REG - Creo Medical Group - FY24 Trading Update

Creo MedicalAnnouncement

17/02/2025 07:00

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RNS Number : 3271X  Creo Medical Group PLC  17 February 2025

Creo Medical Group plc

("Creo" the "Company" or the "Group")

 

FY24 Trading Update

Cash proceeds of c. €30m received

 

Creo Medical Group plc (AIM: CREO), a medical device company focused on the
emerging field of minimally invasive surgical endoscopy for pre-cancer and
cancer patients, provides the following trading update for the year ended 31
December 2024 ("FY24").

 

Financial and operational highlights

 

The Company delivered a strong Creo Core Technology performance in FY24 as our
technology continued to gain wider acceptance. The Company is transitioning
from development phase to full commercialisation which has allowed management
to take steps to proactively manage the cost base, with significant cost
reductions undertaken in H2 24 with the full benefit to come through in FY25.

 

The Company expects to report revenues of £30.4m (FY23: £30.8m), reflecting
the following:

 

§ 74% increase in Creo Core Technology revenues to £4.0m (FY23: £2.3m),
with £2.4m of sales in H2 24, representing 50% growth half-on-half. Creo Core
Technology revenues include sales from all core products such as Speedboat
UltraSlim and CROMA platform and significant new customer additions during the
period.

 

§ Kamaptive: Good progress was made towards the commercial use of the
MicroBlate™ Flex ablation device for robotic-guided procedures for lung
cancer. Two UK sites are now performing combined diagnosis and ablation
procedures using MicroBlate™ Flex with the Intuitive Ion Endoluminal System.
As part of the amended agreement with Intuitive (as announced on 2 July 2024
(https://www.londonstockexchange.com/news-article/CREO/creo-and-intuitive-amend-collaboration-agreement/16547222)
), further sites are expected to come on stream in the near future, with the
expectation that each site becomes revenue generating once the initial cases
have been completed. As such, whilst the initial post-market cases are being
completed, no revenues associated with this were recorded in the period (FY23:
£1.7m).

 

§ Creo Medical Europe Consumables revenues were up 2.6% in constant currency
in line with management expectations. Reported revenues expected to be £26.4m
(FY23: £26.8m) reflecting some forex headwinds in the period.  The Creo
Medical Europe Consumables will be held as discontinued activities in the
Group's FY24 audited results following the Sale (as referenced below).

 

As committed, actions to reduce costs in the second half of the year resulted
in a decrease in operating costs of approximately £5.0m with the full benefit
of to come through in FY25.

 

Strategic development & receipt of cash proceeds

 

In September 2024
(https://www.londonstockexchange.com/news-article/CREO/strategic-partnership-51-subsidiary-cash-sale/16672050)
, the Group announced the sale of a 51% interest in the Company's Creo Europe
business to Micro-Tech with proceeds of approximately €30m payable in cash
on completion (the "Sale"). The Sale completed on 12 February 2025, with the
cash proceeds received on 14 February 2025. Following completion of the Sale,
the Group's cash and cash equivalents were £31.2m. The strategic transaction
with Micro-Tech strengthens Creo's commercial platform and enables Creo to
continue to fund the ongoing strategic development of its core technology
business.

 

Current Trading and Outlook

 

The start to the year has been positive and the Company is trading in line
with management expectations.

 

Further details on the operational performance of the business, including the
growing adoption of Creo Core Technology,will be provided with the full year
results expected to be announced in April 2025.

 

For further information please contact:

 

 Creo Medical Group plc                                                  www.creomedical.com
                                                                         (https://protect.checkpoint.com/v2/___http:/www.creomedical.com/___.YzJ1OmludHVpdGl2ZTpjOm86NWJlYzBmMzJjY2MyZTBiZWFkNmJkZmVmNzdhM2MwMTI6NjoyYWU4OjczNzQyNWUwODBjYTEwNzAxYWMzNWEyZDQ3YzI1ZmEwYWMzYTc4M2Q2M2NjYzEyNTQwZWM3ODc4NTk3NTE4YTQ6cDpUOk4)
 Richard Craven, Company Secretary                                       Via Walbrook PR

 Cavendish Capital Markets Limited

 (Nominated Adviser and Joint Broker)                                    +44 (0)20 7220 0500
 Stephen Keys / Camilla Hume / George Lawson (NOMAD)
 Michael Johnson (Sales)

 Deutsche Numis (Joint Broker)                                           +44 (0)20 7260 1000

 Freddie Barnfield / Duncan Monteith / Euan Brown

 Walbrook PR Ltd                Tel: +44 (0)20 7933 8780 or creo@walbrookpr.com (mailto:creo@walbrookpr.com)
 Paul McManus / Alice Woodings  Mob: +44 (0)7980 541 893 / +44 (0)7407 804 654

 Phillip Marriage               Mob: +44 (0)7867 984 082

 

 

About Creo Medical

Creo is a medical device company focused on the development and
commercialisation of minimally invasive electrosurgical devices, bringing
advanced energy to endoscopy.

 

The Company's vision is to improve patient outcomes through the development
and commercialisation of a suite of electrosurgical medical devices, each
enabled by CROMA, powered by Kamaptive. The Group has developed the CROMA
powered by Kamaptive full-spectrum adaptive technology to optimise surgical
capability and patient outcomes. Kamaptive is a seamless, intuitive
integration of multi-modal energy sources, optimised to dynamically adapt to
patient tissue during procedures such as resection, dissection, coagulation,
and ablation of tissue. Kamaptive technology provides clinicians with
increased flexibility, precision and controlled surgical solutions. CROMA
currently delivers bipolar radiofrequency ("RF") energy for precise localised
cutting and focused high frequency microwave ("MW") energy for controlled
coagulation and ablation via a single accessory port. This technology,
combined with the Group's range of patented electrosurgical devices, is
designed to provide clinicians with flexible, accurate and controlled clinical
solutions. The Directors believe the Company's technology can impact the
landscape of surgery and endoscopy by providing a safer, less invasive and
more cost-efficient option for procedures.

 

For more information, please refer to the website www.creomedical.com
(https://protect.checkpoint.com/v2/___http:/www.creomedical.com/___.YzJ1OmludHVpdGl2ZTpjOm86NWJlYzBmMzJjY2MyZTBiZWFkNmJkZmVmNzdhM2MwMTI6NjoyYWU4OjczNzQyNWUwODBjYTEwNzAxYWMzNWEyZDQ3YzI1ZmEwYWMzYTc4M2Q2M2NjYzEyNTQwZWM3ODc4NTk3NTE4YTQ6cDpUOk4)

 

 

 

 

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