REG - Creo Medical Group - FY25 Final Results
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RNS Number : 3604F Creo Medical Group PLC 22 May 2026
Creo Medical Group plc
("Creo", the "Company" or the "Group")
FY25 Final Results
Strong financial and operational delivery, in-line with market expectations
H2 commercial momentum has continued into 2026
Creo Medical Group plc (AIM: CREO), the medical device company focused on the
emerging field of minimally invasive surgical endoscopy for pre-cancer and
cancer patients, announces its audited final results for the 12 months ended
31 December 2025 ("FY25"), which are in-line with market expectations and
within prior management guidance.
Transformational year delivering strong revenue momentum and significant cost
reduction
· Revenue increased by 50% to £6.0m in FY25 (FY24: £4.0m), with
momentum building in H2 FY25 as revenue grew by 58% on the same period in FY24
to £3.8m (H2 FY24: £2.4m), demonstrating the accelerating commercial
traction and validating the Group's strategy.
· Underlying administrative expenses† further reduced by c.22% to
£18.6m (FY24: £23.8m), as the Group's restructuring programme continued,
including full realisation of benefits from FY24 actions and continued tight
cost discipline.
· Underlying operating loss† reduced by 38.5% to £13.7m (FY24:
£22.3m), as revenues scale against a significantly lower cost base.
· Cash and cash equivalents at 31 December 2025 were £12.4m (31
December 2024: £8.7m).
· Sale of a 51% stake in Creo Medical Europe ("CME") in FY25
generated a £26.2m profit on disposal and delivered £24.7m of net cash
consideration, leaving the Group with an equity investment in CME which
generated a dividend received post period end of £1.6m (including £0.3m
relating to tax losses).
· Maintained a clear focus on reducing capital intensity while
supporting ongoing commercialisation and product development, progressing
towards a more scalable and sustainable operating model.
† Underlying operating loss and underlying administrative expenses are after
adjusting for share-based payments, depreciation and amortisation, R&D tax
credits, earnout and other one-off settlements.
Product highlights:
· Speedboat® Notch, launched in April 2025, is already making a
meaningful contribution to growth in advanced procedures using Creo's
products, notably supporting increasing adoption in upper GI per oral
endoscopic myotomies ("POEMs"), a high value procedure area benefitting from
favourable reimbursement across major markets.
· SpydrBlade™ Flex has achieved a strong early clinical reception
following regulatory clearance and its commercial launch across the US, UK and
EU in 2025, re-enforced post period end with use in a new procedural category,
Bariatric Endoscopic Antral Myotomy (BEAM), broadening Creo's procedural
footprint.
· MicroBlate™ Flex continues to gain traction within multiple
clinical studies for the treatment of lung tumours and has recently been
utilised in the first robotic guided microwave ablation of cancerous lung
tissue at a leading UK hospital, underlining the platform's innovative
capability and clinical relevance.
· A limited market release of MicroBlate™ Fine has commenced across
selected leading research sites in Europe, APAC and the USA, generating early
clinical experience in the treatment of pancreatic and liver lesions and
represents an important step towards broader commercialisation.
· New Category I CPT reimbursement codes have been confirmed for
Endoscopic Submucosal Dissection ("ESD") procedures in the US in both the
upper and lower gastrointestinal tract. These codes are expected to come into
effect in 2027 and represent a significant future reimbursement milestone for
advanced endoscopic procedures.
Current trading and outlook:
· The Company's 2025 growth momentum has continued into FY26, with a
strong trading performance to date.
· Revenue grew by c.60% in the first quarter year-on-year and the
Company has continued to deliver strong commercial progress, with accelerating
customer adoption, growing procedural volumes and further conversion of the
pipeline into revenue across its key markets.
· This strong performance in 2026 to date has underpinned the Board's
confidence in the growth of the business in FY26 and it now believes that full
year revenue growth will be between 50% and 60% on FY25 (previously 40% to
60%).
· In addition, the post-period end disposal and outsourcing of
manufacturing is expected to reduce underlying operating costs by a further
c.15% compared to FY25.
· The Company announces the conditional subscription for £2m of
convertible loan notes ("CLN") by the Development Bank of Wales (see Note 5
below) and has entered into a non-binding agreement regarding the potential
sale of its 49% interest in CME for a consideration broadly in line with its
carrying value as at 31 December 2025, alongside plans to raise additional
equity funding, which will together provide a strengthened financial platform
as the Company executes its commercial growth strategy and progresses towards
sustainable cashflow generation and profitability.
· Creo has established a strong platform for growth, supported by a
validated core product range, an expanding portfolio of new devices,
increasing clinical adoption and future potential from Kamaptive partnerships.
· Creo's Advanced Energy technology continues to demonstrate its value,
both as a standalone solution and as an increasingly integrated platform
across multiple surgical environments.
· The Board remains confident in the outlook for 2026 and beyond, with
strong momentum exiting 2025 and a clear focus on scaling adoption, expanding
market presence and driving long‑term shareholder value.
Commenting on the results and outlook, Craig Gulliford, Chief Executive
Officer, said:
"We exited 2025 with strong operational and commercial momentum, driven by the
validation of our core product range, progress across our pipeline of new
devices and increasing clinical adoption. Our Advanced Energy technology
continues to demonstrate increasing clinical and commercial traction, with
clear differentiation both as a standalone solution and as an integrated
platform across a widening range of surgical environments. With continued
positive trading to date in 2026, we remain confident in the Group's
prospects. Creo Medical is well positioned to accelerate adoption, expand its
market presence and deliver sustainable growth and long‑term shareholder
value."
For further information please contact:
Creo Medical Group plc www.creomedical.com (http://www.creomedical.com)
Richard Craven, Company Secretary Via Walbrook PR
Deutsche Numis (Nominated Adviser and Joint Broker) +44 (0)20 7545 8000
Duncan Monteith / Sher Shah
Shore Capital (Joint Broker) +44 (0)20 7408 4090
Daniel Bush / Lucy Bowden
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
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)
Chairman's statement
Introduction
This statement marks the conclusion of my first full year as Chairman of Creo
Medical Group plc. I'm proud to say that the Creo team has met every milestone
in the business plan introduced at the end of FY2024, delivering 6 successive
quarters of top line and bottom-line performance. The Company continues to
make strong progress in what is inherently a capital-intensive phase of its
evolution, characteristic of innovative medical technology businesses bringing
differentiated platforms to global markets.
As a reminder, going into last year, we conducted a top‑down/bottom‑up
review of Creo's overall business plan. The motivation behind this review
was to create an executable long term business plan that removed all revenue
associated with speculative programmes and, at the same time, making sure that
the timing of product launches, adoption and release are pragmatic from a
revenue forecasting perspective. Other than de-risking the top line
forecast(s), the review also focused on lowering the cost structure of the
Company while preserving the foundations from which the Company could grow.
Of course, the work to reshape the business is still ongoing - moving to an
outsourced contract manufacturing model for operational efficiency, continued
product launches, and continuous revenue growth are still the priorities for
the management team. To date, the execution to this plan has been excellent,
with the executive team fully aligned and engaged with delivery.
Overview
The Board recognises that companies operating at the intersection of advanced
device engineering, clinical validation and international commercialisation
require sustained investment over multiple years before reaching meaningful
scale. Against this backdrop, we are particularly encouraged by the progress
achieved during 2025. This progress reflects a transition from investment-led
development towards ever increasing commercial traction and operational
leverage.
The Group delivered another year of growth. The debut of Speedboat Notch at
ESGE Days in April 2025 reinforced the continued adoption of Creo's core
Speedboat product range, which remains the foundation of revenues.
Importantly, this traction provides early validation of Creo's advanced energy
platform and demonstrates the repeatable nature of our commercial model - an
essential milestone in the evolution of any capital-intensive medtech
business.
We have continued to invest in broadening the product portfolio and gaining
valuable clinical evidence. The launch of SpydrBlade Flex, MicroBlate Flex and
MicroBlate Fine during the year represents the next phase of platform
expansion and very exciting opportunities. While the financial contribution
from these additional devices in 2025 was incremental, such product extensions
are critical in increasing procedure applicability, deepening customer
engagement and driving long-term revenue scalability. The ability to treat
more indications enables greater revenue potential.
By launching these products in 2025, Creo is now a multi-product company,
essential to being successful in the long run. These launches underpin our
confidence in a materially stronger growth profile as we move into 2026 and
beyond.
Clinical progress remains a key value driver for Creo. Increasing levels of
published data, combined with encouraging developments in our pulmonary
programme through the limited market release with Intuitive, are strengthening
the clinical and economic case for adoption. As is typical in our sector, the
accumulation of clinical evidence is a fundamental precursor to broader
utilisation and reimbursement support. With greater usage, we gain more
clinical evidence either through registries or more formal clinical trials.
One example is the Bronchoscopic Microwave Ablation of Lung Tissue trial which
is underway at the Royal Brompton and Harefield NHS Foundation Trust and also
at the Amsterdam University Medical Centres (Source: ClinicalTrials.gov
ID NCT05786625).
From a capital allocation perspective, the Board has taken decisive action,
working closely with management, to optimise the Group's structure and enhance
capital efficiency. The sale of a 51% interest in Creo Medical Europe ("CME"),
completed in February 2025, crystallised value at an attractive return
relative to the original investment, while retaining exposure to European
markets through our partnership with MicroTech.
We have also made strong progress in strengthening the Group's financial
position and liquidity. In addition to the proceeds from the CME transaction,
post-period end the Group has made steps to secure a £2m convertible debt
facility with the Development Bank of Wales and is progressing plans to raise
further equity funding. Post-period end we have also entered into a
non-binding agreement regarding the potential sale of our remaining 49%
interest in CME, which, if completed, would further enhance financial
flexibility. See note 5 of the notes to the financial statements below for
further information. These actions reflect the Board's disciplined and
proactive approach to capital allocation, supporting the Group's ongoing
commercialisation and development priorities, while maintaining a clear focus
on capital efficiency and long-term shareholder value.
Operationally, we have advanced our transition towards a scalable and
capital-efficient model. The sale of CME is one major step in reducing our
operating expenses. Another major step in this process is to transition Creo
to an outsourced business model. In this vision, Creo becomes a new product
introduction company that designs, prototypes, and tests new products and then
transfers the discipline of design for manufacturing and subsequent delivery
of products to market via a third-party manufacturer. Outsourcing the assembly
of the CROMA platform during the year demonstrated the feasibility of this
broader outsourced manufacturing model. Post-year end, outsourcing the
manufacturing operations for our advanced energy products continued this
process. This aligns the business with a model commonly seen in successful
medtech companies, where innovation, clinical leadership and commercial
execution are retained in-house, supported by specialist contract
manufacturing partners for product delivery.
Geographically, momentum in Latin America has been particularly strong, with
robust performance in 2025 providing a clear indication of demand ahead of
formal regulatory approvals in key markets such as Brazil, Mexico and
Argentina. This reinforces our view of the significant untapped potential
across international markets.
Our Team
We exited 2025 with a direct team of 104 employees across the USA, UK, Europe
and Asia. As noted last year, this number is significantly reduced from the
peak seen in 2022, assisted in part by the divestments which took place during
2025.
With a reduced team, talent retention is more important than ever. Within the
Group's 2025 Annual Report, which will be published shortly, we provide more
details around how we support our teams, optimised through providing valuable,
rewarding and challenging work that is competitively compensated.
I am humbled by the dedication from all of Creo's hard working staff. They
demonstrate Creo's core values on a daily basis and focus on improving lives
through their work. Their enthusiasm is infectious. The commitment and
personal sacrifices made by all team members continue to allow the Group to
deliver groundbreaking products to clinicians for the benefit of their
patients. To know your work has contributed to the successful treatment of a
retired colleague's wife, whilst sobering, underscores the importance of the
work we do each day.
On behalf of the Board, I thank each employee for their hard work and
commitment.
Board & Governance
Following the changes announced in 2024 and 2025, the board continues to build
on Creo's governance framework and engage through the existing committees,
additional board oversight, and regular robust discussion with shareholders
and advisers.
Outlook
Looking forward, the Board believes the Group is approaching an important
milestone in a Company's growth phase. Creo has a validated core product, an
expanding product portfolio, increasing clinical endorsement, growing clinical
evidence and a more efficient operating model that positions the Company into
a sustainable, scalable growth cycle.
With continued focus on delivery against these elements: continued revenue
growth, aggressive cost control, and timely development and delivery of new
products Creo is on track to profitability.
I hope you agree that the progress made in 2025, which continues in 2026,
provides increasing confidence that the foundations are firmly in place to
deliver long-term value for shareholders. I would like to thank our employees,
partners and shareholders for their continued support as we advance into the
next phase of Creo Medical's development and continue to improve lives.
Kevin T. Crofton
Non-Executive Chairman
21 May 2026
Chief Executive's Review
Introduction
2025 was another pivotal year for Creo Medical Group plc, marked by strong
commercial progress, continued innovation and important strategic milestones
that position us for accelerated growth.
At the heart of Creo is a clear and consistent vision: to improve patient
outcomes through the application of our unique and innovative Advanced Energy
platform. We believe that by enabling more precise, controlled and minimally
invasive procedures, our technology has the potential to transform surgical
practice across multiple therapeutic areas. Our gastrointestinal ("GI")
product range represents a major step in delivering on that vision, providing
clinicians with differentiated tools that enhance both efficacy and safety in
complex endoscopic procedures.
In 2025, we continued to translate our vision into tangible commercial
progress. We delivered significant growth in our business. This growth has
been driven by increasing adoption of our Speedboat product range, which
continues to account for the vast majority of our product revenues to date.
The growing commercial traction we are seeing across our key markets is
strong validation of both the clinical value of Creo's products and technology
and the effectiveness of our commercial execution.
In 2025 Creo delivered 50% revenue growth to £6.0m, with a pronounced
acceleration in the second half of the year. This performance was driven
primarily by continued adoption of the Speedboat® product family, reflecting
growing clinician confidence, increasing utilisation and expanding procedural
breadth. In addition to this strong revenue growth, FY25 reflected the
full‑year impact of decisive cost actions taken in 2024, reducing the
annualised cost base by over £5m, with further structural savings delivered
following the sale of 51% of CME. Underlying administrative expenses from
continuing operations fell 22% to £18.6m (FY24: £23.8m), driven by the
completion of major development and regulatory programmes and continued
disciplined cost control.
Products & Clinical Progress
In April 2025 we launched an additional version of Speedboat, Speedboat Notch.
Taking on board user feedback, particularly in the upper GI space, we enhanced
the design of Speedboat UltraSlim to include additional features designed to
support a wider range of reimbursed complex third-space endoscopic procedures,
including E-, F-, and G-POEMs. Developed at pace through 2024, Speedboat Notch
was launched at ESGE Days in April 2025.
At the same time, we expanded the commercialisation of our wider portfolio
with the introduction of SpydrBlade in UK and EU markets, an initial limited
market release of MicroBlate Fine for pancreatic and liver ablation and the
expansion of the use of MicroBlate Flex for the microwave ablation of lung
tumours. While these products made an initial contribution during FY25, they
represent an important broadening of the product portfolio now contributing to
our revenue growth. We expect these products to play a much more meaningful
role as we progress during 2026 and beyond. Together, they form part of a
comprehensive and increasingly versatile suite of devices that build on the
strong foundations established by Speedboat.
Clinical progress remains central to our strategy and to the long-term
adoption of our products. During the year, we saw a continued increase in
published clinical data supporting the use of our devices, alongside
encouraging developments in our pulmonary programme through the limited market
release of MicroBlate Flex with Intuitive Surgical. These advancements are
critical in building clinician confidence, supporting training and driving
wider utilisation across both existing and new indications.
The human impact of the work we undertake at Creo never ceases to motivate and
remind us all why the work we do is and products being developed are so
important for all of us. Within the Group's 2025 Annual Report we have
included a case study on Liz Thomas. Liz's husband Jim played an important
role in the development of our product prior to his retirement, and has now
become the first directly associated member of the team to experience the life
changing impact of Speedboat. Speedboat was used to remove an adenoma in Liz's
colon in the endoscopy room when she had initially been told she would need
invasive bowel resection surgery. The speed and simplicity of the treatment
meant that, within a few days, Liz was back looking after her grandchildren
and even baked a birthday cake.
Another case I had the privilege to observe during the year in the USA, was a
man in his 40's who had been suffering a debilitating swallowing disorder.
This had resulted in a dramatic reduction in his quality of life, imprisoned
by a diet of baby food and fluids in recent years. Both his social and home
life were severely impacted by his condition in many ways. Upon diagnosis,
the doctor was faced with a challenging case. The decision was to operate
endoscopically utilising advanced energy and Speedboat. Accessing his
oesophagus with a standard gastroscope; despite the challenging vascular
nature of the situation, the doctor was able to tackle significant bleeding
vessels and thin, fragile oesophageal lining as a result of the swallowing
disorder. The doctor successfully completed the procedure endoscopically with
no general aesthetic or interventional surgery. The result - the patient was
discharged within 24hrs, with no external scarring and able to get back to a
normal life, eating and socialising normally within a few days. Every time one
of our products is used, a patient somewhere is demonstrably benefiting from
the application of our unique advanced energy.
Our innovation pipeline continues to strengthen. The finalisation of designs
for our Advanced Energy Bipolar Utility Toolkit range represents a key step
forward, with these plug-and-play products expected to enter design transfer
to manufacturing during 2026. This next generation of devices is designed to
further enhance usability, compatibility and clinical performance, reinforcing
Creo's position at the forefront of advanced energy innovation.
Geographically, we are particularly encouraged by the strong performance in
Latin America, where results in 2025 have exceeded expectations. Despite
awaiting regulatory approvals in key markets such as Brazil, Mexico and
Argentina, the level of engagement and demand from our distribution partners
provides confidence in continued expansion across the region.
Beyond our own product portfolio, the expansion of our Kamaptive partner
programme marks an important evolution in how we deliver our technology to the
market. By enabling integration of our Advanced Energy platform into
third-party systems (including robotic-assisted surgical platforms), we are
extending the reach and applicability of our products and technology. During
the year we reached agreement to support initial integration with a major
global medtech partner. This represents a significant milestone, and we are
pleased to see this strategy beginning to translate into a growing pipeline of
opportunities. Kamaptive is increasingly demonstrating its potential as a
powerful channel for scaling our technology beyond the boundaries of our
direct product portfolio.
Operations
From a strategic and operational perspective, 2025 was a year of meaningful
transformation. The sale of 51% of Creo Medical Europe concluded in early 2025
and not only generated a positive cash outcome for the Group, but maintained
strong European market access through our joint venture with MicroTech whist
retaining a significant asset on our balance sheet. Post period end, we
received our first dividend from Creo Medical Europe of £1.6m (including
£0.3m relating to tax losses) for FY25.
In parallel, we have made significant progress in optimising our cost base and
improving the scalability of the business. The outsourcing of CROMA production
and, post year-end, the agreement to outsource the manufacture of our advanced
energy products combined with the externalisation of design-for-manufacture
activities has enabled a substantial reduction in operating expenditure.
This evolution reflects a deliberate shift in our operating model. Creo is
increasingly focused on its core strengths: innovation, clinical excellence
and commercial execution. By partnering with high-quality contract
manufacturers in the UK, the US and potentially further afield, we are
building a more capital-efficient and scalable platform capable of supporting
long-term growth.
Outlook
Looking ahead, the outlook is highly encouraging. We are entering a period
where the combination of a validated core product range, an expanding
portfolio of new devices, growing clinical endorsement and the future
potential from Kamaptive partnerships creates a powerful platform for growth.
The value of our Advanced Energy technology, both as a standalone offering and
as an integrated solution across multiple surgical environments, is now
becoming increasingly evident.
These are terrific foundations for our continued commercial execution. As we
move into 2026 and beyond, we remain focused on scaling adoption, expanding
our market presence and continuing to deliver on our core mission: improving
patient outcomes through innovative, advanced energy solutions.
I would like to thank our teams, partners and customers for their continued
commitment and support as we build on the strong momentum achieved in 2025 and
progress into the next phase of Creo Medical's journey.
Craig Gulliford
Chief Executive Officer
21 May 2026
Chief Financial Officer's Report
2025 was a year of strategic inflection for the Group. We delivered
accelerating commercial momentum, fundamentally strengthened our balance sheet
and reshaped the business into a more focused, scalable and capital efficient
platform. As a result, we exit the year well positioned to accelerate growth,
improve operating leverage and progress towards sustainable cash generation.
Clear commercial acceleration
The Group achieved strong revenue growth during the year, reflecting growing
adoption of Creo's differentiated technology across key markets. Commercial
execution improved throughout the year, culminating in record Core Technology
revenues in Q4 2025, driven by increased utilisation of Speedboat, expanding
clinical applications and continued new customer wins.
Total revenue increased by 50% to £6.0m (2024: £4.0m), with a pronounced
second‑half acceleration - H2 FY25 revenue increased by 58% versus the
respective prior period (H2 FY24: £2.4m) at £3.8m. This increase was
supported by broader clinical adoption and rising productivity across the
commercial organisation. These dynamics give us increasing confidence in the
scalability of the business model.
Our core product portfolio continues to demonstrate strong relevance in both
resection and ablation markets. Speedboat® Notch is gaining traction in
advanced GI procedures, including POEMs, while the launch of SpydrBlade™
Flex across the US, UK and EU has been well received. In ablation,
MicroBlate™ Flex and MicroBlate™ Fine are progressing through targeted
studies, supporting a growing pipeline of future commercial opportunities.
The expanding body of published clinical evidence and growing advocacy from
leading clinicians further supports our conviction in Creo's long‑term
differentiation and market positioning.
A selection of these can be accessed through Creo's Clinical Resources
bibliography at:
https://www.creomedical.com/en/investors/creo-medical-clinical-resources-bibliography
(https://www.creomedical.com/en/investors/creo-medical-clinical-resources-bibliography)
Financial Summary
Continuing operations, which represent the Group's core business, delivered
revenue of £6.0m (2024: £4.0m), gross profit of £2.4m (2024: £1.9m) and
recorded an operating loss of £17.8m (2024: £28.8m), driven primarily by
administrative costs. On an underlying, non-statutory basis, continuing
operations recorded a loss of £13.7m (2024: £22.3m), highlighting a
significant improvement on the prior year.
Discontinued operations contributed revenue of £2.8m and gross profit of
£1.2m, but more significantly recorded a profit of £22.8m. This result was
attributable to a profit on disposal of a majority stake in a subsidiary,
representing a non-recurring gain arising from the Group's strategic decision
to exit non-core activities.
The actions taken during the year to divest non-core operations have
simplified the Group's structure and sharpened strategic focus, positioning
the business to concentrate on its core markets. Looking ahead, the Group's
financial performance will be increasingly dependent on improving the
profitability of continuing operations, with priority given to cost
discipline, operational efficiency, and sustainable revenue growth.
(All figures £m) Continuing Discontinued 2025 Continuing Discontinued 2024
Revenue 6.0 2.8 8.8 4.0 26.7 30.7
Cost of sales (3.6) (1.6) (5.2) (2.1) (14.2) (16.3)
Gross Profit 2.4 1.2 3.6 1.9 12.5 14.4
40.0% 42.9% 40.9% 47.5% 46.8% 46.9%
Other operating income 1.2 - 1.2 (0.4) - (0.4)
Administrative expenses (23.1) (1.2) (24.3) (30.3) (12.9) (43.2)
Share of profits of associates accounted for using the equity method 1.7 - 1.7 - - -
Operating (Loss)/profit (17.8) (0.0) (17.8) (28.8) (0.4) (29.2)
SIP Charge 0.3 - 0.3 0.3 - 0.3
Goodwill Impairment - - - - 1.6 1.6
Redundancy Costs 0.2 - 0.2 1.1 - 1.1
Grant Income - - - 0.4 - 0.4
Manufacturing disposal 0.4 - 0.4 - - -
Depreciation & Amortisation 1.0 - 1.0 1.5 1.0 2.5
R&D expenditure merged tax credit 0.3 - 0.3 2.0 - 2.0
EBITDA adjusted share of NCI of associate 0.8 - 0.8 - - -
Underlying EBITDA (non-statutory measure) * (14.8) (0.0) (14.8) (23.5) 2.2 (21.3)
Share based payments expense 1.1 - 1.1 1.2 0 1.2
Underlying Operating (Loss)/profit (non-statutory measure) * (13.7) (0.0) (13.7) (22.3) 2.2 (20.1)
Underlying Administrative expenses (non-statutory measure) * (18.6) (1.2) (19.8) (23.8) (10.3) (34.1)
*non-statutory measure. Underlying Administrative expenses is calculated by
taking Underlying Operating (Loss)/Profit and adjusting for, gross profit,
share of profits of associates and EBITDA adjusted share of NCI associate.
Transformational balance‑sheet strengthening
The completion of the sale of a 51% interest in Creo Medical Europe ("CME") to
MicroTech in February 2025 represents a transformational step for the Group,
unlocking significant immediate and future shareholder value. The transaction
generated net cash consideration of £24.7m and an exceptional gain of
£26.2m, materially strengthening our balance sheet and liquidity position.
We have continued to prioritise balance sheet strength and funding
flexibility. In addition to the CME proceeds, post-period end the Group has
made steps to secure a £2m CLN with the Development Bank of Wales and is
advancing plans to raise further equity capital. Post-period end we have also
entered into a non-binding agreement regarding the potential sale of our
remaining 49% interest in CME. If completed, in aggregate these actions would
provide additional liquidity and further enhance financial flexibility.
Taken together, these actions demonstrate a clear focus on disciplined capital
allocation, balance sheet strength, and the creation of a more scalable,
capital-light operating model. This positions the Group to fund its
commercialisation strategy while prioritising long-term shareholder returns.
Operating leverage embedded in the model
FY25 reflected the full year impact of decisive cost actions taken in 2024,
reducing the annualised cost base by more than £5m from £23.8m to £18.6m
(c.22%) on a continuing basis. Additional structural cost reductions followed
the CME transaction and the completion of the Aber management buy-out in March
2025.
The reduction in the cost base was driven by the completion of major
development and regulatory programmes and continued disciplined cost control.
Further efficiency initiatives implemented during FY25 began to benefit
results in the second half and will continue to flow into FY26 and beyond.
Post period end, we announced the disposal and outsourcing of manufacturing to
a newly established company controlled by the current management of Creo's
manufacturing operations. The transaction allows Creo to maintain its current
relationships with a sophisticated manufacturing operation and talented team
while reducing Creo's ongoing cost base further.
We have aligned our cost base with our growth priorities, embedding
operational leverage as revenues scale. This positions the business to convert
incremental revenue growth into improving margins and cash flow.
Improving profitability trajectory
The Group reported an operating loss of £17.8m on continuing operations for
the year (FY24: £28.8m loss). Underlying operating loss reduced by 38.5% to
£13.7m on continuing operations (FY24: £22.3m), reflecting lower operating
costs, improving revenue efficiency and a £2.5m EBITDA contribution from our
retained interest in CME.
Gross margin from continuing operations of c.40.0% (2024: 47.5%) reflects the
transition to a distribution led model in EMEA following the CME transaction.
As volumes increase, we expect margin expansion driven by higher core product
penetration, increased bundling of endotherapy solutions and improving
operational scale.
Creating a financial platform for growth
The Group ended the year with cash and cash equivalents of £12.4m (31
December 2024: £8.7m) and net assets of £50.0m (31 December 2024: £42.4m),
representing an 18% year-on-year increase. The balance sheet reflects enhanced
liquidity alongside a valuable strategic investment in CME, providing a degree
of flexibility to support targeted commercial expansion while maintaining
financial discipline.
Net cash used in operating activities was £19.1m (FY24: £22.2m), reflecting
continued investment in growth and working capital investments on account of
strong trading in Q4 2025.
Notwithstanding this strengthened financial position, the Group continues to
incur operating losses and cash outflows as it invests in commercialisation
and research and development. Current forecasts indicate that, without
additional funding, the Group would be unable to meet its liabilities as they
fall due within the next 12 months. While the Directors are actively pursuing
mitigating actions, including raising additional funding, securing debt
facilities and progressing the potential disposal of the remaining interest in
CME, these actions are not wholly within the Group's control.
Accordingly, these conditions indicate the existence of a material uncertainty
which may cast significant doubt on the Group's ability to continue as a going
concern. Notwithstanding this, the Directors have a reasonable expectation
that sufficient funding can be secured and have therefore prepared the
financial statements on a going concern basis.
Tax
The tax credits recognised in the current and previous financial year relate
mainly to R&D tax credit claims of £1.2m (2024: £2.0m). This reduction
followed the reduction in underlying admin expenses year on year and the
change in scheme to the UK merged R&D scheme which is less favourable.
Loss Per Share
Underlying loss per share was 4 pence (2024: loss of 8 pence) from continuing
operations.
Dividend
No dividend has been proposed for the year to 31 December 2025 (2024: £nil).
Accounting Policies
The Group's financial statements were prepared in accordance with UK-adopted
international accounting standards and with the requirements of the Companies
Act 2006 as applicable to companies reporting under those standards. The
Group's accounting policies have been applied consistently throughout the
year.
Key Performance Indicators
As the Group continues to develop and commercialise its core products, the
Directors consider the key financial performance indicators to be the level of
cash held in the business, sales and operating expenses. The Board performs
regular reviews of actual results against budget, and management monitors cash
balances on a monthly basis to ensure that the business has sufficient
resources to enact its current strategy.
Certain KPIs concern non-financial measures (e.g. the number of trainees for
our Pioneer Clinical Education Programme). All non-financial measures are
monitored monthly. The Board will continue to review the KPIs used within the
business and assess them as the business grows.
Principal Risks and Uncertainties
The principal risks and uncertainties facing the Group are set out in the 2025
Annual Report and Accounts.
Directors
Details of the Directors who served during the year ended 31 December 2025 are
set out in the 2025 Annual Report and Accounts. Four Directors at the year-end
were male and one female.
Conflicts of Interest
To address the provisions of section 175 of the Companies Act 2006 relating to
conflicts of interest, the Company's Articles of Association allow the Board
to authorise situations in which a Director has, or may have, a conflict of
interest. Directors are required to give notice of any potential situational
or transactional conflicts that are to be considered at the Board meeting and,
if considered appropriate, conflicts are authorised. Directors are not
permitted to participate in such considerations or to vote regarding their own
conflicts.
Outlook
We entered FY26 with a strengthened financial position, a simplified operating
structure and increasing commercial momentum. Our priorities are clear:
accelerate global adoption and utilisation of our Core Products, expand
clinical indications supported by robust evidence, and leverage our enhanced
commercial partnerships to scale efficiently.
The Company's growth momentum has continued into 2026, with a strong trading
performance to date. Revenue grew by c.60% in the first quarter year-on-year
and the Company has continued to deliver strong commercial progress, with
accelerating customer adoption, growing procedural volumes and further
conversion of the pipeline into revenue across its key markets. This strong
performance in 2026 to date has underpinned the Board's confidence in the
growth of the business in FY26 and it now believes that full year revenue
growth will be between 50% and 60% on FY25 (previously 40% to 60%.). Alongside
this, the Company expects that it will reduce underlying operating
costs by 15 per cent compared to FY25.
While progress has been encouraging, the Group's current cost base and
investment plans mean that additional funding will be required to support the
next phase of growth. The Board has advanced a number of funding options to
ensure the business is appropriately capitalised to execute its strategy which
include scaling commercial activities, advancing clinical programmes and
strengthening operational infrastructure.
However, these funding actions are not wholly within the Group's control, and
there can be no certainty that sufficient funding will be secured within the
required timeframe or on acceptable terms. As a result, this represents a
material uncertainty which may cast significant doubt on the Group's ability
to continue as a going concern.
Notwithstanding this, with a focused strategy, improving operational leverage
and a differentiated technology platform addressing large and growing markets,
the Directors remain confident in the Group's ability to secure the required
funding and position the business to deliver sustainable growth and long-term
value creation for shareholders.
Richard Rees
Chief Financial Officer
21 May 2026
Consolidated statement of profit or loss and other comprehensive income
(All figures £m) Note 2025 2024
Revenue 2 6.0 4.0
Cost of sales (3.6) (2.1)
Gross Profit 2.4 1.9
Other operating income 1.2 (0.4)
Administrative expenses (23.1) (30.3)
Share of profits of associates accounted for using the equity method 7 1.7 -
Operating Loss (17.8) (28.8)
Finance expenses (0.3) (0.4)
Finance income 0.6 0.2
Loss before tax from continuing operations (17.5) (29.0)
Taxation 0.0 1.2
Loss for the year from continuing operations (17.5) (27.8)
Discontinued Operations 6 22.8 (0.9)
Profit/(Loss) for the period/year 5.3 (28.7)
Exchange loss on foreign subsidiary (0.0) (1.3)
Changes to the fair value of equity investments at fair value through other (2.1) -
comprehensive income
Total other comprehensive loss (2.1) (1.3)
Total comprehensive Profit/(Loss) for the year 3.2 (30.0)
Total comprehensive income for the year is attributable to:
Continuing Operations (19.6) (27.8)
Discontinued operations 22.8 (2.2)
Total comprehensive Profit/(Loss) for the year 3.2 (30.0)
Profit/(loss) per Share
Basic and diluted (£) 3 0.01 (0.08)
Loss per Share Continuing Operations
Basic and diluted (£) 3 (0.04) (0.08)
Profit per Share from Discontinued operations
Basic and diluted (£) 3 0.06 (0.00)
Where figures are shown "0.0" this means the figure is lower than £50,000.
Where figures show "-" this means the value is nil
Consolidated statement of financial position
(All figures £m) Note 2025 2024
Assets
Non-current assets
Intangible assets 1.3 0.5
Investments - 2.1
Investment in Associate 7 30.9 -
Property, plant and equipment 3.4 5.9
Other assets - 0.1
35.6 8.6
Current assets
Asset Held for Sale 6 1.7 40.9
Inventories 2.5 2.7
Trade and other receivables 5.6 2.0
Tax receivable 1.3 2.1
Cash and cash equivalents 12.4 8.7
23.5 56.4
Total assets 59.1 65.0
Shareholder equity
Called up share capital 0.4 0.4
Share premium 191.9 192.0
Merger reserve 13.6 13.6
Share option reserve 13.0 12.0
Foreign exchange reserve (0.0) (3.1)
Financial Assets at fair value through other comprehensive income (1.5) 0.6
Accumulated losses (167.4) (173.1)
Total equity 50.0 42.4
Liabilities
Non-current liabilities
Interest-bearing liabilities 1.8 2.0
Provisions - 0.1
1.8 2.1
Current liabilities
Liabilities held for sale - 14.2
Interest-bearing liabilities 2.3 2.4
Provisions 0.1 -
Trade and other payables 4.9 3.9
7.3 20.5
Total liabilities 9.1 22.6
Total equity and liabilities 59.1 65.0
Where figures are shown "0.0" this means the figure is lower than £50,000.
Where figures show "-" this means the value is nil
Consolidated statement of changes in equity
(All figures £m) Note Called up share capital Accumulated losses Share premium Merger reserve Share option reserve Changes to the fair value of equity instruments at fair value through other Foreign Exchange Reserve Total equity
comprehensive (expense)/ income
Balance at 31 December 2023 0.4 (144.4) 180.9 13.6 10.5 0.6 (1.8) 59.8
Total comprehensive loss for the year
Loss for the financial year - (28.7) - - - - - (28.7)
Other comprehensive loss - - - - - - (1.3) (1.3)
Total comprehensive loss - (28.7) - - - - (1.3) (30.0)
Transactions with owners, recorded directly in equity
Issue of share capital 0.0 - 11.1 - - - - 11.1
Equity settled share-based payment transactions - - - - 1.5 - - 1.5
Balance at 31 December 2024 0.4 (173.1) 192.0 13.6 12.0 0.6 (3.1) 42.4
Total comprehensive loss for the year
Profit for the financial year - 5.3 - - - - - 5.3
Recycling of FX reserve through P&L on disposal of subsidiary 3.1 3.1
Other comprehensive (loss)/income - - - - - (2.1) - (2.1)
Total comprehensive Profit/(loss) - 5.3 - - - (2.1) 3.1 6.3
Transactions with owners, recorded directly in equity
Issue of share capital (0.0) - (0.1) - - - - (0.1)
Equity settled share-based payment transactions - - - - 1.4 - - 1.4
Transfer of Share based payment charge - 0.4 - - (0.4) - - -
Balance at 31 December 2025 0.4 (167.4) 191.9 13.6 13.0 (1.5) (0.0) 50.0
Where figures are shown "0.0" this means the figure is lower than £50,000.
Where figures show "-" this means the value is nil
Consolidated statement of cashflows
(All figures £m) Note 12 months to 31 December 2025 12 months to 31 December 2024
Cash flows from operating activities
Loss for the year from continuing operations (17.5) (27.8)
Profit/(loss) from Discontinued operations 6 22.8 (0.9)
Depreciation/amortisation charges 1.0 2.5
Share of profits of associates accounted for using the equity method 7 (1.7) -
Equity settled share-based payment expenses 1.4 1.5
Finance expenses 0.4 0.7
Finance income (0.6) (0.2)
Impairment loss on goodwill - 1.4
Taxation - (1.0)
Other income (1.2) -
Profit on sale of subsidiary 6 (23.1) -
Decrease in inventories 0.2 0.7
Increase in trade and other receivables (3.5) (1.0)
Increase in trade and other payables 1.0 0.2
Interest paid (0.4) (0.7)
Tax paid - (0.2)
Tax received 2.1 2.6
Net cash used in operating activities (19.1) (22.2)
Cash flows from investing activities
Purchase of intangible fixed assets (0.9) (0.1)
Purchase of tangible fixed assets (0.0) (0.3)
Net cashflow from disposal of subsidiary 6 20.3 -
Fixed Term Deposits - 15.5
Interest received 0.5 0.2
Net cash generated from in investing activities 19.9 15.3
Cash flows from financing activities
Capital repaid in respect of loans (0.4) (0.6)
Proceeds of new loan - 6.4
Principal elements of lease repayments (0.2) (0.7)
Share issue (0.1) 11.1
Net cash (used)/generated from financing activities (0.7) 16.2
Increase cash and cash equivalents 0.1 9.3
Cash and cash equivalents at beginning of the year 12.3 3.0
Cash and cash equivalents at end of the year including cash held for sale 12.4 12.3
Less cash held in disposal group - (3.6)
Cash and cash equivalents at end of the year 12.4 8.7
The cash and cash equivalents per the statement of financial position of
£12.4m (2024: £8.7m) represent consolidated cash position less cash held for
sale £nil (2024: £3.6m). The above cashflow is consolidated cashflows from
discontinued operations, and therefore disposal of £3.5m held for sale during
the year.
Where figures are shown "0.0" this means the figure is lower than £50,000.
Where figures show "-" this means the value is nil
Notes to the financial statements
1. Basis of preparation
1. Financial information set out in this announcement
The financial information set out in this announcement does not comprise
statutory accounts for the year ended 31 December 2025 within the meaning of
Section 434 of the Companies Act 2006 as it does not contain all the
information required to be disclosed in the financial statements prepared in
accordance with UK adopted International Accounting Standards. The financial
information in this announcement has been extracted from the audited financial
statements for the year ended 31 December 2025. The report of the auditor on
the 31 December 2025 statutory financial statements was unqualified, and did
not contain a statement under Section 498(2) or Section 498(3) of the
Companies Act 2006 but did draw attention to the Group's ability to continue
as a going concern by way of a material uncertainty paragraph. The statutory
accounts for the year ended 31 December 2025 have not yet been delivered to
the Registrar of Companies.
The financial information for the year ended 31 December 2024 has been
extracted from the Group's audited statutory financial statements which were
approved by the Board of Directors on 18 May 2024, and which have been
delivered to the Registrar of Companies for England and Wales. The report of
the auditor on these financial statements was unqualified and did not contain
a statement under Section 498(2) or Section 498(3) of the Companies Act 2006.
This announcement was approved by the Board of directors and authorised for
issue via RNS on 21 May 2026.
Going Concern
The Directors have assessed the Group's ability to continue as a going
concern, taking into account its financial position, cash flow forecasts,
liquidity and the principal risks and uncertainties facing the business.
For the year ended 31 December 2025, the Group reported a comprehensive loss
from continuing operations of £17.5m (2024: £27.8m) and held cash and cash
equivalents of £12.4m (2024: £8.7m). On 14 February 2025, the Group received
proceeds of €30.4m following the disposal, on 12 February 2025, of a 51%
interest in Creo Medical Europe ("CME"), at an implied equity value of €72m
on a cash-free, debt-free basis.
The Group continues to invest in commercialisation and research and
development and is therefore expected to incur operating losses and cash
outflows in the near term. Despite actions taken to reduce the cost base
during 2024 and 2025, the Group's current expenditure levels indicate that
additional funding will be required.
The Directors have prepared cash flow forecasts for a period of at least 12
months from the date of approval of these financial statements. These
forecasts indicate that, without additional funding, the Group is expected to
exhaust its available cash resources and would be unable to meet its
liabilities as they fall due within that period.
Mitigating actions identified by the Directors include:
• raising additional equity funding;
• securing debt or alternative financing
arrangements; and
• disposal of the Group's remaining 49% equity
interest in CME.
Subsequent to the reporting date, as outlined in Note 5, the Group entered
into a non-binding agreement regarding the potential sale of its remaining 49%
interest in CME. In addition, as outlined in Note 5, the Group has received a
conditional subscription for £2m convertible loan notes by the Development
Bank of Wales and is actively progressing further equity funding.
However, these actions are not wholly within the Group's control, and there
can be no certainty that funding will be secured within the required timeframe
or on acceptable terms. These conditions indicate the existence of a material
uncertainty which may cast significant doubt on the Group's ability to
continue as a going concern.
Notwithstanding the above, the Directors have a reasonable expectation that
the Group will be able to secure sufficient funding and therefore consider it
appropriate to adopt the going concern basis of accounting in preparing these
financial statements.
The financial statements do not include the adjustments that would result if
the Group were unable to continue as a going concern
Accounting policies
The accounting policies used in the preparation of the financial information
for the year ending 31 December 2025 are in accordance with the recognition
and measurement criteria of UK adopted international accounting standards.
Whilst the financial information included has been prepared in accordance with
the recognition and measurement criteria of international accounting
standards, the financial information does not contain sufficient information
to comply with international accounting standards.
Changes in accounting policy and disclosures
New standards, amendments and interpretations
The following new standards, amendments and interpretations have been adopted
by the Group for the first time for the financial year beginning on 1 January
2025:
- Amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates
- Lack of Exchangeability
- Other minor and narrow‑scope amendments to IFRS Accounting Standards
The adoption of these standards, amendments and interpretations has not had a
material impact on the financial statements of the Group or Parent Company.
New standards, amendments and interpretations issued but not effective and not
adopted early
A number of new standards and amendments to IFRS Accounting Standards have
been issued by the IASB but are not yet effective for the year ended 31
December 2025 and have not been early adopted by the Group.
These include IFRS 18 Presentation and Disclosure in Financial Statements,
which replaces IAS 1 Presentation of Financial Statements and is effective
for annual reporting periods beginning on or after 1 January 2027.
IFRS 18 introduces new requirements relating to the presentation of the
statement of profit or loss, enhanced principles on the aggregation and
disaggregation of information, and additional disclosure requirements in
respect of management‑defined performance measures.
The Group is currently assessing the impact of IFRS 18 on the presentation
and disclosures in its financial statements. As the standard does not affect
the recognition or measurement of assets, liabilities, income or expenses, the
Group does not expect its adoption to have a material impact on the Group's
net assets or results.
Other standards and amendments issued but not yet effective are not expected
to have a material impact on the Group's financial position, financial
performance, cash flows or disclosures.
Principal risks and uncertainties
The principal risks and uncertainties impacting the Group are described in our
2025 Annual Report. We continue to monitor the global inflationary and
economic pressures along with other geopolitical macro issues.
Critical accounting judgements and significant estimates in applying the
Group's accounting policies
The application of the Group's accounting policies requires judgements in
certain areas and to make estimates and assumptions concerning the future.
These estimates and judgements are based on historical experience and other
factors, including expectations of future events that are believed to be
reasonable under the circumstances. The resulting accounting estimates will,
by definition, seldom equal the related actual results. The following are
those areas that are deemed to involve judgements and/or estimation about
matters that have the most significant effect on the amounts recognised in the
financial statements.
Judgements
Capitalisation of development costs
Capitalisation of development costs requires analysis of the technical
feasibility and commercial viability of the project concerned. Capitalisation
of the costs will only be made where there is clear demonstration that future
economic benefit will flow to the Company.
£0.8m was capitalised in relation to development of a Bipolar suite for our
endotherapeutics offering. The product is still in its development stage and
we expect further costs in relation to the project to be capitalised in 2026.
£0.1m of further development of the Speedboat product suite allowing for
longer shelf life.
The Group's internal budgets demonstrate that the products will generate
probable future economic benefits relating to Speedboat and CROMA and
therefore there is no impairment to capitalised development costs currently
available for sale.
Operating segments
An entity is required to disclose information to enable users of its financial
statements to evaluate the nature and financial effects of the business
activities in which it engages and the economic environments in which it
operates. In previous years, management have exercised significant judgement
in determining whether presenting segment information on an alternative basis
would better adhere to this core principle.
Whilst the operations in different geographical locations form a fundamental
part of the Group's long-term strategy, they are in the early stages of
development and the Group continues to focus on the development and
commercialisation of its key range of unique endoscopic surgical devices and
CROMA Advanced Energy Platform. In making their judgement, the Directors
considered the Group's activities and the internal reporting structures and
information regularly reviewed by the entity's chief operating decision-maker
to make decisions about resources to be allocated and assessing performance.
As a result of the sale of the European business, the above determination is
deemed to remain consistent and under continuing operations there is in fact
less judgement in reaching this decision.
As such following the assessment, the Directors concluded that financial
information at a consolidated Group level appropriately reflects the business
activities in which the Group is currently engaged, and the economic
environment in which it operates. As the Group continues to evolve this will
be reassessed and the need for further disclosure considered.
Estimates
Recognition of deferred tax asset
Management judgement is required on whether the Group should recognise any
deferred tax assets for losses. A deferred tax asset is recognised only to the
extent that it is probable that future taxable profits will be available
against which the temporary difference can be utilised.
Given the nature and stage of development of Creo Medical Limited there are
significant losses accumulated to date. To determine whether a deferred tax
asset should be recognised in relation to the future tax deduction that these
losses represent, the Directors have considered the estimated profits over a
medium to long-term forecast and the events required to achieve such
forecasts.
Forecasts for Creo Medical Limited continue to show tax losses for at least
the medium term (to four years) as the Group continues to develop and
commercialise its products. Given the extent of uncertainty with forecasting
over a longer-term horizon, it is determined that there is not the level of
convincing evidence that sufficient taxable profit will be available against
which further tax losses or tax credits can be utilised. Thus, there is
considered to be insufficient certainty over the timing and amount of loss
recoverability for any further deferred tax asset to be recognised. The
sensitivity of this estimate is not deemed to be material.
Variable consideration
Downstream sales to the Group's associate, CME, are made pursuant to a
distribution agreement. Under this arrangement, consideration includes a
variable element linked to the onward sales price achieved by the distributor.
The extent of such variability is constrained by the fixed pricing agreement
with the NHS, the Group's most significant end customer. Variable
consideration is estimated using historical data and, where relevant,
forward-looking information, with appropriate amounts recognised or provided
for accordingly.
Assets and liabilities held for sale
Any non-current assets, or disposal groups comprising assets and liabilities,
are classified as held for sale if it is highly probable that they will be
recovered primarily through sale rather than through continuing use. Such
assets, or disposal groups, are generally measured at the lower of their
carrying amount and fair value less costs to sell. Any impairment loss on a
disposal group is allocated first to goodwill, and then to the remaining
assets and liabilities on a pro-rata basis, except that no loss is allocated
to inventories, financial assets, deferred tax assets, employee benefit
assets, investment property or biological assets, which continue to be
measured in accordance with the Group's other accounting policies. Impairment
losses on initial classification as held for sale or held for distribution and
subsequent gains and losses on remeasurement are recognised in profit or loss.
Once classified as held for sale, intangible assets and property, plant and
equipment are no longer amortised or depreciated.
Discontinued operations
A discontinued operation is a component of the Group's business, the
operations and cash flows of which can be clearly distinguished from the rest
of the Group and which: - represents a separate major line of business or
geographic area of operations; - is part of a single coordinated plan to
dispose of a separate major line of business or geographic area of operations;
or - is a subsidiary acquired exclusively with a view to resale.
Classification as a discontinued operation occurs at the earlier of disposal
or when the operation meets the criteria to be classified as held for sale.
When an operation is classified as a discontinued operation, the comparative
Consolidated Income Statement and the comparative Consolidated Statement of
Comprehensive Income are represented as if the operation had been discontinued
from the start of the comparative year.
2. Revenue and other operating income
The revenue split between the Group for 2025 was as follows:
12 Months to December 2025 12 Months to December 2024
(All figures £m) Continuing Discontinued Total Continuing Discontinued Total
Creo Core Products 6.0 - 6.0 4.0 - 4.0
Creo Consumables - 2.8 2.8 - 26.7 26.7
Total 6.0 2.8 8.8 4.0 26.7 30.7
(All figures £m) Continuing Discontinued Total Continuing Discontinued Total
UK 2.7 0.8 3.5 1.0 7.2 8.2
Europe 0.6 2.0 2.6 1.9 19.5 21.4
RoW 2.7 - 2.7 1.1 - 1.1
Total 6.0 2.8 8.8 4.0 26.7 30.7
The group derived consolidated revenues from sales to CME acting as a
distributor following its disposal as a subsidiary of £2.8m (2024: Nil).
Under IFRS-8 CME represents more than 10% of total revenues and therefore is
considered a major customer.
Where figures are shown "0.0" this means the figure is lower than £50,000.
Where figures show "-" this means the value is nil
3. Earnings per share
Earnings per share has been calculated in accordance with IAS 33 - Earnings
Per Share using the profit/(loss) for the year after tax, divided by the
weighted average number of shares in issue.
(All figures £) 31 December 2025 31 December 2024
Loss
Loss attributable to equity holders of Company (basic) (17,549,053) (27,776,661)
Shares (number)
Weighted average number of ordinary shares in issue during the year 412,446,291 369,978,970
Loss per share from continuing operations
Basic and diluted (0.04) (0.08)
Gain/(Loss)
Gain/(Loss) attributable to equity holders of Company (basic) 22,845,422 (945,796)
Shares (number)
Weighted average number of ordinary shares in issue during the year 412,446,291 369,978,970
Gain/(Loss) per share from discontinued operations
Basic and diluted 0.06 (0.00)
Gain/(Loss)
Gain/(Loss) attributable to equity holders of Company (basic) 5,273,369 (28,722,457)
Shares (number)
Weighted average number of ordinary shares in issue during the year 412,446,291 369,978,970
Gain/(Loss) per share
Basic and diluted 0.01 (0.08)
Ordinary shares start of year 412,148,979 361,251,418
Issued in year
Issue 1 - Ordinary 324,340 225,024
Issued with months remaining 11 11
Issue 2 - Ordinary - 303,428
Issued with months remaining - 5
Issue 3 - Ordinary - 50,369,109
Issued with months remaining - 2
Closing ordinary shares 412,473,319 412,148,979
Average ordinary shares 412,446,291 369,978,970
Basic EPS 0.01 (0.08)
Dilutive Share Options 2,894,680 -
Adjusted weighted average number of ordinary shares 415,340,971 369,978,970
Diluted EPS 0.01 (0.08)
In 2024, due to the loss recognised in the year, share options were not deemed
to be dilutive as the impact is to further reduce the loss per share.
4. Share Capital
31 December 31 December
(All figures £m) 2025 2024
Balance at start of the year 0.4 0.4
Issue of share capital
Number of shares 0.3 50.4
Price per share (£) 0.001 0.001
Share value (£'m) 0.0 0.0
Balance at 31 December 0.4 0.4
Where figures are shown "0.0" this means the figure is lower than £50,000.
Where figures show "-" this means the value is nil
5. Post balance sheet events
Subsequent to the reporting date, on 21 May 2026, the Group entered into a
non-binding agreement regarding the potential sale of its remaining 49% equity
interest in Creo Medical Europe ("CME") for consideration broadly in line with
its carrying value as at 31 December 2025. As the agreement is non-binding at
the date of approval of these financial statements, completion remains subject
to further negotiation, agreement of definitive transaction documentation and
customary conditions.
In addition, on 21 May 2026, the Group received a conditional subscription
for, in aggregate, £2 million fixed term secured convertible loan notes (the
"CLNs") from the Development Bank of Wales ("DBW") on commercial terms, with
funds expected to be received during May 2026. The CLNs are secured and
subject to personal guarantees from Kevin Crofton (Chairman) and Richard Rees
(CFO). The CLNs carry a 10% coupon payable monthly in arrears and the
redemption of the CLNs is quarterly with the first falling six months after
the date of issue and the final redemption date falling 18 months from the
date of issue. DBW may elect to convert all and not part of the outstanding
principal amount of the CLNs at any time. To the extent not already converted
or redeemed, the CLNs will automatically redeem on certain future events
including, amongst other, the sale of CME, a fundraise in excess of £11
million or an event of default under the terms of the CLN. The subscription
is conditional on certain conditions, including the finalisation and execution
of all documentation (including the security and personal guarantees).
As this conditional arrangement was entered into after the reporting date, it
has been treated as a non-adjusting subsequent event.
Rule 13 of the AIM Rules for Companies - Related Party Transaction
The Company is issuing, in aggregate, £2 million (before expenses) of CLNs by
way of a conditional subscription by the Development Bank of Wales Public
Limited. Amongst other terms of the CLN subscription as described in this
announcement, the CLNs are to be secured and subject to personal guarantees
from certain Directors of Creo, being Kevin Crofton and Richard Rees, which in
aggregate constitute a related party transaction pursuant to Rule 13 of the
AIM Rules for Companies. The independent directors for the purposes of Rule 13
of the AIM Rules for Companies (being Craig Gulliford, Ivonne Cantu and Brent
Boucher), having consulted with Deutsche Bank AG. London Branch (trading for
these purposes as Deutsche Numis), the Company's nominated adviser, consider
the terms of the related party transaction to be fair and reasonable insofar
as shareholders of the Company are concerned.
Management buyout of manufacturing operations
Subsequent to the reporting date, Creo Medical Limited entered into an
agreement to dispose of its UK manufacturing operations to a newly
incorporated entity controlled by the existing management team of those
operations ("NewCo"), as part of a management buyout (the "Manufacturing
Disposal").
Under the terms of the transaction, and subject to the satisfaction of certain
conditions, NewCo will acquire the Group's UK manufacturing operations. As
part of the transaction, approximately 25 employees are expected to transfer
to NewCo on completion.
Management has assessed the transaction under IFRS 5 Non-current Assets Held
for Sale and Discontinued Operations and concluded that the criteria for
classification as a discontinued operation will be met in the financial year
ending 31 December 2026. Accordingly, the results of these operations will be
presented as discontinued operations in future financial statements from the
point at which the criteria are satisfied.
Dividend from Associate
Subsequent to the reporting date, a dividend of £1.3 million was declared by
Creo Medical Europe ("CME"), reflecting distributable reserves arising from
profits generated during the year ended 31 December 2025. The dividend is
payable to shareholders in proportion to their respective equity interests,
with the Group entitled to its share of 49% based on its ownership interest in
CME.
Cash of £1.6m (including £0.3m relating to tax losses) relating to the
Group's share of the dividend was received in May 2026.
6. Discontinued Operations
On 11 February 2025 Creo Medical Group plc completed the sale of a majority
stake in its European subsidiary by selling 51%. Therefore, evidencing the
Board assessment that a deal for the sale of the European business was in an
advance state and deemed highly probable at the end of the prior financial
year. The circumstances at the year-end were such that the conditions outlined
within IFRS 5 Non-current Assets Held for Sale and Discontinued Operations for
treatment 'discontinued operations' were met for the period to the 11 February
2025, and this has been reflected in the financial statements. The asset held
for sale was disposed of at this date.
Similarly, the same circumstances were met with regard to Aber Electronics Ltd
in March 2025.
Restated Adjusted EBITDA
(All figures £m) 2025 Continuing 2025 Discontinued 2025
Total
Revenue 6.0 2.8 8.8
Cost of sales (3.6) (1.6) (5.2)
Gross Profit 2.4 1.2 3.6
Other operating income 1.2 - 1.2
Adjusted administrative expenses (20.9) (1.2) (22.1)
Income from associate 2.5 - 2.5
Adjusted EBITDA (14.8) (0.0) (14.8)
Exceptional - adjusted Items (2.1) - (2.1)
Depreciation & amortisation (0.9) - (0.9)
Operating Loss (17.8) (0.0) (17.8)
Profit from sale of subsidiary - 26.2 26.2
Recycling of FX reserve through P&L on disposal of subsidiary - (3.1) (3.1)
Finance expenses (0.3) (0.3) (0.6)
Finance income 0.6 - 0.6
(Loss)/Profit before tax (17.5) 22.8 5.3
Taxation 0.0 - 0.0
(Loss)/Profit for the year (17.5) 22.8 5.3
(All figures £m) 2024 Continuing 2024 Discontinued 2024 Total
Revenue 4.0 26.7 30.7
Cost of sales (2.1) (14.2) (16.3)
Gross Profit 1.9 12.5 14.4
Other operating income 0.0 - 0.0
Underlying Administrative expenses (26.2) (10.3) (36.5)
R&D expenditure recovered via tax credit scheme 2.0 - 2.0
Adjusted EBITDA (22.3) 2.2 (20.1)
Exceptional - adjusted Items (5.0) (1.6) (6.6)
Depreciation & amortisation (1.5) (1.0) (2.5)
Operating Loss (28.8) (0.4) (29.2)
Finance expenses (0.4) (0.3) (0.7)
Finance income 0.2 - 0.2
Loss before tax (29.0) (0.7) (29.7)
Taxation 1.2 (0.2) 1.0
Loss for the year (27.8) (0.9) (28.7)
Impact on the Group Consolidated Income Statement for the year ended 31
December 2025
2025 2024
(All figures £m) Discontinued Discontinued
Revenue 2.8 26.7
Cost of sales (1.6) (14.2)
Gross Profit 1.2 12.5
Adjusted administrative expenses (1.2) (10.3)
Adjusted EBITDA (0.0) 2.2
Exceptional - adjusted Items - (1.6)
Depreciation & amortisation - (1.0)
Operating Loss (0.0) (0.4)
Profit from sale of subsidiary 26.2 -
Recycling of FX reserve through P&L on disposal of subsidiary (3.1) -
Finance expenses (0.3) (0.3)
Finance income - -
(Loss)/Profit before tax 22.8 (0.7)
Taxation - (0.2)
(Loss)/Profit for the year 22.8 (0.9)
Effects of Assets held for sale on the financial position of the Group in FY25
(All figures £m) Held for sale 31 December 2025 Held for sale 31 December 2024
Intangible assets - 5.8
Goodwill - 16.9
Property, plant and equipment 1.7 1.9
Deferred tax - 0.2
Other assets - 0.0
Inventories - 4.6
Trade and other receivables - 7.9
Cash and cash equivalents - 3.6
Total assets held for sale 1.7 40.9
Interest bearing liabilities - 9.6
Deferred tax liability - 1.4
Trade and other payables - 3.2
Total liabilities held for sale - 14.2
Net Asset Held for Sale 1.7 26.7
Effects of business disposals on the financial position of the Group in FY25
The net assets held for sale at the prior balance sheet date were sold at an
implied equity value for the entire asset of €72m, with cash received of
€35.2m for the 51% controlling interest disposed. Similarly, Aber
Electronics completed and is an immaterial transaction during the year.
On the 26 May 2025 the board approved the sale of a non-current asset in
relation to property at the Chepstow site, as such it was deemed to meet the
conditions outlined in IFRS 5 Non-current assets held for sale. The property
is held on the balance sheet at its carrying value of £1.7m, no impairment
has been recognised given the fair value less cost to sell is in excess of its
carrying value. There is no associated operation and as such no requirement
for discontinued operations.
(All figures £m) 31 December 2025
Consideration received 30.7
Debt settled (6.0)
Net consideration 24.7
Carrying amount of net assets held for sale b/f (26.7)
Discontinued operations 0.0
Net assets disposed at transaction date (26.7)
Loss on disposal of assets held for sale (2.0)
Transaction costs incurred on disposal (1.3)
Gain on Investment in associate 29.5
Profit on disposal 26.2
Reclassification of foreign currency reserve (3.1)
Consolidated Profit on disposal 23.1
Cashflows from disposal of subsidiary
(All figures £m) 31 December 2025
Net Consideration 24.7
Cash settled transaction fees (0.9)
Cash disposed on sale (3.5)
Cashflows from disposal of subsidiary 20.3
Cashflows from discontinued operations
2025 2024
(All figures £m) Discontinued Discontinued
Net cashflows from operating activities 0.2 2.8
Net cashflows from investing activities 20.3 (0.2)
Net cashflows from financing activities (0.3) (0.0)
Cash flows from discontinued operations 20.2 2.6
These cashflows represent the cashflows in the discontinued operation and are
included within the consolidated cashflow.
7. Investment in Associate
(All figures £m) As at 31 December 2025 As at 31 December 2024
Fair Value Investment in associate 29.5 -
NCI through the OCI 1.7 -
Elimination of unrealised profit on downstream sales (0.3) -
Investment in associate 30.9 -
(All figures £m) As at 31 December 2025 As at 31 December 2024
Percentage of ownership interest 49% 0%
Revenue (100%) 27.5 -
Profit from continuing operations (100%) 3.5 -
Other comprehensive income (100%) - -
Total comprehensive income 100% 3.5 -
Total comprehensive income 49% 1.7
Elimination of unrealised profit on downstream sales (0.3) -
Consortium tax relieved to associate 0.3 -
Group's share of total comprehensive income 1.7 -
Depreciation (49%) 0.2 -
Taxation (49%) 0.6 -
Finance expense (49%) 0.0 -
Group's share of EBITDA 2.5 -
(All figures £m) As at 31 December 2025 As at 31 December 2024
Non‑current assets 3.7 -
Current assets 20.2 -
Non-current liabilities (0.0) -
Current liabilities (6.8) -
Net Assets 17.1 -
Attributable to NCI 8.4 -
Attributable to investees shareholders 8.7 -
Richard Rees
Chief Financial Officer
21 May 2026
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