REG - SkinBioTherapeutics - Update on Board Investigation

SkinbiotherapeuticsAnnouncement

16/02/2026 07:00

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RNS Number : 0617T  SkinBioTherapeutics PLC  16 February 2026

 

 

SkinBioTherapeutics plc

("SkinBioTherapeutics" or "the Company" or the "Group")

 

Update on Board Investigation

 

·      Very recent new information has led the Board to seek the
reversal of all accrued royalty income from the audited FY25 revenues

·      Company supported by robust cash balance of £2.92m as at 13
February 2026

·      Process underway to appoint an interim CEO in near term and
thereafter a new, permanent CEO

 

16 February 2026 - the Board of SkinBioTherapeutics plc, (AIM: SBTX), the
life science business focused on skin health, received information late on
Friday 13 February 2026 that has informed its ongoing investigation into the
conduct of the former CEO.

Over recent days, the Board has been urgently conducting an investigation of
the business ("the Board Investigation"), following initial concerns over
matters of conduct by the former CEO, who was first suspended and who has
since resigned [Release link
(https://irs.nbtrader.co.uk/ir/SkinBiotix/newsArticle.php?id=311428263466488554&ST=SBTX)
]. In addition to the initial concerns around his conduct, in light of the
newly available information, the Board has reason to believe that the former
CEO has misrepresented material information to the Board and senior
management, the Company's auditors and advisors. The former CEO was informed
of these allegations on Sunday 15 February 2026 and the Board Investigation is
continuing. The Company has reported the Board's findings so far to the
Company's auditors.

Information received late on Friday 13 February 2026 has cast significant
doubt on the validity of the accrued royalty income recorded in the audited
accounts for the year ended 30 June 2025 ("FY25 Accrued Royalty Income"). The
Board currently expects that the FY25 Accrued Royalty Income, which amounted
to £0.77m, will be removed from the FY25 accounts, subject to confirmation by
the Company's auditors. The Board is confident, however, in the underlying
financial health of the business due to its robust cash position (£2.92m as
at 13 February 2026).

Whilst the Board believes this is an isolated incident, nevertheless, it has
instigated a broader investigation to review all of the Group's businesses
with respect to financial reporting and operations.

The findings of the Board Investigation to date, together with the information
received late on Friday

13 February 2026, have led the Board to conclude the following:

·     Contracts held with key partners and customers remain sound;

·    Strong future potential of the SkinBiotix(®) technology and the
Company's strategy to develop products in skin care and skin health;

·    Accrued Royalty Income was included in the audited FY25 accounts due
to a potential misrepresentation, therefore the Board has taken the decision
to seek to reverse these sums from the Group FY25 accounts completely, subject
to confirmation by the Company's auditors;

·    Dermatonics and Bio-Tech Solutions are operating as reported at FY25
(audited revenues of £2.20m and £1.38m respectively) and both are trading at
cash breakeven. These businesses are trading in line with the current Board's
expectations for FY26;

·     Direct product sales of AxisBiotix™ are reported correctly in
FY25; the partnership with Superdrug Stores plc ("Superdrug") is still at a
very early stage;

·    The Company has a robust cash position which was reported as £4.78m
as at 30 June 2025 and is £2.92m as at 13 February 2026;

The Board believes that the estimated impact of the expected reversal of FY25
Accrued Royalty Income on the audited FY25 results will be as follows:

·      FY25 revenue will become £3.87m from the reported figure of
£4.64m

·     Adjusted EBITDA for FY25 will be restated to a loss of £1.17m from
the reported loss figure of £0.41m with an operating loss of £1.47m

·     The expected adjustments will be agreed following a review by the
Company's auditors

As a result of the Board's Investigation and the subsequent expected removal
of the FY25 Accrued Royalty Income, the Board now anticipates that the results
for the year ended 30 June 2026 will be significantly below current market
expectations.*

Martin Hunt, Non-Executive Chairman, has assumed the role and responsibilities
of Executive Chairman temporarily, and the focus of the Board and Leadership
team is business continuity. The Board Investigation is confident in the
quality of the management team, the future potential of the products and
underlying businesses, all supported by a solid cash balance.

The Company's search to find an interim CEO and to find a new, permanent CEO
for the longer term is progressing and further announcements will be made in
due course.

* Market expectations for the year ending 30 June 2026 were revenue of £6.2m
and adjusted EBITDA of £0.7 million

 

This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic
law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is
disclosed in accordance with the Company's obligations under Article 17 of
MAR.

 

-Ends-

For more information please contact:

 SkinBioTherapeutics plc                                  ir@skinbiotix.com
 Martin Hunt, Executive Chairman

Emily Bertram, CFO
 Singer Capital Markets (Nominated Adviser & Broker)      +44 (0) 020 7496 3000

Philip Davies

James Todd

Patrick Weaver
 Vigo Consulting                                          +44 (0) 20 7390 0230
 Melanie Toyne-Sewell, Rozi Morris                        SkinBio@vigoconsulting.com

Notes to Editors

About SkinBioTherapeutics plc

SkinBioTherapeutics is a life science company focused on skin health. The
Group's proprietary platform technology, SkinBiotix(®), is based upon
discoveries made by the translational dermatology team at the University of
Manchester.

The Group's foundation business is targeting the skin healthcare market via
five pillars, the most advanced of which are cosmetic skincare
(SkinBiotix(®)) and food supplements that harness the gut-skin axis
(AxisBiotix™). The cosmetic pillar has a partnership with Croda plc where
SkinBiotix(®) is being used as an active skin ingredient with the Croda trade
name, Zenakine™. The AxisBiotix™ pillar has a range of products targeting
the symptoms of inflammatory skin conditions, being sold directly and via
Amazon, and on the High Street in selected Superdrug Stores plc stores.

The Group is also acting as a consolidator and is making acquisitions in
complementary areas such as skincare and cosmetic applications, that also
bring new distribution and geographical platforms, and manufacturing
capabilities through which it can funnel its in-house pillar products.

The Company listed on AIM in April 2017 and is based in Newcastle, UK. For
more information, visit: www.SkinBioTherapeutics.com
(http://www.skinbiotherapeutics.com) .

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