kwbvapxxx7w.com

Tech firm Kromek remains loss-making despite record revenues

2025-05-09 03:06:24 By

Kromek CEO Arnab Basu with detection technology

North East technology company Kromek has reported record results but remains loss-making and has lined up new funding from one of its main shareholders.

The County Durham firm makes radiation and bio-detection equipment and has made headlines for the use of its products at high profile diplomatic events, as well as on the battlefield in Ukraine. It has often been named as one of the country’s most innovative companies due to its high number of patents, but it has struggled to fully commercialise its technology and is yet to declare a profit since being founded as a spin-out from Durham University research in 2003.

In new results for year ending April 30, Kromek said its revenue increased 12% to £19.4m and it achieved positive adjusted Ebitda of £3.1m. But it remained loss-making, though the loss before was more than halved from £7.3m last year to £3.5m. Its cash position worsened to stand at £500,000 but it also announced a new £4.9m loan from Polymer N2, an investment vehicle controlled by Dr Graeme Speirs, an existing shareholder who already provides finance to the firm.

Kromek CEO Dr Arnab Basu said: "This has been a pivotal 12 months for Kromek where we recorded a third consecutive year of revenue growth and delivered on all our KPIs. We achieved record revenues, more than halved our losses and our positive adjusted Ebitda exceeded market expectations.

“We have actively enhanced our operational efficiencies and seen excellent progress in both advanced imaging and CBRN detection where demand remains strong across both market segments. We expect to be broadly cash neutral in H1 and are comfortable that we have sufficient capital to deliver further growth in 2025.

"Looking ahead, we anticipate demand for our CBRN products will continue to be driven by global geopolitical insecurity and the persistence of nuclear threats…Consequently, Kromek is well positioned to deliver future growth and value for shareholders."

Kromek said it had seen significant progress in its medical imaging operations, including a $2.1m order in the US from an existing customer. It added that global insecurity continued to drive demand in its nuclear security products and in biological threat detection.

Very Supportive

UK and South Korea resume trade talks focusing on tech and digital services expansion

2025-05-09 03:06:24

The UK has recommenced trade negotiations with South Korea, with a focus on enhancing technology and digital services sectors. British representatives have travelled to Seoul for discussions with their South Korean counterparts today, as they seek to forge a forward-looking, digitally-oriented trade deal, as reported by City AM. This marks the first round of talks under the Labour government since the trade discussions were put on hold during the transition period after the July 4 election. Speaking to City AM, Business and Trade Secretary Jonathan Reynolds said: "Both the UK and South Korea are renowned as global leaders in technology. Our high-tech economies have so much more we can do together once our trade deal is upgraded." He added: "Trade deals with partners like South Korea mean UK businesses will have more opportunities to sell their excellent goods and services around the world." Reynolds expressed satisfaction that negotiators are resuming this vital work, which contributes to building a stronger economy. According to officials, the UK-South Korea trade relationship was valued at approximately £17bn in the year leading up to June 2024, with these talks being the third set to restart following Labour's electoral victory, succeeding discussions with the Gulf Cooperation Council and Switzerland. The government is determined to secure a deal that opens significant export avenues for British companies, especially given South Korea's growing consumer demand for high-tech imports. Diplomatic ties spanning 140 years are set to be rejuvenated, with the Department for Business and Trade (DBT) emphasising the need to refresh the decade-old trade agreement between the two nations, particularly citing an absence of a digital chapter in the current framework. In 2022, the UK's thriving digital sector boasted a value of £158.3 billion, with roughly 7,000 British firms exporting to Korea - 85% of which are SMEs. Officials are optimistic that a revised agreement could potentially boost this number through modernised customs processes, alongside planned talks on simplified origin rules and the prospect of lower tariffs. TechUK's Sabina Ciofu has expressed support for a "renewed commitment" towards trade discussions, highlighting significant potential in advancing digital services and technology trade, areas where UK innovation excels globally. "With South Korea's strong focus on research and development in key technologies, including semiconductors, 6G, and ICT infrastructure, this offers a unique chance to drive forward high-tech advancements and strengthen our global digital capabilities," Ciofu conveyed to City AM. Adding to the positive sentiment, Chris Sunghwal, CEO of SeAH Wind, a South Korean energy company, commended the opportunities ahead for "enhanced relations between our two great nations". He endorsed the establishment of the new monopile factory in Teesside, hailing it as "a world class leading facility, bringing together the best of both cultures from South Korea and the UK".

Chancellor Rachel Reeves' tax hikes 'punish risk-takers and could stifle innovation'

2025-05-09 03:06:24

British tech entrepreneurs have criticised the increases in capital gains tax (CGT) and national insurance contributions (NICs) announced by Chancellor Rachel Reeves in the recent Budget. The government has raised the lower rate of CGT from 10% to 18%, and the higher rate from 20% to 24%. Additionally, employers' NICs have been increased by 1.2 percentage points to 15%. Paul Taylor, founder and CEO of the $2.7bn banking software company Thought Machine, expressed concerns that the rise in NICs would add £800,000 annually to his firm's UK payroll expenses and complicate recruitment efforts. "Companies like ours will be less incentivised to grow once the contribution we have to pay, per employee, increases combined with forthcoming changes to employment legislation," he remarked. "Nearly all emerging tech businesses run on investor capital, and this increase sets them back on their path to profitability.", as reported by City AM. Furthermore, Taylor highlighted that the hike in CGT represents "a tax on risk-takers" and will "discourage talent from working in the tech sector". "CGT increases mean the potential value of the shares they own will now be considerably lower, thus reducing the incentive for top talent to join high-growth and tech businesses, which is the future growth engine of the UK," he added. Last month, Taylor communicated to City AM his ambitions to list Thought Machine on the London Stock Exchange, underscored by his belief that the US start-up scene serves as "a model of where the UK needs to be". Labour's Reeves has pointed out that the Budget has introduced tax increases totalling £40bn in an effort to address what is claimed to be a £22bn "black hole" in public finances. Capital Gains Tax (CGT), which taxes the profit made on the sale of an asset like company shares, was anticipated to increase. Although it didn't reach the speculated heights of 39 per cent, the increase has some founders worried over its possible dampening effect on innovation, hindrance to talent acquisition, and discouragement of new business ventures within the UK. ClearBank CEO Charles McManus weighed in on the matter, stating that the combined hike in CGT and National Insurance Contributions (NICs) might significantly discourage entrepreneurs from establishing businesses in Britain. McManus also highlighted concerns regarding more UK firms opting to list in markets outside London, exacerbating existing market trends witnessed in recent years. "Starting and scaling a business requires ingenuity, grit and determination as well as taking a major risk," he commented. "And we support any government that rewards that risk by creating an environment where entrepreneurs have access to the best investors, advice and scaling opportunities available." Motorway CEO Tom Leathes expressed concerns, highlighting that "entrepreneurs thrive on incentives that reward risk" and warning that an increase in Capital Gains Tax (CGT) could render scaling and reinvesting in tech companies "significantly less attractive". In the build-up to the Budget, there was speculation that potential rises in CGT, National Insurance Contributions (NICs), and Business Asset Disposal Relief might hinder the expansion pace of technology start-ups. Voices within the sector suggested that these changes could deter investors, possibly causing them to seek alternative markets and countries for their investments, and might discourage founders due to heavier tax loads on stock options and other incentives. A fintech industry group had forewarned of a potential mass departure of UK founders due to new government policies, although this alarm has been downplayed by some as merely "rhetoric", especially since the increases were not as steep as anticipated. Phill Robinson, CEO of Boardwave, a London-based network for founders, concurred with the concern, arguing that the uptick in capital gains tax "will hit the entrepreneurs that fuel our software industry, particularly hard," adding that the reform regarding carried interest would also affect investors. Robinson pointed out: "As a fast-moving high growth sector, that requires a high level of risk for both founders and investors and on balance the measures announced today will change the risk/reward calculations for both,". During her address to Parliament, Reeves cited that even after these revisions, the UK would still have the lowest capital gains tax rate compared to its European G7 peers. On a more optimistic note, Philip Belamant, co-founder and CEO of Zilch, the $2bn buy-now pay-later provider, expressed his initial response as positive. "While we'll all absorb slight tax increases, the UK remains a top G7 competitor and the third-largest tech market on the planet," he stated.

Greater Manchester businesswomen named among Britain’s top Black entrepreneurs

2025-05-09 03:06:24

A Manchester robot specialist and a Salford children's entertainment creator have been named as Britain’s top Black entrepreneurs. KPMG has announced the four winners of its annual Black Entrepreneurs’ Awards, which have been held every year since 2018 and aim to identify the country’s most exciting business leaders. The winners were chosen from more than 150 entrants in areas from AI to retail and from recruitment to education. Each winner will receive £25,000 to invest in their business or to donate to the charity or community project of their choice, while all finalists can join a KPMG acceleration programme “designed to support Black heritage entrepreneurs and their businesses to grow”. The award for most promising large business was won by Ayaan Mohamed, founder of Manchester’s Digitech Oasis. Her business develops autonomous mobile robots and AI systems to help retailers and warehouse operators work more efficiently. She said: “It feels amazing to win, it means a lot to the company, a company that has come so far in the last four years. In terms of accelerating growth, hardware is very capital intensive so we need support. I think it will propel us to do greater things.” The award for most promising medium-sized business went to Anita Frost, founder of Green Bean Studios in Salford. The eco-conscious children’s entertainment brand aims to “empowers children globally to play, learn and go on fun adventures”. Anita said: “I’m so excited to have won this KPMG award, it’s going to propel Green Bean, the team and the brand into new spaces. I’m particularly really excited about the partnership with KPMG for 12 months so that we can improve our infrastructure and being ready to level up.” The most promising small business title was won by Yasmin Greenaway, founder at deep tech company Dermie.AI. Her London business specialises in building computer vision models and software for the detection and management of dermatological disease. Yasmin said: “I really appreciate winning because it’s so important that corporates ensure that we focus on diversity in AI because we’ve seen a lot of models coming out that aren’t working for everyone.” The most promising not-for-profit-business title went to Ben Lindsay OBE, founder at award-winning charity Power The Fight. The charity works to tackle violence affecting young people, working to connect policy-makers with communities and to create long-term solutions. Ben said: “I’m so excited that we’ve had this opportunity, it’s going to mean so much to us as a small charity to be associated with KPMG, but also the money makes such a difference to our digital offer which is going to impact young people and our training up and down the country.” The awards were founded by Olu Odubajo, a product manager at KPMG UK, in 2018. They have so far supported 48 Black heritage founders – with one winner going on to grow a global business valued at £12m with a presence in 27 countries. The 12 finalists at this year’s awards were invited to a pitch in front of live audience and a judging panel that included Margaret Sheyindemi, start up growth manager at BT, Ezechi Britton, MBE, CEO of the Centre for Finance, Innovation and Technology, and Zuleika Philips, head of channels at Intuit. Euan West, head of private enterprise for KPMG in the UK, said: “Research has shown that Black entrepreneurs in the UK receive a disproportionately low amount of venture capital investment, which often hinders business and economic growth. “Supporting the development and scaling of Black businesses in the UK is incredibly important, which is why we’re committed to helping more Black Heritage entrepreneurs to gain access to the resources they need to make their businesses a success. “We have been running the KPMG Black Entrepreneurs’ Awards for five years now. Every year we get to see some truly incredible and innovative businesses and this year has been no exception. Our four winners really stood out, not only for their entrepreneurship but the impact and reach their businesses could have. In fact, all the finalists showed great innovation in their businesses and should be proud of what they have achieved. We are looking forward to supporting all of them through our 12-month acceleration programme, helping them to grow their businesses.”

Chief executive of one of Wales' leading tech firm IQE quits with immediate effect

2025-05-09 03:06:24

The chief executive of one of Wales' leading technology firms, IQE, has left the business with immediate effect, in a move that sent its share price tumbling In a London Stock Exchange statement, the leading global supplier of compound semiconductor wafer products and advanced material solutions has confirmed the departure of Americo Lemos, who took up the role in January 2022. A search to find his replacement has been launched. Jutta Meier will take up the position of IQE's interim chief executive in addition to her chief finance officer role. Ms Meier joined IQE in January 2024 from Intel Corporation. Following the announcement IQE' share price was down nearly 20% to just under 12p. Read More: Michael Sheen pays off debts of hundreds of people Read More: The huge financial crisis engulfing Welsh universities The Cardiff headquartered firm said that Mark Cubitt, who joined the IQE board earlier this month as chair-elect, will become executive chair. He is currently non-executive chair at AIM-Listed Beeks Group and Concurrent Technologies. Phil Smith, who has been chair of IQE since 2019, will step down from his role, but remain on the board. Mr Smith said: "Whilst IQE continues to navigate the semiconductor market recovery, we are confident that the company's renowned technical expertise is well aligned to long-term growth market vectors. In Mark and Jutta we have two excellent individuals with the necessary sector and leadership skills to capture that growth in partnership with our customers, employees and broader stakeholders. "Their immediate priorities will include a focus on executing on the near-term pipeline as well as cash generation across the Group and on unlocking embedded value by pursuing the IPO (flotation) of our Taiwan business. They will examine other efforts to optimise our asset base and ensure that resources are centred around IQE's strategic areas of expertise." In a brokers note Panmure Liberum still recommended a buy position, with a share price target of 40p. The note added: ""The short and to the point wording of the announcement that CEO Americo Lemos has 'eft with immediate effect” suggests he has been removed by the board.

Chancellor announces major investment in UK tech and creative sectors in Autumn Budget

2025-05-09 03:06:24

The Autumn Budget, presented by Rachel Reeves on Wednesday, proffered substantial backing for the UK's technology and creative sectors, with the Chancellor outlining capital investment strategies intended to "drive growth across the country." In her budgetary plans, Reeves articulated the intention to "capitalise" the National Wealth Fund, targeting support towards bustling future industries such as gigafactories, ports, and green hydrogen production, as reported by City AM. These initiatives are encapsulated within an expansive Modern Industrial Strategy, which aims to bolster sectors identified as having significant growth prospects through judicious investment. To reinforce these ambitions, the Budget set forth a collection of multi-year funding promises: £1 billion earmarked for aerospace, in excess of £2 billion channelled into the automotive industry focusing particularly on electric vehicle manufacture, and as much as £520 million dedicated to establishing a new Life Sciences Innovative Manufacturing Fund. Alongside invigorating tech and industrial segments, Reeves channelled improvements into tax incentives for the nation's thriving creative industries, with particular enhancements for VFX in television and film production. Moreover, £25 million has been designated to the North East Combined Authority for the transformation of the Crown Works Studios site in Sunderland, a project forecasted to generate 8,000 fresh employment opportunities. Reeves has reaffirmed the government's dedication to research and development, allocating over £20 billion for research funding in areas such as engineering, biotechnology, and medical science. Moreover, the Chancellor has pledged £500 million to enhance mobile broadband connectivity, particularly in rural regions, through the Department for Science, Innovation and Technology (DSIT). Additionally, Reeves has committed an extra £22.6 billion to the NHS budget, aiming for a two per cent productivity gain next year. This investment is intended to support the health service's transition "from analogue to digital" over the coming decade. Mark Leftwich, Philips UK & Ireland's managing director, expressed his support for the new funding, stating it "is a chance to start pulling the NHS back on track." "State-of-the-art technology is changing the way that care is delivered in pockets, but increased investment in digital and innovation is needed to accelerate this at scale," he commented.

Alphabet's Google Cloud division drives revenue surge, beating market expectations

2025-05-09 03:06:24

Alphabet, Google's parent company, has announced a surge in revenue for the third quarter, largely driven by its robust Google Cloud division. The tech giant revealed in its latest financial report that revenues hit a remarkable $88.3bn (£67.8bn), marking a 15% uptick from the previous quarter, as reported by City AM. Yet the increment in Alphabet's cornerstone advertising business didn't keep pace with the rest of the group. Year-on-year, the firm witnessed a more modest ad revenue rise of 10.4%. Both search advertising and Youtube ad earnings saw an identical climb of 12.2%, taking ad revenues to $49.9bn (£38.3bn) while Youtube raked in $8.9bn (£6.8bn). According to Hargreaves Lansdown senior equity analyst Matt Britzman: "This is arguably Alphabet's biggest question mark, as the major unknown is what happens to Google search in the world of AI. This quarter was important as it marked the first full period where Google's AI overviews were up and running in the US." Tech analyst at Quilter Cheviot, Ben Barringer, commented: "While threats are very present in the background, Alphabet continues to innovate and improve its offerings to customers in what is a buoyant digital advertising market". Alphabet has also been facing upward financial pressure due to increased spending on AI technology. With a 62% year-on-year increase, capital expenditures have soared to $13.1bn (£10.1bn). Alphabet's CFO, Anat Ashkenazi, disclosed expectations for substantial hikes in capital expenditure come 2025, as the company aims to balance hefty AI investments against cost control measures. Barringer went on to say: "As we look forward, we are working to balance our investments in AI and other growth areas with the cost discipline needed to fund those investments." Alphabet's net income reportedly surged to $26.3bn (£20.2bn), marking a 33.6 per cent increase from the third quarter of the previous year. Following the announcement, Alphabet's shares saw a 5 per cent rise in after-hours trading. Ben Barringer, Tech Analyst at Quilter Cheviot, commented: "Given the medium and long-term threats at play for Alphabet- the Department of Justice and AI agents these are a very clean set of numbers.Britzman concluded by saying: "[Alphabet] hasn't disappointed. cloud growth was strong, and better than expected, which continues to support the argument that the major cloud providers are well-placed to benefit from the AI revolution."

Founder of AI firm working with Google and Zoom named among UK's 'most ambitious' bosses

2025-05-09 03:06:24

The London-based founder of a fast-growing AI company has been named one of the "most ambitious" bosses in the UK. Yomi Tejumola established Algomarketing 2017 while working as a data scientist at Google to automate "mundane" tasks. The business now operates in 27 countries across six continents and counts tech giants Cisco, Google and Zoom among its customers. Mr Tejumola was recognised in a list of the top 50 most ambitious leaders of 2024 by LDC - an arm of Lloyds Bank - in partnership with the Times. All the entrepreneurs featured in the rankings are at the helm of high-growth companies that are creating jobs, promoting social equality, championing sustainability or expanding internationally. “It’s an incredible honour to be recognised as an LDC Ambitious Business Leader this year," said Mr Tejmola. "Since starting this journey in 2017, I’ve been on a mission to restore joy to the world of work. Through Algomarketing, I’ve built a global network of 200 Algos (or marketing super talent) who we deploy into big tech brand marketing operations globally. "By unlocking the power of algorithmic marketing, we can remove the 80% repetitive and mundane tasks that many marketers experience in their day-to-day roles. I'm striving to build a future where marketers leverage AI and automation to not only make them more productive, but improve their work-life balance, creativity, and general wellness." Algomarketing generates 65% of its revenue from outside the UK and has said it expects to reach a turnover of £150m by 2030.

UK competition watchdog launches probe into Alphabet's Anthropic investment

2025-05-09 03:06:24

The UK's Competition and Markets Authority (CMA) has officially launched an inquiry into the merger between Alphabet Inc. , Google's parent company, and AI safety firm Anthropic. The regulatory body had sought opinions on the deal earlier this year and confirmed on Thursday that it now has "sufficient information" to proceed with a formal probe, as reported by City AM. In a pivotal move for the AI sector, Alphabet channelled $500 million into Anthropic in 2023, alongside a future commitment of $1.5 billion over an undefined period. In addition, Anthropic relies on Google Cloud as part of its operational infrastructure. Anthropic is renowned for developing Claude, a sophisticated large language model that vies with OpenAI's ChatGPT. The CMA is tasked with determining by 19 December 2024 whether the Alphabet-Anthropic merger requires a deeper phase two investigation. Requests for comment from both Alphabet and Anthropic were not immediately returned. A previous statement from a Google representative emphasized the tech giant's dedication to cultivating a broadly accessible and innovative AI environment. They stated: "Google is committed to building the most open and innovative AI ecosystem in the world. Anthropic is free to use multiple cloud providers and does, and we don't demand exclusive tech rights." An official from Anthropic had also previously indicated the company's intent to engage fully with the CMA to present a comprehensive view of their collaboration with Alphabet. Another significant player, Amazon, made a substantial $4 billion investment in Anthropic last year and bolstered its stake recently with an additional $2.75 billion. This regulatory scrutiny comes as part of a broader action from the CMA, which, in April, initiated three separate investigations into partnerships between Microsoft, Amazon, and three different AI startups, including Anthropic.

GB Group shares soar after interim trading results beat estimates

2025-05-09 03:06:24

Shares of GB Group, the London-listed tech firm, soared 11 percent on Thursday morning following the announcement that its interim trading figures had surpassed expectations. The identity verification and location intelligence service provider reported first-half revenues of approximately £137m, a modest increase from the previous year's £132.4m and slightly above Peel Hunt analysts' projection of £135.5m, as reported by City AM. Adjusted operating profits showed a robust 21 percent uptick year-on-year, reaching £29m and topping analyst forecasts by two percent. On a constant currency basis, the combination of GB Groups two main sectors, identity and location, demonstrated a growth of 6.8 percent. Dev Dhiman, who stepped into the chief executive role earlier this year, had set forth four strategic priorities for the Chester-based company: simplifying operations; achieving global alignment; fostering a culture oriented towards performance; and speeding up the pace of innovation. "We have made encouraging progress in each of these areas," Dhiman said, "and this is translating into our performance with strong pipeline execution, ramp-up with a number of important customers, and some significant customer win-backs reinforcing our market leadership position in identity fraud and location software," he elaborated on the company's advancements.

Howard de Walden Estate invests £52m in new Healthtech hub at Harley Street

2025-05-09 03:06:24

The Howard de Walden Estate has made a significant move in its healthcare innovation strategy with the announcement of a £52m investment into a new Healthtech hub at Hale House. In collaboration with Spacemade, the provider of flexible workspaces, the Estate expressed its intention to transform the Harley Street Health District into the premier international hub for health technology and innovation, as reported by City AM. The upcoming development at Portland Place will encompass three redesigned buildings, all tailored to accommodate health start-ups, investors, and venture capitalists. UCLPartners, a leading UK health innovation organisation, is set to be the anchor tenant at Hale House, taking up residence on the first floor of 76 Portland Place. Chris Laing, Chief Executive of UCLPartners, commented: "Our new base will help us connect the health technology and life science sectors with healthcare providers, patients, and the public, developing novel solutions that will define the healthcare of the future". The healthcare behemoth has reaffirmed its dedication to fostering innovation within the healthcare industry. The £52m investment by Walden is part of a wider plan to rejuvenate the reputation of Harley Street. This initiative signifies a turning point for the area, which has been synonymous with healthcare since the 1860s. It aims to integrate traditional healthcare services with the latest in tech-driven health sectors, creating a comprehensive hub that merges preventative services, clinical care, and Health Tech under one roof. Mark Kildea, the Chief Executive of Walden, has described the Hale House project as a "key step forward" in creating an integrated health district that aligns with the changing needs and trends within the sector. Hale House is set to be designed with collaboration at its core, featuring flexible spaces and various facilities. These spaces are projected to accommodate over 600 individuals and aim to meet high sustainability standards such as BREEAM Excellent. Richard North, the Head of Commercial Lettings at Walden, stated that this was part of "Howard de Walden's commitment to the highest standards in design, social impact and sustainability" through innovation. Jonny Rosenblatt, Co-founder of Spacemade, labelled it as "the UK's most collaborative HealthTech cluster". He expressed his belief that industry-specific spaces like this are crucial for connecting HealthTech minds and driving healthcare transformation in a rapidly evolving generation.