REG - Creo Medical Group - H1’25 Trading Update

Creo MedicalAnnouncement

Mon 07:00

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RNS Number : 7929R  Creo Medical Group PLC  21 July 2025

 

THIS ANNOUNCEMENT WAS DEEMED BY THE COMPANY TO CONTAIN INSIDE INFORMATION AS
STIPULATED UNDER THE MARKET ABUSE REGULATIONS (EU) NO. 596/2014 AS THEY FORM
PART OF UK DOMESTIC LAW BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018.
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Creo Medical Group plc

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

 

H1'25 Trading Update

 

40% Core Technology revenue growth, in line with management expectations

Tracking on plan with 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, provides a trading update for the six-month period ended 30
June 2025 (H1'25).

 

Financial highlights

 

H1'25 Core Technology revenues from continuing operations were up 40% to
£2.2m (H1'24: £1.6m), in line with management expectations for first half
performance. The Board is pleased with current trading into the second half of
the financial year and believes the Company is tracking on plan for 40% to 60%
revenue growth for the full year, in-line with prior guidance, with a
continued historical H2 weighting.

 

Creo has continued to implement efficiencies and cost reductions, and H1'25
has benefitted from the full impact of the proactive management of its cost
base already undertaken in 2024. Underlying operating costs on a continuing
basis have reduced to £9.1m (H1'24: £12.8m). Underlying operating loss on a
continuing basis has reduced to £6.9m (H1'24: £12.1m).

 

Cash and cash equivalents at 30 June 2025 was £20.5m (31 December 2024:
£8.7m).

 

Operational overview

 

Recent developments in the US have provided positive support for the long-term
roll-out of Creo's products. The two new Category I CPT reimbursement codes
for upper gastrointestinal ("GI") and lower GI Endoscopic Submucosal
Dissection procedures are expected to enable and encourage the use of
next-generation products such as Speedboat® UltraSlim, and Speedboat® Notch,
designed specifically for such procedures. The Board believes this financial
incentive will encourage the US market to move from diagnostic procedures to
therapeutic procedures in upper and lower GI.

 

In other positive news for commercial traction in the US, in June 2025, the
Company announced FDA clearance for its SpydrBlade™ Flex device, a unique
multi-modal endoscopic device designed for precision and adaptability in
therapeutic endoscopy procedures and the latest product in Creo's GI suite of
advanced energy products.

 

As set out in the full year results, the Company expects more sites to come
online in 2025 using MicroBlate™ Flex in the treatment of lung tumours, with
the expectation that these sites will become revenue generative in due course.
Commercial sales of MicroBlate™ Flex from the initial sites have already
commenced.  Earlier this month the Company announced first patient treatment
in a post-market multi-centre "ablate and resect" clinical study to evaluate
MicroBlate™ Flex safety and performance. The study is taking place at the
Amsterdam University Medical Centre in the Netherlands and at the Royal
Brompton Hospital in the UK.

 

Wider clinical adoption of Creo's Core Technology portfolio continues to be
supported by a significant number of papers, abstracts and case studies from
clinicians around the world who have used Creo's advanced energy devices. Many
can be viewed here:

 

https://www.creomedical.com/en/investors/creo-medical-clinical-resources-bibliography
(https://www.creomedical.com/en/investors/creo-medical-clinical-resources-bibliography)

 

As detailed in the full year results, in September 2024, the Group announced
the agreement to sell a 51% interest in Creo Medical Europe ("CME") to
Micro-Tech (NL) International B.V., a wholly owned subsidiary of Micro-Tech
(Nanjing) Co. Ltd (SHA: 688029) (the "Sale"). The Sale completed on 12
February 2025.

 

The Company's 49% stake in CME will bring revenue and cash inflows via annual
dividends distributed from annual profits going forwards. Current trading at
CME is reported to be above its management expectations for growth at both
revenue and EBITDA levels. We are now working actively with Micro-Tech to
explore strategic growth opportunities both within CME and Creo's wider
advanced energy portfolio.

 

On completion of the Sale, a €36m investment asset was recognised and held
on the balance sheet, providing future balance sheet strength to the Group.
This will be an exceptional gain during H1'25.

 

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 for £1.75m. Once complete, the divestment will provide
additional non-dilutive cash for the business's day-to-day operations.

 

Outlook

 

The Board of Creo remains confident in the outlook for 2025 and expects
another year of strong growth in Core Technology, allowing the Company to
build self-sustaining cashflows and improve outcomes for pre-cancer and cancer
patients worldwide.

 

Notice of Results and Capital Markets Event

 

Creo will announce unaudited interim results for the six months ended 30 June
2025 before the end of September 2025. A further announcement confirming a
date for publication of the interim results will be issued in due course.

 

Creo also announces that it will hold a Capital Markets Event for investors
and analysts on Thursday 9 October 2025 at the offices of Deutsche Numis. A
further announcement with details of the agenda and how to register for the
event will be published in due course.

 

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

 

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

 

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

 

 

 

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