REG - Futura Medical PLC - Unaudited Results for the Year Ended 31 Dec 2025
29/04/2026 07:00
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RNS Number : 3000C Futura Medical PLC 29 April 2026
29 April 2026
Futura Medical plc
("Futura" or the "Group")
Unaudited Results for the Year Ended 31 December 2025
Futura Medical (AIM: FUM), the consumer healthcare Group behind Eroxon(®) and
that specialises in the development and global commercialisation of innovative
and clinically proven sexual health products, announces its unaudited results
for the year ended 31 December 2025 ("FY25").
Operational and strategic overview:
· Further market launches, with Eroxon(®) now launched in 27 countries, but
challenges around usage, positioning and marketing communication have
continued into FY26
· Two new development projects, Eroxon(®) Intense and the WSD4000 female sexual
health portfolio, have a clear market opportunity and development plans have
progressed
· Board commenced a full review of the business, its priorities and its
strategic options with actionable priorities now being delivered
Financial overview:
· Revenue of £1.7 million (FY24: £13.9 million) slightly ahead of revised
management expectations announced on 15 September 2025*
· Operating loss of £9.1 million (FY24: operating profit £1.2 million)
· Adjusted operating loss(1) before share-based payments £8.6 million (FY24:
profit £3.3 million)
· Underlying operating loss(2) (before share-based payments and exceptional
items) £4.5 million (FY24: profit £3.3 million)
· Cash and cash equivalents as at 31 December 2025 £3.4 million (FY24: £6.6
million) following the fundraise completed in December 2025 raising gross
proceeds of £2.75 million
Post-period end and outlook:
· Progress has been made against the objectives set at the time of the December
2025 fundraise:
o Granted patents in both the US and China until 2040 for Eroxon(®)
o Positive results of the WSD4000 Early Feasibility Study ("EFS") with the
results showing clear and positive trends, demonstrating that the product can
deliver a significant improvement in symptoms for women
o Home User Test ("HUT") on the current Eroxon(®) product and new product
Eroxon(®) "Intense" delivered positive results which give us confidence in
our revised strategy to target men under 60 years of age with mild to moderate
ED and our repositioning work for the portfolio
· Comprehensive strategic review to assess the Group's positioning, operating
model and future value creation opportunities now complete:
o New refined vision and strategy, details of which are set out in this
announcement
o Evolution of commercial model - moving from a model focused on R&D and
full out-licensing, to a hybrid R&D and commercial model
o Reassessment and progression of the two development projects, Eroxon(®)
Intense and the WSD4000 female sexual health platform
· Cash and cash equivalents stood at £2.35 million at the end of March 2026
which, subject to a number of potential variables (including receipt of US
patent milestone), is expected to provide working capital into December 2026
o The Directors continue to believe that the conditions associated with the
US patent milestone have been satisfied and are engaged in constructive
discussions with Haleon regarding its receipt in line with the terms of the
license agreement. Based on the Group's current forecasts and excluding
receipt of this milestone, existing cash resources are expected to provide
runway into June 2026
o The Board is actively considering a number of dilutive and non-dilutive
funding and strategic initiatives to extend the Group's cash runway beyond
June 2026 if the receipt of the US patent milestone from Haleon were to be
delayed. Whilst active discussions are ongoing and the Board is confident ,
there can be no certainty of the outcome of these discussions
Alex Duggan, CEO of Futura, commented:
"2025 was a challenging year for Futura, with the initial in‑market
performance of Eroxon(®) falling short of our expectations. While the year's
financial performance was disappointing, we now have much greater clarity
around the drivers and inhibitors behind the performance of Eroxon(®) and we
are actively addressing these through improved targeting, clearer consumer
communication and enhancements to the product offering. Importantly, the
Group's development pipeline has continued to advance, with encouraging
clinical and home user test results for both Eroxon(®) Intense and the
WSD4000 female sexual health portfolio.
The fundraise completed in December 2025 strengthened our balance sheet and
enabled us to implement a refined strategy, evolve our commercial model and
maintain momentum across our priority development programmes. With patents
secured in key markets, a clearer strategic focus and reset priorities, we
believe Futura is now better positioned to unlock the long‑term value of its
portfolio and deliver returns for shareholders."
*On 19 September 2025, the Group disclosed that it expected to deliver revenue
between £1.3 million and £1.4 million for FY25.
Alternative performance measures ("APMs") are used by the Group
to provide additional insight into the underlying financial performance of
the business. These measures are not defined under IFRS and may not be
comparable with similarly titled measures used by other companies. They are
not intended to be a substitute for, or superior to, statutory measures.
(1) Adjusted operating (loss)/profit represents reported operating
(loss)/profit excluding non-cash share-based payment charges.
(2) Underlying operating (loss)/profit represents adjusted operating
(loss)/profit further excluding items classified as exceptional, being those
items which the Board considers not to be representative of the Group's
underlying trading performance. In 2025, such items comprised impairment of
property, plant and equipment, inventory provisions and other one-off
costs.
Contacts:
Futura Medical plc Alex Duggan investor.relations@futuramedical.com
(mailto:Investor.relations@futuramedical.com)
Chief Executive Officer
+44 (0)1483 685 670
Angela Hildreth
www.futuramedical.com (http://www.futuramedical.com/)
Finance Director and COO
Panmure Liberum Emma Earl, Will Goode, Mark Rogers (Corporate Finance) +44 (0)20 3100 2000
Nominated Adviser
and Broker
Turner Pope Investments (TPI) Ltd - Broker Guy McDougall, Andrew Thacker +44 (0) 20 3657 0050
Alma Strategic Communications Rebecca Sanders-Hewett, Sam Modlin, Sarah Peters +44 (0)20 3405 0205
futura@almastrategic.com (mailto:futura@almastrategic.com)
Notes to Editors:
Futura Medical plc (AIM: FUM) is the developer of innovative,
consumer-focused, sexual health products, including lead product
Eroxon(®) and development projects WSD4000 and Eroxon(®) Intense. Our core
strength lies in our research, development, regulatory and business
development expertise in developing innovative, clinically proven, insight-led
and effective products to support our customers in the growing sexual health
market.
Sexual health issues are prevalent globally in both men and women. Erectile
Dysfunction ("ED") impacts 1 in 5 men globally across all adult age brackets,
with approximately half of all men over 40 experiencing ED and 25% of all new
diagnoses being in men under 40. 60% of women experience at least one symptom
of impaired sexual response or function in a twelve months period, with only
one in four women seeking professional help and remaining chronically
underserved.
Eroxon(®), Futura's clinically proven lead product, has been developed for
the treatment of ED. The highly differentiated product, which is the only
topical gel treatment for ED available over the counter and helps men get an
erection fast, addresses significant unmet needs in the ED market. Multiple
license or distribution partnerships are in place for Eroxon(®), across major
consumer markets.
WSD4000 is a project name for our development female sexual health portfolio,
starting with the creation of a range of topical gels under our unique
platform technology, specifically designed to treat symptoms of sexual
dysfunction in women. There is currently no known regulatory approved OTC
treatment available for impaired sexual response and function in women.
WSD4000 has the potential to be an effective, breakthrough treatment for the
common symptoms associated with impaired sexual response and function, such as
lack of desire, arousal, lubrication and ability to orgasm.
Chairman's Statement
There is no doubt that FY25 was a difficult year for Futura. A year that has
challenged us internally to assess our progress, our position in the market
and our vision for the future. This has been a period of disruption for our
colleagues across the Group, and I would like to take this opportunity to
thank them for their tireless efforts and commitment.
FY25 financial performance was impacted by the slower than anticipated
in-market sales of Eroxon(®), as previously disclosed. It has since become
clear that the low level of consumer repeat purchases of Eroxon(®) has been
due to numerous factors. As a new product in a new category, we were
constantly learning with each launch that took place. The Board is now clear
on the challenges and issues in relation to the commercialisation of
Eroxon(®), with plans developed to manage or mitigate these going forwards as
well as a realignment of focus.
Notwithstanding the challenges that the product has faced during its initial
launch, we continue to believe that there is an unmet need and a market
opportunity for Eroxon(®). Markets of this nature often take time to develop,
and we remain confident there is meaningful global demand for a
well-positioned topical product to support male sexual intimacy.
As part of our realignment, Jeff Needham and James Barder stepped down from
the Board as Non-Executive Chair and Chief Executive Officer respectively. I
would like to thank both of them for their significant efforts and
achievements. Additionally, Harmesh Suniara stepped down from his role as
Non-Executive Director.
In August, Alexander ("Alex") Duggan was appointed as Interim Chief Executive
Officer and to the Board of Directors. He was subsequently appointed as Chief
Executive Officer in November. Alex brings 30 years of experience in Consumer
Healthcare and Prescription (Rx) sectors, having successfully scaled global
businesses across Europe, Asia, North America, and Latin America. The impact
Alex has made already has been substantial, shifting the focus of the business
towards business development and a commercially driven mindset.
To ensure that we are positioned to maximise shareholder value, the Board
tasked Alex with a comprehensive review of the business in August 2025. This
review encompassed an in-depth evaluation of our current operations, a
re-examination of our key priorities, and a careful consideration of the
strategic options available to the Group. The process has now been completed,
and the findings and outcomes are discussed in detail within the CEO Review
section. We now have a clear path on the key deliverables that will in turn
provide shareholders with sustainable growth and long‑term value
creation.
In December 2025, we completed a fundraise raising gross proceeds of £2.75
million, by way of an oversubscribed firm placing, conditional placing and
subscription. This enabled us to utilise the strength and experience of our
R&D team in order to progress the development of Eroxon(®) Intense and
WSD4000, our two projects in development which we believe represent
significant value opportunities. The pace and scope of certain development
activities will be dependent on the availability of appropriate funding. This
position also provides the Board with the opportunity to consider strategic
options and explore ways to maximise shareholder value in 2026. The Board
remains grateful for the continued support of our investors.
We remain focused on realising the value of our assets, Eroxon(®), Eroxon(®)
Intense and WSD4000, and executing a clear strategy that maximises benefits
for shareholders, commercial partners, and employees.
Andrew Unitt
Non-Executive Chairman
Chief Executive Officer's Review and Strategic Review Update
2025 was a year defined by both challenge and renewal for Futura Medical.
Since my appointment in August 2025, I have worked closely with the Board and
the wider team to carefully review the business, its priorities and its
strategic options. As a result of this review, we have acted quickly and have
actionable priorities that are now being delivered.
We cannot shy away from the fact that the Group's financial performance and
the underlying in-market sales of Eroxon(®) has been disappointing and this
performance frames our reflection on FY25.
Notwithstanding this, our two new development projects, Eroxon(®) Intense and
WSD4000 (the female sexual health platform) have a clear market opportunity
and development plans have progressed throughout the year. In December, we
raised £2.75 million (before fees) which provided the Group with additional
working capital and funding to continue to progress the development of
Eroxon(®) Intense and WSD4000.
I would like to take this opportunity to thank the full Futura team, whose
hard work and commitment is greatly appreciated. Undertaking any business
review can be difficult and distracting but our team has shown great
resilience. I would also like to thank our shareholders and our valued
external partners for their support throughout this review process.
Eroxon(®) sales impacting financial performance
Group performance during the period did not meet initial management
expectations set out at the beginning of 2025, due largely to Eroxon(®) early
in-market results showing slower than hoped for consumer uptake and repeat
sales.
Revenue for the period was £1.7 million, slightly ahead of the previously
announced revised management expectations. Additionally, cash and cash
equivalents at year end was £3.4 million following the £2.75 million
fundraise in December 2025.
Eroxon(®) in-market challenges understood; development progress on Eroxon(®)
Intense and WSD4000
Eroxon(®)
At the close of the year, Eroxon(®) has been launched and is now available in
27 countries, up from 18 at the end of 2024. Of the nine new market launches
during the period, six were in the EU, two in Central America and one in the
Middle East.
However, Eroxon(®) experienced lower than expected sales across all currently
launched markets, with clear reasons for this performance now understood and
being addressed.
In the EU and UK there was a decline in in-market performance driven by
comparison with a strong H2 2024 (in particular, investment in France, Spain
and Portugal led to high sell-in). The drop in sales was steeper than expected
and consumer repeat sales are not yet at the level originally targeted by the
EU/UK licensee Cooper Consumer Health.
In the Middle East, sell-in has declined compared with the trend from the 2024
launch period when strong sell-in activity from the local sales force in Saudi
Arabia drove strong volumes. Our commercial partner in the region, Labatec,
has remained engaged and further expanded distribution of Eroxon(®) into
Kuwait in May 2025.
In the US, following a high impact launch in October 2024 with high levels of
investment from Haleon, sales progress has been slower than expected. While
distribution levels remain strong, in-market performance has not yet met
initial Haleon or Group expectations due to lower repeat sales levels across
online and physical stockists compared to Haleon's initial forecasts.
Following launch in August 2024 in Mexico by M8 Pharmaceuticals ("M8") (the
Group's commercial partner in the region), H1 2025 saw continued growth in
retail distribution and a significant expansion of M8's digital campaign,
albeit with consumer sales results below M8's forecast. A detailed analysis of
our LATAM strategy is underway to ensure we achieve the significant
opportunity the Eroxon(®) portfolio represents, especially with regards to a
potential launch in Brazil.
Clearly the FY25 results were disappointing. We do however now have a clearer
picture of the reasons for the lower than expected level of consumer repeat
purchases. These include (i) a potential over-expectation from customers of
Eroxon(®)'s benefits due to the erroneous direct comparison of Eroxon(®)
performance to that of a PDE5 Inhibitor; (ii) an imperfect consumer
understanding of how/when to use the product correctly; (iii) the fact that
efficacy is binary i.e. for many men the product either works or it doesn't;
(iv) the fact that no prescription or health care professional ("HCP") is
required and therefore the product is widely available without HCP interaction
or advice, which could result in use by the wrong target consumer or
unrealistic expectations; and (v) sub-optimal targeting of consumers including
those unlikely to respond to the Eroxon(®) product, especially older men with
severe ED.
Alongside our commercial partners we believe a number of steps can be taken to
address these issues:
1. Targeting: to help the product reach men who will benefit most from
Eroxon(®), especially those aged under 60 with mild to moderate ED
2. Education: to help men achieve best results from using Eroxon(®), especially
as part of foreplay with a partner
3. Expectation management: to help men anticipate the Eroxon(®) experience,
which is different from taking oral PDE5 inhibitors.
Eroxon(®) Intense
Eroxon(®) Intense is a new formulation of Eroxon(®) which is designed to
have a faster and stronger sensorial action. Marketing feedback with
Eroxon(®) has shown that whilst many men are satisfied with the current
sensorial effect of the product, a faster and stronger sensation emphasising a
stronger onset of action would be beneficial.
Initial studies on Eroxon(®) Intense undertaken by Futura in 2024 and 2025
reported 67% of men experience greater sensorial sensitivity compared to
Eroxon(®) and significantly stronger sensations within 15 seconds of
application. A further comparative Home User Test in 223 subjects completed in
March 2026 has confirmed that the Eroxon(®) Intense formulation has a faster
onset of sensorial effects than Eroxon(®), with the majority of men
describing these effects as moderate or strong.
WSD4000
WSD4000 is the project name for our development female sexual health
portfolio, starting with the creation of a range of topical gels under our
unique platform technology designed to treat impaired sexual response or
function (sexual dysfunction) in women. Currently, no known regulatory
approved topical treatments for sexual dysfunction in women are available over
the counter in any major market. WSD4000 has the potential to create
effective, breakthrough treatments for the common symptoms associated with
sexual dysfunction, such as impaired arousal, lubrication and desire in
various groups such as pre- and post-menopausal women.
In 2024, the Group commissioned IPSOS to undertake market research in the US
in 1,000 women and this showed that around 60% have suffered from at least one
symptom of sexual dysfunction in the last twelve months 1 (#_ftn1) . In
addition, only one in four women seeks professional help and only 13% of women
with symptoms experience an improvement over time while 37% experience a
worsening of symptoms over time(1).
In January 2025, we completed a successful proof of concept study in 67 women
followed by positive pre-submission meetings with the FDA.
Fundraise
In December 2025, we were thankful for the support shown by investors as we
raised £2.75 million (before fees). The additional capital from the fundraise
enabled us to conclude the outcome of the strategic review and provided
working capital to utilise the strength and experience of our R&D team as
we progress the development of both Eroxon(®) Intense and the WSD4000
platform. I remain of the belief that these two products have strong
commercial potential.
Post-year progress in line with objectives set
At the time of the December 2025 fundraise, we set out clear objectives that
we were hoping to achieve in 2026, and I'm pleased to say that we have already
delivered on a number of these.
The objectives were:
1) In relation to Eroxon(®):
Objective Status
China patent to be granted Completed
US continuation patent to be granted Completed
US patent milestone payment to be received from Haleon Expected Q2 2026
Appointment of APAC partner Expected Q3 2026
In relation to Eroxon(®), we have now been granted patents in both the USA
and China until 2040. This provides incremental patent coverage to patents
granted in Europe, Hong Kong and Taiwan. Other patents remain pending.
The new US continuation patent granted on 17 March 2026 contains claims
whereby we are confident that this has triggered a US patent milestone receipt
of US$2.5 million under the terms of the Group's existing license agreement
with Haleon. we are engaged with Haleon regarding the interpretation and
timing of this milestone under the terms of the agreement. This grant was a
key Group objective and given that the United States is the largest global
market for erectile dysfunction, it will provide an enhanced competitive
position for both current and potential new formulations of Eroxon(®).
Additionally, the receipt of the milestone payment will extend the cash runway
to December 2026, in line with previous expectations, supporting current
development opportunities.
The grant of the patent in China in January 2026 marks an important milestone
for Futura in one of the largest erectile dysfunction markets globally. We now
have an enhanced competitive position which supports our commercial strategy
as we actively seek a long-term partner in this market. To support our
intellectual property position further, we have filed an additional divisional
patent in China with broader claims (as per our patent strategy in the US).
2) In relation to Eroxon(®) Intense:
Objective Status
HUT results received, supporting commercial decision to launch Completed - results confirm enhanced sensorial performance of new product
FDA and EU market launch clearance EU market launch clearance expected June 2026. US FDA clearance expected in
July 2026
In March 2026 we were pleased to report the results of the Home User Test
("HUT") conducted on the current Eroxon(®) product and new product Eroxon(®)
Intense, amongst 223 men under 60 years of age with mostly mild to moderate
ED. The results of the HUT were positive with both Eroxon(®) and Eroxon(®)
Intense shown to have high efficacy rates with an overall improvement over the
original Phase 3 study for Eroxon(®) (which had included men up to 70 years
of age and a number of severe ED sufferers). Subjects in this HUT stated that
they were satisfied with the hardness of their erection in 70% and 71% of
their sexual encounters using Eroxon(®) or Eroxon(®) Intense, respectively,
and also recorded that their erections lasted long enough to have sexual
intercourse in 84% and 85% of encounters, respectively, with efficacy
increasing when the product is applied by the partner. The study confirmed the
sensorial enhancement of Eroxon(®) Intense over Eroxon(®) with statistically
significant greater intensity during the first two minutes after application.
Both formulations received favourable 4-star or 5-star ratings in 49% and 53%
of subjects for Eroxon(®) and the Eroxon(®) Intense formulation
respectively. Over 50% of study participants said they would be somewhat or
very likely to purchase either product.
The results give us confidence in our revised strategy to target men under 60
years of age with mild to moderate ED and our repositioning work for the
portfolio. We are progressing Eroxon(®) Intense through regulatory
authorisation and building an optimal brand position with first market
launches expected in early 2027.
3) In relation to WSD4000:
Objective Status
Early Feasibility Study ("EFS") results Completed - results give us confidence in the efficacy of the product and
support progressing to Phase 3 clinical trial design
HUT results with the potential to support a Phase 3 trial and potential launch Expected June 2026
decision
Phase 3 first patient visit Expected Q4 2026 - subject to positive HUT results and securing necessary
funding
USA, APAC, EMEA and LATAM commercial partners: expressions of interest Expected Q4 2026 - multiple discussions already underway
In January 2026 we were delighted to report positive results of the WSD4000
EFS which comprised 12 women suffering from some degree of sexual dysfunction.
The results show clear and positive trends, demonstrating that the product can
deliver a significant improvement. We believe we can successfully build on
these results and provide a range of treatments for a condition that affects a
significant number of women worldwide.
The next steps for WSD4000 include receiving the results of the placebo and
home user tests by the end of Q2 2026, as a precursor to launching a Phase 3
clinical study subject to additional funding, as well as preparation of
product positioning, packaging and the launch strategy.
Conclusion of Strategic Review
Following my appointment as CEO, I have undertaken for the Board and now
completed a comprehensive strategic review to assess the Group's positioning,
operating model and future value creation opportunities. This review marks a
pivotal reset and aims to maximise long‑term shareholder value through
sharper strategic focus, improved commercial execution and disciplined capital
allocation.
I split the review into four distinct stages, with three completed so far:
(i) Assess - August 2025. Rapid assessment of the business to
understand potential value drivers and inhibitors. Understanding views of end
consumers, our commercial partner relationships, our supply partner
relationships, our shareholders and our internal resource capability. Full
assessment of short and mid-term P&L and cashflow position.
(ii) Secure & stabilise - September-December 2025. Following
a rapid review into the cashflow position and requirement of the business,
raising £2.75 million (before fees) and developing a cost cutting plan to
extend the cash runway until the end of 2026 (which includes the receipt of
the $2.5 million US patent milestone payment from Haleon).
(iii) Adapt - January-March 2026. Applying cost cutting measures,
updating Group positioning and strategy, setting new business priorities,
adapting commercial partnership model, updating brand positioning &
targeting, optimising our supply base, focusing & accelerating R&D
projects, adjusting internal resource to be fit for the Group's next stage of
development.
(iv) Grow - April 2026 onwards. Now that the Company has a clearer
strategy in place and clarity over its NPD pipeline, the focus of the team is
sustainable growth of the underlying business by increasing commercial
opportunity through enhanced in-market performance of Eroxon(®) and a high
pace approach to insight-led NPD projects such as the WSD4000 platform.
Outcomes from commercial growth prospects will be supported by a focus on
supply efficiency to ensure both quality of service to our customer base and
margin enhancement.
Refreshed Vision and Strategy
As a result of the review, we now have a refined vision: to be recognised as a
global leader in the development of clinically proven, innovative,
consumer‑focused sexual health products. Futura will leverage its
established expertise in formulation science, regulatory approval and clinical
development to address significant unmet needs in growing global sexual health
markets.
Futura's strategy will be centred on:
· Developing an insight‑led, clinically proven portfolio of consumer‑focused
sexual health products
· Partnering with leading consumer healthcare companies to support sustainable
global market growth
· Delivering optimum long‑term returns for shareholders while operating with
integrity and high governance standards.
Evolution of Commercial Model
The strategic review has concluded that Futura will move from a 'launch and
step back' model focused on R&D and full out‑licensing, to an 'actively
manage and optimise' model focused on a hybrid R&D and commercial approach
which will provide greater flexibility, insight development and sharing and
improved economic participation across markets.
Under this approach:
· Commercial structures with partners may vary and will be selected on a
market‑by‑market basis
· The Group will have increased strategic input and the ability to share best
commercial practice with all partners
· Knowledge and learnings can be shared more effectively across territories
· The Group can benefit more directly from commercial success, with higher net
margins per selling unit
· The Group will aim to reduce cost of goods through a shared global supply
resource, benefiting both the Group and its partners.
To support this improvement to our commercial model, we have:
· Strengthened our marketing capability, with a clear focus on driving in-market
performance
· Initiated a comprehensive review of global brand identity and positioning, to
ensure clarity and consistency across markets
· Undertaken targeted consumer research to inform portfolio development, pricing
strategy and consumer communication.
Product Development
Eroxon(®)
Despite in-market challenges encountered during the initial launch phase, we
remain confident in the long-term value of Eroxon(®) as a clinically proven
topical treatment for erectile dysfunction which fills an unmet need in the
market.
Management priorities are:
· Securing appropriately aligned commercial partners in key global markets
· Introducing Eroxon(®) Intense, coupled with updated consumer messaging to
achieve a more targeted approach to customers
· Improving margins through cost of goods optimisation
· Enhancing global branding and collaboration with commercial partners.
WSD4000 - Priority Development Programme
The Board sees WSD4000 as a priority development asset and a potential
transformational opportunity. The platform technology underpinning the range
of products being currently developed under the WSD4000 project name has the
potential to address multiple aspects of female sexual health with a unique
range of clinically proven products available over‑the‑counter.
Key next steps include:
· A structured development programme including home‑use testing ("HUT")
(currently underway with results expected in June) and following the HUT
results, progressing a full phase 3 clinical study (subject to new funding)
· Building the plans for a targeted market launch in Q1 2028 under the new
commercial model, gaining early expressions of interest from potential
commercial partners following the EFS, HUT study results and other consumer
research currently underway.
The potential for Eroxon(®) and WSD4000 is significant, offering products
with strong clinical evidence to support claims and endorsed by regulatory
authorities and Key Opinion Leaders. With focused product positioning we plan
to offer clear differentiation from other unregulated products which have
weaker, narrower claims and inadequate claim support.
Closing remarks and outlook
As highlighted above, my thorough review of the business was split into four
stages. With the first three complete, as we look ahead we are focused on
growing the underlying business and increasing commercial opportunity through
enhanced in-market performance of Eroxon(®) and a high pace approach to
insight-led NPD projects such as the WSD4000 platform. Outcomes from growth
prospects will be supported by a focus on supply efficiency to ensure both
quality of service to our customer base and margin enhancement.
At all times and as a fundamental aspect of any significant Group decision, my
question remains 'what will provide the best outcome and return for our
shareholders?'. Whilst 2025 presented a number of challenges for the Group
which understandably tested the patience of long-standing supportive
shareholders, it is clear that Futura still has strong assets in Eroxon(®),
Eroxon(®) Intense and the WSD4000 female sexual health portfolio and that
these assets are supported by a well-regarded, experienced R&D team.
I believe that the conclusion of the strategic review, alongside the promising
new product development underway, means Futura is now positioned to unlock the
value of its portfolio, with a clearer path to sustainable growth and
long‑term shareholder value creation. The Board remains focused on ensuring
the Group is appropriately funded to deliver against its strategic priorities
and continues to make progress in advancing initiatives to support this.
Alex Duggan
Chief Executive Officer
( )
( )
1. Ipsos research carried out on behalf of Futura Medical in the USA amongst
1,003 women, 2024.
Finance Review
Financial highlights
· Group revenue £1.7 million (FY24: £13.9 million)
· Operating loss £9.1 million (FY24: operating profit £1.2 million)
· Adjusted operating loss(1) before share-based payments £8.6 million (FY24:
profit £3.3 million)
· Underlying operating loss(2) (before share-based payments and exceptional
items) £4.5 million (FY24: profit £3.3 million)
· Cash and cash equivalents as at 31 December 2025 £3.4 million (FY24: £6.6
million) following the fundraise completed in December 2025 raising £2.75
million (before fees)
As stated in the Chairman's Statement and Chief Executive's Review, 2025 was a
year of commercial reassessment and financial realignment for the Group.
Revenue performance was below initial management expectations and reflected
the transition from launch-phase stocking to demand-led replenishment.
In response, we have implemented measures to align the cost base alongside
revised revenue assumptions, enhanced commercial oversight and reassessed the
recoverability of certain assets. These actions included operational asset
impairments that were recognised in the first half of 2025.
While commercial performance during the year was below initial management
expectations, the Group has updated its internal forecasts and underlying
commercial assumptions, including expected sales volumes and timing of cash
flows. This has resulted in a reassessment of asset carrying values, ensuring
they are aligned with current expectations as the Group focuses on
stabilisation and long-term value creation.
In December 2025, the Group completed an equity raise to strengthen the
balance sheet and provide additional working capital flexibility.
Revenue
Group revenue for the year was £1.7 million (FY24: £13.9 million). The prior
year benefited from non-recurring regulatory milestone payments and initial
channel stocking following launch in key territories. No comparable milestone
income was recognised in 2025. During the year, commercial partners continued
to work through launch inventory and consumer adoption progressed more
gradually than originally anticipated, resulting in lower replenishment
orders.
Gross profit
Gross profit for the year was £1.2 million (FY24: £9.7 million) representing
a gross margin of approximately 73%. The £0.5 million inventory provision
recognised during the year was classified as an exceptional item and excluded
from underlying performance measures. Accordingly, reported gross profit
reflects underlying trading performance.
Analysis of reported to adjusted operating performance
FY25 FY24
£ million £ million
Reported operating (loss)/profit (9.1) 1.2
Add back: Share-based payments ("SBP") 0.5 2.0
Adjusted operating (loss)/profit (before SBP)(1) (8.6) 3.3
Add back: Exceptional items 4.1 -
Underlying operating (loss)/profit(2) (4.5) 3.3
Alternative performance measures ("APMs") are used by the Group to provide
additional insight into the underlying financial performance of the business.
These measures are not defined under IFRS and may not be comparable with
similarly titled measures used by other companies. They are not intended to be
a substitute for, or superior to, statutory measures.
1 Adjusted operating (loss)/profit represents reported operating (loss)/profit
excluding non-cash share-based payment charges.
2 Underlying operating (loss)/profit represents adjusted operating
(loss)/profit further excluding items classified as exceptional, being those
items which the Board considers not to be representative of the Group's
underlying trading performance. In 2025, such items comprised impairment of
property, plant and equipment, inventory provisions and other one-off costs.
A reconciliation to reported operating (loss)/profit is presented in the table
above.
Exceptional items recognised in 2025 totalled £4.05 million and comprised a
£3.22 million impairment of plant and equipment, with £0.34 million relating
to the recognition of a final contractual payment liability in respect of an
asset acquisition (which was subsequently impaired) and a £0.49 million
inventory provision. These items were disclosed in the Interim Results
announced in September 2025.
Research and development
Expanding the Group's product portfolio and extending product ranges, while
maintaining disciplined capital allocation, remains a core pillar of the
Group's growth strategy. Research and Development ("R&D") costs for the
year ended 31 December 2025 were £1.87 million (FY24: £1.74 million).
R&D activity during the year was focused on supporting lifecycle
management initiatives for Eroxon(®) (including further product optimisation
and range extension opportunities with Eroxon(®) Intense) and progression of
WSD4000, our in-development portfolio for female sexual health which currently
focuses on a range of topical gels specifically designed to treat symptoms of
sexual dysfunction in women.
In light of revised commercial assumptions and the Group's focus on cash
management, R&D expenditure during 2025 was carefully prioritised to
ensure capital-efficient deployment of resources. The Board continues to
evaluate the optimal pathway for WSD4000, including potential strategic
partnerships to share development risk and funding requirements.
Administrative expenses
Administrative expenses for the year ended 31 December 2025 were £4.68
million (FY24: £6.83 million). Included within administrative expenses is a
non-cash share-based payment charge of £0.53 million (FY24: £2.0 million),
predominantly relating to LTIP awards granted in 2023 which vest annually
through to 2027. Excluding share-based payment charges, underlying
administrative expenses reduced year-on-year, reflecting cost reduction
measures implemented during the second half of the year.
Earnings per share
In 2025 the basic loss per share was 2.78 pence compared to basic profit per
share in 2024 of 0.43 pence. Details of the profit/loss per share calculations
are provided in Note 10 of the consolidated financial information.
Balance sheet
The Group's financial position at 31 December 2025 reflects the operational
reset undertaken during the year and continued focus on cash management and
working capital discipline. Cash and cash equivalents as at 31 December 2025
was £3.4 million (FY24: £6.6 million). The reduction year-on-year reflects
operating cash outflows during a year with lower revenue, partially offset by
the equity raise completed in December 2025. The Board continues to actively
manage cash deployment and cost control.
Trade and other payables reduced significantly to £1.66 million at 31
December 2025 (FY24: £3.56 million). The decrease reflects settlement of
prior period obligations and improved working capital management.
Trade and other receivables decreased to £0.8 million at 31 December 2025
(FY24: £2.45 million). The movement primarily reflects lower year-end
invoicing levels compared to 2024 and timing of royalty receipts and product
shipments.
Overall, the balance sheet at year-end reflects a streamlined operating
structure following asset impairments, working capital normalisation and
tighter cost discipline implemented during the year.
Cash runway
At the time of the December 2025 fundraise, the Group stated that together
with receipt of the US$2.5 million patent milestone receipt, its cash
resources were expected to provide runway through to December 2026.
The Directors continue to believe that the conditions associated with the US
patent milestone have been satisfied and are engaged in constructive
discussions with Haleon regarding its receipt in line with the terms of the
agreement. Based on the Group's current management forecasts and excluding
receipt of this US patent milestone, existing cash resources of £2.35 million
as at 31 March 2026 are expected to provide runway into June 2026.
The Board is actively considering a number of dilutive and non-dilutive
funding and strategic initiatives (including but not limited to additional or
alternative partnering/licensing and distribution arrangements for Eroxon(®)
alongside Eroxon(®) Intense and WSD4000) and is confident that these would
provide additional working capital and would be expected to extend the Group's
cash runway beyond June 2026 if the milestone payment from Haleon were to be
delayed. The Board however cautions that whilst active discussions are
ongoing, there can be no certainty of the outcome of these discussions.
The Board is confident in the Group's ability to secure the funding required
to support its ongoing operations and development activities. Further
announcements will be made as and when appropriate.
Going concern
The Directors believe that it remains appropriate to prepare the financial
information on a going concern basis. However, they acknowledge that material
uncertainties exist that may cast doubt on the Group's ability to generate
sufficient net revenues and resulting cash inflows and raise sufficient
finance to discharge its liabilities in the normal course of business. The
financial information does not include any adjustments that would result from
the basis of preparation being inappropriate.
Further information in relation to going concern can be found in Note 2.2 of
the unaudited consolidated financial information.
Angela Hildreth
Finance Director and Chief Operating Officer
UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the year ended 31 December 2025
Year ended Year ended
31 December 31 December
2025 2024
Notes £ £
Revenue 5 1,696,660 13,926,122
Cost of sales (456,707) (4,236,788)
Gross profit 1,239,953 9,689,334
Research and development costs (1,868,014) (1,742,274)
Administrative expenses - Pre-exceptional costs (4,682,827) (6,830,765)
Administrative expenses - Exceptional costs 24 (4,053,000) -
Total administrative expenses (8,735,827) (6,830,765)
Other operating income 21 255,000 127,611
Operating (loss)/profit 6 (9,108,888) 1,243,906
Finance income 38,190 46,939
(Loss)/profit before tax (9,070,698) 1,290,845
Taxation 9 - 2,165
(Loss)/profit for the year being total comprehensive (loss)/profit
attributable to owners of the Parent Company
(9,070,698) 1,293,010
Basic (loss)/profit per share (pence) 10 (2.78) 0.43
Diluted (loss)/profit per share (pence) 10 (2.78) 0.41
All amounts relate to continuing activities.
UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 31 December 2025
As at As at
31 December 31 December
2025 2024
Notes £ £
Assets
Non-current assets
Property, plant and equipment 11 747,528 4,089,607
Total non-current assets 747,528 4,089,607
Current assets
Inventories 260 455,906
Trade and other receivables 14 814,608 2,448,465
Current tax asset 9 255,000 -
Cash and cash equivalents 3,401,631 6,596,201
Total current assets 4,471,499 9,500,572
Liabilities
Current liabilities
Trade and other payables 15 (1,659,939) (3,557,813)
Provisions 17 (509,038) (286,948)
Total current liabilities (2,168,977) (3,844,761)
Net current assets 2,302,522 5,655,811
Non-current liabilities
Contract liabilities (long-term) 16 (244,851) (342,587)
Provisions 17 - (440,000)
Total non-current liabilities (244,851) (782,587)
Total liabilities (2,413,828) (4,627,348)
Net assets 2,805,199 8,962,831
Capital and reserves attributable to
owners of the Parent Company
Share capital 18 1,162,655 607,407
Share premium 72,845,717 71,235,261
Merger reserve 1,152,165 1,152,165
Warrant reserve 216,563 -
Retained losses (72,571,901) (64,032,002)
Total equity 2,805,199 8,962,831
UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the year ended 31 December 2025
Share Share Premium Merger Warrant Reserve Retained Total
Capital Reserve Losses Equity
Notes £ £ £ £ £ £
At 1 January 2024 602,812 71,068,945 1,152,165 - (67,347,103) 5,476,819
Total comprehensive profit for the year
- - - - 1,293,010 1,293,010
Share-based payment 19 - - - - 2,022,091 2,022,091
Shares issued during the year 18 4,595 166,316 - - - 170,911
Transactions with owners 4,595 166,316 - - 2,022,091 2,193,002
At 31 December 2024 607,407 71,235,261 1,152,165 - (64,032,002) 8,962,831
Total comprehensive loss for the year
- - - - (9,070,698) (9,070,698)
Share-based payment 19 - - - - 530,799 530,799
Shares issued during the year 18 555,248 1,610,456 - - - 2,165,704
Warrants issued 20 - - - 216,563 - 216,563
Transactions with owners 555,248 1,610,456 - 216,563 530,799 2,913,066
At 31 December 2025 1,162,655 72,845,717 1,152,165 216,563 (72,571,901) 2,805,199
The Merger reserve represents the reserve arising on the acquisition of Futura
Medical Developments Limited in 2001 via a share for share exchange accounted
for as a group reconstruction previously using merger accounting under UK
GAAP.
Retained losses represent all other net gains and losses not recognised
elsewhere.
Share premium represents amounts subscribed for share capital in excess of
nominal value, less the related costs of share issues.
Warrant reserve represents the fair value of warrants issued to brokers in
connection with the Group's fundraising activities. The warrants are equity
settled and the reserve will be transferred to share capital and share premium
upon exercise, or remain within equity on expiry.
UNAUDITED CONSOLIDATED STATEMENT OF CASH FLOWS
For the year ended 31 December 2025
Year ended Year ended
31 December 31 December
Notes 2025 2024
£ £
Cash flows from operating activities
(Loss)/profit before tax (9,070,697) 1,290,844
Adjustments for:
Depreciation 11 121,991 121,832
Profit on disposal of fixed assets 11 88 612
Finance income (38,190) (46,939)
Foreign exchange differences - -
Provisions - Inventory write down 13 490,000 -
Impairment losses 11 3,220,000 -
Taxation credit 9 (255,000) -
Share-based payment charge 19 530,799 2,022,091
Cash flows generated by/(used in) operating activities before changes in (5,001,010) 3,388,440
working capital
Increase in inventories 13 (34,355) (455,567)
Decrease/(increase) in trade and other receivables 14 1,633,857 (1,208,290)
Decrease in trade and other payables 15 (2,213,520) (1,712,186)
Cash generated by/(used in) operations (5,615,027) 12,397
Income tax received - 379,075
Cash generated by/(used in) operating activities (5,615,027) 391,472
Cash flows from investing activities
Purchase of property, plant and equipment 11 - (1,726,965)
Interest received 38,190 46,939
Cash used in investing activities 38,190 (1,680,026)
Cash flows from financing activities
Issue of ordinary shares 18 2,789,174 170,911
Expenses paid in connection with share issues (406,906) -
Cash generated by financing activities 2,382,268 170,911
(Decrease)/increase in cash and cash equivalents (3,194,570) (1,117,643)
Cash and cash equivalents at beginning of year 6,596,201 7,714,183
Net foreign exchange differences - (339)
Cash and cash equivalents at end of year 3,401,631 6,596,201
There were no cash flows relating to exceptional items during the year.
NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL INFORMATION
For the year ended 31 December 2025
1. Corporate Information
Futura Medical plc (the "Company") is a public limited company incorporated
and domiciled in England and Wales and whose shares are publicly traded on the
AIM Market of the London Stock Exchange. The registered office is located at
Surrey Technology Centre, 40 Occam Road, Guildford, Surrey, GU2 7YG.
This unaudited consolidated financial information consolidates these of the
Company and its subsidiaries (together referred to as "the Group" and
individually as "Group entities") for the year ended 31 December 2025.
The unaudited financial information for the years ended 31 December 2025 and
31 December 2024 set out in the announcement does not constitute full accounts
within the meaning of section 434 of the Companies Act 2006.
The financial information for the year ended 31 December 2024 is derived from
the statutory accounts for that year, which have been delivered to the
Registrar of Companies. The auditor reported on those accounts; their report
was unqualified, did not draw attention to any matters by way of emphasis
without qualifying their report and did not contain a statement under s498 (2)
or (3) Companies Act 2006. The audit of the statutory accounts for the year
ended 31 December 2025 is not yet complete. These accounts will be finalised
on the basis of the financial information presented by the Directors in this
preliminary announcement and will be delivered to the Registrar of Companies
following the Group's annual general meeting.
While the financial information included in this results announcement has been
prepared in accordance with the recognition and measurement criteria of UK
adopted international accounting standards (IFRS), this announcement does not
in itself contain sufficient information to comply with IFRS.
The Group is principally engaged in the development and sale of consumer
healthcare products.
2. Accounting policies
2.1 Basis of preparation
The unaudited consolidated financial information has been prepared on a going
concern basis and under the historical cost convention and have been prepared
and approved by the Directors in accordance with UK-adopted International
accounting standards ("IFRS"). The principal accounting policies applied in
the preparation of the consolidated financial information are set out below.
These policies have been consistently applied to all years presented, unless
otherwise stated.
Monetary amounts in this financial information are rounded to the nearest
pound sterling (£), unless otherwise stated, which is also the functional
currency of the Company.
2.2 Going concern
The Board has considered the applicability of the going concern basis in the
preparation of the financial information. The Group generated a loss of £9.07
million in 2025. The Board considers that, based on the assessment described
below, the preparation of the Group's and Parent Company's financial
information on a going concern basis remains appropriate.
In assessing the appropriateness of adopting the going concern basis, the
Directors have considered the Group's current financial position, cash
resources and expected cash flows, based on internal projections for a period
to 30 June 2027.
These projections ("base case") indicate that the Group's ability to continue
as a going concern is dependent on, the receipt of milestone payments relating
to the granting of the US patent, the realisation of other potential cash
inflows, including amounts subject to commercial negotiation, and the
completion of additional financing. Whilst the Directors have a reasonable
expectation that these inflows can be achieved, they are not wholly within the
Group's control and are subject to inherent uncertainty, including the timing
and level of receipts.
The Directors have also considered a downside scenario in which revenues are
lower than expected and/or the timing of receipts is delayed. In such
circumstances, notwithstanding the implementation of mitigating actions within
management's control, including the reduction or deferral of discretionary
expenditure, including the deferral of costs associated with the development
of WSD4000, the Group would continue to require additional funding and such
funding being required earlier than assumed in the base case.
As the receipt of the US patent milestone, other revenue inflows and the
completion of additional financing are not secured at the date of approval of
this financial information, there are material uncertainties that may cast
significant doubt on the Group's and Parent Company's ability to continue as a
going concern. The Group and Parent Company may therefore be unable to realise
their assets and discharge their liabilities in the normal course of business.
Notwithstanding the material uncertainties described above, the Directors have
a reasonable expectation that the Group and Parent Company will have access to
sufficient resources to continue in operational existence for the foreseeable
future. Accordingly, they continue to adopt the going concern basis in
preparing the financial information.
2.3 Standards, amendments and interpretation to
existing standards
The Group applied the accounting standards and amendments listed below for the
first time in this financial information. Unless noted, the standards or
amendments had no material impact on the financial information.
· Amendments to IAS 21 - Lack of exchangeability (effective date: 1
January 2025)
Applicable accounting standards and interpretations issued but not yet adopted
At the date of authorisation of the financial information, the following
Standards and Amendments which have been issued and endorsed by the UK, have
not been applied by the Group and Parent Company in preparing the financial
information:
· Amendments to IFRS 9 and IFRS 7 - Classification and measurement
of financial instruments (effective date: 1 January 2026)
· IFRS 18 - Presentation of financial statements (effective date: 1
January 2027)
· IFRS 19 - Subsidiaries without public accountability disclosures
(effective date: 1 January 2027).
New accounting policies
During the period, the Group introduced new accounting policies in accordance
with IFRS to enhance the presentation of exceptional items.
The Group separately presents exceptional items, being material income or
expenses arising from events or transactions that are unusual in nature or
infrequent in occurrence. These items are recognised in accordance with IFRS
and disclosed to provide users with a clearer understanding of the underlying
operating performance. The adoption of this presentation has no impact on
comparative figures.
2.4 Basis of consolidation
The Financial information of the Group consolidate the Financial Information
of Futura Medical Plc and its subsidiary undertakings (together referred to as
the "Group") up to 31 December each year. All subsidiaries have a reporting
date of 31 December.
Subsidiaries are entities controlled by the Group. Control exists when the
Group has the power, directly or indirectly, to govern the financial and
operating policies of an entity so as to obtain benefits from its activities.
In assessing control, potential voting rights that are currently exercisable
or convertible are taken into account. All subsidiaries are 100% owned.
The Financial Information of subsidiaries are included in the consolidated
financial information from the date that control commences until the date that
control ceases, in accordance with IFRS 10. Intra-group transactions and
balances, and any unrealised gains or losses arising from intra group
transactions, are eliminated in preparing the consolidated financial
information.
2.5 Segment reporting
An operating segment is a component of the Group that engages in business
activities from which it may earn revenues and incur expenses, including
revenue and expenses that relate to transactions with any of the Group's other
components. The Board of Directors consider that it is appropriate to report
results as one single business segment. This is consistent with management
accounting information reported regularly to the Board. The Group's Chief
Operating Decision Maker ("CODM") is considered to be the Board. The Group's
non-current assets are primarily located in the United Kingdom, with
non-current assets of approximately £0.75 million located in Belgium.
2.6 Revenue
To determine whether to recognise revenue, the Group follows a five-step
process:
1. Identifying the contract with a customer
2. Identifying the performance obligations
3. Determining the transaction price
4. Allocating the transaction price to the performance obligations
5. Recognising revenue when/as performance obligation(s) are satisfied.
Product revenue
The Group enters into contracts for supply of goods to external customers
against orders received. The majority of contracts that the Company enters
into relate to sales orders containing single performance obligation for the
delivery of consumer healthcare products. Revenue is recognised when control
of the goods is passed to the customer. The point at which control passes is
determined by each customer arrangement, but generally occurs when title
passes to the customer, on receipt of the goods on an ex-works basis.
Product revenue represents net invoice less estimated volume discounts, which
are considered to be variable consideration and include significant estimates.
Other variable considerations such as milestone receipts and royalties are not
recognised in full until it is highly probable that a significant reversal in
the amount of cumulative revenue recognised will not occur. In Management's
opinion, that will be when the Group's customer confirms that the milestone
has been met or that a royalty is due. Estimates associated with variable
consideration are revisited at each reporting date or when the related
uncertainty is resolved and revenue is adjusted accordingly. At the reporting
date, Management has concluded that no constraint on variable consideration is
required.
Contracts with customers carry no obligations relating to returns or refunds
of the product. As such, no provision has been made in respect of returns or
refunds.
Commercialisation and licensing revenue
The Group entered into commercialisation agreements to license the Group's
products to other parties. These contracts give rise to fixed and variable
consideration from upfront payments, development milestones, sales-based
milestones and royalties.
The licenses that the Group grant are typically rights to use intellectual
property which do not change significantly during the period of the license
and therefore related non-conditional licensing revenue is recognised at the
point where the license is granted and variable consideration as soon as
recognition criteria are met. Where control of a right to use license passes
at the outset of a contract, revenue is recognised at the point in time when
control is transferred.
Income dependent on the achievement of a development milestone is recognised
when it is highly probable that a significant reversal in the amount of
cumulative revenue recognised will not occur, which is usually when the
related event occurs. In general, when triggering of a milestone is subject
to the decisions of third parties (e.g. the acceptance or approval of a filing
by a regulatory authority), the Group does not consider that the threshold for
recognition is met until that decision is made.
Sales-based milestone income is recognised when it is highly probable that the
sales threshold will be reached. Sales-based royalties on a license of
intellectual property are not recognised until the relevant product sale
occurs.
Upfront milestone receipts
In accordance with IFRS 15, revenue is calculated based on the consideration
to which the Group expects to be entitled and is recognised over the length of
services provided under the contract and once performance obligations have
been met. The transaction fee is allocated over the length of the service
being provided in accordance with the project plan. It is recognised as a
contract liability at the time of the initial transaction and is recognised on
a straight-line basis over the lifetime of the contracts. The progress is
re-evaluated by Management at each reporting date and the revenue recognised
is re-measured accordingly.
2.7 Leased assets
For any new contracts entered into, the Group considers whether a contract is,
or contains a lease. A lease is defined as a contract, or part of a contract,
that conveys the right to use an asset (the underlying asset) for a period of
time in exchange for consideration. To apply this definition, the Group
assesses whether the contract meets three key evaluations which are whether:
· The contract contains an identified asset, which is either explicitly in the
contract or implicitly specified by being identified at the time the asset is
made available to the Group.
· The Group has the right to obtain substantially all of the economic benefits
from the use of the identified asset throughout the period of use, considering
its rights within the defined scope of the contract.
· The Group has the right to direct the use of the identified asset throughout
the period of use. The Group assesses whether it has the right to direct
"how and for what purpose" the asset is used throughout the period of use.
The Group makes use of leasing arrangements principally for the provision of
the main office space and IT equipment. The rental contracts for offices are
typically negotiated on a short-term rolling basis with one month's notice.
Lease terms for IT equipment have lease terms of three years without any
extension terms. The Group does not enter into sale and leaseback
arrangements. All the leases are negotiated on an individual basis and contain
a wide variety of different terms and conditions such as purchase options and
escalation clauses.
The Group has elected to account for short-term leases and leases of low-value
assets using the practical expedients. These leases relate to items of certain
low value IT equipment and short-term office leases. Instead of recognising a
right-of-use asset and lease liability, the payments in relation to these are
recognised as an expense in profit or loss on a straight-line basis over the
lease term.
2.8 Intangible assets
Research and development ("R&D")
Expenditure incurred on the development of internally generated products is
capitalised if it can be demonstrated that:
● it is technically feasible to develop the product for it to be
sold;
● adequate resources are available to complete the development;
● there is an intention to complete and sell the product;
● the Group is able to out-license or sell the product;
● sale of the product will generate future economic benefits; and
● expenditure on the project can be measured reliably.
Where the criteria for capitalisation are met, development costs are
capitalised until the product is available for use. Once available for use,
these costs are amortised over the period in which the Group expects to
benefit from sales of the related products.
Capitalised development costs, including patents and trademarks, are amortised
over their estimated useful lives. The amortisation expense is recognised
within research and development costs in the Consolidated Statement of
Comprehensive Income.
The useful lives and carrying value of capitalised development costs are
reviewed at least annually for indicators of impairment. Where impairment is
identified, the carrying value is written down immediately to its recoverable
amount and the remaining balance amortised over the revised useful life.
As Eroxon® has now been launched in major markets, the development phase has
been completed, and as such, development expenditure is no longer applicable
for this product.
The Directors consider that the criteria for capitalising development
expenditure are not yet met for any of its other products under development.
Development expenditure, not satisfying the above criteria, and expenditure on
the research phase of internal projects are included in R&D costs
recognised in the Consolidated Statement of Comprehensive Income as incurred.
2.9 Property, plant and equipment
Plant and equipment is initially recognised at cost, and subsequently at cost
less accumulated depreciation and any accumulated impairment losses. Cost
includes expenditure that is directly attributable to the acquisition of the
items. Depreciation is charged to the Consolidated Statement of Comprehensive
Income at rates calculated to write off the cost, less estimated residual
value, of each asset on a straight-line basis over their estimated useful
lives with depreciation commencing when the asset is available for use. Plant
and equipment are reviewed for indicators of impairment in accordance with the
Group's accounting policy on impairment of non-financial assets (Note 2.10).
Plant and
equipment
2 - 5 years straight-line
Furniture and
fittings
3 - 10 years straight-line
The assets' residual values and useful lives are determined by the Directors
and reviewed and adjusted, if appropriate, at each reporting date.
2.10 Impairment of non-financial assets
At each reporting date, the Group reviews the carrying amounts of
non-financial assets to determine whether there is any indication that an
asset may be impaired. If any such indication exists, the recoverable amount
of the asset is estimated. The recoverable amount is the higher of fair
value less costs of disposal and value in use. Value in use is determined
based on the present value of the expected future cash flows generated by the
asset or, where appropriate, the cash-generating unit ("CGU") to which the
asset belongs.
Assets that do not generate independent cash inflows are grouped at the lowest
level for which there are separately identifiable cash flows. Impairment
losses are recognised in profit or loss whenever the carrying amount of an
asset or CGU exceeds its recoverable amount.
2.11 Classification of financial instruments issued by the Group
In accordance with the requirements of IAS 32, financial instruments issued by
the Group are treated as equity only to the extent that they meet the
following two conditions:
· they include no contractual obligations upon the Company to deliver cash or
other financial assets or to exchange financial assets or financial
liabilities with another party under conditions that are potentially
unfavourable to the Company; and
· where the instrument will or may be settled in the Company's own equity
instruments, it is either a non-derivative that includes no obligation to
deliver a variable number of the Company's own equity instruments or is a
derivative that will be settled by the Company's exchanging a fixed amount of
cash or other financial assets for a fixed number of its own equity
instruments.
2.12 Financial instruments
i) Recognition and initial measurement
At the year-end, the Group had no financial assets or liabilities designated
at fair value through the profit and loss (2024: £nil). Trade receivables are
initially recognised when they are originated. All other financial assets and
liabilities are initially recognised when the Group becomes a party to the
contractual provisions in the instrument. A financial asset (unless it is a
trade receivable without a significant financing component) or a financial
liability is initially measured at fair value plus, for items not measured at
fair value through profit and loss ("FVTPL"), transaction costs that are
directly attributable to its acquisition or issue. A trade receivable without
a significant financing component is measured at the transaction price.
ii) Classification and subsequent measurement
Financial assets
On initial recognition a financial instrument is classified as measured at
amortised cost, fair value through other comprehensive income ("FVOCI") or
FVTPL. Financial assets are not reclassified subsequent to their initial
recognition unless the Group changes its business model for managing
financial assets.
A financial asset is measured at amortised cost if it meets both the following
conditions and is not designated as FVTPL:
· it is held within a business model whose objective is to hold assets to
collect contractual cash flows; and
· its contractual terms give rise on a specified date to cash flows that are
solely the payment of principal and interest on the principal outstanding.
Financial liabilities
Financial liabilities are classified as measured at amortised cost or FVTPL. A
financial liability is classified as FVTPL if it is held for trading, it is a
derivative or it is designated as such on initial recognition. Other financial
liabilities are subsequently measured at amortised cost using the effective
interest method. Interest expense is recognised in profit or loss. At the
year-end, the Group had no financial assets or liabilities designated at FVOCI
(2024: £nil).
iii) Derecognition
Financial assets
The Group derecognises a financial asset when the contractual rights to the
cash flows from the financial asset expire, or it transfers the rights to
receive the contractual cash flows in a transaction in which substantially all
the risks and rewards of ownership of the financial asset are transferred or
in which the Group neither transfers nor retains substantially all of the
risks and rewards of ownership and it does not retain control of the financial
asset.
An impairment loss is recognised for the expected credit losses on financial
assets when there is an increased probability that the counterparty will be
unable to settle an instrument's contractual cash flows on the contractual due
dates, a reduction in the amounts expected to be recovered, or both.
The Group applies a simplified approach in calculating expected credit losses.
The probability of default and expected amounts recoverable are assessed using
reasonable and supportable past and forward-looking information that is
available without undue cost or effort. In calculating, the Group uses its
historical experience, external indicators and forward-looking information to
calculate the expected credit losses on a customer by customer basis.
Financial liabilities
The Group derecognises a financial liability when the contractual obligations
are discharged, cancelled or expire. The Group also derecognises a financial
liability when its terms are modified and the cash flows of the modified
liability are substantially different, in which case a new financial
liability based on the modified terms is recognised at fair value. On
derecognition of a financial liability, the difference between the carrying
amount extinguished and the consideration paid is recognised in profit or
loss.
2.13 Taxation
Income tax is recognised or provided at amounts expected to be recovered or to
be paid using the tax rates and tax laws that have been enacted or
substantively enacted at the Consolidated Statement of Financial Position
date. R&D tax credits are recognised on an accruals basis and are included
as an income tax credit under current assets.
Deferred tax assets and liabilities are recognised where the carrying amount
of an asset or liability on the Consolidated Statement of Financial Position
date differs from its tax base, except for differences arising on:
· the initial recognition of an asset or liability in a transaction which is not
a business combination and which at the time of the transaction affects
neither accounting profit nor taxable profit; and
· investments in subsidiaries and jointly controlled entities where the Group is
able to control the timing of the reversal of the difference and it is
probable that the difference will not reverse in the foreseeable future.
Recognition of deferred tax assets is restricted to those instances where it
is probable that taxable profits will be available against which the
difference can be utilised.
The amount of the asset or liability is determined using tax rates that have
been enacted or substantively enacted by the Consolidated Statement of
Financial Position date and are expected to apply when the deferred tax
liabilities/(assets) are settled/(recovered). Deferred tax balances are not
discounted.
Deferred tax assets and liabilities are offset when the Group has a legally
enforceable right to offset current tax assets and liabilities and the
deferred tax assets and liabilities relate to taxes levied by the same tax
authority on either:
· the same taxable group company; or
· different group entities which intend to settle current tax assets and
liabilities on a net basis, or to realise the assets and settle the
liabilities simultaneously, on each future period in which significant amounts
of deferred tax assets or liabilities are expected to be settled or recovered.
2.14 Foreign currency translation
Foreign currency transactions are translated into the functional currency at
the exchange rates prevailing on the transaction dates. For the purpose of
profit and loss, foreign exchange gains and losses are translated using the
average exchange rate from the preceding month. Foreign exchange gains and
losses arising from the settlement of these transactions, as well as from the
translation of monetary assets and liabilities denominated in foreign
currencies at period-end exchange rates, are recognised in the Consolidated
Statement of Comprehensive Income in the period in which they occur.
2.15 Employee benefits
Defined contribution plans
The Group provides retirement benefits to all employees who wish to
participate in defined contribution pension schemes. The assets of these
schemes are held separately from those of the Group in independently
administered funds. Contributions made by the Group are charged to the
Consolidated Statement of Comprehensive Income in the period in which they
become payable.
Accrued holiday pay
A liability is recorded at each reporting date for holidays accrued but not
taken, at applicable rates of salary. The expected cost of compensated
short-term absence (holidays) is charged to the Consolidated Statement of
Comprehensive Income on an accruals basis.
Share-based payment transactions
The Group operates an annual equity-settled share-based compensation plan. For
all share options awarded to employees, and others providing similar services,
the fair value of the share options at the date of grant is charged to the
Consolidated Statement of Comprehensive Income over the vesting period.
Non-market vesting conditions are taken into account by adjusting the number
of equity instruments expected to vest at each Consolidated Statement of
Financial Position date so that, ultimately, the cumulative amount recognised
over the vesting period is based on the number of share options that
eventually vest. There are no market-based vesting conditions. If the terms
and conditions of share options are modified before they vest, any incremental
increase in the fair value of the share options, measured immediately before
and after the modification, is also charged to the Consolidated Statement of
Comprehensive Income over the remaining vesting period. The proceeds received
when share options are exercised, net of any directly attributable transaction
costs, are credited to share capital (nominal value) and the remaining balance
to share premium. All employee share option holders enter into an HM Revenue
& Customs joint election to transfer the employers' National Insurance
contribution potential liability to the employee, therefore no Group asset or
liability arises.
Long-term incentive plan
The Group operates a long-term incentive plan ("LTIP") for employees and
Directors. Awards referred to in this note were granted only after specified
performance milestones had been achieved, with the share price at the date of
grant determining the size of the award by reference to targets set in
advance. The awards are intended to be settled in equity, although settlement
in cash may occur at the discretion of the Board.
The fair value of LTIP awards granted to employees and others providing
similar services is recognised in the Consolidated Statement of Comprehensive
Income over the vesting period, with a corresponding increase in equity. As
the performance conditions were satisfied prior to grant, the only remaining
vesting condition is continued employment and the number of awards expected to
vest is adjusted only for expected forfeitures.
2.16 Finance income
Interest income is recognised as interest accrues.
2.17 Cash and cash equivalents
Cash and cash equivalents are basic financial assets and comprise of cash at
bank and in hand, and short-term deposits with original maturity of three
months or less.
2.18 Inventories
Inventories are measured at the lower of cost and net realisable value
("NRV"). Cost comprises the purchase price of finished goods and other costs
incurred in bringing inventories to their present location and condition. The
Company applies the first-in, first-out ("FIFO") method to determine the cost
of finished goods. Under this method, items purchased or produced first are
assumed to be sold first, and inventories on hand are valued at the most
recent purchase costs.
NRV represents the estimated selling price in the ordinary course of business
less estimated costs necessary to make the sale.
At each reporting date, the Company assesses whether inventories are carried
in excess of their NRV. Where inventories are identified as slow-moving,
obsolete, damaged, or where selling prices have declined, they are written
down to NRV. Such write-downs are recognised as an expense in the Consolidated
Statement of Comprehensive Income in the period in which they arise.
If circumstances that previously caused inventories to be written down no
longer exist, or if there is clear evidence of an increase in NRV, the amount
of the write-down is reversed, limited to the amount of the original
write-down. Reversals are recognised in the period in which they occur.
2.19 Provisions
The company recognises provisions for obligations arising from penalties
related to minimum order quantities in its contracts with suppliers. A
provision is made when the company is unable to meet the minimum order
requirements and expects to incur penalties. These penalties are recognised as
provisions when it is probable that the penalties will be incurred and the
amount can be reliably estimated.
2.20 Warrants
The Company may issue warrants from time to time in conjunction with the issue
of equity instruments. Where warrants are issued, the terms of the instrument
are assessed against the requirements of IAS 32. Where the warrants meet the
'fixed-for-fixed' criterion for the right to acquire a fixed number of the
Company's own shares for a fixed amount of cash. On this basis, they are
classified as equity instruments rather than financial liabilities.
The fair value of such warrants is determined at the date of grant using the
Black-Scholes valuation model and recognised within a warrant reserve in
equity. The balance is held in the warrant reserve until the warrants are
exercised or they lapse. On exercise or expiry of the warrant, the balance
is transferred to retained earnings.
3. Estimates and judgements
In the application of the Group's accounting policies, which are described in
Note 2, Management is required to make judgements, estimates and assumptions
about the carrying amounts of assets and liabilities that are not readily
apparent from other sources.
The main judgements and estimates made in relation to the financial
information are:
Share-based payments
The Group operates an equity-settled share-based compensation plan for
employee services (and others providing similar services) to be received and
the corresponding increases in equity are measured by reference to the fair
value of the equity instruments as at the date of grant. The fair value
determination is based on the principles of the Black-Scholes model which uses
an input of volatility based on historical data. Historical volatility may not
be indicative of future volatility, yet the Directors judge this to be the
most appropriate method of calculation. Given the share-based payment expense
of £530,799 (2024: £2,022,091), the volatility methodology used is not
expected to have a material impact on this financial information. Details of
the fair value calculation for options granted during the year, including
other inputs into the Black-Scholes model, are disclosed in Note 19.
There are no significant estimates which are expected to lead to material
adjustments in the next accounting period.
Fair value of warrants
Where the fair value of warrants recorded in the Statement of Financial
Position cannot be derived from actual markets, their fair values is
determined using valuation techniques. The inputs to these models are taken
from observable markets, where possible. Where this is not feasible, a degree
of judgement is required in establishing fair values. The judgements include
consideration of inputs such as volatility.
There are no significant estimates which are expected to lead to material
adjustments in the next accounting period.
4 Financial Risk
4.1 Financial risk factors
The Group's activities expose it to a variety of financial risks: market risk
(including foreign exchange rate risk, cash flow interest rate risk and fair
value interest rate risk); credit risk and liquidity risk. It is Group policy
not to enter into speculative positions using complex financial instruments.
(i) Market risk
Foreign exchange rate risk
The majority of operating costs are denominated in Sterling although certain
expenditures were payable in Euros and US Dollars. At 31 December 2025 the
Group had trade payables denominated in a foreign currency totalling £210,191
(31 December 2024: £1,073,303) and trade receivables denominated in foreign
currency totalling £323,598 (31 December 2024: £1,356,139). The Group may
use forward exchange contracts as an economic hedge against currency risk,
where cash flow can be judged with reasonable certainty. There were no open
forward contracts as at 31 December 2025 or at 31 December 2024.
At 31 December 2025, the Group held balances of the following denominated
currencies:
Year ended Year ended
31 December 31 December
2025 2024
£ £
GBP £ 2,324,557 2,576,418
EUR € 161,407 1,901,528
USD $ 1,263,210 3,070,141
The Group is exposed to foreign exchange risk primarily in relation to cash
balances denominated in Euros and US Dollars. The table below illustrates the
estimated impact on profit before tax of a reasonably possible change in
exchange rates at the reporting date, assuming all other variables remain
constant.
Year ended Year ended
31 December 31 December
2025 2024
Impact on profit before tax £ Impact on profit before tax £
10% strengthening of GBP (108,000) (402,000)
10% weakening of GBP 108,000 402,000
Cash flow interest rate risk and fair value interest rate risk
The Group's interest rate risk arises from short-term money market deposits.
(ii) Credit risk
Credit risk arises from cash and cash equivalents and money market deposits as
well as credit exposure in relation to outstanding receivables and accrued
income. Trade receivables have been reviewed and there are no historical cases
of default or material balances which are past due. Management considers that
the financial assets below are of good credit quality.
The carrying value of the financial assets recorded in the Consolidated
Statement of Financial Position represents the Group's maximum exposure to
credit risk.
The credit risk for liquid funds and short-term financial assets relates to
banking institutions holding such funds or assets on behalf of the Group. The
counterparties are considered to be reputable banks with high quality external
risk ratings.
The exposure relating to outstanding receivables, accrued income and the
carrying amount of cash balances is as follows:
Year Ended Year Ended
31 December 31 December
2025 2024
£ £
Cash and cash equivalents 3,401,631 6,596,201
Trade receivables 323,597 1,269,838
Accrued income 126,204 869,243
3,851,432 8,735,282
The Directors consider the Group's exposure to credit risk to be acceptable
and normal for a similar entity at its stage in development.
(iii) Liquidity risk
In the normal course of business the Group is exposed to liquidity risk. The
Group's objective is to ensure that sufficient resources are available to fund
short-term working capital and longer-term strategic requirements. The Group
manages its liquidity needs by monitoring cash outflows due in day-to-day
business. Liquidity needs are monitored in various time bands, on a day-to-day
and week-to-week basis. Long-term liquidity needs are monitored regularly.
At 31 December 2025 and 31 December 2024, the Group's liabilities had
contractual maturities which are summarised as follows:
Carrying amount 2 months 2 - 12 months More than 1 year
or less
£ £ £ £
31 December 2025
Trade and other payables 1,485,394 1,485,394 - -
1,485,394 1,485,394 - -
Carrying amount 2 months 2 - 12 months More than 1 year
or less
£ £ £ £
31 December 2024
Trade and other payables 3,399,681 3,399,681 - -
3,399,681 3,399,681 - -
The Group manages all of its external bank accounts centrally and in
accordance with defined treasury policies. The policies include a minimum
acceptable credit rating of relationship bank accounts and financial
transaction authority limits. Any material change to the Group's principal
bank facility requires Board approval.
4.2 Capital risk management
The Group's objectives when managing capital is to safeguard its ability to
continue as a going concern, so that it can provide returns for shareholders
and benefits for other stakeholders. The Group does not yet have significant
recurring revenues and has mainly financed its operations through the issue of
new shares and management of working capital. The Group's capital resources
are managed to ensure it has resources available to invest in operational
activities designed to generate future income. These resources were
represented by £3,401,631 of cash at bank as at 31 December 2025 (31 December
2024: £6,596,201).
5 Revenue and segmental analysis
The Group is focused on the development and commercialisation of Eroxon® and
other products within sexual health and therefore operates as one segment. The
Group derives revenue from the transfer of goods and services over time and at
a point in time in the following geographical split:
Year Ended Year Ended
31 December 31 December
2025 2024
£ £
EU and UK 885,233 4,778,870
USA 735,848 7,835,054
Rest of World 75,579 1,312,198
1,696,660 13,926,122
31 December 31 December
2025 2024
£ £
Revenue recognised at a point in time 1,598,923 13,787,793
Revenue recognised over time 97,737 138,329
1,696,660 13,926,122
The Group derives revenue from milestone payments, product sales and royalty
income. The following table provides an analysis of revenue recognised at a
point in time:
31 December 31 December
2025 2024
£ £
Milestone payments - 6,965,810
Product sales 824,943 5,912,337
Royalties 773,980 909,646
1,598,923 13,787,793
In the current year, two customers represented more than 10% (2024: two) of
revenue. Combined they represent approximately 95% (2024: 91%) of total
revenue.
All revenue reported by the Group is from contracts with customers.
· The relationship between the timing of the satisfaction of the Group's
performance obligations and the typical timing of payments from contracts with
customers is as follows: Revenue for sale of goods is recognised at the point
in time when the goods are delivered or collected under ex-works arrangements,
which completes our performance obligation. At this point in time the
consideration is unconditional because only the passage of time is required
before payment is due. Payment is typically due between 30 and 60 days
following delivery of the goods.
· For revenue recognised over time, payment is typically received in the form of
upfront payments. The performance obligations are met over the duration of the
contract. A contract liability is recognised and adjusted at each reporting
period to reflect unsatisfied performance obligations based on a
straight-lined apportioned basis over the term of the customer contract.
Included in revenue for the year is £97,737 (2024: £138,829) which was
included in the contract liability at the beginning of the period (Note 16 on
contract liabilities).
6 Operating (loss)/profit
Operating (loss)/profit is stated after charging/(crediting):
Year ended Year ended
31 December 31 December
2025 2024
£ £
Cost of inventories recognised as an expense 456,707 3,586,498
Depreciation of plant and equipment (Note 11) 121,991 121,832
Loss on disposal of plant and equipment 88 612
Provision for inventory write-down 490,000 -
Short-term leases: property 130,925 135,218
Loss on foreign exchange 142,821 59,392
The fees of the Group's Auditor Grant Thornton UK LLP for services provided
are analysed below:
Year ended Year ended
31 December 31 December
2025 2024
Audit services £ £
Parent Company 68,321 62,198
Subsidiaries 37,997 36,529
Total fees 106,318 98,727
7 Staff numbers and costs
The average number of persons (including all Executive and Non-Executive
Directors) employed by the Group during the year, analysed by category, was as
follows:
Year ended Year ended
31 December 31 December
2025 2024
R&D staff 5 7
Finance and administration staff 5 4
Executive Directors 3 3
Non-Executive Directors 2 3
15 17
The aggregate payroll costs of these persons were as follows:
Year ended Year ended
31 December 31 December
2025 2024
£ £
Wages and salaries 2,012,911 2,361,756
Social security costs 276,503 492,621
Other pension and benefits costs 244,445 356,702
Total cash-settled remuneration 2,533,859 3,211,079
Share-based payment remuneration charge 817,014 2,022,091
Total remuneration 3,350,873 5,233,170
All employees of the Group are employed by Futura Medical Developments
Limited.
Year ended Year ended
31 December 31 December
Directors' remuneration 2025 2024
£ £
Emoluments 927,937 1,627,230
Payments relating to loss of office 287,273 -
Employer pension contributions 34,372 34,266
Total remuneration 1,249,582 1,661,496
In 2025, there were share options exercised by one Director (2024: two) under
the Group share option schemes and a gain of £54,474 was realised (2024:
£45,333). In respect of the highest paid Director there was no gain
realised.(2024: £25,185).
Remuneration above includes the following amounts in respect of the highest
paid Director:
Year ended Year ended
31 December 31 December
2025 2024
£ £
Emoluments 223,860 471,206
Employer pension contributions 25,940 10,277
Total cash-settled remuneration 249,800 481,483
Year ended Year ended
31 December 31 December
Key management personnel's remuneration 2025 2024
£ £
Short term employee benefits 1,074,003 1,627,230
Post-employment benefits 34,372 34,266
Termination benefits 287,273 -
Share-based payments 289,456 778,769
Total key management personnel remuneration 1,685,104 2,440,265
The Directors consider that there are no key management personnel other than
the Directors.
8. Pension costs
The pension charge represents contributions payable by the Group to
independently administered funds which during the year ended 31 December 2025
amounted to £202,658 (2024: £282,934). Pension contributions payable in
arrears at 31 December 2025, included in accrued expenses at the relevant
Consolidated Statement of Financial Position date, totalled £2,541 (2024:
£6,473).
9. Taxation
9.1 Current tax
Year ended Year ended
31 December 31 December
2025 2024
£ £
UK corporation tax credit on (loss)/profit on ordinary activities - 2,165
The tax assessed for the year was lower than the UK corporation tax rate
(2024: lower). The differences are explained below:
Year ended Year ended
31 December 31 December
2025 2024
£ £
Loss/(profit) on ordinary activities before tax 9,070,698 (1,290,845)
Loss/(profit) on ordinary activities multiplied by the standard rate of 2,267,673 (322,712)
corporation tax in the UK of 25% (2024: 23.5%)
Expenses not deductible for tax (130,461) (31,955)
purposes
Timing differences not recognised in computation (961,490) -
Movement in unrecognised deferred tax (1,162,513) (174,378)
Share scheme deduction - 168,536
Additional deduction for R&D expenditure (13,209) 360,510
UK corporation tax credit - -
Adjustment to tax charge relating to prior period - 2,165
UK corporation tax credit reported in the - 2,165
Consolidated Statement of Comprehensive Income
An increase in the main rate of UK corporation tax from 19% to 25% came into
force on 1 April 2023. As a result, the current tax charge is calculated using
the average tax rate of 25% for the year ended 31 December 2025.
The Group has tax losses of approximately £46,017,234 (2024: £40,907,007)
available for offset against future taxable profits.
9.2 Deferred tax
Deferred tax assets amounting to £12,431,683 (2024: £11,245,236) have not
been recognised due to it not being probable that taxable profits will be
available against which these deductible temporary differences can be
utilised.
The unrecognised asset comprises of:
Year ended Year ended
31 December 31 December
2025 2024
£ £
Depreciation differential versus capital allowances 777,979 (2,440)
Other short-term timing differences 149,396 1,020,925
Unutilised tax losses 11,504,308 10,226,751
12,431,683 11,245,236
10. Earnings per share
The basic earnings per share is calculated by dividing the (loss)/profit for
the year attributable to equity holders of the company by the weighted average
number of ordinary shares outstanding during the period. The diluted earnings
per share is calculated by adjusting the weighted average number of ordinary
shares outstanding to reflect the potential dilution from share options and
warrants that could result in the issuance of ordinary shares.
The calculation of basic and diluted earnings per share ("EPS") is based on
the following data:
2025 2024
(Loss)/profit for the purposes of basic EPS and diluted EPS (£) (9,070,698) 1,293,010
Weighted average of ordinary shares for the purposes of basic EPS (number)
325,965,606 302,117,963
Dilutive effect of share options - 8,649,801
Weighted average of ordinary shares of fully diluted EPS (number) 325,965,606 310,767,764
(Loss)/profit per share basic (pence) (2.78) 0.43
(Loss)/profit per share fully diluted (pence) (2.78) 0.41
In 2025, the diluted loss per share is identical to the basic loss per share,
as potential dilutive shares are not treated as dilutive since they would
reduce the loss per share.
11. Plant and equipment
Property, Plant and Equipment Furniture
and Fittings Total
Cost £ £ £
At 1 January 2025 4,456,072 70,775 4,526,847
Additions - - -
Disposals - (88) (88)
At 31 December 2025 4,456,072 70,687 4,526,759
Depreciation
At 1 January 2025 372,840 64,400 437,240
Eliminated on disposals - - -
Impairment 3,220,000 3,220,000
Charge for year 120,263 1,728 121,991
At 31 December 2025 3,713,103 66,128 3,779,231
Net book value
At 31 December 2025 742,969 4,559 747,528
At 31 December 2024 4,083,232 6,375 4,089,607
Property, Plant and Equipment Furniture
and Fittings Total
Cost £ £ £
At 1 January 2024 2,735,447 65,321 2,800,768
Additions 1,720,625 6,340 1,726,965
Disposals - (886) (886)
At 31 December 2024 4,456,072 70,775 4,526,847
Depreciation
At 1 January 2024 253,242 62,778 316,020
Eliminated on disposals - (612) (612)
Charge for year 119,598 2,234 121,832
At 31 December 2024 372,840 64,400 437,240
Net book value
At 31 December 2024 4,083,232 6,375 4,089,607
At 31 December 2023 2,482,205 2,543 2,484,748
Impairment of property, plant and equipment
During 2025, the Group recognised an impairment loss in respect of certain
plant and equipment located in the United States.
Following a review of expected future utilisation, management determined that
demand for the related products is insufficient to support continued use of
these assets. As a result, the recoverable amount of the assets was assessed
based on their estimated scrap value.
Accordingly, the carrying value of the relevant plant and equipment has been
fully impaired to £nil. The impairment loss of £3.2 million (2024: nil) has
been recognised as an exceptional administrative expense in the Consolidated
Statement of Comprehensive Income.
12. Financial instruments by category
The accounting policies for financial instruments have been applied to the
line items below:
Assets as per Consolidated Statement of Financial Position 31 December 31 December
2025 2024
Receivables at amortised cost £ £
Trade and other receivables (Note 14) 323,597 1,269,838
Cash and cash equivalents 3,401,631 6,596,201
Total financial assets at amortised cost 3,725,228 7,866,039
31 December 31 December
2025 2024
Liabilities as per Consolidated Statement of Financial Position at amortised £ £
cost
Trade and other payables (Note 15) 1,530,394 3,399,681
Total financial liabilities at amortised cost 1,530,394 3,399,681
The Directors consider that there is no material difference between the
carrying values of financial assets and liabilities and their fair value.
13. Inventories
During the year, the Group recognised inventory write-downs of £490,000
(2024: £nil) to reduce certain finished goods to their net realisable value.
The write-downs were driven by lower forecast demand and an increased risk of
obsolescence. Although the inventories remain usable and saleable, their
estimated selling prices, after considering costs to sell, were below cost at
the reporting date.
14. Trade and other receivables
31 December 31 December
2025 2024
Amounts receivable within one year: £ £
Trade receivables 323,597 1,269,838
Financial assets (Note 12) 323,597 1,269,838
Prepayments and accrued income 430,879 958,341
VAT receivable 60,132 220,286
814,608 2,448,465
Trade and other receivables do not contain any impaired assets. The Group does
not hold any collateral as security and the maximum exposure to credit risk at
the Consolidated Statement of Financial Position date is the fair value of
each class of receivable.
Trade receivables are measured initially at fair value and subsequently held
at amortised cost less an allowance for expected credit losses. The Group has
applied the simplified approach to measuring credit losses, which uses a
lifetime expected loss allowance. To measure the expected credit losses, trade
receivables have been grouped based on days overdue. Standard credit terms are
between 30 and 90 days from the date the invoice was issued.
The allowance for expected credit losses assessment requires a degree of
judgement and estimation based on a combination of factors, including the
Group's historical loss experience and any anticipated effects related to
current economic conditions, as well as Management knowledge of the current
composition of trade receivables. Trade receivables that Management believe to
be ultimately not collectible are written off upon such determination. The
Group defines default of customer balances as any amounts outside of the
contractual repayment terms.
Trade receivables are regularly reviewed for impairment loss. The Group has
assessed the credit risk of its financial assets measured at amortised cost
and has determined that the loss allowance for expected credit losses of those
assets is immaterial to the financial information. As the Group has no
material expected credit losses the disclosure of the ageing and credit risk
relating to trade receivables is not required and therefore not presented.
The Group's trade receivables are denominated in GBP, EUR and USD. The
carrying value of trade and other receivables in the Group is consistent with
fair value in the current and prior year.
The other classes of assets within trade and other receivables are denominated
in GBP and do not contain impaired assets.
Contracts with customers
No impairment losses (2024: £nil) were recognised on receivables arising from
contracts with customers.
31 December 31 December
2025 2024
£ £
Receivables included within 'Trade and other receivables' 323,597 1,269,838
Accrued income 126,204 869,243
Contract liabilities 342,588 440,324
15. Trade and other payables
31 December 31 December
2025 2024
£ £
Trade payables 562,114 1,493,238
Social security and other taxes 74,267 60,395
Contract liabilities 97,737 97,737
Accrued expenses 925,821 1,906,443
1,659,939 3,557,813
Accrued expenses in 2025 include £0.34 million relating to a final payment
for property, plant and equipment and £0.10 million relating to accrued cost
of goods sold associated with product supplied by a third-party contract
manufacturing organisation for which an invoice had not been received at the
reporting date. In 2024, accrued expenses included £0.9 million relating to
employee performance-related bonuses.
16. Contract liabilities
Contract liabilities comprise of payments from commercial partners where
performance obligations remain outstanding at the period end and revenue is
recognised over time. The revenue recognition policy is explained in Note 2.6.
The significant changes in contract liabilities are presented below:
31 December 31 December
2025 2024
£ £
Opening balance brought forward 440,325 3,847,717
Revenue recognised in the year that was included in the opening contract
liability balance
(97,737) (3,407,392)
Revenue recognised in the year that was received in the current year - -
Cash received, excluding amounts recognised as revenue in the period - -
Balance carried forward 342,588 440,325
The maturities of the contract liabilities are presented below:
31 December 31 December
2025 2024
£ £
Due within one year 97,737 97,737
Due after one year 244,851 342,587
342,588 440,324
17. Provisions
At the reporting date, the Group has recognised a provision of £509,038
(2024: £726,948) for minimum order penalties under its supply contracts. The
provision represents penalties expected to be incurred due to not meeting the
agreed-upon minimum order quantities during the financial year. The Group
estimates that this provision will be paid within the next 12 months.
31 December 31 December
2025 2024
£ £
Opening balance 726,948 -
Penalties paid (281,229) -
Penalties added 63,319 726,948
Balance 509,038 726,948
18. Share capital
Allotted, called up and fully paid 31 December 31 December 31 December 31 December
2025 2024 2025 2024
Number Number £ £
Ordinary shares of 0.2 pence each 581,327,755 303,703,568 1,162,655 607,407
The number of issued ordinary shares as at 1 January 2024 was 301,405,950.
Each ordinary share carries the right to one vote and receive dividends from
time to time. During the year ended 31 December 2024, the Company issued
shares of 0.2 pence per share, as follows:
Month Reason For Issue Gross Consideration Shares
Issued
£ Number
January 2024 Non-Executive Director award at 36.36 pence per share 22,403 43,500
June 2024 Exercise of share options at 0.2 pence per share 828 414,191
September 2024 Exercise of share options at 15.5 pence per share 7,750 50,000
September 2024 Exercise of share options at 30.50 pence per share 137,250 450,000
September 2024 Exercise of share options at 0.2 pence per share 79 39,362
October 2024 Exercise of share options at 0.2 pence per share 2,601 1,300,565
170,911 2,297,618
The number of issued ordinary shares as at 1 January 2025 was 303,703,568.
During the year ended 31 December 2025, the Company issued shares of 0.2 pence
with each ordinary share carrying the right to one vote and receive dividends
from time to time as follows:
Month Reason For Issue Gross Consideration Shares
Issued
£ Number
January 2025 Non-Executive Director award at 27.10 pence per share 34,178 126,116
August 2025 Exercise of share options at 0.2 pence per share 600 300,048
October 2025 Exercise of share options at 0.2 pence per share 3,982 1,990,927
October 2025 Issue of ordinary shares at 1 pence per share 300,000 30,000,000
December 2025 Exercise of share options at 0.2 pence per share 414 207,096
December 2025 Issue of ordinary shares at 1 pence per share 2,450,000 245,000,000
2,789,174 277,624,187
Directors exercised the following options during 2025 and 2024:
Month Reason For Issue Gross Consideration Shares
Issued
£ Number
October 2025 Director exercise of share options at 0.2 pence per share 3,981 1,990,927
3,981 1,990,927
Month Reason For Issue Gross Consideration Shares
Issued
£ Number
September 2024 Director exercise of share options at 30.50 pence per share 137,250 450,000
September 2024 Director exercise of share options at 15.50 pence per share 7,750 50,000
145,000 500,000
19. Share options
At 31 December 2025, the number of ordinary shares of 0.2 pence each subject
to share options granted under the Company's Approved and Unapproved Share
Option Schemes were:
Exercise Price per Share At 1 Options Exercised Options Options Options Granted At 31 December 2025
January 2025 Lapsed Forfeited
Pence Number Number Number Number Number Number
Exercise Period
1 October 2020 - 30 September 2025 7.50 400,000 - (400,000) - -
1 October 2021 - 30 September 2026 31.00 790,000 - (250,000) - - 540,000
1 October 2022 - 30 September 2027 15.50 802,000 - (250,000) - - 552,000
1 October 2023 - 30 September 2028 37.90 1,390,800 - (330,000) - - 1,060,800
1 October 2023 - 30 September 2028 29.50 100,000 - - - - 100,000
1 October 2025 - 30 September 2030 45.00 867,000 - - (285,000) - 582,000
7 January 2023 - 6 January 2033 0.2 2,818,092 (896,995) - (67,477) - 1,853,620
6 April 2026 - 31 March 2033 43.60 1,734,000 - - (570,000) - 1,164,000
9 October 2023 - 30 September 2033 0.2 7,734,954 (1,601,076) - (361,957) - 5,771,921
1 April 2027 - 31 March 2034 35.50 1,966,000 - - (597,000) - 1,369,000
18,602,846 (2,498,071) (1,230,000) (1,881,434) - 12,993,341
There were no share options awarded in 2025. On 6 April 2024 share options
over 2,176,000 new ordinary shares were granted to employees (including
Executive Directors) at a price of 35.5p. The options have a three-year
vesting period and vesting is subject to satisfaction of a non-market
performance condition. The exercise period for these options is 1 April 2027
to 31 March 2034.
The share options outstanding at 31 December 2025 represents 2.24% of the
issued share capital as at that date (2024: 6.13%) and would generate
additional funds of £1,955,153 (2024: £2,821,033) if fully exercised. The
weighted average remaining life of the share options outstanding at 31
December 2025 was 78 months (2024: 88 months) with a weighted average
remaining exercise price of 15.05 pence (2024: 15.16 pence).
The share options exercisable at 31 December 2025 totalled 8,189,680 (2024:
7.934,841) with an average exercise price of 11.63 pence (2024: 12.16 pence)
and would have generated additional funds of £957,113 (2024: £964,727) if
fully exercised.
The Group's share option scheme rules apply to all of the share options
outstanding at 31 December 2025 (31 December 2024: 18,602,846) and include a
rule regarding forfeiture of unexercised share options upon the cessation of
employment (except in specific circumstances).
Options have historically been issued to advisers under the unapproved scheme.
There were 765,598 share options outstanding to advisers at 31 December 2025
(31 December 2024: 765,598).
There were no market vesting conditions within the terms of the grant of the
share options.
The Black-Scholes formula is the option pricing model applied to the grants of
all share options made in respect of calculating the fair value of the share
options.
An amount of £530,799 (2024: £2,022,091) has been recognised as a charge
within administrative expenses in the Consolidated Statement of Comprehensive
Income and a credit to retained earnings within equity. There were no cash
settled share-based payment transactions.
Share-based payments
2024
Annual Award
Grant date 19 April 2024
Number of shares under option 2,176,000
Vesting period ends Apr 27
Share price as at date of grant 35.50p
Option exercise price 35.50p
Expected volatility 86.63%
Dividend yield 0%
Risk-free investment rate 4.61%
Exercisable from/to Apr 27 -Mar34
Expected life of options (years) 4
Fair value per share at grant date 23.03p
20. Warrants and warrant reserve
On December 4 2025, Futura Medical plc issued a warrant instrument as part of
a wider share issue to raise funds under a placing agreement. The Company
issued 34,375,000 warrants at a ratio of one warrant for every 8 ordinary
shares issued in the placing. The warrants are exercisable for 5 years at a
price of 1 pence per ordinary share. The warrants have been measured using the
relative fair value method and fair value has been calculated using the
Black-Scholes method using the following inputs:
Grant date 4 December 2025
Number of shares under option 34,375,000
Share price as at date of grant 1.1p
Option exercise price 1p
Expected volatility 102.57%
Dividend yield 0%
Risk-free investment rate 3.67%
Exercisable from/to Dec 25 - Dec 30
Expected life of options (years) 2
Fair value per share at grant date 0.63p
At 31 December 2025, a balance of £216,563 (2024: nil) was held in a warrant
reserve representing the fair value of the warrants issued in December 2025.
21. Other operating income
31 December 31 December
Other operating income is made up of the following items: 2025 2024
£ £
Research and development expenditure credit (255,000) -
Contribution to capital equipment by third party - (127,611)
(255,000) (127,611)
22. Commitments
At 31 December 2025 the Group had operating short-term lease commitments in
respect of property leases cancellable on one month's notice of £8,207 (2024:
£10,916).
23. Related party transactions
Related parties, as defined by IAS 24 'Related Party Disclosures', are the
wholly owned subsidiary companies, Futura Medical Developments Limited, Futura
Consumer Healthcare Limited and the Board. Transactions between the Company
and the wholly owned subsidiary companies have been eliminated on
consolidation and are not disclosed.
Details of share awards made to Non-Executive Directors and share options
exercised by Directors can be found in note 18.
Key management compensation
The Directors represent the key management personnel. Details of their
compensation and share options are given in Note 7 and within the Remuneration
Committee Report. Directors subscribed to 51 million shares in December 2025
(2024: nil) at a price of 1 pence per share.
24. Exceptional items
During the period, the Group recognised £4,053,000 (2024: £nil) comprising:
Exceptional Item Nature of Exceptional Item 31 December
2025
£
Impairment of plant and equipment not yet in use Reduction in the recoverable amount due to lower production demand (See Note 3,220,000
11).
Provision - Inventory write-down Write-down of inventory purchased under minimum order quantity obligations as 490,000
part of transitioning to a new supplier in the prior period. Whilst stock
remains useable, demand forecasts indicate a potential risk of obsolescence.
Final payment for the asset Remaining contractual obligation to acquire the asset 343,000
Total exceptional items 4,053,000
During the period:
· Impairment of plant and equipment: during the year, the Group
impaired the recoverable amount of certain manufacturing plant and equipment
due to lower production demand resulting in a net book value write-off of
£3.2 million. This is a non-cash, non-recurring item. In addition, the
Group has recognised a provision of £0.3 million in respect of the remaining
unavoidable payment obligation associated with the acquisition of this plant
and equipment, for which no future economic benefits are expected.
· Inventory write-downs: the Group recognised write-downs of
£490,000 to reduce certain finished goods to their net realisable value due
to lower forecast demand and increased risk of obsolescence. These inventories
remain usable and saleable. Details are included in the Inventories note (Note
13).
The items are presented separately in the Consolidated Statement of
Comprehensive Income to provide a clearer view of the Group's underlying
operating performance. The adoption of this presentation has no impact on
period figures.
25. Subsequent events
On January 15 2026, the Company's Board of Directors approved a special
long-term incentive award employees in the form of share options over ordinary
shares under the Company's Long-Term Incentive Plan.
The options vest on 31 December 2026, subject to continued service and
achievement of specified share price performance conditions over the vesting
period. The extent to which the options ultimately vest will depend on the
Company's share price performance relative to the established targets. The
options have an exercise price of 0.2 pence per share and can be exercised for
a period of 6 months.
As the award was approved after 31 December 2025, the grant date for
accounting purposes occurred in the subsequent financial period. Accordingly,
no share-based payment expense related to these options has been recognised in
the accompanying financial information. The Group will recognise the
share-based payment expense in the 2026 financial period based on the
grant-date fair value of the options, which will incorporate the market-based
performance condition.
(#_ftnref1)
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