Tuesday 19 July 2016 1:16 pm

How nuclear terrorism is a $1bn opportunity for this UK firm

Radiation detection firm Kromek believes its product, which helps security services protect cities from nuclear terrorism, presents a $1bn opportunity in the next five to 10 years.

The DS3 detectors — small, blackberry-like devices that can be carried around by individual police officers — create a comprehensive heat map of radiation. This then identifies irregular radiation sources, such as a person moving through a busy public space with a dirty bomb.

Read more: Defence giant says UK could be more attractive to invest post-Brexit vote

Dr Arnab Basu, the group's chief executive, told City A.M. that it's talking to officials in various cities in the US and worldwide about adopting this technology.

In February, the Aim-listed firm became the sole supplier of its DS3 detectors to an agency within the US Department of Defence in an agreement worth $6m.

It also secured a five-year contract totalling $12.6m for its CZT detectors, which doctors will use to x-ray patients suffering from osteoporosis.

These deals helped it win a record $30m of new orders last year, improving its revenue visibility for the full year 2016/17.

Kromek’s revenue increased 2.47 per cent to £8.34m for the year ended 30 April 2016, from £8.1m a year earlier.

Read more: Abandoning the UK's nuclear weapons would be "gross irresponsibility", warns Theresa May

Product sales accounted for more than half of total revenues for the first time in the group’s history, rising 41 per cent to £5.4m during this period.

But it's operating loss swelled 32.68 per cent to £4.06m, due to sales costs and administrative expenses.

Its shares rose two per cent to 25.5p per share this afternoon.