional Growth Fund. This increase 
substantially relates to the expansion of furnace 
capacity in UK, which involved an investment of 
£2.0m. This investment is an important step for 
the business in demonstrating scalability and 
transferability of the requisite materials growth 
technologies, processes and know-how.
Derek Bulmer
Chief Financial Officer, July 2015
Business Review & Strategic  Report 10
F 
6m
is the total 
potential 
number of units 
that could be 
exceeded
F 
$1bn
total opportunity 
value even if 50% 
of potential users 
are equipped 
with D3
F 
NEW
market driven 
by ‘bottom-up’ 
organisations for 
building crowd-
sourced radiation 
networks
F 
$400
is the price point 
objective of 
deployment
Portable radiation detection
Key needs
Volumes for use in extensive networks – fixed and mobile
D3S combined wireless 
gamma-neutron detector
Nuclear Safeguard - D3 a portable combined gamma neutron 
detector which is networked via mobile phone linked to a 
central server. Prevention against nuclear terrorism threat.
KROMEK Annual Report & Accounts 2015
Business Review & Strategic Report
Nuclear Detection
$1bn+
Kromek opportunity
CUSTOMER FOCUS: DARPA
 $400
Initial programme with DARPA to reach 
$400 per D3 unit cost target – commenced 
August 2014 and extended January 2015
1,000
Awarded second contract in April 2015 to 
provide accelerated trial to deliver 1,000 
units of small form factor D3 (D3S)
$4.3m
T otal value of contracts to date: up to $4.3m
Stateless terrorists with a dirty bomb now real threat  
CT – Medical Imaging
11
T otal Global 
Market Shares 
for CT Revenue 
by Region, 2012
Source: BCC Research
Source: BCC Research
Summary
T   GE remains the overall leader
T   CT systems will continue to be the fastest 
growing modality in medical imaging
T   Rapid upgrades of technology will drive 
further growth
T   US, Europe & Japan are the largest market
T   Asia will see the strongest growth
$5.3m
Currently working under an exclusive 
contract, worth up to $5.3m, with a top four 
global OEM for developing and supplying 
CZT-based multispectral (colour) detectors
 Adv antages of  
using CZT
▪   Dose reduction and higher  
patient throughput
▪   High specificity providing  
better tissue contrast
▪   Accurate imaging for blood  
flow and drug take-up
CT - (photon counting) is an x-ray based diagnostic imaging technique 
where slices of images are taken and then can be rendered into a 3D 
image - for detection of cancers, cardiac and other pathologies.
$900m+
Kromek opportunity over 8 years 
from commercial adoption
Asia
36%
29%
23%
12%
Europe
North 
America
Emerging 
markets
GE
30%
Siemens 
25%
Philips 
15%
Agfa-Gevaert
13%
Toshiba 
11%
Others
6%
F  Improved image quality enables 
more accurate diagnosis and 
greater efficiency of treatment 
– and so lower cost of care
Business Review & Strategic  Report 12
KROMEK Annual Report & Accounts 2015
Business Review & Strategic Report
SPECT – Medical Imaging
 
SPECT - Nuclear Medicine diagnostic imaging where the patient 
is injected with a radio–pharmaceutical. The pharmaceutical then 
congregates at tumour sites.
$100m+
Kromek opportunity 
per year 
Conventional  
vs CZT MBI
Geographic Markets
EU
17.5%
US 
55%
BRIC
 11.25%
JAPAN 
12%
RoW 
4.25%
Configurable 
detector 
module
F  3 current customers for detectors in the niche SPECT market
F  In April 2014, Kromek announced a long-term contract with a Chinese 
manufacturer who was given exclusive rights over Chinese territories 
F  Launched, in June 2015, eVance™ family of CZT-based SPECT cameras: combining 
eV-CZT™ detectors with advanced ASICs and microelectronics technology to 
produce turnkey solution to simplify market adoption curve for OEMs
Source: Mayo Clinic
Source: Health Advances interviews and analysis, Kalorama, 2014
 Adv antages of  
using CZT
T Reduced dose rate
T Reduced scan time
T  Higher resolution 
and specificity 
T  Improved image quality 
enables more accurate and 
earlier detection of cancer, 
and faster treatment cycle so 
lower cost of care, with lower 
overall radiation exposure 13
Business Review & Strategic  Report
Manufacturing Capabilities
T   Long-term agreements negotiated with 
critical suppliers.
T   Sedgefield qualified production processes 
for silicon photomultiplier-based gamma 
and neutron detectors. 
T   Significant efficiencies made in assembly 
and testing for nuclear products. Multiple 
electronic component subassembly 
suppliers were qualified in Eastern Europe 
and Asia to improve costs. 
65+
Kromek now has over 65 CZT  
furnaces worldwide
x4 NEW CZT
Additionally, four new CZT systems were 
installed and qualified for production 
and R&D purposes at our Saxonburg, US 
manufacturing site
Kromek reached an important milestone as it successfully replicated in 
the UK the CZT manufacturing processes that had previously been utilised 
in the US, which enabled a doubling of the Company’s production capacity. 
24
New CZT growth systems 
were installed and qualified for 
production at our Sedgefield, 
UK manufacturing site
COST
OF DETECTOR 
PRODUCTION
New CZT sensor assembly 
technique, has led to a 
lowering of the cost of 
detector production
IMPROVED
F ABRICATION YIELDS
Improvements material 
production and fabrication 
procressing for detectors has 
resulted in higher yields at the 
Saxonburg plant. 
F  Driving Down Costs 
while Doubling our 
Manufacturing Capacity
Sedgefield HQ
Saxonburg, US
High energy  
radiation
CZT directly 
converts  
radiation to 
electrical  
signals
ASIC signal 
readout
High 
resolution 
spectra and 
images
CZT: Direct Conversion Detector  
Lawrence Kinet
Chairman
Mr. Kinet 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.
 
2
 
Arnab Basu
Chief Executive Officer
Dr. Basu 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 and 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). 
 
3
 
Derek Bulmer
Chief Financial Officer  
 and In-House Counsel
A qualified Chartered Accountant and 
Barrister, Mr. Bulmer has worked with 
KPMG and undertaken a number of senior 
management roles with blue chip plc’s 
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.
 
4
 
Peter Bains
Non-Executive Director
During a 23-year career at GlaxoSmithKline, 
Mr. Bains 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; 
Biocon subsidiary, Syngene, and as Non-
Executive Chairman of Fermenta Biotech 
Ltd. Peter holds a BSc Combined Honours in 
Physiology/Zoology from Sheffield University.
 
5
 
Charlotta Ginman
 Non-Executive Director & 
Audit Committee Chair
Ms. Ginman brings substantial experience 
in financial and operational management 
gained during her career in investment 
banking and global telecommunications. 
Joining Ernst & Young, she was later 
appointed to senior roles with JP Morgan, 
Deutsche Bank, UBS and Nokia Corporation. 
Charlotta is a Non-Executive Director 
of Consort Medical plc, Polar Capital 
Technology Trust plc, Pacific Assets Trust 
plc and Motif Bio plc. Additionally, she 
is Audit Committee Chair for the latter 
two companies. A chartered accountant, 
Charlotta also holds an MSc in Economics 
from the Swedish School of Economics 
and Business Administration in Helsinki.
 
6
 
Max Robinson
 Founder & Non-Executive Director
Prof. Robinson 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 3-D 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. Professor Robinson 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.
Directors’ Biographies
1
14
KROMEK Annual Report & Accounts 2015  
7
 
Graeme Speirs
Non-Executive Director
Dr. Speirs 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.
 
 
8
 
Brian Tanner
Non-Executive Director
Prof. Tanner 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 
4 books. He received the Queen’s Award 
for Enterprise Promotion (2012) and the 
Barrett Award of the International Center 
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.
9
 
Jerel Whittingham
Non-Executive Director & 
Remuneration Committee Chair
Mr. Whittingham has extensive experience 
in investor, operational and strategy roles 
with technology rich companies including 
Incuvest LLC, Generics Group plc, Durlacher 
plc, Amphion Innovations plc, INMARSAT 
and a number of start-ups. He was 
appointed to the Board of Kromek Group plc 
in September 2013 and also served on the 
Board of DSC Ltd, a predecessor company 
of the group. Currently he combines NED 
and operational roles in technology growth 
companies. He also served as CEO and later 
Executive chairman of Myconostica Ltd, a 
medical technology company spun out from 
a leading UK university.
6 3 1 5 9 4 2 8 7
15
Directors’ Biographies 16
Directors’ Report
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 2015.
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.
Business and strategic 
review
The information that fulfils the requirements 
of the business review, including details 
of the results for the year ended 30 April 
2015, principal risks and uncertainties and 
the outlook for future years, are set out in 
the Chairman’s and Chief Executive Officer’s 
Statements and the Business and Financial 
Review, on pages 5-8.
Future development
Our development objectives for 2015–16 are 
disclosed in the Overview on pages 10-13.
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 2015.
Results and dividends
The consolidated income statement is set 
out on page 25.
The Group’s loss after taxation amounted to 
£2.1m (2014: £3.2m).
The Directors do not recommend the 
payment of a dividend for the year ended 30 
April 2015.
During the year ended 30 April 2015, the 
Group made political donations of £nil 
(2014: £nil) and charitable donations of £nil 
(2014: £nil).
Directors
The Directors of the Group are shown on 
pages 14-15. All of the Directors were 
Directors for the whole of the year, with the 
exception of the following: Richard Morgan, 
who was Chairman, resigned from the Board 
on 27 March 2015. 
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 36 
to the financial statements.
Information about the use of financial 
instruments by the Group and its 
subsidiaries is given in note 35 to the 
financial statements.
The Directors, who served throughout the 
year except as noted, were as follows:
Dr A Basu MBE
Mr D Bulmer 
Mr R C E Morgan (resigned 27 March 2015)
Mr P Bains 
Ms C Ginman 
Mr L Kinet 
Professor M Robinson
Dr G K Speirs
Professor B K Tanner
Mr J H Whittingham
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.
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:
T  present fairly the financial position, 
financial performance and cashflows of 
the Group; 
T  select suitable accounting policies 
in accordance with IAS 8 Accounting 
Policies, Changes in Accounting Estimates 
and Errors and then apply them 
consistently; 
T  make judgements and estimates that are 
reasonable and prudent;
T  state whether applicable IFRSs have 
been followed, subject to any material 
departures disclosed and explained in the 
financial statements; and
T  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 
KROMEK Annual Report & Accounts 2015
  17
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:
T  so far as each Director is aware, there is 
no relevant audit information of which the 
Group’s auditors are not aware; and
T  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 the 
corporate 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:
T  so far as the Director is aware, there is no 
relevant audit information of which the 
Group’s auditors are unaware; and
T  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
29 July 2015
  Corporate Governance Report
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 four 
times per year in person and four times per 
year telephonically. 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. 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 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 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 Directors’ 
remuneration report on pages 20-22.
Relations with 
shareholders
Communication with shareholders is given 
high priority. There is regular dialogue 
with major and 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.
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 
KROMEK Annual Report & Accounts 2015
Corporate Governance
18 Corporate Governance
19
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
As at 30 April 2015, the Group had net 
assets of £16.2m (2014: £17.7m) as set out 
in the consolidated statement of financial 
position. The Directors have prepared 
detailed forecasts of the Group’s financial 
performance over the next 5 years, which 
includes the £9.0m firm placing and open 
offer of up to £2.0m which was raised 
subsequent to the financial statements 
being approved and disclosed in note 36. As 
a result of this review, which incorporated 
sensitivities and risk analysis, the Directors 
believe that the Group has sufficient 
resources and working capital to meet 
their present obligations. Accordingly, they 
continue to adopt the going concern basis in 
preparing the Group financial statements. KROMEK Annual Report & Accounts 2015
20
Directors’ Remuneration Report
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 Board, 
having considered the recommendations 
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 (“LTIP”)
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 2015 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:
Director
30 April
2015
£’000
30 April
2014
£’000
Arnab Basu 16 30
Derek Bulmer 10 4  
21
Directors’ shareholdings
Beneficial interests of the Directors in the shares of the Group are shown below:
30 April 2015 30 April 2014
Number % Number %
Arnab Basu 2,000,000 1.8 2,000,000 1.9
Charlotta Ginman 37,527 – – –
Lawrence Kinet 30,000 – 30,000 –
Richard Morgan* 332,310 0.3 12,782,730 11.8
Max Robinson 9,500,000 8.8 9,500,000 8.8
Graeme Speirs** 14,792,730 13.7 14,792,730 13.8
Brian Tanner 750,000 0.7 750,000 0.7
Jerel Whittingham 110,450 0.1 110,450 0.1
*Richard Morgan resigned from the Board on 27 March 2015.** Graeme Speirs is interested in Kromek Group plc 
through Polymer Holdings Ltd which owns 11,377,790 ordinary shares amounting to 10.5% of the issued share capital.
Directors’ emoluments for the year ended 30 April 2015
Salary
£’000
Fees
£’000
Benefits
£’000
Bonus
£’000
Pension
contributions
£’000
Total
emoluments 2015
£’000
Total
emoluments 2014
£’000
Former non-executive 
Chairman
Richard Morgan* – 64 – – – 64 39
Executive
Arnab Basu 165 – 7 – 16 188 211
Derek Bulmer 117 – – – 10 127 52
Non-executive
Peter Bains – 33 – – – 33 28
Charlotta Ginman – 36 – – – 36  8
Lawrence Kinet – 35 – – – 35 28
Max Robinson – 30 – – – 30 20
Graeme Speirs – 33 – – – 33 22
Brian Tanner – 33 – – – 33 22
Jerel Whittingham – 36 – – – 36 24
*Richard Morgan resigned from the Board on 27 March 2015.
Payments for loss of office
Richard Morgan left the company on 27 March 2015. On the cessation of his employment, he was entitled to receive the value of his fees 
which would have accrued to him during his three months’ notice period. These amounts totalled £13k. Directors’ Remuneration Report continued
22
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 
June 2014, an incentive award scheme 
for Arnab Basu and Derek Bulmer, to offer 
them shares up to 425,859 and 181,182 
respectively, at a price of 1p per share to 
vest based on specified performance criteria.
In October 2013, an incentive scheme was 
made to 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 share incentives noted above 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 2015 and 30 April 2014, no 
shares had vested under these incentive 
schemes.
Share price during the year
During the year to 30 April 2015, the highest 
share price was 55.5p (2014: 81.0p) and the 
lowest share price was 32.5p (2014: 36.0p). 
The market price of the shares at 30 April 
2015 was 37.0p (2014: 41.5p).
Directors’ interests in material 
contracts
No Director was materially interested either 
at the yearend or during the year in any 
contract of significance to the Group other 
than their employment or service contract.
Executive Directors’ share options
Director Date of grant
Exercise 
price p
2014 
number
Awarded 
during the 
year
Exercised 
during the 
year
At 30 April 
2015 number Expiry 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 20.5 1,000,000 – – 1,000,000 22 September 2016
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 SOctober 2022
Derek Bulmer 31 May 2013 20.0 250,000 – – 250,000 31 May 2023
KROMEK Annual Report & Accounts 2015 Kromek Group plc
Consolidated Financial Statements
for the year ended 30 April 2015 Independent Auditor’s Report
We have audited the financial statements 
of Kromek Group plc for the year ended 
30 April 2015 which comprise the Group 
Income Statement, the Group Statement 
of Comprehensive Income, the Group 
and Parent Company Statements of 
Financial Position, the Group and Parent 
Company Statements of Cash Flow, the 
Group and Parent Statement of Changes 
in Equity and the related notes 1 to 53. 
The financial reporting framework that 
has been applied in their preparation is 
applicable law and International Financial 
Reporting Standards (IFRSs) as adopted 
by the European Union and, as regards 
the parent company financial statements, 
as applied in accordance with the 
provisions of the Companies Act 2006.
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:
T  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 2015 and of the 
group’s loss for the year then ended;
T  the group financial statements 
have been properly prepared in 
accordance with IFRSs as adopted 
by the European Union;
T  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
T  the financial statements have 
been prepared in accordance 
with the requirements of the 
Companies Act 2006.
Opinion on other matter prescribed 
by the Companies Act 2006
In our opinion the information given 
in the Business Review & 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 matters where the 
Companies Act 2006 requires us to 
report to you if, in our opinion:
T  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
T  the parent company financial 
statements are not in agreement with 
the accounting records and returns; or
T  certain disclosures of directors’ 
remuneration specified by 
law are not made; or
T  we have not received all the 
information and explanations 
we require for our audit.
Matthew Hughes BSc (Hons) ACA 
(Senior Statutory Auditor)
For and on behalf of Deloitte LLP
Chartered Accountants and 
Statutory Auditor
Newcastle upon Tyne, United Kingdom
KROMEK Annual Report & Accounts 2015
24 Consolidated Financial Statements
Consolidated income statement
For the year ended 30 April 2015
25
                                                                                                                                                                    2015                                                       2014
                                                                                                   Note                                                       £’000                                                      £’000 
                                                                                                                                                  
Continuing operations
Revenue                                                                                          5                                                      8,101                                                      5,972
Cost of sales                                                                                                                                         (2,475)                                                    (2,101)
                                                                                                                                                                                              
Gross proﬁt                                                                                                                                          5,626                                                       3,871
Other operating income                                                                                                                              60                                                          719
Distribution costs                                                                                                                                    (226)                                                       (144)
Administrative expenses (including
operating expenses)                                                                                                                            (8,524)                                                    (8,226)
                                                                                                                                                                                      
Operating loss                                                                                                                                   (3,064)                                                    (3,780)
Finance income                                                                           10                                                            31                                                            15
Finance costs                                                                               11                                                        (102)                                                       (530)
                                                                                                                                                                                      
Loss before tax                                                                                                                                 (3,135)                                                    (4,295)
Tax                                                                                                12                                                         989                                                      1,106
                                                                                                                                                                                      
Loss for the year from continuing operations                                                                       (2,146)                                                    (3,189)
Loss per share                                                                             14                                                                 
– basic and diluted (£)                                                                                                                            (0.02)                                                     (0.05)
Kromex_v10_Layout 1  30/07/2015  01:51  Page 25 KROMEK Annual Report & Accounts 2015
Consolidated statement of comprehensive income
For the year ended 30 April 2015
26
                                                                                                                                                                   2015                                                       2014
                                                                                                                                                                 £’000                                                      £’000
                                                                                                                                                                                      
Loss for the year                                                                                                                               (2,146)                                                    (3,189)
                                                                                                                                                                                              
Exchange differences on translation of foreign operations                                                                398                                                        (641)
                                                                                                                                                                                      
Total comprehensive losses for the year                                                                                (1,748)                                                   (3,830)
                                                                                                                                                                                      
                                                                                                                                                               
                               
Kromex_v10_Layout 1  30/07/2015  01:51  Page 26 Consolidated statement of ﬁnancial position
As at the year ended 30 April 2015
27
                                                                                                                                                                   2015                                                       2014
                                                                                                   Note                                                     £’000                                                      £’000
                                                                                                                                                  
Non-current assets
Goodwill                                                                                       15                                                      1,275                                                       1,275
Other intangible assets                                                              16                                                      8,725                                                      6,965
Property, plant and equipment                                                 17                                                      4,147                                                      2,285
                                                                                                                                                                                      
                                                                                                                                                               14,147                                                    10,525
                                                                                                                                                                                      
Current assets
Inventories                                                                                   19                                                      2,103                                                      2,389
Trade and other receivables                                                     21                                                     4,089                                                      1,907
Current tax assets                                                                      21                                                      1,002                                                         696
Cash and bank balances                                                                                                                       1,183                                                      6,563
                                                                                                                                                                                      
                                                                                                                                                                 8,377                                                    11,555
                                                                                                                                                                                      
Total assets                                                                                                                                      22,524                                                    22,080
                                                                                                                                                                                     
                                                                                                                                                               
                               
Current liabilities                                                                        
Trade and other payables                                                         24                                                    (4,143)                                                    (3,210)
Finance lease liabilities                                                                                                                             (19)                                                             –
Borrowings                                                                                   25                                                    (1,003)                                                             –
                                                                                                                                                                                      
                                                                                                                                                                (5,165)                                                    (3,210)
                                                                                                                                                                                      
Net current assets                                                                                                                            3,212                                                      8,345
                                                                                                           
Non-current liabilities                                                               
Finance lease liabilities                                                                                                                             (10)                                                             –
Deferred tax liabilities                                                                23                                                     (1,147)                                                    (1,134)
                                                                                                                                                                                      
Total liabilities                                                                                                                                  (6,322)                                                   (4,344)
                                                                                                                                                                                      
                                                                                                                                                                                             
Net assets                                                                                                                                                  16,202                                                       17,736
                                                                                                                                                                                      
                                                                                                                                                       
                               
Equity
Share capital                                                                               27                                                      1,082                                                      1,080
Share premium account                                                            28                                                   34,643                                                    34,612
Capital redemption reserve                                                                                                                  1,175                                                       1,175
Translation reserve                                                                    29                                                          (84)                                                       (482)
Accumulated losses                                                                  30                                                  (20,614)                                                 (18,649)
                                                                                                                                                                                      
Total equity                                                                                                                                               16,202                                                       17,736
                                                                                                                                                                                      
                                                                                                                                                               
                               
The ﬁnancial statements of Kromek Group plc (registered number 8661469) were approved by the board of directors and authorised for issue on
29 July 2015.  They were signed on its behalf by:
Dr Arnab Basu MBE
Chief Executive Ofﬁcer
Consolidated Financial Statements
Kromex_v10_Layout 1  30/07/2015  01:51  Page 27 KROMEK Annual Report & Accounts 2015
Consolidated statement of changes in equity
For the year ended 30 April 2015
28
                                                                                                           
                                                                                                      Share                      Capital                          
                                                                    Share                    premium               redemption            Translation           Accumulated                Total
                                                                    capital                    account                   reserve                   reserve                     losses                     equity
                                                                    £’000                       £’000                       £’000                     £’000                      £’000                      £’000
                                                                
                                                                           
Balance at 1 May 2013                         1,175                      22,278                               –                          159                      (15,585)                     8,027
Loss for the year                                                –                                –                             –                              –                        (3,189)                  (3,189)
Other comprehensive income 
for the year                                                         –                                –                             –                        (641)                                –                       (641)
                                                                
                                                                           
Total comprehensive losses 
for the year                                                       –                                –                             –                        (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
                                                                                                                                                                                                                                                       
Loss for the year                                                –                                –                             –                              –                        (2,146)                 ( 2,146)
Other comprehensive income 
for the year                                                         –                                –                             –                         398                                  –                         398
                                                                
                                                                           
Total comprehensive losses 
for the year                                                       –                                –                             –                         398                       ( 2,146)                  (1,748)
Issue of share capital 
net of expenses                                                  2                              31                             –                              –                                  –                           33
Credit to equity for equity-settled
share based payments                                      –                                –                             –                              –                             181                         181
                                                                
                                                                           
Balance at 30 April 2015                    1,082                     34,643                      1,175                           (84)                    (20,614)                  16,202
                                                                
                                                                           
                                                                                                                                           
Kromex_v10_Layout 1  30/07/2015  01:51  Page 28 Consolidated statement of cash ﬂows
For the year ended 30 April 2015
29
                                                                                                                                                                    2015                                                       2014
                                                                                                   Note                                                       £’000                                                      £’000
                                                                                                                                                    
Net cash used in operating activities                              31                                                    (2,361)                                                    (2,218)
                                                                                                                                                                                      
Investing activities
Interest received                                                                                                                                          31                                                            15
Purchases of property, plant and equipment                                                                                  (2,558)                                                       (187)
Purchases of patents and trademarks                                                                                                 (368)                                                       (567)
Capitalisation of research and development costs                                                                        (1,886)                                                    (1,061)
                                                                                                                                                                                      
Net cash used in investing activities                                                                                         (4,781)                                                   (1,800)
                                                                                                                                                                                      
Financing activities                                                                    
Loans paid                                                                                                                                                       –                                                     (2,449)
Revolving credit facility                                                                                                                        1,000                                                              –
Government grants                                                                                                                                  857                                                            69
Proceeds on issue of shares                                                                                                                      33                                                    13,414
Payment of ﬁnance lease liabilities                                                                                                         (12)                                                             –
Interest paid                                                                                                                                              (102)                                                       (530)
                                                                                                                                                                                      
Net cash from ﬁnancing activities                                                                                              1,776                                                    10,504
                                                                                                                                                                                      
Net (decrease)/increase in cash and cash equivalents                                                     (5,366)                                                     6,486
                                                                                                                                                                                                                                             
Cash and cash equivalents at beginning of year                                                                   6,563                                                         309
                                                                                                                                                                                                                                             
Effect of foreign exchange rate changes                                                                                                (14)                                                       (232)
                                                                                                                                                                                      
Cash and cash equivalents at end of year                                                                                1,183                                                      6,563
                                                                                                                                                                                      
                                                                                                                                                               
                               
Consolidated Financial Statements
Kromex_v10_Layout 1  30/07/2015  01:51  Page 29 KROMEK Annual Report & Accounts 2015
Notes to the consolidated ﬁnancial statements 
For the year ended 30 April 2015
30
1. GENERAL INFORMATION
Kromek Group plc is a company incorporated and domiciled in the United Kingdom under the Companies Act. The address of the registered ofﬁce
is given on page 4. The nature of the Group’s operations and its principal activities are set out in the business review on pages 5–9.
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
The following new standards and amendments to standards are mandatory for the ﬁnancial year beginning on 1 May 2014: 
�
IFRS 13 “Impairment of Assets”
�
IFRS 10 “Consolidated Financial Statements”
�
AS 27 “Consolidated and Separate Financial Statements”, 
�
IAS 36 “Impairment of Assets — Recoverable Amount Disclosures for Non-Financial Assets”
�
IFRS 12 “Disclosure of Interests in Other Entities”. 
�
Amendments to IAS 32 “Financial Instruments: Presentation” Amendments to IAS 36 “Impairment of Assets” 
�
Amendments to IAS 39 “Financial Instruments: Recognition and Measurement”
�
IFRS 10, IFRS 11, IFRS 12 Transition Guidance
These standards and amendments to standards have not had a material impact on the consolidated ﬁnancial statements. 
Standards not affecting the reported results nor the ﬁnancial position
At the date of authorisation of these ﬁnancial statements, the following Standards and Interpretations which have not been applied in these ﬁ-
nancial statements were in issue but not yet effective (and in some cases had not yet been adopted by the EU):
�
IFRS 9 Financial Instruments
�
IFRS 13 Fair Value Measurement
�
IFRS 15 Revenue from Contracts with Customers
�
Annual Improvements to IFRSs 2012-2014 Cycle
The Directors do not expect that the adoption of these Standards and Interpretations in future periods will have a material impact on the ﬁnancial
statements of the Group, however they are currently considering the future impacts of IFRS 15.
3. SIGNIFICANT ACCOUNTING POLICIES 
Basis of preparation
The ﬁnancial statements have been prepared in accordance with International Financial Reporting Standards as adopted by the European Union
(“IFRSs”) 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. 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, and proﬁts are eliminated on
consolidation.
Going concern
As at 30 April 2015, the Group had net assets of £16.2m (2014: £17.7m) as set out in the consolidated statement of ﬁnancial position. The Directors
have prepared detailed forecasts of the Group’s ﬁnancial performance over the next 5 years, which includes the £9.0m ﬁrm placing and open
offer of up to £2.0m which was raised subsequent to the ﬁnancial statements being approved and disclosed in note 36. As a result of this review,
which incorporated sensitivities and risk analysis, the Directors believe that the Group has sufﬁcient resources and working capital to meet their
present obligations. Accordingly, they continue to adopt the going concern basis in preparing the Group ﬁnancial statements.
Kromex_v10_Layout 1  30/07/2015  01:51  Page 30 For the year ended 30 April 2015
31
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 ﬁ-
nancial 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 ac-
quirer’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 trans-
ferred, 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 expected to beneﬁt from the synergies of the combination. Cash-generating units 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 cash-generating unit 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.
Revenue recognition
Revenue is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods and services pro-
vided in the normal course of business, net of discounts, VAT and other sales-related taxes and comprises:
i) Sale of goods and services
The Group’s income derives from the sale of goods and from the research and development contracts which are typically with govern-
ment 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 are generally under FCA INCOTERMS. Revenue from research and devel-
opment contracts is recognised as revenue in the accounting period in which the milestones are achieved. 
ii) Revenue from grants
Revenue from grants is recognised when the costs relating to the project activity have been incurred, the customer is in agreement
with the expenses which are being claimed as grant revenue, and subsequent invoices have been issued to the customers.
iii) Long-term contracts
The Group accounts for long-term contracts under IAS 11, and reﬂects revenue 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.
3. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Consolidated Financial Statements
Kromex_v10_Layout 1  30/07/2015  01:51  Page 31 KROMEK Annual Report & Accounts 2015
Notes to the consolidated ﬁnancial statements (continued)
For the year ended 30 April 2015
32
iv) Exclusivity contracts
The Group reﬂects exclusivity payments as revenue at the point that it contractually agrees to become exclusive.  Where terms of ex-
clusivity require performance the Group reﬂects the revenue as performance is delivered.
v) 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.
Finance leases are capitalised at the lease’s inception at the lower of the fair value of the leased asset and the present value of the minimum
lease payments. The corresponding rental obligations, net of ﬁnance charges, are included in other payables. Each lease payment is allocated
between the liability and ﬁnance charges so as to achieve a constant rate of interest costs charged to the income statement on the outstanding
balance. 
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
pound 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-mon-
etary items that are measured in terms of historical cost in a foreign currency are not retranslated.
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 ex-
change 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.
3. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 
Revenue recognition (continued)
Kromex_v10_Layout 1  30/07/2015  01:51  Page 32 For the year ended 30 April 2015
33
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 and growth (RGF) costs are recognised as income over the periods necessary to match them with the
related costs of creating those jobs.
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 ex-
pected 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 loss for the year. Taxable loss differs from net loss 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.
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 HFI 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 in-
terests 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.
3. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Consolidated Financial Statements
Kromex_v10_Layout 1  30/07/2015  01:51  Page 33 KROMEK Annual Report & Accounts 2015
Notes to the consolidated ﬁnancial statements (continued)
For the year ended 30 April 2015
34
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                                                        6% to 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:
�
the technical feasibility of completing the intangible asset so that it will be available for use or sale;
�
its intention to complete the intangible asset and use or sell it;
�
its ability to use or sell the intangible asset; and
�
how the intangible asset will generate probable future economic beneﬁts. Among other things, the entity can demonstrate the existence
of a market for the output of the intangible asset or the intangible asset itself or, if it is to be used internally, the usefulness of the in-
tangible asset.
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.
Amortisation of the intangible assets recognised on the acquisitions of NOVA R&D, Inc. and eV Products, Inc. are recognised in the income state-
ment on a straight-line basis over their estimated useful lives of between ﬁve and ﬁfteen years
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 re-
duced 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.
3. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Kromex_v10_Layout 1  30/07/2015  01:51  Page 34 For the year ended 30 April 2015
35
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. 
Provision is made for obsolete, slow moving or defective items where appropriate. Items which have not shown activity for between 12–18 months
will be provided for at a rate of 50%, and those which have not shown activity in 18 months or longer will be provided for at a rate of 100%. Given
the nature of the products and the gestation period of the technology, commercial rationale necessitates that this provision is reviewed on a case
by case basis. 
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 con-
tractual 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 period.
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 recog-
nition of interest would be immaterial.
The Group interacts with other technology based companies to obtain market penetration for its products. These arrangements initially
require funding to allow for marketing of our products, with longer lead times for sale. As a consequence, the terms with these customers
are not always on normal payment terms (30 to 60 days), and management conﬁrm that it could take longer before recoverability of
the cash on these sales. 
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. Fi-
nancial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recog-
nition 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.
3. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Consolidated Financial Statements
Impairment of tangible and intangible assets excluding goodwill (continued)
Kromex_v10_Layout 1  30/07/2015  01:51  Page 35 KROMEK Annual Report & Accounts 2015
Notes to the consolidated ﬁnancial statements (continued)
For the year ended 30 April 2015
36
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 ex-
pected 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 3 years from grant date. Details regarding the determination of the fair value of equity-settled share-based transactions
are set out in note 33.
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 em-
ployee is granted options, usually 3 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 ad-
justment to equity reserves.
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 as-
sumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated as-
sumptions 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.
3. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Financial instruments (continued)
Kromex_v10_Layout 1  30/07/2015  01:51  Page 36 For the year ended 30 April 2015
37
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 IAS38. 
These capitalised assets are amortised on a straight-line basis over their useful lives. The useful life is determined by the expected future cash
ﬂows anticipated to be derived from these assets, based on management’s revenue forecasts. Where no internally-generated intangible asset
can be recognised, development expenditure is expensed 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 which require the application of certain key
judgments and estimates are required to be made in respect of discount rates and future cash ﬂows.
Recoverability of receivables
As disclosed in note 3, in order to obtain market penetration through technology based customers, the Group recognises that normal payment
terms from these customers may not be adhered to when assessing recoverability of receivables. This is as a result of the necessary marketing
support that customers may require in promoting the products.  
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 dis-
cussed below.
i) Development costs
Development costs are capitalised in accordance with the accounting policy noted above. Initial capitalisation of costs is based on man-
agement’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 cash-generating units 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 cash-
generating unit and to choose an appropriate discount rate to calculate the present value of those cash ﬂows. The carrying amount of
goodwill at 30 April 2015 was £1,275k (2014: £1,275k). Further details are given in note 15.
4. CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY (CONTINUED)
Consolidated Financial Statements
Kromex_v10_Layout 1  30/07/2015  01:51  Page 37 KROMEK Annual Report & Accounts 2015
Notes to the consolidated ﬁnancial statements (continued)
For the year ended 30 April 2015
38
5. REVENUE
An analysis of the group’s revenue is as follows:
                                                                                                                                                                    2015                                                       2014
                                                                                                                                                                   £’000                                                      £’000
                                                                                                                                                                                     
Continuing operations                                                                                                                                                                                                 
Sales of goods and other services                                                                                                      5,879                                                      4,351
Revenue from grants                                                                                                                                913                                                         978
Revenue from contract customers                                                                                                     1,309                                                         643
                                                                                                                                                                                     
                                                                                                                                                               
                               
Total revenue                                                                                                                                              8,101                                                          5,972
Grant income                                                                                                                                                  4                                                          229
Other income                                                                                                                                               56                                                         490
                                                                                                                                                                                     
Total income                                                                                                                                          8,161                                                      6,691
                                                                                                                                                                                     
                                                                                                                                                               
                               
6. OPERATING SEGMENTS
Products and services from which reportable segments derive their revenues
For management purposes, the Group is organised into two business units (USA 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 who assess performance of the segments using the following key performances in-
dicators; 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:
                                                                                                                                                                    2015                                                       2014
                                                                                                                                                                   £’000                                                      £’000
                                                                                                                                                                                     
United Kingdom                                                                                                                                         387                                                         385
North America                                                                                                                                       5,681                                                      3,416
South America                                                                                                                                              11                                                              –
Middle East                                                                                                                                                   18                                                              –
Asia                                                                                                                                                          1,899                                                      1,089
Europe                                                                                                                                                           66                                                      1,054
Australasia                                                                                                                                                   39                                                            28
                                                                                                                                                                                     
Total revenue                                                                                                                                         8,101                                                      5,972
                                                                                                                                                                                     
                                                                                                                                                               
                               
Kromex_v10_Layout 1  30/07/2015  01:51  Page 38 For the year ended 30 April 2015
39
6. OPERATING SEGMENTS (CONTINUED)
Consolidated Financial Statements
A geographical analysis of the Group’s revenue by origin is as follows:
Year ended 30 April 2015
                                                                                          UK Operations                                       US Operations                                     Total for Group
                                                                                                  £’000                                                      £’000                                                      £’000
                                                                                                                                                  
Revenue from sales
Revenue by segment:
– Sales of goods and services                                             2,584                                                       4,795                                                     7,379
– Revenue from grants                                                            218                                                          695                                                         913
– Revenue from contract customers                                    480                                                          829                                                     1,309
– Other revenue                                                                             –                                                          638                                                         638
                                                                                                                                                    
Total sales by segment                                                        3,282                                                       6,957                                                   10,239
Removal of inter-segment sales                                          (376)                                                     (1,762)                                                   (2,138)
                                                                                                                                                    
Total external sales                                                             2,906                                                          5,195                                                         8,101
                                                                                                                                                    
                                                                                           
                                                              
Segment result – operating loss                                 (2,972)                                                          (92)                                                  (3,064)
Interest received                                                                         31                                                               –                                                            31
Interest expense                                                                        (95)                                                            (7)                                                      (102)
                                                                                                                                                    
Loss before tax                                                                 (3,036)                                                          (99)                                                   (3,135)
Tax credit                                                                                   989                                                               –                                                         989
                                                                                                                                                    
Loss for the year                                                              (2,047)                                                          (99)                                                   (2,146)
                                                                                                                                                    
                                                                                           
                                                              
Reconciliation to adjusted EBITDA:                                                                                                                                                                                                
Net interest                                                                                 64                                                               7                                                            71
Tax                                                                                             (989)                                                              –                                                       (989)
Depreciation                                                                              300                                                          373                                                         673
Amortisation                                                                             333                                                          378                                                         711
Non-recurring other income                                                        –                                                           (58)                                                         (58)
Share-based payment charge                                                181                                                               –                                                         181
                                                                                           
                                                              
Adjusted EBITDA                                                              (2,158)                                                         601                                                    (1,557)
                                                                                                                                                 
                                                                                           
                                                              
Other segment information
Property, plant and equipment additions                          2,021                                                          338                                                     2,359
Depreciation of PPE                                                                 300                                                          373                                                         673
Intangible asset additions                                                    1,244                                                       1,013                                                     2,257
Amortisation of intangible assets                                          333                                                          378                                                         711
                                                                                                                                                    
Statement of ﬁnancial position                                              
Total assets                                                                         11,500                                                     11,024                                                   22,524
                                                                                                                                                    
Total liabilities                                                                      (2,829)                                                    (3,493)                                                  (6,322)
                                                                                                                                                    
Kromex_v10_Layout 1  30/07/2015  01:51  Page 39 KROMEK Annual Report & Accounts 2015
Notes to the consolidated ﬁnancial statements (continued)
For the year ended 30 April 2015
40
6. OPERATING SEGMENTS (CONTINUED)
Year ended 30 April 2014
                                                                                          UK Operations                                       US Operations                                     Total for Group
                                                                                                  £’000                                                      £’000                                                      £’000
                                                                                                                                                  
Revenue from sales
Revenue by segment:
-Sale of goods and services                                                 1,597                                                       3,021                                                     4,618
-Revenue from grants                                                              235                                                          743                                                         978
-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)
                                                                                                                                                    
                                                                                           
                                                              
Reconciliation to adjusted EBITDA:                                                  
Net interest                                                                                515                                                               –                                                         515
Tax                                                                                          (1,106)                                                              –                                                    (1,106)
Depreciation                                                                              364                                                          373                                                         737
Amortisation                                                                             253                                                          307                                                         560
Non-recurring other income                                                  (649)                                                                                                                       (649)
Share-based payment charge                                                125                                                               –                                                         125
                                                                                           
                                                              
Adjusted EBITDA                                                             (3,050)                                                           43                                                   (3,007)
                                                                                                                                                 
                                                                                           
                                                              
Other segment information                                                                                                                                                                                       
Property, plant and equipment additions                               98                                                            89                                                         187
Depreciation of PPE                                                                 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)
                                                                                                                                                    
Inter-segment sales are charged on an arm’s-length basis.
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 incurred by each segment. This is the measure reported to the Group’s Chief Executive for the purpose of resource allocation and
assessment of segment performance.
Kromex_v10_Layout 1  30/07/2015  01:51  Page 40 For the year ended 30 April 2015
41
Consolidated Financial Statements
6. OPERATING SEGMENTS (CONTINUED)
Revenues from major products and services
The Group’s revenues from its major products and services were as follows:
                                                                                                                                                                    2015                                                       2014
                                                                                                                                                                   £’000                                                      £’000
                                                                                                                                                                                      
Product revenue                                                                                                                                    3,841                                                      4,746
Research and development revenue                                                                                                 4,260                                                       1,226
                                                                                                                                                                                      
Consolidated revenue                                                                                                                           8,101                                                      5,972
                                                                                                                                                                                     
                                                                                                                                                       
                              
Information about major customers
Included in revenues arising from USA operations are revenues of approximately £1,224k (2014: £1,249k) which arose from sales to the Group’s
largest customer. Included in revenues arising from UK operations are revenues of approximately £1,203k (2014: £nil) which arose from a
major customer.
7. LOSS FOR THE YEAR 
Loss for the year has been arrived at after (crediting)/charging:
                                                                                                                                                                    2015                                                       2014
                                                                                                                                                                   £’000                                                      £’000
                                                                                                                                                                                      
Net foreign exchange losses/(gains)                                                                                                      226                                                          (84)
Research and development costs recognised as an expense                                                        2,669                                                      2,020
Depreciation of property, plant and equipment                                                                                   673                                                          737
Amortisation of internally-generated intangible assets                                                                     711                                                         560
Cost of inventories recognised as expense                                                                                       1,266                                                       1,911
Staff costs (see note 9)                                                                                                                        5,620                                                      5,104
                                                                                                                                                                                     
                                                                                                                                                       
                              
8. AUDITOR’S REMUNERATION
The analysis of the auditor’s remuneration is as follows:
                                                                                                                                                                    2015                                                       2014
                                                                                                                                                                   £’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                                                                                               25                                                            25
                                                                                                                                                                                     
Total audit fees                                                                                                                                            25                                                            25
                                                                                                                                                                                     
                                                                                                                                                               
                               
– Audit-related assurance services                                                                                                          10                                                            10
– Taxation compliance services                                                                                                                 11                                                              6
– Other taxation advisory services                                                                                                               –                                                          107
– Corporate ﬁnance transaction services                                                                                                   –                                                          139
                                                                                                                                                                                     
Total non-audit fees                                                                                                                                    21                                                          262
                                                                                                                                                                                     
                                                                                                                                                               
                               
Kromex_v10_Layout 1  30/07/2015  01:51  Page 41 KROMEK Annual Report & Accounts 2015
Notes to the consolidated ﬁnancial statements (continued)
For the year ended 30 April 2015
42
9. STAFF COSTS
The average monthly number of employees (including executive directors) was:
                                                                                                                                                                    2015                                                       2014
                                                                                                                                                                Number                                                 Number
                                                                                                                                                                                      
Directors                                                                                                                                                          2                                                              2
Research and development, production                                                                                                  83                                                            81
Sales and marketing                                                                                                                                     8                                                              4
Administration                                                                                                                                             14                                                            14
                                                                                                                                                                                     
                                                                                                                                                                     107                                                          101
                                                                                                                                                                                     
                                                                                                                                                               
                               
Their aggregate remuneration comprised:
                                                                                                                                                             Year ended                                           Year ended
                                                                                                                                                                    2015                                                       2014
                                                                                                                                                                   £’000                                                      £’000
                                                                                                                                                                                      
Wages and salaries                                                                                                                               4,667                                                       4,177
Social security costs                                                                                                                                423                                                         439
Pension scheme contributions                                                                                                                349                                                         363
Share based payments                                                                                                                             181                                                          125
                                                                                                                                                                                     
                                                                                                                                                                 5,620                                                      5,104
                                                                                                                                                                                     
                                                                                                                                                                                     
The total Directors’ emoluments (including non-executive directors) was £615k (2014: £454k). The aggregate value of contributions paid to money
purchase pension schemes was £26k (2014: £34k) in respect of two directors (2014: two directors). 
The highest paid director received emoluments of £172k (2014: £257k) and amounts paid to money purchase pension schemes was £16k
(2014: £30k). 
Key management compensation:
                                                                                                                                                                    2015                                                       2014
                                                                                                                                                                   £’000                                                      £’000
                                                                                                                                                                                      
Wages and salaries and other short-term beneﬁts                                                                             834                                                         790
Social security costs                                                                                                                                   81                                                            99
Pension scheme contributions                                                                                                                  64                                                            76
Share based payment expense                                                                                                               110                                                            45
                                                                                                                                                                                     
                                                                                                                                                                 1,089                                                      1,010
                                                                                                                                                                                     
                                                                                                                                                                                     
Key management comprise the Executive Directors and senior operational staff.
Kromex_v10_Layout 1  30/07/2015  01:52  Page 42 For the year ended 30 April 2015
43
Consolidated Financial Statements
10. FINANCE INCOME
                                                                                                                                                                    2015                                                       2014
                                                                                                                                                                   £’000                                                      £’000
                                                                                                                                                                                      
Interest revenue                                                                                                                                             –                                                            15
Bank deposits                                                                                                                                               31                                                              –
                                                                                                                                                                                     
Total ﬁnance income                                                                                                                                   31                                                            15
                                                                                                                                                                                     
                                                                                                                                                               
                               
Investment revenue earned on ﬁnancial assets analysed by category of asset, is as follows:
                                                                                                                                                                    2015                                                       2014
                                                                                                                                                                   £’000                                                      £’000
                                                                                                                                                                                      
Loans and receivables (including cash and bank balances)                                                                 31                                                            15
                                                                                                                                                                                     
Total interest income for ﬁnancial assets not designated FVTPL                                                       31                                                            15
                                                                                                                                                                                     
                                                                                                                                                               
                               
11. FINANCE COSTS
                                                                                                                                                                    2015                                                       2014
                                                                                                                                                                   £’000                                                      £’000
                                                                                                                                                                                      
Interest on bank overdrafts, loans and borrowings                                                                             100                                                            17
Interest expense on ﬁnancial liabilities measured at amortised cost                                                    2                                                              –
Interest on loans due to related parties                                                                                                     –                                                          513
                                                                                                                                                                                     
Total interest expense                                                                                                                             102                                                         530
                                                                                                                                                                                     
                                                                                                                                                               
                               
12. TAX
Recognised in the income statement
                                                                                                                                                                    2015                                                       2014
                                                                                                                                                                   £’000                                                      £’000
                                                                                                                                                                                      
Current tax credit:                                                                                                                                            
UK corporation tax on losses in the year                                                                                        1,002                                                         696
Foreign taxes paid                                                                                                                                 –                                                             (1)
                                                                                                                                                                                     
Total current tax                                                                                                                          1,002                                                         695
Deferred tax:                                                                                                                                                     
Origination and reversal of timing differences                                                                                    (13)                                                        411
                                                                                                                                                                                     
Total deferred tax                                                                                                                                    (13)                                                        411
                                                                                                                                                                                     
Total tax credit in income statement                                                                                                    989                                                      1,106
                                                                                                                                                                                     
                                                                                                                                                               
                               
Corporation tax is calculated at 20.92% (2014: 22.83%) of estimated taxable loss for the year. Taxation for other jurisdictions is calculated at the
rates prevailing in the respective jurisdictions.
Kromex_v10_Layout 1  30/07/2015  01:52  Page 43 KROMEK Annual Report & Accounts 2015
Notes to the consolidated ﬁnancial statements (continued)
For the year ended 30 April 2015
44
12. TAX (CONTINUED)
Reconciliation of tax credit
The charge for the year can be reconciled to the proﬁt in the income statement as follows:
                                                                                                                                                                    2015                                                      2014
                                                                                                                                                                   £’000                                                      £’000
                                                                                                                                                                                      
Loss before tax                                                                                                                                      3,135                                                      4,295
Tax at the UK corporation tax rate of 20.92% 
(2014: 22.83%)                                                                                                                                        656                                                          981
Expenses not deductible for tax purposes                                                                                          (97)                                                         (57)
Effect of R&D                                                                                                                                          804                                                          791
Rate differences effect of R&D                                                                                                          (444)                                                       (727)
Income not taxable                                                                                                                                 146                                                          155
Unrecognised movement on deferred tax                                                                                            80                                                        (360)
Effects of overseas tax rates                                                                                                               (156)                                                        323
                                                                                                                                                                                     
Total tax credit for the year                                                                                                                    989                                                      1,106
                                                                                                                                                                                     
                                                                                                                                                               
                               
Details of deferred tax are given in note 23. 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. The
Government has subsequently announced in the Summer Budget, on 8 June 2015, that the rates of corporation tax will be further reduced to
19% with effect from 1 April 2017 and 18% with effect from 1 April 2020.  As the enabling legislation has not been substantively enacted these
rates do not apply to the deferred tax position at 30 April 2015. As there is no UK deferred tax recognised there is no impact of the above 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 £1,366k (2014:
£1,147k). 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 (2014: £nil). 
14. LOSSES PER SHARE
The calculation of the basic and diluted earnings per share is based on the following data:
Losses                                                                                                                                                     2015                                                       2014
                                                                                                                                                                  £’000                                                     £’000
                                                                                                                                                                                      
Losses for the purposes of basic and diluted losses per share being net 
losses attributable to owners of the Group                                                                                     (2,146)                                                    (3,189)
                                                                                                                                                                                     
                                                                                                                                                                    2015                                                       2014
Number of shares                                                                                                                             Number                                                 Number
                                                                                                                                                                                     
Weighted average number of ordinary shares for the purposes of
basic losses per share                                                                                                                    107,818,329                                           61,870,643
                                                                                                                                                                                                                                                   
Effect of dilutive potential ordinary shares:                                                                                                                                                                        
Share options                                                                                                                                    6,223,395                                             5,080,789
                                                                                                                                                                                     
Weighted average number of ordinary shares for the purposes of diluted 
losses per share                                                                                                                           114,041,724                                           66,951,432
                                                                                                                                                                                     
                                                                                                                                                               
                               
                                                                                                                                                                         
Kromex_v10_Layout 1  30/07/2015  01:52  Page 44 For the year ended 30 April 2015
45
Consolidated Financial Statements
14. LOSSES PER SHARE (CONTINUED)
                                                                                                                                                                    2015                                                      2014
                                                                                                                                                                       £                                                              £
Basic and diluted                                                                                                                                    (0.02)                                                      (0.05)
                                                                                                                                                                                     
                                                                                                                                                               
                               
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 2014                                                                                                                                                                                                          1,275
                                                                                                                                                                                                                        
At 30 April 2015                                                                                                                                                                                                     1,275
                                                                                                                                                                                                                        
Accumulated impairment losses                                                                                                                                                                            
At 1 May 2014                                                                                                                                                                                                                  –
                                                                                                                                                                                                                        
At 30 April 2015                                                                                                                                                                                                              –
                                                                                                                                                                                                                        
Carrying amount                                                                                                                                                                                                           
At 30 April 2015                                                                                                                                                                                                     1,275
                                                                                                                                                                                                                        
                                                                                                                                                                                                                        
At 30 April 2014                                                                                                                                                                                                     1,275
                                                                                                                                                                                                                        
                                                                                                                                                                                                                        
Goodwill acquired in a business combination is allocated, at acquisition, to the cash generating units (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:
                                                                                                                                                                    2015                                                       2014
                                                                                                                                                                   £’000                                                      £’000
                                                                                                                                                                                      
US operations                                                                                                                                         1,275                                                       1,275
                                                                                                                                                                                     
                                                                                                                                                               
                               
The goodwill arose on the acquisition of NOVA R&D, Inc in 2010, 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 cash generating unit (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 was 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 cash-generating unit using the management approved 5 year fore-
casts for each cash-generating unit. The base 5 year projection is year on year growth over the next 5 years, with overheads remaining relatively
stable. The growth rate of the CGU is expected to remain ﬂat in Year 2 as a result of the CGU continuing to develop its technical capabilities in
the forthcoming year. Growth is then expected to increase to 7% in Year 3, 14% in Year 4 and remain ﬂat thereafter in Year 5.  These cash ﬂows
are then discounted at the Company’s weighted average cost of capital of 15% (2014: 16%).
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 2015 (2014: £nil). Management have considered various sensitivity analyses in order to appropriately evaluate the carrying value of goodwill. 
Kromex_v10_Layout 1  30/07/2015  01:52  Page 45 KROMEK Annual Report & Accounts 2015
Notes to the consolidated ﬁnancial statements (continued)
For the year ended 30 April 2015
46
15. GOODWILL (CONTINUED)
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 2015. For illustrative purposes, a compound reduction in revenue of 10% in
each of years 1–5 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 2015 or 2014.
16. OTHER INTANGIBLE ASSETS
                                                                                                                                                                 Patents,
                                                                                                                                                              Trademarks
                                                                                      Development costs                               & other intangibles                                          Total
                                                                                                  £’000                                                      £’000                                                      £’000
Cost
                                                                                                                                         
At 1 May 2014                                                                       3,538                                                       4,585                                                     8,123
Additions                                                                                 1,886                                                          371                                                     2,257
Exchange differences                                                                 33                                                          237                                                         270
                                                                                                                                                 
At 30 April 2015                                                                    5,457                                                         5,193                                                      10,650
                                                                                                                                                 
Amortisation                                                                                                                                                                                                                   
At 1 May 2014                                                                             56                                                       1,102                                                      1,158
Charge for the year                                                                  177                                                          534                                                         711
Exchange differences                                                                   7                                                            49                                                           56
                                                                                                                                                 
At 30 April 2015                                                                   240                                                      1,685                                                     1,925
                                                                                                                                                 
Carrying amount                                                                                                                                                                                                            
At 30 April 2015                                                                    5,217                                                         3,508                                                        8,725
                                                                                                                                                 
                                                                                                                                                 
At 30 April 2014                                                                    3,482                                                       3,483                                                     6,965
                                                                                                                                                 
                                                                                                                                                 
The amortisation period for development costs incurred on the group’s product development is over the period during which the company is ex-
pected 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.
Other intangible assets with indeﬁnite useful lives arose as part of the acquisitions of NOVA R&D, Inc. in June 2010 and eV Products, Inc. in
February 2013. The recoverable amounts of these assets have been calculated on a value in use basis at both 30 April 2015 and 30 April 2014.
These calculations use cash ﬂow projections based on ﬁnancial forecasts and appropriate long-term growth rates. To prepare value in use cal-
culations, the cash ﬂow forecasts are discounted back to present value using a pre-tax discount rate of 15% (2014: 16%) and a terminal value
growth rate of 2% from 2021. The Directors have reviewed the recoverable amount of these indeﬁnite useful life assets and do not consider there
to be any indication of impairment.
The carrying amounts of the acquired intangible assets arising on the acquisitions of NOVA R&D, Inc. and eV Products, Inc. as at the 30 April
2015 was £1,858k (2014: £2,134k), with amortisation to be charged over the remaining useful lives of these assets which is between 3 and 13
years.
The amortisation charge on intangible assets is included in administrative expenses in the consolidated income statement.
Kromex_v10_Layout 1  30/07/2015  01:52  Page 46 For the year ended 30 April 2015
47
Consolidated Financial Statements
17. PROPERTY, PLANT AND EQUIPMENT
                                                                                             Computer                          Plant and                        Fixtures and
                                                                                            equipment                        machinery                           ﬁttings                                Total
                                                                                                 £’000                                 £’000                                 £’000                                £’000
Cost or valuation                                                  
                          
At 1 May 2014                                                                           586                                  4,426                                 144                                 5,156
Additions                                                                                      34                                  2,306                                   19                                 2,359
Exchange differences                                                                 10                                     208                                     4                                     222
                                                                                                            
At 30 April 2015                                                                        630                                   6,940                                  167                                   7,737
                                                                                                            
Accumulated depreciation 
and impairment                                                                                                                                                                                                                      
At 1 May 2014                                                                           398                                  2,389                                   84                                 2,871
Charge for the year                                                                     58                                      587                                   28                                     673
Exchange differences                                                                 19                                        23                                     4                                       46
                                                                                                            
At 30 April 2015                                                                        475                                   2,999                                   116                                   3,590
                                                                                                            
Carrying amount                                                                                                                                                                                                                        
At 30 April 2015                                                                        155                                   3,941                                     51                                   4,147
                                                                                                            
                                                                                                            
At 1 May 2014                                                                           188                                  2,037                                   60                                 2,285
                                                                                                            
                                                                                                            
Assets held under ﬁnance leases with a net book value of £39k (2014: £nil) are included in the above table within 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 40 to the company’s separate ﬁnancial statements.
19. INVENTORIES
                                                                                                                                                                    2015                                                       2014
                                                                                                                                                                   £’000                                                      £’000
                                                                                                                                                                                     
Raw materials                                                                                                                                           596                                                         465
Work-in-progress                                                                                                                                   1,010                                                       1,391
Finished goods                                                                                                                                           497                                                         533
                                                                                                                                                                                     
                                                                                                                                                                  2,103                                                      2,389
The cost of inventories recognised as an expense during the year in respect of continuing operations was £1,266k (2014: £1,911k). 
The write-down of inventories to net realisable value amounted to £43k (2014: £nil). The reversal of write-downs amounted to £30k (2014: £nil).
Kromex_v10_Layout 1  30/07/2015  01:52  Page 47 KROMEK Annual Report & Accounts 2015
Notes to the consolidated ﬁnancial statements (continued)
For the year ended 30 April 2015
48
20. AMOUNTS RECOVERABLE ON CONTRACTS
                                                                                                                                                                    2015                                                       2014
                                                                                                                                                                   £’000                                                      £’000
                                                                                                                                                                                     
Contracts in progress at the balance sheet date:                                                                                                                                                 
Amounts due from contract customers included in                                                                                                                                                    
trade and other receivables                                                                                                                     281                                                          214
                                                                                                                                                                                     
                                                                                                                                                                     281                                                          214
                                                                                                                                                                                     
                                                                                                                                                                                     
Contract costs incurred plus recognised losses to date                                                                 1,915                                                         625
Less: progress billings                                                                                                                         (1,634)                                                       (411)
                                                                                                                                                                                     
                                                                                                                                                                     281                                                          214
                                                                                                                                                                                     
                                                                                                                                                                                     
21. TRADE AND OTHER RECEIVABLES
                                                                                                                                                                    2015                                                       2014
                                                                                                                                                                   £’000                                                      £’000
                                                                                                                                                                                     
Amount receivable for the sale of goods                                                                                          3,458                                                       1,501
Amount recoverable on contracts (see note 20)                                                                                 281                                                          214
Other receivables                                                                                                                                      288                                                           90
Prepayments                                                                                                                                                62                                                          102
                                                                                                                                                                 4,089                                                      1,907
Current tax assets                                                                                                                                 1,002                                                         696
                                                                                                                                                                                     
                                                                                                                                                                 5,091                                                      2,603
                                                                                                                                                                                     
                                                                                                                                                                                     
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. The Group initially recognises an allowance for doubtful debts of 100% against re-
ceivables over 120 days. However, this is subject to management override where there is evidence of recoverability, most notably, where speciﬁc
support is being provided to strategic partners in the marketing of new products. 
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.
Kromex_v10_Layout 1  30/07/2015  01:52  Page 48 For the year ended 30 April 2015
49
Consolidated Financial Statements
21. TRADE AND OTHER RECEIVABLES (CONTINUED)
At 30 April 2015, trade receivables are shown net of an allowance for bad debts of £252k (2014:£nil) arising from the ordinary course of business,
as follows:
                                                                                                                                                                    2015                                                       2014
                                                                                                                                                                   £’000                                                      £’000
                                                                                                                                                                                     
Balance at 1 May 2014                                                                                                                                  –                                                              –
Provided during the year                                                                                                                          252                                                              –
                                                                                                                                                                                     
Balance at 30 April 2015                                                                                                                         252                                                              –
                                                                                                                                                                                     
                                                                                                                                                                                     
The bad debt provision records impairment losses unless the Group is satisﬁed that no recovery of the amount owing is possible, at which point
the amounts considered irrecoverable are written off against the trade receivables directly.
Ageing of past due but not impaired receivables at the statement of ﬁnancial position date was:
                                                                                                                                                                    2015                                                       2014
                                                                                                                                                                   £’000                                                      £’000
                                                                                                                                                                                     
31–60 days                                                                                                                                                 363                                                            70
61–90 days                                                                                                                                                   56                                                            13
91–120 days                                                                                                                                               159                                                         207
121+ days                                                                                                                                                   593                                                         343
                                                                                                                                                                                     
Total                                                                                                                                                         1,171                                                         633
                                                                                                                                                                                     
                                                                                                                                                                                     
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 directors consider that the carrying amount of trade and other receivables is approximately equal to their fair value.
Ageing of impaired receivables at the statement of ﬁnancial position date was:
                                                                                                                                                                    2015                                                       2014
                                                                                                                                                                   £’000                                                      £’000
                                                                                                                                                                                     
31–60 days                                                                                                                                                      –                                                              –
61–90 days                                                                                                                                                      –                                                              –
91–120 days                                                                                                                                                    –                                                              –
121+ days                                                                                                                                                   466                                                              –
                                                                                                                                                                                     
Total                                                                                                                                                           466                                                              –
                                                                                                                                                                                     
Kromex_v10_Layout 1  30/07/2015  01:52  Page 49 KROMEK Annual Report & Accounts 2015
Notes to the consolidated ﬁnancial statements (continued)
For the year ended 30 April 2015
50
22. FINANCE LEASE LIABILITIES
Finance lease liabilities are payable as follows:
Minimum lease payments
                                                                                                                                                           
                                                                                                                                                                    2015                                                       2014
                                                                                                                                                                   £’000                                                      £’000
                                                                                                                                                                                     
Amounts payable under ﬁnance leases:                                                                                                                                                              
Within one year                                                                                                                                          21                                                              –
In the second to ﬁfth years inclusive                                                                                                      11                                                              –
                                                                                                                                                                                     
                                                                                                                                                                     32                                                              –
Less: future ﬁnance charges                                                                                                                    (3)                                                             –
                                                                                                                                                                                     
Present value of lease obligations                                                                                                         29                                                              –
                                                                                                                                                                                     
                                                                                                                                                                                     
Analysed as:                                                                                                                                                                                                                                
Amounts due for settlement within 12 months 
(shown under current liabilities)                                                                                                             19                                                              –
Amounts due for settlement after 12 months                                                                                     10                                                              –
                                                                                                                                                                                     
                                                                                                                                                                       29                                                              –
                                                                                                                                                                                     
                                                                                                                                                                                     
It is the group’s policy to lease certain of its ﬁxtures and equipment under ﬁnance leases. The average lease term is 2 years. For the year ended
30 April 2015, the average effective borrowing rate was 0.82% (2014: nil). Interest rates are ﬁxed at the contract date. All leases are on a ﬁxed
repayment basis and no arrangements have been entered into for contingent rental payments. 
All lease obligations are denominated in sterling.
The fair value of the group’s lease obligations is approximately equal to their carrying amount.
Kromex_v10_Layout 1  30/07/2015  01:52  Page 50 For the year ended 30 April 2015
51
23. 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 re-
porting period.
                                                                   Revaluation of                Accelerated                  Short term
                                                                      intangibles                        capital                           timing
                                                                                                              allowances                  differences                    Tax losses                         Total
                                                                           £’000                             £’000                            £’000                             £’000                            £’000
                                                                    
                                                             
At 1 May 2014                                                 1,458                               627                                 (17)                              (934)                             1,134
                                                                                                                                                                                                                                                    
(Credit)/charge to proﬁt or loss                        (41)                               (54)                                 12                                   96                                    13
                                                                    
                                                             
At 30 April 2015                                             1,417                                573                                     (5)                               (838)                              1,147
                                                                    
                                                             
                                                                                                                                 
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:
                                                                                                                                                                    2015                                                       2014
                                                                                                                                                                   £’000                                                      £’000
                                                                                                                                                                                     
Deferred tax liabilities                                                                                                                          1,990                                                      2,085
Deferred tax assets                                                                                                                                 (843)                                                       (951)
                                                                                                                                                                                     
                                                                                                                                                                  1,147                                                       1,134
                                                                                                                                                                                     
                                                                                                                                                                                     
At the statement of financial position date, the group has unused tax losses of £13,418k (2014: £12,075k) available for offset against future
profits. A deferred tax asset has been recognised in respect of £3,368K (2014: £3,845k) of such losses. No deferred tax asset has been recog-
nised in respect of the remaining £10,050K (2014: £8,230k) 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.
24. TRADE AND OTHER PAYABLES
                                                                                                                                                                    2015                                                       2014
                                                                                                                                                                   £’000                                                      £’000
                                                                                                                                                                                     
Trade payables and accruals                                                                                                              3,359                                                      3,210
Deferred income                                                                                                                                       784                                                              –
                                                                                                                                                                                     
                                                                                                                                                                 4,143                                                      3,210
                                                                                                                                                                                     
                                                                                                                                                                                     
Trade payables and accruals principally comprise amounts outstanding for trade purchases and ongoing costs. The average credit period taken
for trade purchases is 35 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.
Deferred income relates to government grants received which have been deferred until the conditions attached to the grants are met.
The directors consider that the carrying amount of trade payables approximates to their fair value.
Consolidated Financial Statements
Kromex_v10_Layout 1  30/07/2015  01:52  Page 51 KROMEK Annual Report & Accounts 2015
Notes to the consolidated ﬁnancial statements (continued)
For the year ended 30 April 2015
52
25. BORROWINGS
                                                                                                                                                                    2015                                                       2014
                                                                                                                                                                   £’000                                                      £’000
                                                                                                                                                                                     
Secured borrowing at amortised cost                                                                                                                                                                            
Revolving credit facility                                                                                                                        1,003                                                              –
Finance lease liabilities (see note 22)                                                                                                      29                                                              –
                                                                                                                                                                                     
                                                                                                                                                                  1,032                                                              –
                                                                                                                                                                                     
                                                                                                                                                                                     
Total borrowings                                                                                                                                                                                                                       
Amount due for settlement within 12 months                                                                                 1,022                                                              –
                                                                                                                                                                                     
                                                                                                                                                                                     
Amount due for settlement after 12 months                                                                                          10                                                              –
                                                                                                                                                                                     
                                                                                                                                                                                     
                                                                                                                                 Sterling                                US  dollars                                 Total
                                                                                                                                  £’000                                      £’000                                     £’000
                                                                                                                      
                            
Analysis of borrowings by                                                                                                                                                                                           
currency: 30 April 2015                                                                                                                                                                                               
Revolving credit facility                                                                                         1,003                                          –                                         1,003
Finance lease liabilities                                                                                              –                                             29                                              29
                                                                                                                      
                            
                                                                                                                                   1,003                                         29                                        1,032
                                                                                            
                                                            
                                                                                                                             
                            
In February 2015 the Group agreed a 24 month facility with its bank for a £3m revolving credit facility. This facility is secured by a debenture and
a composite guarantee across the Group. The terms of the revolving credit facility are a nominal interest rate of LIBOR+2.5% and a repayment
term of 6 months from date of drawdown.
At the year ended 30 April 2015, the total undrawn amounts relating to the facility was £2m from funds available for the future working
capital needs of the Group.
Finance lease liabilities are secured by the assets leased. The borrowings are at a fixed interest rate with repayment periods not exceeding
five years.
The weighted average interest rates paid during the year were as follows:
                                                                                                                                                                    2015                                                       2014
                                                                                                                                                                       %                                                             %
                                                                                                                                                                                     
Revolving credit facility                                                                                                                           3.10                                                          –
Finance lease liabilities                                                                                                                           0.82                                                          –
Kromex_v10_Layout 1  30/07/2015  01:52  Page 52 For the year ended 30 April 2015
53
Consolidated Financial Statements
26. DERIVATIVES FINANCIAL INSTRUMENTS AND HEDGE ACCOUNTING
At 30 April 2015 and 30 April 2014 the Group had no derivatives in place for cash ﬂow hedging purposes.
27. SHARE CAPITAL
                                                                                                                                                                    2015                                                       2014
                                                                                                                                                                   £’000                                                      £’000
                                                                                                                                                                                     
Authorised, allotted, called up and fully paid:                                                                                   
108,173,290 Ordinary shares of £0.01 each                                                                                     1,082                                                      1,080
                                                                                                                                                                                     
                                                                                                                                                                                     
During the year 1,024,806 shares (2014: 532,000) were allotted under EMI share option schemes.
Unpaid share capital
At the year ended 30 April 2015, unpaid share capital amounted to £nil (2014: £nil).
28. SHARE PREMIUM ACCOUNT
                                                                                                                                                                                                                                  £’000
                                                                                                                                                                                                                        
Balance at 1 May 2014                                                                                                                                                                                         34,612
Premium arising on issue of equity shares                                                                                                                                                               31
                                                                                                                                                                                                                        
Balance at 30 April 2015                                                                                                                                                                                   34,643
                                                                                                                                                                                                                        
                                                                                                                                                                                                                        
29. TRANSLATION RESERVE
                                                                                                                                                                                                                                  £’000
                                                                                                                                                                                                                        
Balance at 1 May 2014                                                                                                                                                                                             (482)
Exchange differences on translating the net assets of foreign operations                                                                                                       398
                                                                                                                                                                                                                                    
Balance at 30 April 2015                                                                                                                                                                                           (84)
                                                                                                                                                                                                                        
                                                                                                                                                                                                                        
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.
30. ACCUMULATED LOSSES
                                                                                                                                                                                                                                  £’000
                                                                                                                                                                                                                        
Balance at 1 May 2014                                                                                                                                                                                       (18,649)
Net loss for the year                                                                                                                                                                                              (2,146)
Effect of share-based payment credit                                                                                                                                                                     181
                                                                                                                                                                                                                        
Balance at 30 April 2015                                                                                                                                                                                  (20,614)
                                                                                                                                                                                                                        
                                                                                                                                                                                                                        
Kromex_v10_Layout 1  30/07/2015  01:52  Page 53 KROMEK Annual Report & Accounts 2015
Notes to the consolidated ﬁnancial statements (continued)
For the year ended 30 April 2015
54
31. NOTES TO THE CASH FLOW STATEMENT
                                                                                                                                                                    2015                                                       2014
                                                                                                                                                                   £’000                                                      £’000
                                                                                                                                                                                     
Loss for the year                                                                                                                                  (2,146)                                                    (3,189)
                                                                                                                                                                                                                                             
Adjustments for:                                                                                                                                                                                                               
Finance income                                                                                                                                        (31)                                                         (15)
Finance costs                                                                                                                                          102                                                         530
Income tax credit                                                                                                                                  (989)                                                    (1,106)
Government grants credit                                                                                                                        (4)                                                             –
Depreciation of property, plant and equipment                                                                                 673                                                          737
Amortisation of intangible assets                                                                                                        711                                                         560
Share-based payment expense                                                                                                            181                                                          125
                                                                                                                                                                                     
Operating cash ﬂows before movements in working capital                                                        (1,503)                                                    (2,358)
                                                                                                                                                                                                                                             
Decrease/(increase) in inventories                                                                                                         183                                                        (291)
Increase in receivables                                                                                                                        (2,099)                                                       (455)
Increase in payables                                                                                                                                 354                                                          120
                                                                                                                                                                                     
Cash used in operations                                                                                                                     (3,065)                                                   (2,984)
Income taxes received                                                                                                                             704                                                         766
                                                                                                                                                                                     
Net cash used in operating activities                                                                                                (2,361)                                                    (2,218)
                                                                                                                                                                                     
                                                                                                                                                                                     
Cash and cash equivalents
                                                                                                                                                                   2015                                                       2014
                                                                                                                                                                 £’000                                                      £’000
                                                                                                                                                                                     
Cash and bank balances                                                                                                                       1,183                                                      6,563
                                                                                                                                                                                     
                                                                                                                                                                                     
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.                                                                     
32. OPERATING LEASE ARRANGEMENTS
The group as lessee                                                                                                                            2015                                                       2014
                                                                                                                                                                   £’000                                                      £’000
                                                                                                                                                                                     
Lease payments under operating leases 
recognised as an expense in the year                                                                                                    392                                                          577
                                                                                                                                                                                     
                                                                                                                                                                                     
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:
                                                                                                                                                                    2015                                                       2014
                                                                                                                                                                   £’000                                                      £’000
                                                                                                                                                                                     
Within one year                                                                                                                                          561                                                         310
In the second to ﬁfth years inclusive                                                                                                  1,182                                                            68
                                                                                                                                                                                     
                                                                                                                                                                  1,743                                                          378
                                                                                                                                                                                     
                                                                                                                                                                                     
Operating lease payments represent rentals payable by the group for certain of its ofﬁce properties. Leases are negotiated for an average term
of 5 years. At 30 April 2015 and 2014, the Group had no capital commitments or contingencies.
Kromex_v10_Layout 1  30/07/2015  01:52  Page 54 For the year ended 30 April 2015
55
Consolidated Financial Statements
33. 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 ten 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.
Details of the share options outstanding during the year are as follows.
                                                                                                                                   2015                                                                                        2014
                                                                                                                      Weighted average                                                               Weighted average
                                                                            Number of                        exercise price                         Number of                          exercise price
                                                                         share options                                (£)                                 share options                                 (£)
                                                                     
                                          
Outstanding at beginning of the year             12,065,710                                  0.16                                      3,556,656                                1.13
Effect of share reorganisation                                             –                                 –                                            8,499,554                                1.13
Granted during the year                                     1,024,806                                  0.42                                        532,000                                0.24
Exercised during the year                                     (162,500)                                0.20                                          (522,500)                                 0.07
Forfeited during the year                                      (140,000)                                0.20                                                                                               
Outstanding at the end of the year                 12,788,016                                  0.29                                      12,065,710                                  0.16
Exercisable at the end of the year                    8,725,990                                  0.16                                        7,360,160                                0.18
The weighted average share price at the date of exercise for share options exercised during the year was £0.49 (2014: £0.20). The options out-
standing at 30 April 2015 had a weighted average exercise price of £0.29(2014: £0.18) and a weighted average remaining contractual life of seven
years (2014: six years). The range of exercise prices for outstanding share options at 30 April 2015 was 1.5p to 79p (2014: 1.5p to 79p). In 2015,
the aggregate of the estimated fair values of the options granted is £107k (2014: £37k). The inputs into the Black-Scholes model are as follows:
                                                                                                                                                                    2015                                                       2014
                                                                                                                                                                                     
Weighted average share price                                                                                                                 42p                                                        39p
Weighted average exercise price                                                                                                             42p                                                         16p
Expected volatility                                                                                                                              37.75%                                                  55.33%
Expected life                                                                                                                                        7 years                                                 6 years
Risk-free rate                                                                                                                                             0.37                                                    0.37%
Expected dividend yields                                                                                                                            0%                                                          0%
                                                                                                                                                                                     
                                                                                                                                                                                     
Expected volatility was determined by calculating the historical volatility of similar listed businesses over the previous 3 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 be-
havioural considerations.
The group recognised total expenses of £181k (2014: £125k) related to equity-settled share-based payment transactions.
The Kromek Group Plc 2013 Long Term Incentive Plan
On 10 October 2013 a new Long Term Incentive Plan 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 3 year reporting period. 
On 24 June 2014 1,022,931 (2014: 735,093) 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 £125k (2014: £70k). The amounts recognised as a share-based payment
expense for the year ended 30 April 2015 was £110k (2014: £8k).  
Kromex_v10_Layout 1  30/07/2015  01:52  Page 55 KROMEK Annual Report & Accounts 2015
Notes to the consolidated ﬁnancial statements (continued)
For the year ended 30 April 2015
56
33. SHARE BASED PAYMENTS (CONTINUED)
The 2013 Long Term Incentive Plan award was valued using the Monte Carlo pricing model. The inputs into the Monte Carlo pricing model are
as follows:
                                                                                                                                                                    2015                                                       2014
                                                                                                                                                                                     
Weighted average share price                                                                                                                   47p                                                         20p
Weighted average exercise price                                                                                                                 1p                                                           1p
Expected volatility                                                                                                                                38.76%                                                   53.13%
Expected life                                                                                                                                          3 years                                                   3 years
Risk-free rate                                                                                                                                           0.32%                                                     0.42%
Expected dividend yields                                                                                                                              0%                                                          0%
                                                                                                                                                                                     
                                                                                                                                                                                     
34. 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 United States of America are members of a state-managed retirement beneﬁt scheme operated
by the government of the United States of America. The subsidiaries are required to contribute a speciﬁed percentage of payroll costs to the re-
tirement beneﬁt scheme to fund the beneﬁts. The only obligation of the Group with respect to the retirement beneﬁt scheme is to make the spec-
iﬁed contributions. 
The total cost charged to income of £349k (2014: £363k) represents contributions payable to these schemes by the Group at rates speciﬁed in
the rules of the schemes. As at 30 April 2015, contributions of £29k (2014: £27k) due in respect of the current reporting period had not been paid
over to the scheme.
35. FINANCIAL INSTRUMENTS
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 share-
holders through the optimisation of the debt and equity balance. The Group’s overall strategy has remained unchanged between 2014 and 2015.
The capital structure of the Group consists of net debt, which includes the borrowings disclosed in note 25 after deducting cash and cash equiv-
alents, and equity attributable to equity holders of the company, comprising issued capital, reserves and accumulated losses as disclosed in notes
27 to 30. 
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 (2014: £nil). 
The Group considers that the current capital structure will provide sufﬁcient ﬂexibility to ensure that appropriate investment can be made, if re-
quired, to implement and achieve the longer term growth strategy of the Group. 
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.
Kromex_v10_Layout 1  30/07/2015  01:52  Page 56 For the year ended 30 April 2015
57
35. FINANCIAL INSTRUMENTS (CONTINUED)
Consolidated Financial Statements
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:
                                                                                                                                                                    2015                                                       2014
                                                                                                                                                                   £’000                                                      £’000
                                                                                                                                                                                     
£ sterling                                                                                                                                                 1,751                                                      7,958
US$ sterling equivalent                                                                                                                          (903)                                                    (1,674)
€ sterling equivalent                                                                                                                                335                                                          279
                                                                                                                                                                                     
                                                                                                                                                                                     
Had the foreign exchange rate between sterling, US$ and € changed by 5%, this would affect the loss for the year and net assets of the Group by
£28k (2014: £34k).
Credit risk 
Credit risk refers to the risk that 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 in-
formation and its own trading records to rate its major customers. The Group’s exposure and the credit ratings of its counterparties are continu-
ously 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.
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 21.
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 re-
view 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 man-
agement 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 continuously monitoring
forecast and actual cash ﬂows, and by matching the maturity proﬁles of ﬁnancial assets and liabilities. 
The following table details the Group’s remaining contractual maturity for its non-derivative ﬁnancial liabilities with agreed repayment periods.
The tables have 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.
                                                Weighted
                                                  average 
                                                 effective              Less than                                         3 months to
                                              interest rate            1 month             1–3 months              1 year               1–5 years              5+ years                 Total
                                                       %                        £’000                    £’000                   £’000                   £’000                   £’000                   £’000
                                                                                                             
1 May 2014                                  –                             –                             –                            –                            –                            –                            –
Revolving credit facility             3.1                           –                             –                        1,003                        –                            –                       1,003
                                                                                                             
30 April 2015                             3.1                            –                              –                         1,003                        –                             –                         1,003
                                                                                                             
Kromex_v10_Layout 1  30/07/2015  01:52  Page 57 KROMEK Annual Report & Accounts 2015
Notes to the consolidated ﬁnancial statements (continued)
For the year ended 30 April 2015
58
35. FINANCIAL INSTRUMENTS (CONTINUED)
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
                                                                                                                                                                    2015                                                       2014
                                                                                                                                                                   £’000                                                      £’000
                                                                                                                                                                                     
Financial assets                                                                                                                                                    
Cash and bank balances (including cash and bank balances in 
a disposal group held for sale)                                                                                                            1,183                                                      6,563
Loans and receivables                                                                                                                          4,089                                                      1,907
                                                                                                                                                                             
Financial liabilities                                                                                                                                              
Amortised cost (including trade payables balance in a 
disposal group held for sale)                                                                                                              (5,165)                                                    (3,210)
36. EVENTS AFTER THE BALANCE SHEET DATE
On 29 July 2015, the Group entered into a placing agreement to raise up to £11.0m gross, or up to £10.4m net of expenses, by a conditional non
pre-emptive ﬁrm placing of 36,000,000 new ordinary shares of 1p each in the ordinary share capital of the Group (“Ordinary Shares”) and an open
offer of up to 8,012,836 Ordinary Shares at a price of 25p per share. The ﬁrm placing and open offer are conditional, inter alia, upon the passing
of certain resolutions by the shareholders of the Group.
On 17 August 2015, a general meeting of the Group will be held where the Directors expect the shareholders of the Company to approve the ﬁrm
placing and open offer. On 18 August 2015, subject, inter alia, to shareholder approval the ﬁrm placing and open offer shares will be admitted
and dealings will commence. As a result of the ﬁrm placing and open offer the Directors expect to raise a minimum of £8.4m cash.
37. 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, a shareholder and company under the control of Richard Morgan, the former Chairman,  charged the Group
£nil (2014: £154k) in relation to management fees. At the year end the Group owed Amphion Innovations £nil (2014: £nil).
During the year, AIPOLAS Limited, a company under the control of Jerel Whittingham, a non-executive director, charged the Group £15k (2014:
£77k) in relation to consultancy charges. At the year end the Group owed AIPOLAS Limited £nil (2014: £nil). 
Directors’ transactions
During the year Professor M Robinson, a director, charged the Group £72k (2014: £72k) for consultancy fees. At the year end the Group owed
Professor M Robinson £7k (2014: £7k). This amount was included within trade payables. 
There have been no other transactions with related parties other that what has been disclosed within this note. 
Kromex_v10_Layout 1  30/07/2015  01:52  Page 58 For the year ended 30 April 2015
59
Consolidated Financial Statements
                                                                                                                                                                   2015                                                       2014
                                                                                                   Note                                                       £’000                                                     £’000
                                                                                                                                                   
Non-current assets                                                                                                                                                                                                        
Investment in subsidiaries                                                        40                                                               –                                                               –
                                                                                                                                                                                      
                                                                                                                                                                           –                                                               –
                                                                                                                                                                                      
Current assets                                                                                                                                                                                                                 
Trade and other receivables                                                     41                                                    14,795                                                     14,765
Cash and cash equivalents                                                                                                                   1,028                                                           257
                                                                                                                                                                                      
                                                                                                                                                                15,823                                                     15,022
                                                                                                                                                                                      
Total assets                                                                                                                                       15,823                                                     15,022
                                                                                                                                                                                      
                                                                                                                                                                                     
Current liabilities                                                                                                                                                                                                            
Trade and other payables                                                         42                                                           (33)                                                          (66)
Borrowings                                                                                  43                                                     (1,003)                                                              –
                                                                                                                                                                                      
Total liabilities                                                                                                                                   (1,036)                                                          (66)
                                                                                                                                                                                      
                                                                                                                                                                                     
Net assets                                                                                                                                           14,787                                                     14,956
                                                                                                                                                                                      
                                                                                                                                                                                     
Equity
Share capital                                                                               47                                                      1,082                                                       1,080
Share premium account                                                            48                                                    13,965                                                     13,934
Accumulated losses                                                                  49                                                        (260)                                                          (58)
                                                                                                                                                                                      
                                                                                                                                                                14,787                                                     14,956
                                                                                                                                                                                      
                                                                                                                                                                                     
The ﬁnancial statements of Kromek Group plc (registered number 8661469) were approved by the Board of Directors and authorised for issue
on 29 July 2015. They were signed on its behalf by:
Dr Arnab Basu MBE
Chief Executive Ofﬁcer
Company statement of ﬁnancial position 
Kromex_v10_Layout 1  30/07/2015  01:52  Page 59 KROMEK Annual Report & Accounts 2015
Company statement of changes in equity 
For the year ended 30 April 2015
60
Equity attributable to equity holders of the Company
                                                                           Share capital                       Share premium                      Accumulated                                Total 
                                                                                  £’000                                    account                                   losses                                     equity
                                                                                                                                  £’000                                     £’000                                      £’000
                                                                      
                                          
Balance at 1 May 2013                                               –                                                  –                                              –                                                   –
Total comprehensive losses 
for the year                                                                     –                                                –                                        (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
                                                                      
                                          
Total comprehensive loss 
for the year                                                                     –                                                –                                     (202)                                         (202)
Issue of share capital 
net of expenses                                                             2                                             31                                           –                                              33
                                                                      
                                          
Balance at 30 April 2015                                 1,082                                      13,965                                      (260)                                     14,787
                                                                      
                                          
                                                                                                                
                                                                                                                                                                                                                                         
Kromex_v10_Layout 1  30/07/2015  01:52  Page 60 Company statement of cash ﬂows 
For the year ended 30 April 2015
61
Consolidated Financial Statements
                                                                                                                                                                   2015                                                       2014
                                                                                                       Note                                                  £’000                                                     £’000
                                                                                                                                                 
Net cash used in operating activities                              46                                                        (259)                                                 (14,743)
                                                                                                           
Financing activities                                                                                                                                     
Proceeds from issue of share capital                                                                                                       33                                                    15,000
Revolving credit facility                                                                                                                        1,000                                                              –
Interest paid                                                                                                                                                  (3)                                                             –
                                                                                                                                                                                     
Net cash from ﬁnancing activities                                                                                              1,030                                                    15,000
                                                                                                                                                                                     
Net increase in cash and cash equivalents                                                                                  771                                                          257
                                                                                                                                                                                                                                             
Cash and cash equivalents at beginning of period                                                                   257                                                              –
                                                                                                                                                                                     
                                                                                                                                                                                                                                             
Cash and cash equivalents at end of period                                                                            1,028                                                          257
                                                                                                                                                                                     
                                                                                                                                                                                     
Kromex_v10_Layout 1  30/07/2015  01:52  Page 61 KROMEK Annual Report & Accounts 2015
Notes to the company ﬁnancial statements 
For the year ended 30 April 2015
62
38. 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 International Financial Reporting Standards (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. The Company’s ﬁnancial statements are included
in the consolidated ﬁnancial statements of Kromek Group plc. Accordingly, the Company has taken advantage of the exemption from publishing an
income statement, and the losses for the Company are shown within the Company Statement Changes of Equity, being equal to the total comprehensive
losses for the year.
39. AUDITORS REMUNERATION
The auditor’s remuneration for audit and other services is disclosed in note 8 to the consolidated ﬁnancial statements.
40. SUBSIDIARIES
Details of the Company’s direct and indirect subsidiaries as at 30 April 2015 are as follows:
                                                                                                  Place of                  Class of          Proportion of                                                                        
                                                                                         incorporation           shares held              ownership
                                                                                    (or registration)                                                    interest                                                           Activity
Name                                                                             and operation                                                              %                                                                     %
                                 
                         
Kromek Limited                                                        United Kingdom                 Ordinary                          100        Scientiﬁc research and development
Kromek Germany Limited                                      United Kingdom                 Ordinary                          100                                    Sales and marketing
Kromek, Inc                                               United States of America                 Ordinary                          100        Scientiﬁc research and development
NOVA R&D, Inc                                        United States of America                 Ordinary                          100                                         Holding company
eV Products, Inc                                       United States of America                 Ordinary                          100        Scientiﬁc research and development
Durham Scientiﬁc Crystals Limited                      United Kingdom                 Ordinary                          100                                       Dormant company
The investments in subsidiaries are all stated at cost.
41. TRADE AND OTHER RECEIVABLES
                                                                                                                                                                    2015                                                       2014
                                                                                                                                                                   £’000                                                      £’000
                                                                                                                                                                                     
Amounts due from subsidiary undertakings                                                                                    14,749                                                   14,749
Prepayments                                                                                                                                                  10                                                           16
Other receivables                                                                                                                                          36                                                             –
                                                                                                                                                                                     
                                                                                                                                                                 14,795                                                   14,765
                                                                                                                                                                                              
                                                                                                                                                                                     
Amounts due from subsidiary undertakings are due in more than 1 year.
42. TRADE AND OTHER PAYABLES
                                                                                                                                                                    2015                                                       2014
                                                                                                                                                                   £’000                                                      £’000
                                                                                                                                                                                     
Trade payables and accruals                                                                                                                     (33)                                                        (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.
Kromex_v10_Layout 1  30/07/2015  01:52  Page 62 Consolidated Financial Statements
For the year ended 30 April 2015
63
43. BORROWINGS
Details regarding the borrowings of the Company are disclosed in note 25.
44. FINANCIAL ASSETS
Intercompany 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.
45. 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 pur-
chases is 30 days.
The carrying amount of trade payables approximates to their fair value.
46. NOTES TO THE STATEMENT OF CASH FLOWS
                                                                                                                                                                    2015                                                       2014
                                                                                                                                                                   £’000                                                      £’000
                                                                                                                                                                                     
Loss for the year                                                                                                                                      (202)                                                         (58)
                                                                                                                                                                                                                                             
Adjustments for:                                                                                                                                                                                                               
Finance costs                                                                                                                                                  3                                                              –
                                                                                                                                                                                              
Operating cash ﬂows before movements in working capital                                                            (199)                                                         (58)
                                                                                                                                                                                                                                             
Decrease/(increase) in receivables                                                                                                             6                                                   (14,751)
(Decrease)/increase in payables                                                                                                              (66)                                                          66
                                                                                                                                                                                              
Net cash from operating activities                                                                                                        (259)                                                 (14,743)
                                                                                                                                                                                              
                                                                                                                                                                                              
47. SHARE CAPITAL
                                                                                                                                                                    2015                                                       2014
                                                                                                                                                                   £’000                                                      £’000
                                                                                                                                                                                     
Allotted, called up and fully paid:                                                                                                           
108,173,290 Ordinary shares of £0.01 each                                                                                     1,082                                                      1,080
                                                                                                                                                                                              
                                                                                                                                                                 1,082                                                      1,080
                                                                                                                                                                                              
                                                                                                                                                                                              
48. SHARE PREMIUM ACCOUNT
                                                                                                                                                                                                                                     2015
                                                                                                                                                                                                                                    £’000
                                                                                                                                                                                                                        
Balance at 1 May 2014                                                                                                                                                                                       13,934
Premium arising on issue of equity shares                                                                                                                                                               31
                                                                                                                                                                                                                                    
Balance at 30 April 2015                                                                                                                                                                               13,965
                                                                                                                                                                                                                                    
                                                                                                                                                                                                                                    
Kromex_v10_Layout 1  30/07/2015  01:52  Page 63 KROMEK Annual Report & Accounts 2015
Notes to the company ﬁnancial statements (continued)
For the year ended 30 April 2015
64
49. ACCUMULATED LOSSES
                                                                                                                                                                                                                                     2015
                                                                                                                                                                                                                                    £’000
                                                                                                                                                                                                                        
Balance at 1 May 2014                                                                                                                                                                                              (58)
Net loss for the year                                                                                                                                                                                                (202)
                                                                                                                                                                                                                                    
Balance at 30 April 2015                                                                                                                                                                                   (260)
                                                                                                                                                                                                                                    
                                                                                                                                                                                                                                    
50. 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 27 to 30. 
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 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 ﬁ-
nancial information and its own trading records to rate its major customers. The Company’s exposure and the credit ratings of its counterparties
are continuously 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 man-
agement 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 continuously monitoring
forecast and actual cash ﬂows, and by matching the maturity proﬁles of ﬁnancial assets and liabilities. 
The following table details the Company’s remaining contractual maturity for its non-derivative ﬁnancial liabilities with agreed repayment periods.
Kromex_v10_Layout 1  30/07/2015  01:52  Page 64 Consolidated Financial Statements
For the year ended 30 April 2015
65
50. FINANCIAL INSTRUMENTS (CONTINUED)
The tables have 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.
                                                Weighted
                                                  average 
                                                 effective              Less than                                         3 months to
                                              interest rate            1 month             1–3 months              1 year               1–5 years              5+ years                 Total
                                                       %                        £’000                    £’000                   £’000                   £’000                   £’000                   £’000
                                                                                                             
1 May 2014                                  –                             –                             –                            –                            –                            –                            –
Revolving credit facility             3.1                           –                             –                        1,003                        –                            –                       1,003
                                                                                                             
30 April 2015                             3.1                            –                              –                         1,003                        –                             –                         1,003
                                                                                                             
                                                                                                             
51. ULTIMATE CONTROLLING PARENT AND PARTY
In the opinion of the directors, there is no ultimate controlling parent or party.
52.  EVENTS AFTER THE BALANCE SHEET DATE
On 29 July 2015, the Group entered into a placing agreement to raise up to £11.0m gross, or up to £10.4m net of expenses, by a conditional non
pre-emptive ﬁrm placing of 36,000,000 new ordinary shares of 1p each in the ordinary share capital of the Group (“Ordinary Shares”) and an open
offer of up to 8,012,836 Ordinary Shares at a price of 25p per share. The ﬁrm placing and open offer are conditional, inter alia, upon the passing
of certain resolutions by the shareholders of the Group.
On 17 August 2015, a general meeting of the Group will be held where the Directors expect the shareholders of the Company to approve the ﬁrm
placing and open offer. On 18 August 2015, subject, inter alia, to shareholder approval the ﬁrm placing and open offer shares will be admitted
and dealings will commence. As a result of the ﬁrm placing and open offer the Directors expect to raise a minimum of £8.4m cash.
53. RELATED PARTY TRANSACTIONS
No transactions have been noted with Directors during the period ended 30 April 2015.
No dividends were paid in the period in respect of ordinary shares held by the Company’s directors.
Kromex_v10_Layout 1  30/07/2015  01:52  Page 65 Kromek Group plc
NETPark
Thomas Wright Way
Sedgefield
County Durham
TS21 3FD
Kromek Group plc  Annual report and accounts 2015
Kromek Group plc
Annual report and accounts
for the year ended 30 April 2015