REG - Creo Medical Group - Disposal and outsourcing of manufacturing

Creo MedicalAnnouncement

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RNS Number : 6595A  Creo Medical Group PLC  16 April 2026

 

Creo Medical Group plc

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

 

Disposal and outsourcing of manufacturing

 

Sale of manufacturing business to further reduce operating costs and improve
margins

 

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 that it has entered into an agreement to sell its
manufacturing operations to Creo's current manufacturing operations management
as a management buyout (the "Manufacturing Disposal"), for an undisclosed
amount.

 

Under the terms of the Manufacturing Disposal, a newly established company
controlled by the current management of Creo's manufacturing operations
("NewCo"), will, subject to the satisfaction of certain conditions, acquire
all of Creo's UK manufacturing operations. As a result, 25 full-time employees
will transfer from Creo to NewCo at closing. The transaction is expected to
close in May.

 

Manufacturing of Creo's product portfolio will be undertaken by NewCo as a
third-party manufacturer, ensuring continuity of supply and manufacturing
quality, and facilitating a strong ongoing relationship between NewCo and
Creo. Craig Gulliford, Creo's CEO, will support the effective transition of
Creo's manufacturing outsourcing to NewCo by becoming a non-executive director
of NewCo.

 

As part of the Group's strategy to improve operational efficiency and
financial discipline, as set out in the Company's 2024 Annual Report, Creo has
been actively reviewing its manufacturing strategy. The Manufacturing Disposal
and outsourcing relationship is consistent with the Company's strategy to
pivot to a lean, new product introduction company that designs, builds and
tests medical devices that are then produced by third party partners. Having
considered various options, the transaction represented the best outsourcing
option, delivering financial benefits while derisking the technology transfer,
maintaining the know-how of an experienced team and ensuring continuity of
supply.

 

The manufacturing outsourcing is expected to reduce the Company's annual
operating costs by over £1m, representing a further 15% reduction from the
FY25 closing run rate on a pro forma basis, which were already c.40% lower
than the FY24 closing operating cost run rate.

 

Peter Tomlinson, current Chief Operating Officer at Creo and CEO of NewCo,
said:

"This strategic decision marks an exciting new chapter for the Creo Medical
Operations team. Having developed the manufacturing capability within Creo, we
see a clear opportunity to establish a focused, world-class medical device
manufacturing and engineering business. We will have the agility to invest,
scale, and support a wide range of medical device innovators while continuing
to serve as a trusted partner to Creo. Our ambition is to build a highly
capable and globally competitive manufacturing platform for advanced medical
technologies.

 

"We remain deeply committed to supporting Creo Medical's growth and
innovation, and the long-term partnership between our organisations will
continue to be a cornerstone of our future."

 

Craig Guliford, CEO, commented:

"We have a commitment to improve the operational efficiency of the business
and focus on our core strengths as a world class medical device design,
clinical application and sales execution business. The outsourcing of product
manufacturing has been a key part of this strategy, having already outsourced
our next generation bipolar range in our near-term product launch program.
This is a further important milestone enabling us to scale our business with
increasing volumes on the back of a maturing manufacturing process.

 

"We are extremely proud of the sophisticated manufacturing operation and
talented team we have developed for our class leading products over the last
few years which have enabled us to reach this point.

 

"Having looked at the options available for our outsourcing strategy, it
became very clear that the capability within the operations team stands out in
the UK peer group we evaluated. I am excited to see our volumes grow in the
short term and working closely with Peter and the team as they embark on
realising the growth potential in this area of the devices market.

 

"This enables the team at Creo to focus on that which is unique to us,
significantly differentiated product design, clinical application and sales
execution through our sales channels with real traction and momentum."

 

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, Joint Broker and Financial Adviser)         +44 (0)20 7260 1000

 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
(http://www.creomedical.com)

 

 

 

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