Good afternoon, everybody. Thanks for coming, which is probably our first formal CMD. I am Arnab Basu. I'm the founding CEO of Kromek. A lot of you know me. A lot of you probably know the company and have been following the company. For those this is the first time or early acquaintance with the company, let me say a couple of sentences about the company. We are a global detection company serving the medical imaging, security, and defense markets, operating out of four facilities, two manufacturing facilities in the U.K. and the U.S., IP-rich, and serving a global customer base of over 50 countries and employing roughly about just over 150 people. For the year ending 2025, which is the 30th of April, the fiscal year 2025, it has been a transformational year for us for many reasons.
You are going to hear that from my colleagues coming later. That really gives us a real strong platform for growth. That is really the story today. Today we are going to hear about the fundamental growth platform that we have got, the two growth pillars that we have in the company, which are the two business segments, Advanced Imaging and CBRN Detection. Ultimately, we are going to talk about how we will create shareholder value. The next part is we'll just have a quick look at a video, which is going to show what Kromek does.
In today's world, safety, security, and health are more critical than ever. At Kromek, we lead the way in Advanced Imaging and CBRN Detection, delivering cutting-edge solutions to protect lives and well-being. Our Advanced Imaging division is revolutionizing industries from healthcare to security with next-generation detection and imaging solutions. At the heart of this division is our proprietary CZT detector technology, delivering precise data and information to decision-makers. In healthcare, these groundbreaking CZT-based detectors enable early diagnosis of life-threatening diseases, enhancing medical imaging systems and saving lives. Through earlier detection, our technology empowers healthcare professionals to act sooner, leading to earlier and more effective treatment decisions, improving survival rates. In security, our systems safeguard airports, transport hubs, and public infrastructure, accurately identifying threats, ensuring peace of mind for communities. Kromek's CBRN Detection systems empower governments, military, and emergency responders to act quickly against radiological and nuclear threats.
Portable, reliable, and scalable, our technology provides real-time intelligence to keep soldiers, communities, and critical infrastructure safe. Our cutting-edge biosecurity solutions help detect pathogens, enabling faster responses to biological threats like pandemics and bioterrorism. At Kromek, we're committed to defending against the invisible risks that threaten our way of life. Kromek Group, two divisions, one goal: to innovate, detect, and protect the future for generations to come.
Hopefully, that gives you a flavor of what we do. Let me make the case why this is the right time for you to get involved in Kromek and invest in Kromek. You'll hear from my colleagues who will be reinforcing that framework that I'm going to outline now. Over the last 20 years, we have developed technologies, products, and IPs, which gives us a sustainable technological advantage over our competition in each of our markets, whether in CZT being the sole source supplier in the market to in the CBRN Detection, where we have got a fantastic sustainable product advantage in that division. When you look at other companies trying to do this and trying to enter in this market, the barriers are really high. Even if they try to do it, it's going to take a long time, even with a lot of investment, concentrated investment.
Not only is it time, but it's also the IP and everything else. In some cases, the incumbency factor, our deep customer relationships that we have developed, is a natural barrier to itself. The barriers to entry in each of our target markets are high for anybody else at the moment. You're going to hear later from Barry and Michael making the case why we are going to grow in the two growth pillars we have in Advanced Imaging and in CBRN Detection. The growth drivers, what exists in the market, the global big trends, and how our products are really aligned to those big trends that we operate in, and the reason why we are going to grow. They're going to make that case, and they're going to put some evidence in front of you.
Claire later on will join and talk about our financial position, the transformational year that we have just had in fiscal year 2025, and the plans going forward, how we are going to grow the top line, the earnings, and ultimately the cash generation, which altogether is going to be the basis of creating shareholder value going forward. I talked about the foundation. This is what we are. We are a global detection company. Kromek delivers. We deliver best-in-class solutions in radiation and biological detection, which enables our customers to make time-critical decisions, which ultimately saves lives and saves cost of their operations. That is what fundamentally we provide to the market.
What sits and binds the two parts of the business, the two growth pillars, the two divisions, is really an innovation engine, which drives and has driven the creation of very high-value IP and technologies, which has enabled us to have those deep-rooted strategic customer relationships that we are going to talk about later on. What helps deliver that is, of course, a group of very skilled people working within strong, well-organized systems and ultimately driven by a real agile culture. That is what enables us to meet our customer demands. That is what enables us to keep a competitive edge over our competitors. That is what is going to drive us forward. Innovation and IP are key. Of course, our customer relations are extremely key in that.
We're going to talk a lot about the two businesses and the two growth pillars we have. Let me touch on a few points, particularly just to introduce the two businesses, and they are slightly different. If I take the Advanced Imaging business, which is a completely OEM component-driven business, we provide OEM components to major OEMs, typically tier one, tier two OEMs. Those relationships are very deep-rooted, very strategic, but also, the customer base is very concentrated. There's only so many OEMs within each of our target markets in medical imaging, security, or industrial screening. When you look at the TAM in this market, the TAM that we address is about $400 million per year.
One particular thing about the TAM to remember is that the TAM we project here is actually ours because we are the sole supplier, sole independent supplier of this technology in the market, sole independent producer of cadmium zinc telluride in the market. We are not competing in that TAM. That is a very important takeaway that you need to understand. The CBRN business, on the other hand, is quite different. We provide end-user product, both in the radiation detectors, where we have a portfolio of end-user products we are going to talk about. You can see that after the presentations. Also, in biological detection, we are developing end-user product. There, our customer base is much, much more distributed. Every defense organization, every border security forces, every nuclear power plant is a potential customer.
Unlike the Advanced Imaging, where the customer base is extremely concentrated, we have a very distributed customer base in there. When you look at the TAM in there, it's about $1 billion a year, the TAM. Unlike the Advanced Imaging, it is a competitive space, which means we are not on our own in there. We are going to compete, and we will get a share of that TAM. That's how we are going to grow. When we look at the growth model in each of these segments, in the Advanced Imaging, of course, our growth model is very organic. We have a clear path to growth organically. In the CBRN, particularly in the radiation detection, we are going to do bolt-on M&As. I'm going to talk about that in a structured way later on.
I'm not going to go through every one of them. Many of you who have been involved with Kromek may remember some of these. These have been the steps: either market validation through product introduction, new product introduction, product validation, important customer wins, both in the Advanced Imaging, lately Siemens, but also in the CBRN, the framework contracts. This has given us the base to grow from. We are not starting from scratch. We have got a solid foundation to really grow from here on. From here, I'll hand over to Claire, who will talk you through the financials, and then I'll come back.
Thanks, Arnab. It's great to be here. My name is Claire Burgess, and I joined Kromek on the 12th of May. She's been here a long time. I had the pleasure of taking over from Paul Farquhar, who I'm sure many of you have met. His handover and invaluable guidance through the transition.
Seamless. I would really like to thank him for that. I have joined Kromek at an absolutely fantastic time. 2025 has been a really transformational year. A little about me. I am a chartered accountant by training. I qualified with EY before moving to KPMG Corporate Finance. I then spent a decade in corporate banking, working with businesses just like Kromek at different stages of growth. Over the past 12 years, I have been involved with senior finance leadership roles, primarily with fast-growing businesses, predominantly in the engineering and technology sectors, working both in the U.K. and the U.S. I have guided businesses through the growth phase, including integration of acquisitions. Arnab has already highlighted how far Kromek has come. As we move through the presentation, I believe that you will understand why I wanted to join Kromek. Let me continue by reflecting on what has been a truly transformational year.
In our trading statement on the 8th of May, we shared that revenue would exceed GBP 26 million. While that alone is a compelling milestone, the real story is the shift to profitability. Building on the positive adjusted EBITDA from last year, this year we'll have a positive PBT. If we look back, we're in our fourth year of revenue growth. In 2025, both divisions were impacted by specific factors: contract negotiations on the AI side, elections for CBRN. I want to emphasize that just pushes the revenue to the right. Crucially, it does not mean that that revenue is lost. The $37.5 million Siemens contract has put Kromek on a significantly stronger footing. $25 million of cash was received in the year, which allows us to reduce debt and significantly strengthen the balance sheet.
It's also important to note that the revenue will be recognized over a four-year period. You won't see that full $25 million hit the 2025 accounts. Looking ahead, I believe that the outlook remains very, very positive. Both divisions are poised to drive Kromek's growth going forward. We expect continued growth and profitability next year and beyond. Introducing divisional revenues, our plan has been to bring you divisional reporting. Today, I'm pleased to share that breakdown for the very first time. Historically, we've reported by geography and by product or R&D. This shift, I hope, increases the transparency and represents important first steps. While this year's shift in reporting is focused on revenue, we will be extending it to profitability in the very near future. I believe the change will give you all a clearer understanding of how the value we've built in the group.
As we have discussed, the growth across both divisions is important to understand. The divisional split is very dynamic, and it is a function of timing of contracts on both sides of the business. The split averages around 50/50, give or take. I anticipate this continuing over the short term for the underlying business. If we look specifically at FY 2025, the enablement contract in the AI division is expected to contribute a large portion of the year's revenues. While I will save the finer details on that to the annual results when I have been in here a little over five weeks, I expect that the underlying business, excluding the enablement contract, will be weighted slightly more towards CBRN. Long term, as you will see through the rest of the presentations, both divisions have growth potential and will both drive revenues going forward.
Moving on, I'd just like to touch on ESG and our approach to sustainability. In the five weeks I've been here, it's evident to me that Kromek has embraced ESG through the whole business for a number of years. I'm also aware that we can do a much better job of communicating this externally. I'm pleased to say that I've been appointed as the Board ESG champion and will become the voice of the business both internally and externally. We've pulled out some key ESG highlights for you here, but this is in no way a comprehensive list. Looking at environmental, CZT is very energy intensive. We have a successful CZT recycling program, which reduces costs and preserves resources. We use clean energy, and we're about to embark on a heat recycling program. On social, we invest in communities. We give back. We work with our employees.
They're supported through paid volunteering, educational support, and CPD. Data security is a key issue. Our systems and controls in this area protect all of our stakeholders. We're committed to maintaining high levels of corporate governance to support the growth. We deal with a number of government clients where strength in this area underpins their trust in us. Finally, I'm proud to say that I'm really pleased to be part of Kromek's future. Fundamentally, our products save lives. Now, I'll just hand back over to Arnab.
Yeah, as Claire clearly points out, that going forward, it's really we are at a point where we are in an accelerated growth phase. The important piece is we don't exist in a vacuum. We exist within the global markets. When you look at the mega trends within that market, both are quite well-suited where we are. If you look at the for the Advanced Imaging in the West, we have got real healthcare cost pressures on pretty much every Western economy with the aging population and complications that are going on in the healthcare sector. In countries like China and India, with huge populations, the demand for good quality healthcare is increasing as the affluence is increasing in those countries. Both demand better diagnostic systems. That is what is going to drive and is driving adoption of CZT today.
When we look at the other segment, CBRN, it's completely different. That segment is really driven by instabilities, fear of security by nations. Of course, today, nuclear is identified as a key element to our energy mix going forward. Instability that we are seeing around the world in the Middle East, in Asia, in areas which are nuclear-powered, the threat from nuclear and biological dirty bombs and weapons is increasing on a daily basis. That is what's driving the defense spend in those markets. What we are doing and what the big trends in the market that we exist in are very well aligned. That is what is going to be key for our growth and underpins our growth in these markets. How are we going to grow? Let me frame it up. We are going to talk through these elements.
I'm going to revisit this later on. Our priority is organic growth. Our priority is to grow the two divisions. In AI, structurally, the market is moving towards adoption of CZT in very large markets as CT. We are absolutely focused on that. We are going to grow our footprint in the CBRN market, both in terms of a commercial footprint, but also in terms of our product offering in that market. Where opportunities exist, we are also going to do very well-disciplined bolt-on M&As. I'm going to touch on that in much more detail, what that discipline means and what we mean by discipline. At this point, I'm going to hand over to Barry to take us through our first growth pillar, which is Advanced Imaging. Barry.
Thank you. Thank you. Thank you, Arnab. My name is Berry Beumer. I've been with the company for 10 years. I don't say CZT. I say CZT. Just bear with me on that. I run the Advanced Imaging business on a day-to-day basis. That is what I'm going to talk to you about. Advanced Imaging is, of course, a business that is focused on imaging using radiation. There is something very special going on in that space. There is a transition away from legacy, traditional scintillator-based detection technology towards semiconductor-based detection platforms. This enables a great deal of change. This opens up terrific opportunities for those companies involved in the imaging space. We are particularly focused on medical imaging. Medical imaging is very much core to our growth platform.
If I draw your attention on the left side of the screen, you see a graphic that shows a bit of the transition that is taking place within imaging applications, where we start introducing a new technology of CZT detection platforms in smaller niche-like applications. For instance, bone mineral density detection or surgical gamma probes. Those are smaller segments that enable the technology to develop and show what it can do. Really, the CZT detection capability is migrating to mainstream applications. SPECT is a significant application area for medical imaging. It's a nuclear medicine-type imaging application. We're going to talk a little bit more about that in a minute. The prize for Advanced Imaging is clearly the CT market. The CT market is the world's largest medical imaging application. 15,000 systems are sold per year. It's an area that is transitioning towards CZT detection.
We're in the middle of it. The reason why this transition is taking place is not arbitrary by any means. The reason is that ultimately, CZT provides better image quality, more sharpness, greater contrast, shorter measurement times, lower dose. In the end, all of these benefits, including color images, by the way, result in better patient outcome and a reduced cost of providing healthcare. You get sort of your cake and eat it too. There you have it. These product life cycles exist for a long time. It's quite a significant investment for medical imaging companies to develop detection platforms around CZT. They stick around for a long time.
Certainly, a detection platform like that would have a life cycle of 20 years or more, which is an important factor to our business in that it provides a long ramp for us to take advantage of. For us, SPECT, single photon emission computed tomography, and CT, specifically the photon counting family of CT, is really what we're focused on. I'm going to talk to you a little bit about the technology. Please don't completely glaze over on this because I won't go too deep into it. Fundamentally, legacy or scintillator-based detection technology requires a two-stage conversion process. The incoming radiation is first converted to light. After it is converted to light, it is converted to electrons.
During that two-stage conversion process, important information is lost about where was that radiation coming from and exactly what was the energy associated with the radiation. That energy tells us what part of tissue or bone or matter intersected with the radiation as it was going through the patient. As a result, that particular detection platform results in grayscale images, grayscale images that are reasonably fuzzy. As a result, tumors that are larger can be seen, but earlier detection of the same tumor is not possible. For CZT, we have some significant benefits. CZT enables the transition of radiation to occur directly from an X-ray or a gamma ray directly into an electron. As a result, the information about the incoming X-ray or gamma ray radiation is preserved.
As a result, we have very sharp images with great spectral resolution that enable a lower cost of healthcare, better treatment options, and better patient outcome in the end. Very important benefits for both patient and the industry. Let me tell you a little bit about our manufacturing process at a high level. Our crystal growth production capability exists in the north of England, County Durham. This is where we have 170 furnaces producing CZT crystals. After the crystals are grown, and this is a long process, unfortunately, CZT crystals is not a business for those with a short attention span, I guess, or a need for instant gratification. This takes place over a number of months. Following that, these ingots are sent to our facility in western Pennsylvania. This is where we process the detectors. We slice the ingots. We dice the product.
We etch and polish and provide metalization to the detector. Ultimately, if required, we integrate the detector to the electronics, the readout electronics that ultimately become the plug-and-play detection module that the customer is interested in. If we think about our business model, you can think of it perhaps in a three-layered cake. The opportunities that come to us principally come to us because we are first and foremost a grower of CZT. We have that capability in-house, both for gamma and for X-ray detection. That distinguishes us as a supplier in this space and often as the sole supplier in the space for detection solutions. We work very closely together with our customers to make sure that our detection solutions are customized to what our customers are looking for. The initial phase of collaboration will take a number of years, frustratingly long.
That requires our experts to interact with the experts from our OEM customers. As a result, the first prototypes and pilot units are designed of what is necessary to support the customer and the application. Following that core capability of CZT crystal growth is the electronics design. It is one thing to be able to grow the crystal. It is another to make sure that the signal comes out of the crystal and is properly read out by the electronics. This capability we have in-house. We are able to design these readout electronics. We do this in close collaboration with our OEM customers. As a result, we are, again, closely linked in that early stage, offering our capabilities of electronic design to our OEM customers. One important aspect is that besides the hardware associated with our products, we also offer an algorithmic optimization capability.
The algorithmic optimization capability essentially stretches the hardware's output to where you can further refine the image quality. You can go from a spatial resolution of 2 millimeters down to well below a half a millimeter, for instance. Those tools, those software-related optimization tools we offer to our customers as an important capability for them in their system design. In the end, at the bottom on the left side, all of this means nothing if we do not have the operational capability to deliver it every day, almost in a boring way, if you will, in a very reliable, predictable way.
The OEM, who will have designed this in most of the time on an exclusive single-source basis, needs to be able to rely on the products every month on a regular basis and needs to be able to rely on our ability to scale if scaling is required, that capability we offer. As sort of a unique selling point in this space, we are the only commercial CZT manufacturer in the world at scale. The barriers of entry in this space are high. It takes many years to develop the capability. As a result, we enjoy a commercial and very close relationship with the industry and with our customers. Let me see if I can talk you through this slide.
Although it may look a little intimidating on the left side of the slide, it articulates one, perhaps a bit of a traditional way for us to generate revenue. We work closely with the OEM. We get designed in with the OEM. The OEM goes through a product launch with the associated certifications required for them to achieve that product launch. Then adoption takes place over a number of years after that. In the early years of that collaboration, the revenue profile is very modest. The volumes are low. However, the interaction is very important and critical. As such, while the initial revenue is low, we are setting ourselves up for future revenues where there is only, again, a single-source supply available for this product for the OEM. It ties us in for decades to come in their new product launches.
After the initial launch and certification that the OEM goes through, the adoption rate is very much determined by the end users, by ultimately the hospitals. Hospitals will pull first. The premium hospitals will adopt a new technology, the academic institutions and research facilities. It migrates to the performance segment and ultimately to the value segment of the end user base that pulls in a new technology over a number of years. The cash flows for Kromek in the early days are negative. Why is that? Because we're not selling many products. We still have the engineers and the scientists and the application expertise required to maintain the relationship with the OEM. At first, for those early days, our cash flows will be negative. We see that turn around to when early adoption takes place. We start to see volume.
That volume starts to contribute to cover the overhead associated with our business. Currently, we have the capacity clearly that we need for the near future. However, as new CapEx, no doubt will be required, we will not make that capital investment. Our customers will be required to support the capacity expansion needed for scale. Our CapEx requirements are low. On the left side of that page, that is a traditional model for supply and development contracts that we engage in with our OEM customers. The alternative revenue stream comes about through enablement agreements. Most recently, we have discussed and announced the relationship that we enjoy with Siemens Healthineers.
These enablement agreements are very specific and constrained in this way that for Siemens Healthineers, we offer over a period of four years to teach them how to grow CZT crystals and make detectors out of that, but only for the end use of SPECT, only for their internal consumption, and without any further constraints on us as the provider of this technology. As a result, it offers us the ability to replicate as needed and as interest develops for that particular revenue model. We see revenues being front-loaded in that particular case. The cash and the revenue gets recognized and takes place in the early years. It has no further impact on our CapEx. There is minimal involvement from us on the investment side to support an enablement agreement. Let me talk to you a little bit about our core markets, the SPECT market.
The SPECT market is a little bit further along in its adoption of CZT as a detection platform. By 2030, on the left side of your slide, by 2030, we estimate near full adoption of CZT detection in the SPECT space. It'll be hard to find a SPECT scanner that is based on a legacy technology at that point. It's important to recognize that the tier one players in this market segment listed on the left are GE Healthcare, Siemens Healthineers, and the new emerging tier one player in China, United Imaging. By 2030, Siemens will have in-house capability to manufacture and incorporate CZT detectors. GE has that today. In that sense, this marketplace to the right will show that the in-house capability will exist at an 80% level. 80% of the market will be supplied by in-house. 20% is available as a non-captive market share.
By that, we signal that the SPECT market, in the end, over the longer view, will continue to grow, but will not have an inherent cap associated with it for the company in terms of how much revenue can be materialized in the SPECT space. Our total addressable market, however, by 2030, is $85 million. That references both the captive and the available CZT detector opportunity for the SPECT market. In the near term, we see Spectrum Dynamics. We have announced this customer as an important customer for us. The expectations from Spectrum Dynamics are significant growth over the years to come, including for this financial year. Ultimately, the fact that Siemens Healthineers has engaged with us in this enablement agreement underlines the fact that the technology is strong and first rate.
During the four years of enablement, we will see a supply with Siemens add to our revenue over those years. Okay. Let me move on to the next slide. I think we're going to show a short video. This is a video by Richard Peace.
Hi. My name's Richard Peace. I'm the Deputy Head of the Nuclear Medicine Department in Newcastle Hospitals, NHS Foundation Trust. That's my email at the bottom if you're interested in further follow-up and chat. I've been invited by Kromek today to talk to you about CZT crystals, Cadmium Zinc Telluride in nuclear medicine. Why bother? First of all, what is nuclear medicine? Nuclear medicine is the use of radioactive substances for treating patients. More commonly, it's used for diagnosis of cancer, dementia, heart disease, and many other ailments. What we do is we use radio pharmaceuticals.
This is where we attach radioactivity to a tracer. Different types of tracer go to different bits of the body. The radioactivity has to follow that tracer. Radioactivity emits radiation. If we can detect where that radioactivity is, we can tell if that bit of the body is working properly or not. For example, if that radioactive tracer is designed to go to the heart and the heart is working properly, it will take up the radioactivity. It will emit radiation. If we have a crystal, we can detect where that radioactivity is. Here is a picture of a patient on a typical scanner in nuclear medicine. There are two crystals, one in each detector. These detect where the radioactivity has gone in the body. Here is a very typical scan that we get out of these scanners. It is a bone scan.
What we can see is in the ribs, there's a deposit of high radioactivity where the tracer has gone. This represents spread of the cancer into the ribs. In terms of the scanners within the market, this is dominated by Siemens and GE. There's also an established smaller company called Spectrum Dynamics. There are about 300 scanners in the U.K., and they cost between GBP 300,000-GBP 1.4 million each, depending on the specification. It is undoubtedly a global market. Sodium iodide crystals have been used for many years in nuclear medicine scanners. Kromek have been manufacturing cadmium zinc telluride crystals for quite a while for Spectrum Dynamics, and they will be manufacturing them for Siemens. GE manufactures their own CZT, but they're certainly not as good as the Kromek crystals.
CZT crystals are much more sensitive to radioactivity than conventional crystals, which means that the scans are much faster. What is really important for CZT is that they show much more detail in the image so that we can make better diagnosis from those images. In Newcastle Hospitals, we have just installed one of the highest specification scanners in the U.K. This comes from Spectrum Dynamics with 12 CZT crystals in it. We are very excited to know what it can do. We've only just started scanning patients. I believe all big hospitals should have scanners like these. Here is one of our first patient scans. The Spectrum Dynamics image on the left took five minutes. We can see an image of the liver with metastases from the cancer.
On the right-hand side, we can see the image from Siemens with conventional crystals in it. We can see that the Siemens scanner takes four times longer than the Spectrum Dynamics. Also, the image quality is not quite as good. I appreciate it's difficult to tell from the naive eye. Certainly, we've not completed our optimization of imaging on our Spectrum Dynamics scanner. Here's a second example, another cancer scan. The small dark thing at the top of the image is the heart. The larger triangular bit below it is the liver. This is a normal distribution of radioactivity. On the left-hand side of the screen, it's a 10-minute image from our Spectrum Dynamics scanner. On the right, it's a 25-minute image from our conventional Siemens scanner.
As you can see, there's a lot less noise in the image with the CZT crystals, which improves the cancer detection rates. The scan time is also much shorter, which helps imaging with little children with cancer who just can't stay still for very long. The shorter imaging time also means we can increase the number of patients we can see each day. In conclusion, CZT crystals are much quicker than conventional crystals. CZT images have more detail in them, although it's difficult to show that in our examples because we've not finished optimizing those images. There is certainly a global market for nuclear medicine scanners. I would expect one of these big scanners to go into most large hospitals. We're certainly excited to see what our Spectrum Dynamics CZT scanner can do.
I think that's the end of the video from Richard Peace.
If you were not already out of your seat excited about SPECT, let me see if I can get you perhaps excited about the CT market. The CT market is a market that is 15 times the size of the SPECT space for medical imaging, the world's largest medical imaging modality. For us, what that means by 2030 is an annual total addressable market of $320 million. It is a significant market opportunity to consider. If we think about how that market splits up, on your left side of the screen, the tier one players are names you will recognize: Canon, Philips, GE, Siemens, United Imaging. Tier two players, you may recognize some of them as well: Analogic, Fujifilm, which used to be Hitachi, Neusoft, or Samsung.
It is by 2030 that this space will have started its meaningful conversion to photon-counting CT, where at that point, about 16% of the market of the systems sold in the market will be photon-counting CT systems. At the moment, the only one that is active in this space is Siemens Healthineers. That is with a system out in the marketplace. The market opportunity for Kromek, however, the available market opportunity for Kromek is significant. That is, we are the sole source supplier of photon-counting CT, CZT detectors for this space for the available non-in-house market. That represents about 2/3 of the marketplace by 2030. It is a very significant opportunity. The conversion is still in its early stages by 2030. It will have covered the premium hospitals. It will have addressed the very large hospitals.
It will still migrate further into the more bread-and-butter hospitals, if you will, and even into the value sector. Siemens Healthineers predicts that there will be ultimately 100% conversion from conventional CT over to photon-counting CT. The pace of this conversion is established by the end-user market. The hospitals drive how fast they will pull this new technology through and make it mainstream. It is certainly core to the growth for our Advanced Imaging business. I'm going to show you an image. I have second thoughts about this image because both the legacy and the CZT image are in black and white. I'll tell you, this is just the way the machine observes the radiation. You may imagine that the image on the right for CZT is actually for the radiologist, a full-color, frankly, spectacularly sharp, high-contrast image.
It is easy to see the resolution difference of the tibia here that is being in the top end of the shin bone that is being imaged in this particular case. The fracture is more clearly observable with an image on the CZT scanner compared to the legacy technology. This finds its application in many areas, from looking at small areas around the heart for calcification of a stent area, for instance, which is another one that is almost impossible to observe with conventional CT systems and can clearly be imaged with a photon-counting CT scanner. Let me focus on the future, if you will. You can read for yourself what history looks like. Many of you already are familiar with the history of our Advanced Imaging business.
In the near term, let's say over the next 12-36 months, our revenue profile will be driven by the enablement program with Siemens Healthineers, with our continued growth with Spectrum Dynamics, significant growth, and a tier one OEM, which we have announced. I apologize for having to be a little bit obtuse about revealing that name. It is inherent to the nature of our relationships with our OEMs that they prefer not to announce these kinds of collaborations by their name. That is our focus area over the next 12-36 months, as those OEMs will very much drive our revenue profile. Beyond that, we will see a transition taking place where photon-counting CT will drive the growth and outperform the SPECT quite quickly and drive growth for the Advanced Imaging business. We expect that growth profile to continue well beyond 2030.
That is our area of focus. We are particularly excited about the prospects. We are in the middle of this. This is a very busy time for us. The world is impatient with us, as you can imagine. They want us to deliver their solutions and be with them. We are with them. We are supplying them. It is a race out there. We are most certainly at the heart of the technology transition that is taking place for radiation imaging. That is that. I think I hand it over to Craig Duff, Director of Products and Programs on the CBRN side. I am giving you this, I think.
Good afternoon. Kromek is all about detection, as we have been discussing there. I am going to move on to growth pillar two, which is the CBRN Detection side of things.
My name is Craig Duff. I'm the Director of Products and Programs for the radiation and nuclear products within Kromek. I've been at Kromek for about 14 years. I've been doing radiation detection systems for about 20 years. Anything you want to know about these systems, we should be able to answer your questions. The objective of this section is to give an idea of what are CBRN detectors, why do people use CBRN detectors. Take it back to basics on that one. Why are Kromek successful? Why have we got a current footprint? Why do our customers currently trust us? Why do they come to us for solutions? How do we build on that footprint? How do we grow? Where does the growth come from, which we'll be talking about?
We start with a quote here from the U.K. Secretary for Defense. I think this brings it very much into the current picture. What you can see there is within the media, as we all see, the world becomes a high-risk area. Nuclear is constantly being mentioned. Detectors are an essential part of that requirement because of the escalation of the military systems around the world, which we're seeing. Rather than just me saying why detectors are important and why Kromek are very good at what we do, it's much more powerful if it comes from one of our key customers. One of those is Lieutenant Colonel Steve Webber. He's from the Defense Threat Reduction Agency. We're going to show a short video who'll describe what we're talking about here. Good morning.
I am Steve Webber, United States Air Force Lieutenant Colonel retired. I'm currently the Chief of Training for Nuclear Weapons Effects on the battlefield. I have held previous positions as the United States Department of Defense's Chief of Nuclear Radiation Detection Research and as the team lead for the United States Air Force Early Warning Missile Defense Systems. I hold three master's degrees in nuclear engineering, solid-state physics, and military strategy. The threat from nuclear weapons is greater than ever. That threat really has two branches. First, we want to be able to stop an adversary from using a nuclear weapon in the first place. In order to do that, we have to be able to detect and track the nuclear weapons. Second, if a nuclear weapon were to ever be used, we have to be able to detect and track the fallout radiation.
We must be able to map that radiation hazard in order to provide information on where it is safe to travel, safe to operate, and safe to live. Both of these branches can be solved with a network of small, portable, and affordable nuclear detectors. Kromek has developed such a detector. When it comes to tracking a nuclear weapon on a missile, the United States, along with our allies and partners, has that covered. You've probably seen the scenarios where the United States and Russia are lobbing nuclear missiles back and forth at each other. As a former team lead for the U.S. Air Force's Early Warning Missile Defense System, I can tell you we can detect, track, and destroy incoming nuclear-armed missiles. You've likely heard of our THAAD, Patriot, and Iron Dome systems.
What we cannot do is detect and track a nuclear weapon moving in a car or on a boat or in a backpack. This is really the threat of a nuclear weapon moving in a backpack or in a car that worries military planners. In order to detect and track a nuclear weapon moving in a car requires a large network of probably small, portable, mobile, affordable nuclear radiation detectors. Kromek has, in fact, created this solution. During my last Air Force assignment as the Department of Defense's Chief of Nuclear Radiation Detection Research and Development, I invested heavily in Kromek technology because it is the best technology available and has the capability to close this gap to detect and track nuclear weapons. The second major capability gap the United States faces is after the use of a nuclear weapon. We cannot effectively detect and track the fallout radiation.
We cannot map the radiation field in order to know where to safely operate. For a tactical nuclear weapon comparable to a Hiroshima-sized device, most buildings within sight of about 1 kilometer from ground zero would be destroyed. While this is a significant amount of destruction, the fallout radiation from a device could extend tens to hundreds of miles. We must know where that radiation exists in order to safely continue to fight and to safely rebuild our society. Currently, we lack that capability to detect and track fallout radiation. We cannot map the radiation hazard as it develops over time. In my current position as Chief of Training for Nuclear Weapons Effects on the battlefield, I lead classroom training, facilitate senior leader discussions, and consult with war games on the effects of nuclear weapons effects.
During our training, we have exquisite models to demonstrate and visualize the effects of nuclear weapons effects. When students and senior leaders ask me, "What do we have on the battlefield to track and visualize the nuclear weapon effects?" I sadly have to tell them, besides the basic dosimeter, which probably isn't going to be on the person's body, probably is going to be overwhelmed by the radiation, we don't have any current capability fielded to detect or track the nuclear radiation. Again, a good solution to this problem is a network of small, portable, and affordable radiation detectors. Kromek is uniquely positioned to fill these two critical capability gaps, to be able to detect and track nuclear weapons so we can stop them from ever being used in the first place.
If a nuclear weapon is used, provide that information to be able to safely travel and save lives. Now, the market for a network of nuclear detectors remains largely untapped, but it is enormous. This market includes every municipality, every city, every county, every state, every nation. It's easy to imagine small nuclear detectors incorporated into every camera system, to have a nuclear detector installed with street cameras, with bus cameras, even alongside building security cameras. The U.S. Army continues to explore installing radiation detectors into every fielded vehicle. Their vision is to have a nuclear detector as common as a radio. They haven't quite got to this yet, but we're talking about tens to thousands of detector units. There is a tremendous market for nuclear detectors, and Kromek is uniquely positioned to exploit this market. The threat of nuclear use is real.
The war in Ukraine reminds us of this every day. That threat can be greatly reduced with a well-designed network of small, portable nuclear detectors. I'm confident Kromek can and will fill this need. Thank you.
Pretty powerful stuff there. Our customers do not see that lightly. As Arnab touched on, the barriers to entry for something like this, it's not just about the technology and the products. It's about trust. It's about relationships. It's about the testing. Governments can spend years testing the equipment before they'll then be in a place to say, "This is the devices that we want to use." Kromek has been working with these customers. As we've seen, we've had successes with regards to competitive procurements, as to where we built the confidence and trust of these customers.
I just want to show that Kromek's been doing this for a long time. We're known. We're trusted. We know what we're doing. Two key examples there, which you'll see, are Fukushima in 2011. We go 14 years back. We were the detector provider where, after the reactor meltdown, there were Kromek detectors which were selected and were characterizing what the release and what the issues were on that situation. That's a major plus when your detector's being used for that. The confidence which comes from that from your customers is high. We move to the current day. The war in Ukraine, which is still ongoing, Kromek detectors have been selected and run 24/7 in Ukraine. They're constantly running spectral monitoring. You can go around the whole country, and you'll see the radiation picture on Ukraine using our detectors.
The confidence is high. We know what we're doing. On this slide, what I wanted to take was, again, just to understand we talk CBRN, but what does that actually mean in practice? I wanted to give a slide which just shows how it's broken down and where does Kromek fit into the overall picture. As we talked about there, the TAM for CBRN is around about $1 billion a year. Kromek doesn't play into all of that. The CBRN is chemical, biological, radiological, nuclear. What we have in here in white is where Kromek doesn't play into. In black is where we do have products and offerings within those areas. They're the verticals that we play into. We play into the biological, the radiological, and the nuclear.
When you split that down further, you've got different types of product variants. You can see you've got fixed portal systems, which are large systems that people or vehicles would travel through. You've got vehicle-mounted systems where radiation detection systems are put in specialist vehicles which drive around the country looking for sources. If there's any issues, those specialist vehicles are called to events. Also, where we play into is the handheld, both in the there's two kinds of handheld detectors. One is where people just want to find, "Is radiation there?" And then another element is, "What is it? Tell us what it is and what threat it is." We're experts in all of those areas. When we talk about other areas we may look at, which Arnab will touch on, as mentioned, there's these untouched areas as well.
That is where we potentially have growth areas within those pillars. In terms of the customer groups there, you can see it is the first responders. I am going to touch on it on the next slide, as well as the armed forces, which, again, I will touch on, the border security, and the civil nuclear world. The Kromek City Map is a representation of the applications that our products can be used in. This is a tool to let customers and end users see which Kromek products are best suited to their application. For example, in the military scenario, we can drill down and see the explanation of how CBRN detectors are used and the products that we would recommend. We can click on the D5 here, where you can see product videos and related data sheets.
The D5 is the detector that won the UK Ministry of Defence supply contract and has now been successfully delivered. The military also has a large user base of dosimeter devices, and Kromek has a US development contract to produce a nuclear survivable dosimeter for future operations.
If we go back to the map, we can look at the stadium application next. This is a great example of where the D3S ID product is used.
The D3S ID is the current incumbent wearable identification system used by the specialist CBRN police in the UK for event monitoring. It has been used for events such as the Commonwealth Games and large music events.
Looking at one more application, we can click on the airport. Our D3S ID and D3M are both used extensively within airports worldwide. Of note, thousands of our discrete wearable D3M detectors are currently deployed across New York airports.
Now I will pass you over to Michael. He'll talk about what that means in terms of revenue. Good afternoon, everyone.
My name is Michael Stephenson. I'm the new Commercial and Strategy Director at Kromek in the CBRN sector. I come with a background of 13 years of sales and marketing experience, and I speak particular passion and interest in growing teams, developing teams, and being successful in the sales environment. I'm going to talk you through the CBRN business model. I think, as you mentioned, it's important to get under the hood of this and understand what the business is all about. Taking Barry's analogy of a three-layer cake, in CBRN, number one, we develop product. We work with our customers, the people that you've just heard of on the screen there. We collaborate with them to produce these products for a specific need and requirement.
Secondly, we outsource a lot of our manufacture of our component parts. IP protected, we say we're rich in IP, an important part of the business. In our site in Sedgefield, the third layer of the cake is an assembly unit. We bring the components together, assemble, attest the units, sell to the U.K., to the U.S., to our 40 other markets across the globe. I think in this business model, it's important to differentiate ourselves and say why we're special, what's our USP in this area. Fundamentally, it's the collaboration. We work with these partners, these government agencies, in an agile, responsive way. Highly skilled teams, physicists, engineers, software engineers, AI specialists, they bring this product together to deliver that bespoke capability to the customer. I think we've touched on it before about the barriers of entry.
One of the products that's currently in development is a device that would be nuclear survivable. Now, if you think about how you test a device that's nuclear survivable, it requires a lot of testing. Not only is it prohibitively expensive for any competitor to do that, secondly, these types of projects, you have to be invited on. The relationships we have with these government agencies have invited us into that circle and provided us with the testing in that area. Really hard barriers of entry. In summary, this slide, I really wanted just to get across three areas of revenue where we generate. Yes, we sell product and the physical products that you can see at the back of the room there. Two, we generate revenue from that project process, that development process that delivers the product to the customer.
Thirdly, an area we're looking to expand into and grow in the future is that after-sales, service and repair, warranties, that type of thing. Okay, to drill into it in a little bit more detail, the different types of contracts that we typically see in the CBRN business, you see across the top the development contract. That explains the timelines of a typical project that we would see through to completion. I can give you a few examples. Obviously, we've heard of a couple of customers talking previously about our interaction with DARPA and DTRA that have delivered us projects.
They're kind of our examples of where we've started a project, seen it all the way through to completion, sold that product back to the customer, but then also sit with a product that is commercially viable for other geographical markets and other applications across different user groups. Two examples that are fully complete. We're going to shortly hear from Jamie. Jamie's going to talk a little bit about our new bio device. That currently is sat at that milestone revenue where we're receiving a revenue for that project, but where a commercially viable product is expected in the future. I touched on the nuclear survivable device. That is probably a little bit further along the timeline. I think it's important to show that we've got irons in the fire all the way along, and we've got development throughout the business. Just the frameworks and tenders.
Once we've got that final product, it's my job and the sales team's job to make sure that that's available to as many customers as possible. By increasing our sales force, we're looking to expand into new markets. We're looking to work with a wider distributor network to maximize those opportunities on tenders. One example, we've been successful with three frameworks, so a U.K. framework, which is worth GBP 84 million over the next three to four years, selling to the Home Office. We've been accepted onto three of those lots, and we expect to be successful over the coming three to four years as many bids come up around that allocation of funding. I think fundamentally, though, it's important also to concentrate on that bread and butter general sales.
As I have said, investing in our sales force, increasing into new markets is something that we are going to concentrate on in the near-term future to really maximize that final revenue channel. We are now going to hear from one of our key customers who is just going to explain to you why he chooses to partner with Kromek on these types of projects.
I am Woody, Major Woody Wadsworth. I am SO2 Disablement in U.K. Strategic Command at MOD Main Building in London. Radioactive detection is critically important to the U.K. strategically, operationally, and tactically. Particularly from my background as being military, my whole adult life is for national security, public safety, and emergency response, either as an emergency responder or within defense. At the national policy level, it is all about counter-terrorism and national security.
It helps prevent the use of materials, detecting them at our borders, and then therefore for any use of harm. It is a deterrent, stopping state actors or non-state actors, denying them the ability to get radiological materials into the country. At the strategic level, it obviously provides public confidence. It demonstrates that the government is serious about the problem and puts infrastructure and things in place just in case there is any emergency or disasters. Detectors, and obviously for this flavor, radiological and nuclear detection is absolutely paramount to our informing a response. It is at the very forefront of our response. It's one of the first things we do to quantify and inform higher command, decision-makers, government of not just the importance of the event, the significance of the event. When I first started, I suppose we were restricted by technology.
Technology would say, "Yes, radiological material is there." We're now at a point we had to say, "It's there. This is what it is. And this is kind of the hazard. And that is now incredibly accurate." I would always want it smaller, lighter, and faster. We've got them on the person. We've got them on RCVs. We try to do this completely autonomously. It feeds information. It feeds the plan. It feeds the decision-makers and informs them as much as humanly possible before we react, before we act. After the most recent defense review or the strategic defense review and the spending review, moving forward, it's all about collaboration with NATO to be able to be warfighting and to be able to collaborate on the battlefield with any of our NATO partners.
Historically, I think the world leaders in detection, I suppose, were very much the Chinas and the Russians of this world. We cannot and we will not collaborate with them to have companies like Kromek that is sovereign industry, that we have a brilliant relationship. The supply chain is there. We have quick and instant feedback with them. They build something. We get it to the users. We get back to them. They redesign it. They redevelop it. It is absolutely critical. It's paramount. It makes sure that we are successful if, heaven forbid, one of these events comes to the forefront. I have the luxury of being on many NATO meetings talking about CBRN and CBRN Detection. We, or more you, as UK companies, are very highly regarded and looked at as world leaders.
That's a privilege to work alongside you to make that a thing.
Hopefully that gives you a little bit of flavor of kind of how we work with these government agencies and the relationships that we develop. I'm now going to hand you over to Jamie, who's going to talk to you in a bit more detail about our biological threat.
Thanks, Michael. Thank you to Major Woody Wadsworth from StratCom MOD. I'll give you a little bit of a journey about why we're developing biological capabilities for our customers. To do that, I'm just going to ask you to go on a journey back to COVID because I think there are some similarities between the question that's being asked by defense and national security and what we went through for COVID. You'll recall that we had track and trace.
We had PCR tests that were sent out to us. We did a PCR test. A day, two days later, we'd get a result whether we're positive or negative. I've got to underline that PCR is one test, one bug. Moving into the defense and national security space, it's a different question because you're looking for a lot of different potential pathogens that might be there to harm us, nefariously released by terrorists. We need a technology. The country needs technology. The society needs technology to be able to see all of those threats with just one test as quickly as possible. We can't afford to wait the time, a day and a half, two days to get an answer back to be able to prophylactically respond to a particular terrorist event.
What we're doing in this space is we're trying to take the solution to the problem rather than having a centralized laboratory where we've got the logistics of moving all these samples to a centralized place for testing. Let's take the technology into the threat space and monitor real-time or near real-time and get the answer back as quickly as possible and identify all of those threats. We remove a lot of the problems with logistics, with the central infrastructure that was needed. In the initial opening, we had UKHSA at Porton Down. That was opened up to a couple of others.
We saw the scale-up of all these laboratories, testing laboratories during COVID was a real headache to develop the tests for PCR to be able to roll them out and get the testing done quickly rather than having a capability where we can now take the capability. It can run autonomously 24/7 and report back to a centralized location in the event of a bioterrorist release. We have a number of technologies that we're working on. We've got some that we've already mentioned.
They're all fully funded R&D programs with the likes of the Department of Homeland Security looking to have centralized sentinels where they can deploy them to high-footfall areas, high-value targets, to the White House, to museums, and report back on a threat as soon as it's seen and be able to understand how widespread, how big a plume, how many people have been infected by something so we can quickly respond with medical countermeasures. We have other programs looking to miniaturize the technologies.
have gone from what are big 20-foot ISO containers that are deployed to forward operating bases or places where we might need to have this capability outside of the U.K. and having something that then we can deploy, which is smaller, can be used by somebody who is not a molecular biologist, who is not a scientist, who does not need to understand how to use all this very complex equipment in a large laboratory, but now miniaturize that into something that they can keep in the palm of their hand and operate with very minimal training. That is something that is really important to be able to get deployment into the areas where this technology is needed. Finally, harking back to the COVID time, one of the things that we all often hear about is where did COVID come from? Did it come from a laboratory?
Did it come out of Wuhan, out of that laboratory by mistake or for nefarious reasons? Or was it actually indeed a pangolinium and a bat coronavirus that just naturally, zoonotically transferred over to the human? What we've been doing, we've been invited to work with the U.K. microbial forensics capability out of Porton Down to be able to answer the question with the next emerging threat. Did it come out of a laboratory? Was it naturally occurring? Was it engineered? If it did come out of a laboratory, which laboratory did it come out of? We can see the fingerprinting on the way that the organism might reproduce, and we'll be able to answer that question. These are the things that we're working on with U.K., with U.S. to deploy to keep us all safe.
I'll be over in the corner after the break if you want to speak about what I do afterwards.
Thank you very much. I can pretty much guarantee there'll be a big crowd over there hearing more about that. It's something I love to hear about. Excited about getting that as a commercial product that Kromek are going to be able to commercialize in the future. Going into our plan then, obviously what we've just heard about there is in the mid to long-term plan, but really want to focus on what's happening currently. We're already seeing what was discussed before, the delays from the U.S. and the U.K. election paused a few things. We've had delays in some of the Home Office tenders, the mini bids.
As you say, we're really expecting or we're having good conversations now to see them ramping up in the coming weeks and months. I think secondly, we're already seeing a release of U.S. funding that was temporarily held by the USAID when Trump came into power. That has now been released. We've seen some orders to evidence that we're confident our opportunities are going to come to fruition in the next 12-36 months. Being included on the tenders is going to continue to be a position of strength for us. As I said, we're going to be expanding into new markets, and we're building that capability as we speak. I think we've already touched on it slightly moving on from the bio opportunity, but there are some gaps in our portfolio.
Where it's sensible to do so, we'll look to fill those gaps with some mergers and bolt-on acquisitions. I'll hand you back over to Arnab to put a little bit more detail into that.
Thanks, Michael. Thank you very much, Michael, and everybody that actually presented. The next phase of the presentation is really bringing it all together for you to make the case why this is the right time for people to get involved in Kromek and keep supporting Kromek as you have done over the years, really. Let me start where I left within that strategy framework of what we are going to do.
I hope that what you heard from the business units and leadership within there, the true growth pillars that we have in Advanced Imaging and in CBRN Detection gives you the details and some of the framework that they are operating in to see how we are going to grow as a medium-term strategy. Our strategy is clear. We are going to remain focused on the organic part of the growth part of the business, which by doing two things, really, focusing on two things, among others. One is that absolutely is a focus in delivering on the transition to CT. As Barry told you, it is 15 times bigger market than SPECT. We are going to execute that. We are going to realize value out of that market, and we are going to deliver on that market.
The second is what Michael and Craig talked about and in their presentation, really. We are going to expand our footprint, both commercial footprint, but also fill up those gaps in terms of product offering in the CBRN markets, in the radiation markets. The organic part of the business is absolutely where we are going to focus and drive growth and drive revenue in there. Where we see opportunities, as Michael pointed out, we do have gaps, and there are opportunities. Where there are opportunities, we see we will do a very, very disciplined M&A to fill that. Capital allocation is an important piece going forward, how we are going to invest our money and where we are going to invest our money to drive this growth because this is an important piece of our growth story in the next phase of the business, really.
When we look at it, as we all know through the enablement deal, we have a much stronger balance sheet, which has enabled us to get to a point where we can start thinking about growth, the next phase. We are going to have a very disciplined approach to our balance sheet. Our net debt-to-EBITDA ratio is not going to cross one-time multiple. That is the fiscal rule we will be guided by. Where we are going to invest money is that organic piece of the business. There are a few areas that I want to highlight, how we are going to spend money in the next three to five years in that medium term. As Barry outlined in his presentation, the growth in CT is absolutely critical. In that part of the business, the organic journey is scaling up, scaling up production.
Investing in operational excellence is something that we are absolutely going to get focused on. What do I mean by operational excellence apart from the fancy word? It is about reducing cost. It is about increasing productivity. It is about increasing margin, increasing yield. It is actually going to materially contribute to our bottom line. It is going to materially contribute in our growth journey. We are going to invest in that in a focused and disciplined manner. Commercial side of the CBRN business is going to be the key driver, as Michael just alluded, that we are growing the commercial team. We are growing the sales and marketing team. We are going to continue to do that as results come through over the next period.
Again, expanding that footprint, getting more out of what we have today is where we are going to allocate capital and grow that team and support that team. We are also, the working capital requirement within the AI business is something, again, that Barry touched on. As you looked at the profile, the early years, as we grow the Advanced Imaging business, as those materially large contracts come into operation, there is an expansion of working capital, and that is where our capital is going to be allocated. We are, again, going to focus on organic growth to build and grow the business in a disciplined manner. We run two factories in the U.K. and the U.S. You would expect CapEx. You would expect CapEx, but those will be maintenance and sustainance CapEx. Those are not expansion CapEx.
The CapEx impact would be minimal in terms of the amount of money we are going to spend on CapEx. On the M&A, when we look at M&A, when we do M&A, our debt might increase. The debt-to-EBITDA ratio might increase. The ceiling would be always two, and we will always have an absolute clear path to get down to the debt-to-EBITDA ratio to one within a certain period of time. Again, a very disciplined approach to how we are going to use capital, a disciplined approach to how we are going to actually do our M&A. Before we go into the actual mechanics and set out some guidelines of what we are going to do, let us look back a little bit because this is not the first time we talk about M&A. We have executed two M&As in our journey.
We have actually executed, integrated, and actually driven value of two M&As that we did in Advanced Imaging business of EV Products and Nova R&D, which are the critical piece which has allowed us to establish ourselves in that very strong strategic position as the single source of independent CZT -supplied in the world today. We have a track record of being able to do that. Our focus is now going to be on CBRN. Area of interest is not going to be in AI, but only in CBRN in radiation at the moment. The criteria are very clear. We will be looking for profitable businesses which can either give us further access to markets or bring and fill gaps in our product portfolio, which will accelerate growth in that particular sector.
The takeaway from this slide is we are not going to do M&A based on issuing equity and raising money from the market. This is going to be self-funded. This is going to be done through our own balance sheet as the company grows. This will be done in a very disciplined and methodic manner. Again, within those balance sheet fiscal rules that we have established and talked about. Over the next 12-36 months is where we are going to remain absolutely laser-focused in growth. We're going to be focusing on growth in both our segments and focusing on growth in getting more from what we have today. As through the two business unit presentations, as you have seen, we have got many opportunities. We have got already things in the bag that we are going to actually materialize and realize.
If you look in the Advanced Imaging segment, we have got contracts in the bag, contracts which are expanding, contracts which are in with us today, which will come into force and start to create revenue with the tier one OEM in the SPECT market and so on and so forth. In the CBRN, we are going to start realizing revenue from the frameworks, from the IDIQ, and driving our sales team and the sales network that we have got. Over the next 12-36 months, it's going to be an absolute focus on growth in growing the top line and actually improving profitability and driving profitability. Over the medium to longer term, when we look at it, there are several avenues of growth that we already have and have it very visible.
Growth of the CT market, of course, is a critical component within the AI business. Also, when we look at the CBRN business, what Jamie talked about in the biological detection, that is going to get into the commercial phase. It has got a very attractive business model. It has got a business model which is a razor blade business model. So it's not only just capital sales, but also it has got a very strong consumable business model attached to it, but also those bolt-on M&As. We have a very clear focus growth within the next 12-36 months and have got all the growth elements already lined up for the medium to longer term that is going to drive growth in the business. What does that mean? This is what we target.
We target a midterm target of GBP 60 million of revenue with a 30% EBITDA, which approximately will give us about 20% CAGR over that period on an average. That is what we are going to aim at. That is what we are going to measure ourselves on. Let me take you to where we started off, really, in my part, the actual investment case, actually why you need to invest now and support the business now. It is very simple. Hopefully, we have provided some of the proof points along the way. We in the business today, in our markets, have got a very established sustainable technological advantage and a sustained technological advantage which is defensible, whether it is in the AI through our being the only supplier of CZT technology or in the CBRN within the radiation technology.
The entry barriers for new players in this market remain very high, very high from the cost point of view, from IP barriers, from entrenchment within the market in terms of incumbency factors, but also those customers' relationships that we have built in, whether it's tier one OEMs, tier two OEMs in the Advanced Imaging, whether with key government sort of agencies within the CBRN, as you have heard from some of them here already. The markets are structurally growing. That is important because just having customer relationship does not mean that we are going to drive growth. The markets are structurally growing.
Our offering is very well aligned to the growth drivers within the market, whether it is AI, early detection of diseases, reduction of sort of cost of care and having a better patient outcome, or having the capability in the market in the CBRN, giving better quality of information to our first responders and our military personnel to keep us safe and take better quality of decision to protect infrastructure and people. What does that mean? That means growth in the top line. That means growth in the earnings. That means better cash generation. Ultimately, along the way, we are going to provide you proof points in customer wins. We are going to provide proof points in terms of growth. We are going to provide proof points in terms of increased earning. That is why we are confident of delivering shareholder value.
Thank you very much for listening to us.