REG - Creo Medical Group - Unaudited results for the six months ended 30 June
22/09/2025 07:00
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RNS Number : 1258A Creo Medical Group PLC 22 September 2025
Creo Medical Group plc
("Creo", the "Company" or the "Group")
Unaudited results for the six months ended 30 June 2025
40% revenue growth, on plan to full year guidance
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 unaudited results for the six-month period
ended 30 June 2025 (H1-25) which are in line with management expectations for
first half performance.
Financial Highlights
· Revenues up 40% to £2.2m (H1-24: £1.6m), driven by wider and deeper
clinical adoption of Creo's Core product portfolio
· Underlying operating costs reduced by 24% to £9.1m (H1-24: £12.8m),
with further annualised cost savings to be realised in H2-25
· Underlying operating loss* significantly reduced by 43% to £6.8m
(H1-24: £12.0m)
· Strategic partnership with Micro-Tech (Nanjing) Co. Ltd
("Micro-Tech") and completion of the sale of 51% of Creo Medical Europe
("CME") to Micro-Tech:
§ Realised €30m net cash (£24.9m) in the period strengthening the balance
sheet
§ Remaining 49% stake in CME held as €36m (£29.5m) investment asset
provides future balance sheet strength and delivers a meaningful share of
profits and future cashflows via dividends
· Statutory Profit before tax of £16.1m (H1-24: £14.8m loss)
§ with an exceptional profit of £26.2m due to the sale of 51% of CME and a
£1.2m share of profits from in the period
· Basic earnings per share of 4p (H1-24: 3p loss)
· Cash and cash equivalents at 30 June 2025 of £20.5m (31 December
2024: £8.7m)
* after adjusting for profit from sale of subsidiary, share-based payments,
depreciation and amortisation, R&D tax credits, earnout and other one-off
settlements.
Commercial & Operational highlights
· Continued clinical adoption with 232 core product users as at 30 June
2025, up from 214 at the end of 2024 and further increased utilisation
underpinning our strong revenue growth
· Increased use of Speedboat Notch for advanced procedures such as
per-oral endoscopic myotomies (POEMs) which have favourable reimbursement in
major markets
· MicroBlate™ Flex employed in multiple studies to treat lung
tumours, with commercial sales from initial sites
· Regulatory clearances and commercial launch of SpydrBlade™ Flex in
US, UK and EU
· Continued implementation of operational efficiencies and cost
reductions
· Broader dissemination of clinical evidence by multiple investigators
at major international meetings such as Digestive Disease Week (USA), European
Society for Gynaecological Endoscopy (EU; and Japan Gastroenterological
Endoscopy Society (Japan)
· CME trading above its management expectations
H1 trading and Outlook:
· Confident outlook for 2025 with strong growth expected through
the period. Management reiterates 40% to 60% full year revenue growth, in-line
with guidance
Commenting on the results and outlook, Craig Gulliford, Chief Executive
Officer of the Company, said:
"Current trading in the second half continues to support our guidance of
delivering 40% to 60% revenue growth for the full year.
"With continued growth, improved operational efficiencies and cost reductions,
and a solid cash position, the Board and management team remain confident in
the Company's goals to deliver self-sustaining cashflows and increased value
for shareholders.
"We remain committed to transforming and improving the lives of pre-cancer and
cancer patients worldwide, and believe the breadth and depth of our product
portfolio provides significantly improved patient outcomes when compared to
traditional surgical methods."
Investor Presentation
Craig Gulliford, Chief Executive Officer, and Richard Rees, Chief Financial
Officer, will provide a live presentation covering the interim results via the
Investor Meet Company platform on 24 September 2025 at 4pm BST.
The presentation is open to all existing/potential shareholders and analysts.
Questions can be submitted at any time during the live presentation.
Investors can sign up to Investor Meet Company at no additional cost and
register in advance to meet Creo Medical Group plc
via: www.investormeetcompany.com/creo-medical-group-plc/register-investor
(http://www.investormeetcompany.com/creo-medical-group-plc/register-investor)
. Investors who already follow Creo Medical Group plc on the Investor Meet
Company platform will automatically be invited.
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
Deutsche Numis (Nominated Adviser, sole Broker and Financial Adviser) +44 (0)20 7260 1000
Freddie Barnfield / Duncan Monteith / Sher Shah
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 Medical 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
(http://www.creomedical.com)
Interim results for six months ended 30 June 2025
Chief Executive Review
Introduction
I am pleased to report continued strong progress for the first half of 2025
with revenues increasing by 40% to £2.2m (H1-24: £1.6m) following wider
clinical adoption of our product portfolio. We have continued to implement
efficiencies and cost reductions across the business, successfully reducing
our underlying operating costs to £9.1m (H1-24: 12.8m). These results also
benefit from an exceptional gain of £26.2m following the sale of our 51%
interest in Creo Medical Europe ("CME"), resulting in a statutory profit
before tax of £16.1m.
Commercial Update
Underpinning our revenue growth, as of 30 June 2025, we had 232 users, up from
214 at the end of 2024, with increased utilisation per user being a key driver
and focus. We continue to put our commercial efforts into generating growth
through increased utilisation from our established user base, while working to
widen adoption through training and active dissemination of case studies.
(i) Speedboat & SpydrBlade - Resection products for colon cancers,
oesophageal cancers and swallowing disorders
Resection products performed well in the first half and were the main drivers
of our revenue growth. With growing adoption of our Speedboat range of
products (Speedboat UltraSlim and Speedboat Notch), more clinical users are
able to use our products to remove cancer and pre-cancer lesions from the
colon and oesophagus, and in procedures to help correct a range of
swallowing disorders via the upper gastrointestinal ("GI") tract, many of
which have favourable reimbursement in major markets such as the USA.
Our resection device portfolio has been bolstered by the introduction of
SpydrBlade™ Flex, a unique multi-modal endoscopic device designed for
precision and adaptability in endoscopic procedures and suitable for upper and
lower GI resections. In March 2025 we announced the UK and EU commercial
launch of SpydrBlade™ Flex, and its first use at St Mark's Hospital in
London, one of the UK's leading Endoscopy Units. We received significant
interest in the new technology at the European Society of Gastrointestinal
Endoscopy Days 2025 conference in Barcelona in April and have made good
commercial progress in the UK and EU as we market the device alongside our
Speedboat product range. Commercial ramp-up for this product has already begun
in the US, following FDA clearance in June 2025, and we are confident that
this will become an additional tool that will help move the point of care from
surgery and the operating theatre to the endoscopy room.
As a Company based in Wales, we were pleased to announce in March 2025 that
the first Welsh hospital to use Speedboat® for colon cancer as part of a
pilot led by the Aneurin Bevan University Health Board. We expect that the
hospital will, like other users, confirm that by utilising our Speedboat
device, they can offer a more efficient, less invasive alternative to
traditional surgical methods, improving patient outcomes and reducing waiting
times.
As a case in point, before our products were available in NHS Wales, Liz
Thomas, the wife of a former engineer who helped develop Speedboat, employed
'Patient Choice' to opt for an outpatient procedure using Speedboat in
England, to remove a pre-cancerous lesion which avoided stitches, scarring,
prolonged recovery, or post-operative long term health requirements. Liz's
testimonial video is available to view here:
https://www.creomedical.com/en/patients/patient-case-stories
(https://www.creomedical.com/en/patients/patient-case-stories)
Growth in clinical adoption continues in the US. Long-term support for the
roll-out of Creo's products has come in the form of two newly announced
Category I CPT reimbursement codes for upper GI and lower GI Endoscopic
Submucosal Dissection procedures. We expect that this financial incentive will
encourage US clinicians to use next-generation products such as Speedboat®
UltraSlim, Speedboat® Notch and SpydrBlade™, which are specifically
designed for such procedures. Further details on the reimbursement codes can
be read in RNS Number : 3102K
(https://www.londonstockexchange.com/news-article/CREO/us-reimbursement-milestone-for-speedboat-procedure/17056584)
.
(ii) MicroBlate™ Flex and Fine - tumour ablation for lung, pancreatic,
liver, kidney and bladder cancers
Our MicroBlate technology is designed to ablate nodules and tumours in several
tissue types and is focused on treatments for lung, pancreatic, liver, kidney
and bladder cancers.
In January, we announced the first clinical robotic-guided lung ablation cases
using Intuitive's Ion Endoluminal System and Creo's MicroBlate™ Flex
ablation device to treat cancerous lung tissue outside of the initial clinical
study at the Royal Brompton Hospital in the UK. We expect more sites to come
online in 2025 using MicroBlate™ Flex to treat lung tumours. Commercial
sales of MicroBlate™ Flex from the initial sites have already commenced,
in-line with prior expectations that each site becomes revenue generating once
the initial cases have been completed under the limited market release
agreement.
In July, we announced the first patient treated in a new post-market
multi-centre "ablate and resect" clinical study evaluating the safety and
performance of MicroBlate™ Flex for the treatment of lung tumours. This
study is taking place at the Amsterdam University Medical Centre in the
Netherlands and at the Royal Brompton Hospital in the UK. These studies will
provide a substantial and robust clinical dataset ahead of full
commercialisation.
(iii) Supportive Clinical Data
Wider clinical adoption of Creo's product portfolio continues to be supported
by a significant number of clinical evidence papers, abstracts and case
studies from clinicians and investigators around the world who have used
Creo's advanced energy devices, with many being presented at major
international meetings such as DDW (USA), ESGE (EU), and JGES (Japan).
Examples can be viewed here:
www.creomedical.com/en/investors/creo-medical-clinical-resources-bibliography
(http://www.creomedical.com/en/investors/creo-medical-clinical-resources-bibliography)
We will continue to update shareholders as further data is published that
supports the commercial adoption of our technology.
Operational Update - improved operating efficiency
H1-25 benefits from the full impact of actions we undertook in 2024 and in the
first half of the year we continued to implement efficiencies and cost
reductions which will come through in H2 and beyond. Underlying operating
costs on a continuing basis have reduced by 24% to £9.1m (H1-24: £12.8m); as
a result underlying operating loss on a continuing basis has reduced to £6.8m
(H1-24: £12.0m).
During the period we completed the sale of 51% of the issued share capital of
CME to Micro Tech resulting in an exceptional gain of £26.2m with the net
cash proceeds from the sale being used to strengthen the Group's balance
sheet. In addition, the strategic transaction with Micro-Tech strengthens our
commercial platform, expands our endoscopic therapy product range in all
markets, and gives us access to Micro-Tech's specialised global distribution
and manufacturing expertise.
Whilst our 49% stake in CME is held on the balance sheet at a value of €36m
(£29.5m), we also expect this asset to bring in income and cash inflows via
annual dividends. Current trading at CME is above its management expectations
for growth at both revenue and EBITDA levels.
Board Changes
A number of Board changes took place during the period to ensure the Board was
appropriately structured to match recommended best practice and to create a
non-executive majority. David Woods and Chris Hancock did not stand for
re-election at the 2025 AGM. Whilst they stood down from their Board
positions, they continue their day-to-day functions and are senior
contributors to Creo's operational Board. John Bradshaw, Senior Independent
Non-Executive Director, also stood down from the Board in line with his
planned retirement from the role having served as a Non-Executive Director
since IPO in 2016. The Board wishes to thank them for their significant
contributions.
Outlook
Current trading in the second half continues to develop in line with
management expectations and we expect to deliver another strong year of
growth. H2 is traditionally stronger than H1, and we remain confident that
this supports our guidance of delivering 40% to 60% revenue growth for the
full year.
With continued growth, improved operational efficiencies and cost reductions
the Board remains confident in the Company's ability to deliver
self-sustaining cashflows and increased value to shareholders.
We remain committed to transforming and improving the lives of pre-cancer and
cancer patients worldwide. On behalf of the Board, I thank Creo's shareholders
for their continued support, feedback, and encouragement along with all
members of the Creo team, our clinicians and their patients, our customers,
suppliers, and other partners for all their hard work, support, and positive
contributions during the period.
Craig Gulliford
Chief Executive Officer
22 September 2025
Financial Review
Total sales for the period were £5.0m (H1-24: £15.2m), with revenue from
continuing operations being £2.2m (H1-24: £1.6m), an increase of 40% from
H1-2024 underpinned by wider clinical adoption of our products.
In September 2024, the Group announced the agreement to sell a 51% interest in
CME to Micro-Tech with net proceeds of €30m payable in cash on completion
(the "Sale"). The Sale completed on 12 February 2025, with cash proceeds
received on 14 February 2025. Prior to the end of 2024 we also reached heads
of terms to sell Aber, a Creo subsidiary, as part of a Management Buy Out.
This was held as an asset held for sale at 31 December 2024 and the
transaction was completed in March 2025.
Consumable sales of £2.8m (H1-24: £13.6m) from discontinued operations
represents the sales up to 12 February 2025.
6 months to 6 months to 12 months to
(All figures £m) 30-Jun-25 30-Jun-24 31-December-24
Unaudited Unaudited Audited
Creo Products 2.2 1.6 4.0
Continuing operations 2.2 1.6 4.0
Creo Consumables 2.8 13.6 26.7
Discontinued operations 2.8 13.6 26.7
Total 5.0 15.2 30.7
Total gross profit for continuing operations in the period increased to £1.0m
(H1-24: £0.8m). This represents an increase in the gross margin to 47.0%
(H1-24: 43.8%) reflecting an increase in sales and volume related benefits. As
the business matures it is expected that gross margins will continue to
improve.
Underlying EBITDA loss (EBITDA with R&D tax credits and other accounting
adjustments added back) on a continuing basis was £7.2m, representing a 42%
decrease (H1-24: £12.5m). This £5.3m decrease reflects £0.3m from higher
margins, £4.5m from reduced operating costs following the restructuring
completed in 2024, and a £1.2m contribution from the 49% holding in CME
partially offset by a £0.4m reduction in R&D tax credits due to lower
R&D spend.
As noted in the 2024 annual report, we initiated a raft of cost saving plans
during the latter part of 2024. This process reduced our cost base by more
than £5m on an annualised basis going into 2025. These savings are in
addition to the reduction in the cost base that has arisen from the sale of
CME and Aber. Underlying administrative expenses (administrative expenses less
SIP charge, share based payments, earnout, depreciation, amortisation and
settlements) on a continuing basis decreased in the period to £9.1m (H1-24:
£12.8).
Strict cost controls have remained during the period particularly around
headcount, travel and general overheads with further savings expected during
H2-25. These operational changes underpin our drive towards our goal of
achieving self-sustaining cashflows.
The underlying operating loss on a continuing basis for the period is £6.8m
(H1-24: £12.0m) representing a 43% decrease This is a non-statutory measure
which adjusts the operating loss as follows:
Financial Review
6 months to 6 months to 12 months to
(All figures £'000) 30 June 2025 30 June 2024 31 December 2024
Revenue 2.2 1.6 4.0
Cost of Sales (1.2) (0.8) (2.1)
Gross Profit 1.0 0.8 1.9
47.0% 43.8% 47.5%
Other Operating Income 0.0 0.0 (0.4)
Administrative Expenses (11.0) (15.6) (30.3)
Profit from sale of subsidiary 26.2 - -
Operating Profit / (Loss) 16.2 (14.8) (28.8)
SIP Charge 0.1 0.1 0.3
PPE & Other Settlement 0.0 - -
Redundancy costs 0.1 - 1.1
Grant Income - - 0.4
Earnout - 0.1 -
Depreciation & Amortisation 0.6 0.9 1.5
R&D expenditure recovered via tax credit scheme 0.8 1.2 2.0
Share of NCI of associate 1.2 - -
Profit from sale of subsidiary (26.2) - -
Underlying EBITDA (non-statutory measure) (7.2) (12.5) (23.5)
Share based payments (inc. JSOP) 0.4 0.5 1.2
Underlying operating loss (non-statutory measure) (6.8) (12.0) (22.3)
Underlying operating costs from continuing operations (9.1) (12.8) (23.8)
Profit/(loss) from discontinued operations 0.0 1.2 (0.9)
Finance costs 0.0 0.1 0.4
Taxation 0.0 (0.2) 0.1
Operating Profit/(Loss) from discontinued operations 0.0 1.1 (0.4)
Goodwill impairment - 0.0 1.6
Depreciation and amortisation - 0.9 1.0
Underlying consolidated operating loss (non-statutory measure) (6.8) (10.0) (20.1)
* figures showing '-' are where there is no balance for the period, figures
showing '0.0' is where there is a balance, but it is below £0.05m.
Non-statutory measures
Whilst underlying EBITDA and underlying operating loss are not statutory
measures, the Board believes they are helpful metrics to provide a meaningful
understanding of the financial information as these measures provide an
approximation of the ongoing cash requirements of the business as it continues
to pursue its future development and ongoing commercialisation of its approved
products. The underlying EBITDA excludes SIP charges and Earnout charges
(contingent and deferred payments on previous acquisitions), individual items
outside of business control, expenses which are non-cash and incorporates the
recovery of research and development expenditure which the Group is able to
benefit from through R&D tax credit schemes. The underlying operating loss
position is EBITDA excluding share-based payment expenses which are non-cash.
Sale of Creo Medical Europe
In addition to the consideration received from the Sale, the remaining 49%
stake held in CME will bring income via a share of the annual profits of CME
and cash inflows via annual dividends distributed from any annual profits
going forwards. A £1.2m (H1-24: £nil) share of profit was recognised during
the period. Current trading at CME continues to be above its management
expectations for growth at both revenue and EBITDA levels.
On completion of the Sale, a €36m (£29.5m) investment asset was recognised
and held on the balance sheet, providing future balance sheet strength to the
Group. As a result of the sale, this period benefited from an exceptional
gain of £26.2m.
Tax
The Company has not recognised any additional deferred tax assets in respect
of trading losses arising in the current financial period. The Company
recognises tax assets in respect of claims under the UK research and
development Small or Medium-sized Enterprise ("SME") scheme, accrued in line
with costs with any adjustments being made on submission of a claim. We
received £2.0m cash from R&D tax credits in August 2025.
Earnings per share
Profit per share was 4 pence for the period (six-months to 30 June 2024: loss
of 3 pence).
Cash flow and Balance Sheet
Net cashflow generated from operating activities was £15.3m for the six
months to 30 June 2025 (H1-24: £13.7m decrease). This included £24.9m net
proceeds from the sale of CME (see Note 5). Net cash outflow excluding this
exceptional item was £9.9m. The decrease from the previous period was due
to the reduction in operating expenses following the restructuring completed
in late 2024.
Net cash from financing activities was £0.6m (H1-24: £5.5m generated)
reflecting loan and lease repayments during the period. H1-24 included
£6.2m of new loans acquired in Europe which were repaid on completion of the
sale of CME.
Total assets at 30 June 2025 were £68.8m (H1-24: £69.3m). Cash and cash
equivalents at 30 June 2025 were £20.5m (30 June 2023: £9.8m). At 30 June
2025, the debtor position in relation to R&D Tax Credits was £2.9m
including the £2.0m debtor from December 2024 which was received in August
2025.
With the completion of Creo's suite of advanced energy products, allowing the
business to move into a more streamlined and simplified commercial
organisation, the Company has agreed heads of terms to divest part of its
Chepstow site. Once complete, the divestment will provide additional
non-dilutive cash for the business' day-to-day operations. This is held as
an asset held for sale as at 30 June 2025 of £1.7m. We continue to make
progress in the divestment and will provide a further update in due course.
2025 Outlook
Trading in the first half of 2025 met management's expectations, including a
notable increase in revenue and number of regular users of Creo's Speedboat
device, and remains on the trajectory to meet management's aims for the
Company for the full year. We anticipate continued revenue growth and expect
to maintain a strong gross margin across our product range during H2-25, and
we re-iterate prior guidance of revenue growth of 40-60% for FY25. Active cost
control will support a stable cost base, driving efficiencies through the
business.
Richard Rees
Chief Financial Officer
22 September 2025
Consolidated statement of profit and loss and other comprehensive income
6 months to 6 months to 12 months to
(All figures £m) Note 30 June 2025 Restated* 31 December 2024
Unaudited 30 June 2024 Audited
Unaudited
Revenue 2 2.2 1.6 4.0
Cost of sales (1.2) (0.8) (2.1)
Gross Profit 1.0 0.8 1.9
Other operating income 0.0 0.0 (0.4)
Administrative expenses (11.0) (15.6) (30.3)
Profit on sale of subsidiary 5 26.2 - -
Operating Profit/(loss) 16.2 (14.8) (28.8)
Finance expenses (0.1) (0.1) (0.4)
Finance income 0.3 0.1 0.2
(Loss)/Gain on foreign exchange (0.3) 0.0 0.0
Profit/(Loss) before tax 16.1 (14.8) (29.0)
Taxation 0.8 1.3 1.2
Profit/(Loss) for the year 16.9 (13.5) (27.8)
Discontinued Operations 6 0.0 1.2 (0.9)
Profit/(Loss) for the period/year 16.9 (12.3) (28.7)
Exchange loss on foreign subsidiary - (0.7) (1.3)
Share of NCI of associate 7 1.2 - -
Total other comprehensive income 1.2 (0.7) (1.3)
Total comprehensive profit/(loss) for the year 18.1 (13.0) (30.0)
Profit/(Loss) per Share
Basic (£) 3 0.04 (0.03) (0.08)
Diluted (£) 3 0.04 (0.03) (0.08)
*2024 H1 result has been restated following the completion of the sale of 51%
of the issued share capital of Creo Medical S.L.U ("Creo Medical Europe"), a
wholly owned subsidiary of Creo, to Micro-tech (NL) International B.V, a
wholly owned subsidiary of Micro-Tech (Nanjing) Co. Ltd (SHA: 688029) on
February 12(th) 2025. Where figures showing '-' are where there is no balance
for the period, figures showing '0.0' is where there is a balance, but it is
below £0.05m.
Consolidated statement of financial position
As at As at 12 months to
(All figures £m) Note 30 June 2025 30 June 2024 31 December 2024
Unaudited Unaudited Audited
Assets
Non-current assets
Intangible assets 0.7 6.5 0.5
Goodwill - 18.7 -
Investments 5 32.8 2.1 2.1
Property, plant and equipment 3.6 8.5 5.9
Deferred tax - 1.2 -
Other assets - 0.2 0.1
37.1 37.2 8.6
Current assets
Asset held for sale 1.7 - 40.9
Inventories 3.2 8.5 2.7
Trade and other receivables 3.4 9.9 2.0
Tax receivable 2.9 3.9 2.1
Cash and cash equivalents 20.5 9.8 8.7
31.7 32.1 56.4
Total assets 68.8 69.3 65.0
Shareholder equity
Called up share capital 4 0.4 0.4 0.4
Share premium 191.9 180.9 192.0
Merger reserve 13.6 13.6 13.6
Share option reserve 12.5 11.1 12.0
Foreign exchange reserve - (2.5) (3.1)
Financial Assets at fair value through other comprehensive income 1.8 0.6 0.6
Accumulated losses (159.3) (156.7) (173.1)
Total equity 60.9 47.4 42.4
Liabilities
Non-current liabilities
Interest-bearing liabilities 1.9 10.7 2.0
Deferred tax liability - 1.0 -
Provisions - 0.3 0.1
1.9 12.0 2.1
Current liabilities
Liabilities held for sale - - 14.2
Interest-bearing liabilities 2.3 3.5 2.4
Trade and other payables 3.6 5.4 3.9
Other liabilities - 0.8 -
Provisions 0.1 0.2 -
6.0 9.9 20.5
Total liabilities 7.9 21.9 22.6
Total equity and liabilities 68.8 69.3 65.0
* figures showing '-' are where there is no balance for the period, figures
showing '0.0' is where there is a balance, but it is below £0.05m.
Consolidated statement of changes in equity
Changes to the
fair value of
equity
instruments
at fair value
Called up Share through other Foreign
share Accumulated Share Merger option comprehensive Exchange Total
(All figures £m) Note capital losses premium reserve reserve income Reserve equity
Balance at 1 January 2024 0.4 (144.4) 180.9 13.6 10.5 0.6 (1.8) 59.8
Total comprehensive profit/(loss) for the period
Profit/(loss) for the financial period - (12.3) - - - - - (12.3)
Other comprehensive loss/income - - - - - - (0.7) (0.7)
Total comprehensive profit/(loss) - (12.3) - - - - (0.7) (13.0)
Transactions with owners, recorded directly in equity.
Issue of share capital 4 0.0 - (0.0) - - - - (0.0)
Equity settled share-based payment transactions - - - - 0.6 - - 0.6
Balance at 30 June 2024 0.4 (156.7) 180.9 13.6 11.1 0.6 (2.5) 47.4
Total comprehensive profit/(loss) for the period
Profit/(loss) for the financial period - (16.4) - - - - - (16.4)
Other comprehensive loss/income - - - - - - (0.6) (0.6)
Total comprehensive profit/(loss) - (16.4) - - - - (0.6) (17.0)
Transactions with owners, recorded directly in equity.
Issue of share capital 4 0.0 - 11.1 - - - - 11.1
Equity settled share-based payment transactions - - - - 0.9 - - 0.9
Balance at 31 December 2024 0.4 (173.1) 192.0 13.6 12.0 0.6 (3.1) 42.4
Total comprehensive profit/(loss) for the period
Profit/(loss) for the financial period - 16.9 - - - - - 16.9
Other comprehensive (loss)/income - (3.1) - - - 1.2 3.1 1.2
Total comprehensive profit/(loss) - 13.8 - - - 1.2 3.1 18.1
Transactions with owners, recorded directly in equity.
Issue of share capital 4 0.0 - (0.1) - - - - (0.1)
Equity settled share-based payment transactions - - - - 0.5 - - 0.5
Balance at 30 June 2025 0.4 (159.3) 191.9 13.6 12.5 1.8 - 60.9
* figures showing '-' are where there is no balance for the period, figures
showing '0.0' is where there is a balance, but it is below £0.05m.
Consolidated statement of cash flows
6 months to 6 months to 12 months to
(All figures £m) Note 30 June 2025 30 June 2024 31 December 2024
Unaudited Unaudited Audited
Cash flows from operating activities
Profit / (loss) for the year 16.9 (12.3) (27.8)
Profit from discontinued operations 0.0 - (0.9)
Depreciation/amortisation charges 0.5 1.8 2.5
Equity settled share-based payment expenses 0.5 0.6 1.5
Finance expenses 0.1 0.3 0.7
Finance income (0.3) (0.2) (0.2)
Impairment of Goodwill - - 1.4
Taxation (0.8) (1.5) (1.0)
16.9 (11.3) (23.8)
(Increase)/Decrease in inventories (0.2) (0.3) 0.7
Increase in trade and other receivables (1.3) (1.5) (1.0)
(Decrease)/increase in trade and other payables (0.0) (0.2) 0.2
(1.5) (2.0) (0.1)
Interest paid (0.1) (0.3) (0.7)
Tax paid (0.0) (0.1) (0.2)
Tax received - - 2.6
Net cash used in operating activities 15.3 (13.7) (22.2)
Cash flows from investing activities
Purchase of intangible fixed assets (0.3) (0.1) (0.1)
Purchase of tangible fixed assets (0.0) (0.5) (0.3)
Disposal of subsidiary net of cash (3.0) - -
Fixed Term Deposits - 15.5 15.5
Interest received 0.3 0.2 0.2
Net cash used in investing activities (3.0) 15.1 15.3
Cash flows from financing activities
Capital repaid in respect of loans (0.4) 6.2 (0.6)
Proceeds of new loan - (0.4) 6.4
Principal elements of lease repayments (0.1) (0.3) (0.7)
Capital received in respect of long-term borrowings - - 11.1
Share issue (0.1) - -
Net cash generated from financing activities (0.6) 5.5 16.2
Increase/(Decrease) in cash and cash equivalents 11.7 6.9 9.3
Effect of exchange rates in cash held (0.0) (0.1) (0.0)
Cash and cash equivalents at beginning of the year 12.3 3.0 3.0
Cash and cash equivalents disposed (3.5) - -
Cash and cash equivalents at end of the year 20.5 9.8 12.3
Cashflow statements from discontinued operations
Cash flows from discontinued activities
Cash and cash equivalents at beginning of the year 3.6 1.0 1.0
Net cashflows from operating activities 0.2 (3.9) 2.8
Net cashflows from investing activities - (0.4) (0.2)
Net cashflows from financing activities (0.3) 5.9 (0.0)
3.5 1.6 3.6
* figures showing '-' are where there is no balance for the period, figures
showing '0.0' is where there is a balance, but it is below £0.05m.
Notes to the interim financial statements
1. Basis of preparation
The interim financial report for the period ended 30 June 2025 and similarly
the period ended 30 June 2024 has been neither audited nor reviewed by the
auditor. 2024 H1 result has been restated following the completion of the sale
of 51% of the issued share capital of Creo Medical S.L.U ("Creo Medical
Europe"), a wholly owned subsidiary of Creo, to Micro-tech (NL) International
B.V, a wholly owned subsidiary of Micro-Tech (Nanjing) Co.Ltd (SHA: 688029) on
February 12(th) 2025. The interim financial report for the period ended 30
June 2025 does not constitute statutory accounts as defined in section 434 of
the Companies Act 2006. The financial information for the year ended 31
December 2024 has been based on information in the audited financial
statements for that period. A copy of the statutory accounts for the year
ended 31 December 2024 has been delivered to the Registrar of Companies, the
accounts had an unqualified audit opinion and did not contain a statement
under section 498(2) or (3) of the Companies Act 2006.
This interim financial report for the six-month period ended 30 June 2025
(including comparatives for the six months ended 30 June 2024) was approved by
the Board of Directors on 21 September 2025.
Going Concern
The interim review statements have been prepared on a going concern basis
which the Directors believe to be appropriate for the following reasons:
The Directors have considered the applicability of the going concern basis in
the preparation of the financial statements. This included the review of
financial results, internal budgets, cash flow forecasts and covenant
compliance for the period of at least 12-months following the date of approval
of the financial statements ("the going concern period").
The Directors continue to monitor and adjust a base case scenario which is
based on the Board approved forecast and assumes an increase in revenues, and
a decrease in underlying administrative expenses following a strategic review
of the underlying cost base. In addition, the Directors have modelled severe
but plausible downside scenarios on the going concern period. These scenarios
include sensitivity analysis to delay future revenue growth. In such a case
the Group would take mitigating actions and the Directors concluded that the
Group would be able to reduce expenditure on its research and development
programmes and other areas in order to meet its liabilities as they fall due
for the going concern period, without needing to obtain waivers on any
applicable debt covenants.
Based on the above, the Directors are satisfied that the Group and Company
will have sufficient funds to meet their liabilities as they fall due for the
going concern period and therefore have prepared the financial statements on a
going concern basis.
Accounting policies
The accounting policies used in the preparation of the financial information
for the six months ended 30 June 2025 are in accordance with the recognition
and measurement criteria of UK adopted international accounting standards and
are consistent with those which will be adopted in the annual financial
statements for the year ending 31 December 2025. 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. The Group has not applied IAS 34, Interim
Financial Reporting, which is not mandatory for UK AIM listed Groups, in the
preparation of this interim financial report.
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:
- Lack of Exchangeability (Amendments to IAS 21). The amendment
clarifies how the Group assesses whether a currency is exchangeable, and when
not, how to derive and disclose an appropriate exchange rate. Additional
disclosures are required regarding the estimation methodology and the
resulting financial impact.
The adoption of this amendment has not had a material impact on the Group's
consolidated financial statements.
Future standards, amendments and interpretations:
In April 2024, the IASB issued IFRS 18, which replaces IAS 1. The new standard
is effective for annual periods beginning on or after 1 January 2027 (with
earlier adoption permitted) and must be applied retrospectively. IFRS 18 will
change how the Group presents its financial statements but will not affect the
recognition or measurement of assets, liabilities, income, or expenses. The
group is in the process of assessing the impact and changes required to meet
this new standard.
Principal risks and uncertainties
The principal risks and uncertainties impacting the Group are described in our
2024 Annual Report and remain unchanged at 30 June 2025. We continue to
monitor the global inflationary and economic pressures along with other
geopolitical macro issues.
Critical accounting judgments and key sources of estimation uncertainty
The Group is required 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. Accounting estimates
and judgements have been required for the production of these Financial
Statements.
Share-based payments
Equity-settled share options are granted to certain officers and employees.
Each tranche in an award is considered a separate award with its own vesting
period and grant date fair value. The fair value of each tranche is measured
at the date of grant using the Black-Scholes option pricing model, the Monte
Carlo method, or a hybrid model where appropriate. Compensation expense is
recognised over the tranche's vesting period based on the number of awards
expected to vest, through an increase to equity. The number of awards expected
to vest is reviewed over the vesting period, with any forfeitures recognised
immediately.
Research and 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 evidence that an economic
benefit will flow to the Company. During the period we capitalised £290k of
research and development costs in relation to our bipolar snare product which
we are developing. No other development costs have been capitalized for the
period.
Deferred tax assets
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 three 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
insufficient certainty over the timing and amount of loss recoverability for
any further deferred tax asset to be recognised.
Segmental reporting
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. As the Group's global reach has expanded in the period, 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 products and the 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.
After 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 explained in the 2024 Annual Report, as the Group continues to
grow it is expected that the internal reporting structure will evolve in order
to meet the changing activities, goals and objectives of the business and
therefore additional operating segments may be identified as appropriate in
future reporting periods.
Investment in Associate
Investments in Associates with significant influence but not control will be
accounted for under the equity method as per IAS 28. The investment will be
recognised initially at cost, with share of the profits added to the
investment and the investment reduced by subsequent dividends. The investment
must be assessed for impairment indicators.
Following the disposal of CME the group now holds a 49% interest in Creo
Medical S.L. over which it exercises significant influence but does not have
control or joint control. The asset has been recognised initially at £29.5m,
being 49% of the €72m equity value of the purchase by Micro-Tech. As
required under the equity method as per IAS 28.
Subsequently, the share of the associates' profits for the 6 months ended 30
June 2025 of £1.2m has been recognised on the investment. Total investment
£30.7m (2024: nil), with the remaining investment on the balance sheet £2.1m
in IQ Endoscopes Ltd.
Asset 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.
2. Revenue and other operating income
The revenue split for the Group at 30 June 2025 was as follows:
6 months to 6 months to 12 months to
(All figures £m) 30-Jun-25 30-Jun-24 31-December-24
Unaudited Unaudited Audited
UK 1.0 0.9 1.7
Europe 0.3 0.3 1.2
RoW 0.9 0.4 1.1
Continuing operations 2.2 1.6 4.0
UK 0.7 6.3 7.2
Europe 2.1 7.3 19.5
RoW - - -
Discontinued operations 2.8 13.6 26.7
Total 5.0 15.2 30.7
6 months to 6 months to 12 months to
(All figures £m) 30-Jun-25 30-Jun-24 31-December-24
Unaudited Unaudited Audited
Creo Products 2.2 1.6 4.0
Continuing operations 2.2 1.6 4.0
Creo Consumables 2.8 13.6 26.7
Discontinued operations 2.8 13.6 26.7
Total 5.0 15.2 30.7
3. Earnings per share
6 months to 6 months to 12 months to
30 June 2025 30 June 2024 31 December 2024
(All figures £) Unaudited Unaudited Audited
Profit/(Loss)
Loss attributable to equity holders of Company (basic) 16,925,834 (12,309,680) (27,776,661)
Shares (number)
Weighted average number of ordinary shares in issue during the year 412,743,602 361,663,962 369,978,970
Profit/(Loss) per share
Basic 0.04 (0.03) (0.08)
Shares (number)
Dilutive Share Options 2,894,680 - -
Adjusted weighted average number of ordinary shares in issue during the year 415,638,282 361,663,962 369,978,970
Diluted profit/(loss) per share 0.04 (0.03) (0.08)
Earnings per share has been calculated in accordance with IAS 33 - Earnings
Per Share using the loss for the period after tax, divided by the weighted
average number of shares in issue.
Diluted earnings per share is calculated by adjusting the weighted average
number of ordinary shares in issue to assume conversion of all potential
dilutive ordinary shares. In comparative years, the potential ordinary shares
are considered to be antidilutive on the basis that they reduce the loss per
share and are not included in the Company's EPS calculation, meaning that
diluted EPS is the same as basic EPS.
4. Share capital
Balance at 30 June 2023 (£) 350,891
Issue of share capital
Number of shares 10,360,146
Price per share (£) 0.001
Share value (£) 10,360
Balance at 31 December 2023 (£) 361,251
Issue of share capital
Number of shares 225,024
Price per share (£) 0.001
Share value (£) 225
Balance at 30 June 2024 (£) 361,476
Issue of share capital
Number of shares 5,067,254
Price per share (£) 0.001
Share value (£) 50,673
Balance at 31 December 2024 (£) 412,149
Issue of share capital
Number of shares 324,340
Price per share (£) 0.001
Share value (£) 324
Balance at 30 June 2025 (£) 412,473
5. Disposal of investments in subsidiaries
On 12 February 2025 Creo announced the completion of the sale of 51% of the
issued share capital of Creo Medical S.L.U. ("CME"), a wholly owned subsidiary
of Creo, to Micro-Tech (NL) International B.V., a wholly owned subsidiary of
Micro-Tech (Nanjing) Co. Ltd (SHA: 688029) ("Micro-Tech") at an equivalent
equity value of €72m on a cash-free, debt-free basis. Along with other
customary conditions, completion of the Sale was contingent on Micro-Tech
obtaining Outbound Direct Investment clearance in China along with Foreign
Direct Investment clearances in Spain, France, Belgium and Germany which were
obtained. After the settling of debt of €6.3m, net proceeds of €30.4m were
received by the Company on 14 February 2025. Creo are holding an associate
investment using equity accounting at the fair value of the retained
investment.
On 19 March 2025 Aber Electronics Limited ("Aber"), a wholly owned subsidiary
of Creo Medical Limited, was sold by Creo Medical Limited to its management.
Creo Medical Limited acquired Aber on 11 November 2021 as a step to secure the
supply of a component in the CROMA advanced energy platform. The transaction
releases Creo from any ongoing obligations under the original SPA including
any further earn out payments. The transaction also includes
anti-embarrassment terms which apply until the 10th anniversary of the
transaction and the repayment of all intercompany balances, pursuant to which
Creo would receive up to 20% of the net proceeds of a sale if Aber (or its
business and assets) were acquired by a third party.
The impact of both transactions can be seen both on the statement of
comprehensive income and the reduction in the statement of financial position.
The resulting transaction resulted in a profit on disposal of £26.2m this is
broken down as follows:
6 months to
(All figures £m) 30 June 2025
Consideration received 30.7
Debt settled (5.8)
Net consideration 24.9
Carrying amount of net assets disposed (26.8)
Transaction costs incurred on disposal (1.4)
Investment Retained 29.5
Profit on disposal 26.2
Held For sale Movement in Asset
(All figures £m) 31 December 2024 Asset to sale date Disposed
Non-current assets 24.6 - 24.6
Current assets 16.3 0.2 16.5
Total assets held for sale 40.9 0.2 41.1
Total liabilities held for sale 14.2 0.1 14.3
Net Asset Held for Sale 26.7 0.1 26.8
The Investment retained on the balance represents the 49% associate accounted
for under IAS 28 equity method. The disposal removed the requirement for the
foreign currency reserve, which has been transferred to reserves. The movement
in the asset held for sale reflects the result of discontinued operations
adjusted for relevant continuing profits affecting the asset disposed of with
£0.1m impact.
6. Asset held for sale
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 therefore no requirement
for discontinued operations.
7. Post balance sheet events
None
Richard Rees
Chief Finance Officer
22 September 2025
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