("Creo", the "Company" or the "Group")
Unaudited results for the six months ended
40% revenue growth, on plan to full year guidance
Financial Highlights
· Revenues up 40% to
· Underlying operating costs reduced by 24% to
· Underlying operating loss* significantly reduced by 43% to
· Strategic partnership with Micro-Tech (Nanjing) Co. Ltd ("Micro-Tech") and completion of the sale of 51% of Creo Medical Europe ("CME") to Micro-Tech:
§ Realised
§ Remaining 49% stake in CME held as
· Statutory Profit before tax of
§ with an exceptional profit of
· Basic earnings per share of 4p (H1-24: 3p loss)
· Cash and cash equivalents at
* after adjusting for profit from sale of subsidiary, share-based payments, depreciation and amortisation, R&D tax credits, earnout and other one-off settlements.
Commercial & Operational highlights
· Continued clinical adoption with 232 core product users as at
· Increased use of Speedboat Notch for advanced procedures such as per-oral endoscopic myotomies (POEMs) which have favourable reimbursement in major markets
· MicroBlate™ Flex employed in multiple studies to treat lung tumours, with commercial sales from initial sites
· Regulatory clearances and commercial launch of SpydrBlade™ Flex in US,
· Continued implementation of operational efficiencies and cost reductions
· Broader dissemination of clinical evidence by multiple investigators at major international meetings such as Digestive Disease Week (
· CME trading above its management expectations
H1 trading and Outlook:
· Confident outlook for 2025 with strong growth expected through the period. Management reiterates 40% to 60% full year revenue growth, in-line with guidance
Commenting on the results and outlook,
"Current trading in the second half continues to support our guidance of delivering 40% to 60% revenue growth for the full year.
"With continued growth, improved operational efficiencies and cost reductions, and a solid cash position, the Board and management team remain confident in the Company's goals to deliver self-sustaining cashflows and increased value for shareholders.
"We remain committed to transforming and improving the lives of pre-cancer and cancer patients worldwide, and believe the breadth and depth of our product portfolio provides significantly improved patient outcomes when compared to traditional surgical methods."
Investor Presentation
The presentation is open to all existing/potential shareholders and analysts. Questions can be submitted at any time during the live presentation. Investors can sign up to
For further information please contact:
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Via Walbrook PR |
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Deutsche Numis (Nominated Adviser, sole Broker and Financial Adviser) |
+44 (0)20 7260 1000 |
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Tel: +44 (0)20 7933 8780 or creo@walbrookpr.com |
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Mob: +44 (0)7980 541 893 / +44 (0)7407 804 654 |
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About
The Company's vision is to improve patient outcomes through the development and commercialisation of a suite of electrosurgical medical devices, each enabled by CROMA, powered by Kamaptive. The Group has developed the CROMA powered by Kamaptive full-spectrum adaptive technology to optimise surgical capability and patient outcomes. Kamaptive is a seamless, intuitive integration of multi-modal energy sources, optimised to dynamically adapt to patient tissue during procedures such as resection, dissection, coagulation and ablation of tissue. Kamaptive technology provides clinicians with increased flexibility, precision and controlled surgical solutions. CROMA currently delivers bipolar radiofrequency ("RF") energy for precise localised cutting and focused high frequency microwave ("MW") energy for controlled coagulation and ablation via a single accessory port. This technology, combined with the Group's range of patented electrosurgical devices, is designed to provide clinicians with flexible, accurate and controlled clinical solutions. The Directors believe the Company's technology can impact the landscape of surgery and endoscopy by providing a safer, less-invasive and more cost-efficient option for procedures.
For more information, please refer to the website www.creomedical.com
Interim results for six months ended
Chief Executive Review
Introduction
I am pleased to report continued strong progress for the first half of 2025 with revenues increasing by 40% to
Commercial Update
Underpinning our revenue growth, as of
(i) Speedboat & SpydrBlade - Resection products for colon cancers, oesophageal cancers and swallowing disorders
Resection products performed well in the first half and were the main drivers of our revenue growth. With growing adoption of our Speedboat range of products (Speedboat UltraSlim and Speedboat Notch), more clinical users are able to use our products to remove cancer and pre-cancer lesions from the colon and oesophagus, and in procedures to help correct a range of swallowing disorders via the upper gastrointestinal ("GI") tract, many of which have favourable reimbursement in major markets such as the
Our resection device portfolio has been bolstered by the introduction of SpydrBlade™ Flex, a unique multi-modal endoscopic device designed for precision and adaptability in endoscopic procedures and suitable for upper and lower GI resections. In
As a Company based in
As a case in point, before our products were available in
https://www.creomedical.com/en/patients/patient-case-stories
Growth in clinical adoption continues in the US. Long-term support for the roll-out of Creo's products has come in the form of two newly announced Category I CPT reimbursement codes for upper GI and lower GI Endoscopic Submucosal Dissection procedures. We expect that this financial incentive will encourage US clinicians to use next-generation products such as Speedboat® UltraSlim, Speedboat® Notch and SpydrBlade™, which are specifically designed for such procedures. Further details on the reimbursement codes can be read in RNS Number : 3102K.
(ii) MicroBlate™ Flex and Fine - tumour ablation for lung, pancreatic, liver, kidney and bladder cancers
Our MicroBlate technology is designed to ablate nodules and tumours in several tissue types and is focused on treatments for lung, pancreatic, liver, kidney and bladder cancers.
In January, we announced the first clinical robotic-guided lung ablation cases using Intuitive's Ion Endoluminal System and Creo's MicroBlate™ Flex ablation device to treat cancerous lung tissue outside of the initial clinical study at the
In July, we announced the first patient treated in a new post-market multi-centre "ablate and resect" clinical study evaluating the safety and performance of MicroBlate™ Flex for the treatment of lung tumours. This study is taking place at the
(iii) Supportive Clinical Data
Wider clinical adoption of Creo's product portfolio continues to be supported by a significant number of clinical evidence papers, abstracts and case studies from clinicians and investigators around the world who have used Creo's advanced energy devices, with many being presented at major international meetings such as DDW (
www.creomedical.com/en/investors/creo-medical-clinical-resources-bibliography
We will continue to update shareholders as further data is published that supports the commercial adoption of our technology.
Operational Update - improved operating efficiency
H1-25 benefits from the full impact of actions we undertook in 2024 and in the first half of the year we continued to implement efficiencies and cost reductions which will come through in H2 and beyond. Underlying operating costs on a continuing basis have reduced by 24% to £9.1m (H1-24: £12.8m); as a result underlying operating loss on a continuing basis has reduced to
During the period we completed the sale of 51% of the issued share capital of CME to Micro Tech resulting in an exceptional gain of
Whilst our 49% stake in CME is held on the balance sheet at a value of
Board Changes
A number of Board changes took place during the period to ensure the Board was appropriately structured to match recommended best practice and to create a non-executive majority.
Outlook
Current trading in the second half continues to develop in line with management expectations and we expect to deliver another strong year of growth. H2 is traditionally stronger than H1, and we remain confident that this supports our guidance of delivering 40% to 60% revenue growth for the full year.
With continued growth, improved operational efficiencies and cost reductions the Board remains confident in the Company's ability to deliver self-sustaining cashflows and increased value to shareholders.
We remain committed to transforming and improving the lives of pre-cancer and cancer patients worldwide. On behalf of the Board, I thank Creo's shareholders for their continued support, feedback, and encouragement along with all members of the Creo team, our clinicians and their patients, our customers, suppliers, and other partners for all their hard work, support, and positive contributions during the period.
Chief Executive Officer
Financial Review
Total sales for the period were
In
Consumable sales of
|
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6 months to |
6 months to |
12 months to |
|
(All figures £m) |
Unaudited |
Unaudited |
Audited |
|
Creo Products |
2.2 |
1.6 |
4.0 |
|
Continuing operations |
2.2 |
1.6 |
4.0 |
|
Creo Consumables |
2.8 |
13.6 |
26.7 |
|
Discontinued operations |
2.8 |
13.6 |
26.7 |
|
|
|
|
|
|
Total |
5.0 |
15.2 |
30.7 |
Total gross profit for continuing operations in the period increased to
Underlying EBITDA loss (EBITDA with R&D tax credits and other accounting adjustments added back) on a continuing basis was
As noted in the 2024 annual report, we initiated a raft of cost saving plans during the latter part of 2024. This process reduced our cost base by more than
Strict cost controls have remained during the period particularly around headcount, travel and general overheads with further savings expected during H2-25. These operational changes underpin our drive towards our goal of achieving self-sustaining cashflows.
The underlying operating loss on a continuing basis for the period is
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Financial Review |
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6 months to |
6 months to |
12 months to |
|
(All figures £'000) |
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
2.2 |
1.6 |
4.0 |
|
Cost of Sales |
|
(1.2) |
(0.8) |
(2.1) |
|
Gross Profit |
|
1.0 |
0.8 |
1.9 |
|
|
|
47.0% |
43.8% |
47.5% |
|
|
|
|
|
|
|
Other Operating Income |
|
0.0 |
0.0 |
(0.4) |
|
Administrative Expenses |
|
(11.0) |
(15.6) |
(30.3) |
|
Profit from sale of subsidiary |
|
26.2 |
- |
- |
|
|
|
|
|
|
|
Operating Profit / (Loss) |
|
16.2 |
(14.8) |
(28.8) |
|
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SIP Charge |
|
0.1 |
0.1 |
0.3 |
|
PPE & Other Settlement |
|
0.0 |
- |
- |
|
Redundancy costs |
|
0.1 |
- |
1.1 |
|
Grant Income |
|
- |
- |
0.4 |
|
Earnout |
|
- |
0.1 |
- |
|
Depreciation & Amortisation |
|
0.6 |
0.9 |
1.5 |
|
R&D expenditure recovered via tax credit scheme |
|
0.8 |
1.2 |
2.0 |
|
Share of NCI of associate |
|
1.2 |
- |
- |
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Profit from sale of subsidiary |
|
(26.2) |
- |
- |
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Underlying EBITDA (non-statutory measure) |
|
(7.2) |
(12.5) |
(23.5) |
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Share based payments (inc. JSOP) |
|
0.4 |
0.5 |
1.2 |
|
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Underlying operating loss (non-statutory measure) |
|
(6.8) |
(12.0) |
(22.3) |
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Underlying operating costs from continuing operations |
|
(9.1) |
(12.8) |
(23.8) |
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Profit/(loss) from discontinued operations |
|
0.0 |
1.2 |
(0.9) |
|
Finance costs |
|
0.0 |
0.1 |
0.4 |
|
Taxation |
|
0.0 |
(0.2) |
0.1 |
|
Operating Profit/(Loss) from discontinued operations |
|
0.0 |
1.1 |
(0.4) |
|
|
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|
|
|
|
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|
- |
0.0 |
1.6 |
|
Depreciation and amortisation |
|
- |
0.9 |
1.0 |
|
Underlying consolidated operating loss (non-statutory measure) |
|
(6.8) |
(10.0) |
(20.1) |
* figures showing '-' are where there is no balance for the period, figures showing '0.0' is where there is a balance, but it is below
Non-statutory measures
Whilst underlying EBITDA and underlying operating loss are not statutory measures, the Board believes they are helpful metrics to provide a meaningful understanding of the financial information as these measures provide an approximation of the ongoing cash requirements of the business as it continues to pursue its future development and ongoing commercialisation of its approved products. The underlying EBITDA excludes SIP charges and Earnout charges (contingent and deferred payments on previous acquisitions), individual items outside of business control, expenses which are non-cash and incorporates the recovery of research and development expenditure which the Group is able to benefit from through R&D tax credit schemes. The underlying operating loss position is EBITDA excluding share-based payment expenses which are non-cash.
Sale of Creo Medical Europe
In addition to the consideration received from the Sale, the remaining 49% stake held in CME will bring income via a share of the annual profits of CME and cash inflows via annual dividends distributed from any annual profits going forwards. A
On completion of the Sale, a
Tax
The Company has not recognised any additional deferred tax assets in respect of trading losses arising in the current financial period. The Company recognises tax assets in respect of claims under the
Earnings per share
Profit per share was
Cash flow and Balance Sheet
Net cashflow generated from operating activities was
Net cash from financing activities was
Total assets at
With the completion of Creo's suite of advanced energy products, allowing the business to move into a more streamlined and simplified commercial organisation, the Company has agreed heads of terms to divest part of its Chepstow site. Once complete, the divestment will provide additional non-dilutive cash for the business' day-to-day operations. This is held as an asset held for sale as at
2025 Outlook
Trading in the first half of 2025 met management's expectations, including a notable increase in revenue and number of regular users of Creo's Speedboat device, and remains on the trajectory to meet management's aims for the Company for the full year. We anticipate continued revenue growth and expect to maintain a strong gross margin across our product range during H2-25, and we re-iterate prior guidance of revenue growth of 40-60% for FY25. Active cost control will support a stable cost base, driving efficiencies through the business.
Chief Financial Officer
Consolidated statement of profit and loss and other comprehensive income
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6 months to |
6 months to |
12 months to |
|
(All figures £m) |
Note |
|
Unaudited |
Restated* Unaudited |
Audited |
|
|
|
|
|
|
|
|
Revenue |
2 |
|
2.2 |
1.6 |
4.0 |
|
Cost of sales |
|
|
(1.2) |
(0.8) |
(2.1) |
|
|
|
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|
Gross Profit |
|
|
1.0 |
0.8 |
1.9 |
|
|
|
|
|
|
|
|
Other operating income |
|
|
0.0 |
0.0 |
(0.4) |
|
Administrative expenses |
|
|
(11.0) |
(15.6) |
(30.3) |
|
Profit on sale of subsidiary |
5 |
|
26.2 |
- |
- |
|
|
|
|
|
|
|
|
Operating Profit/(loss) |
|
|
16.2 |
(14.8) |
(28.8) |
|
|
|
|
|
|
|
|
Finance expenses |
|
|
(0.1) |
(0.1) |
(0.4) |
|
Finance income |
|
|
0.3 |
0.1 |
0.2 |
|
(Loss)/Gain on foreign exchange |
|
|
(0.3) |
0.0 |
0.0 |
|
|
|
|
|
|
|
|
Profit/(Loss) before tax |
|
|
16.1 |
(14.8) |
(29.0) |
|
|
|
|
|
|
|
|
Taxation |
|
|
0.8 |
1.3 |
1.2 |
|
|
|
|
|
|
|
|
Profit/(Loss) for the year |
|
|
16.9 |
(13.5) |
(27.8) |
|
|
|
|
|
|
|
|
Discontinued Operations |
6 |
|
0.0 |
1.2 |
(0.9) |
|
|
|
|
|
|
|
|
Profit/(Loss) for the period/year |
|
|
16.9 |
(12.3) |
(28.7) |
|
|
|
|
|
|
|
|
Exchange loss on foreign subsidiary |
|
|
- |
(0.7) |
(1.3) |
|
Share of NCI of associate |
7 |
|
1.2 |
- |
- |
|
|
|
|
|
|
|
|
Total other comprehensive income |
|
|
1.2 |
(0.7) |
(1.3) |
|
|
|
|
|
|
|
|
Total comprehensive profit/(loss) for the year |
|
|
18.1 |
(13.0) |
(30.0) |
|
|
|
|
|
|
|
|
Profit/(Loss) per Share |
|
|
|
|
|
|
Basic (£) |
3 |
|
0.04 |
(0.03) |
(0.08) |
|
Diluted (£) |
3 |
|
0.04 |
(0.03) |
(0.08) |
|
|
|
|
|
|
|
*2024 H1 result has been restated following the completion of the sale of 51% of the issued share capital of Creo Medical S.L.U ("Creo Medical Europe"), a wholly owned subsidiary of Creo, to Micro-tech (NL) International B.V, a wholly owned subsidiary of Micro-Tech (Nanjing) Co. Ltd (SHA: 688029) on
Consolidated statement of financial position
|
|
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As at |
As at |
12 months to |
|
(All figures £m) |
Note |
Unaudited |
Unaudited |
Audited |
|
Assets |
|
|
|
|
|
Non-current assets |
|
|
|
|
|
Intangible assets |
|
0.7 |
6.5 |
0.5 |
|
|
|
- |
18.7 |
- |
|
Investments |
5 |
32.8 |
2.1 |
2.1 |
|
Property, plant and equipment |
|
3.6 |
8.5 |
5.9 |
|
Deferred tax |
|
- |
1.2 |
- |
|
Other assets |
|
- |
0.2 |
0.1 |
|
|
|
|
|
|
|
|
|
37.1 |
37.2 |
8.6 |
|
Current assets |
|
|
|
|
|
Asset held for sale |
|
1.7 |
- |
40.9 |
|
Inventories |
|
3.2 |
8.5 |
2.7 |
|
Trade and other receivables |
|
3.4 |
9.9 |
2.0 |
|
Tax receivable |
|
2.9 |
3.9 |
2.1 |
|
Cash and cash equivalents |
|
20.5 |
9.8 |
8.7 |
|
|
|
|
|
|
|
|
|
31.7 |
32.1 |
56.4 |
|
|
|
|
|
|
|
Total assets |
|
68.8 |
69.3 |
65.0 |
|
|
|
|
|
|
|
Shareholder equity |
|
|
|
|
|
Called up share capital |
4 |
0.4 |
0.4 |
0.4 |
|
Share premium |
|
191.9 |
180.9 |
192.0 |
|
Merger reserve |
|
13.6 |
13.6 |
13.6 |
|
Share option reserve |
|
12.5 |
11.1 |
12.0 |
|
Foreign exchange reserve |
|
- |
(2.5) |
(3.1) |
|
Financial Assets at fair value through other comprehensive income |
|
1.8 |
0.6 |
0.6 |
|
Accumulated losses |
|
(159.3) |
(156.7) |
(173.1) |
|
|
|
|
|
|
|
Total equity |
|
60.9 |
47.4 |
42.4 |
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
Non-current liabilities |
|
|
|
|
|
Interest-bearing liabilities |
|
1.9 |
10.7 |
2.0 |
|
Deferred tax liability |
|
- |
1.0 |
- |
|
Provisions |
|
- |
0.3 |
0.1 |
|
|
|
|
|
|
|
|
|
1.9 |
12.0 |
2.1 |
|
Current liabilities |
|
|
|
|
|
Liabilities held for sale |
|
- |
- |
14.2 |
|
Interest-bearing liabilities |
|
2.3 |
3.5 |
2.4 |
|
Trade and other payables |
|
3.6 |
5.4 |
3.9 |
|
Other liabilities |
|
- |
0.8 |
- |
|
Provisions |
|
0.1 |
0.2 |
- |
|
|
|
6.0 |
9.9 |
20.5 |
|
|
|
|
|
|
|
Total liabilities |
|
7.9 |
21.9 |
22.6 |
|
|
|
|
|
|
|
Total equity and liabilities |
|
68.8 |
69.3 |
65.0 |
* figures showing '-' are where there is no balance for the period, figures showing '0.0' is where there is a balance, but it is below £0.05m.
Consolidated statement of changes in equity
|
|
|
|
|
|
|
Changes to the |
|
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|
|
|
|
|
|
|
|
fair value of |
|
|
|
|
|
|
|
|
|
|
equity |
|
|
|
|
|
|
|
|
|
|
instruments |
|
|
|
|
|
|
|
|
|
|
|
at fair value |
|
|
|
|
|
Called up |
|
|
|
Share |
through other |
Foreign |
|
|
|
|
share |
Accumulated |
Share |
Merger |
option |
comprehensive |
Exchange |
Total |
|
(All figures £m) |
Note |
capital |
losses |
premium |
reserve |
reserve |
income |
Reserve |
equity |
|
Balance at 1 January 2024 |
|
0.4 |
(144.4) |
180.9 |
13.6 |
10.5 |
0.6 |
(1.8) |
59.8 |
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive profit/(loss) for the period |
|
|
|
|
|
|
|
|
|
|
Profit/(loss) for the financial period |
|
- |
(12.3) |
- |
- |
- |
- |
- |
(12.3) |
|
Other comprehensive loss/income |
|
- |
- |
- |
- |
- |
- |
(0.7) |
(0.7) |
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive profit/(loss) |
|
- |
(12.3) |
- |
- |
- |
- |
(0.7) |
(13.0) |
|
|
|
|
|
|
|
|
|
|
|
|
Transactions with owners, recorded directly in equity. |
|
|
|
|
|
|
|
|
|
|
Issue of share capital |
4 |
0.0 |
- |
(0.0) |
- |
- |
- |
- |
(0.0) |
|
Equity settled share-based payment transactions |
|
- |
- |
- |
- |
0.6 |
- |
- |
0.6 |
|
|
|
|
|
|
|
|
|
|
|
|
Balance at 30 June 2024 |
|
0.4 |
(156.7) |
180.9 |
13.6 |
11.1 |
0.6 |
(2.5) |
47.4 |
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive profit/(loss) for the period |
|
|
|
|
|
|
|
|
|
|
Profit/(loss) for the financial period |
|
- |
(16.4) |
- |
- |
- |
- |
- |
(16.4) |
|
Other comprehensive loss/income |
|
- |
- |
- |
- |
- |
- |
(0.6) |
(0.6) |
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive profit/(loss) |
|
- |
(16.4) |
- |
- |
- |
- |
(0.6) |
(17.0) |
|
|
|
|
|
|
|
|
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|
|
Transactions with owners, recorded directly in equity. |
|
|
|
|
|
|
|
|
|
|
Issue of share capital |
4 |
0.0 |
- |
11.1 |
- |
- |
- |
- |
11.1 |
|
Equity settled share-based payment transactions |
|
- |
- |
- |
- |
0.9 |
- |
- |
0.9 |
|
|
|
|
|
|
|
|
|
|
|
|
Balance at 31 December 2024 |
|
0.4 |
(173.1) |
192.0 |
13.6 |
12.0 |
0.6 |
(3.1) |
42.4 |
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive profit/(loss) for the period |
|
|
|
|
|
|
|
|
|
|
Profit/(loss) for the financial period |
|
- |
16.9 |
- |
- |
- |
- |
- |
16.9 |
|
Other comprehensive (loss)/income |
|
- |
(3.1) |
- |
- |
- |
1.2 |
3.1 |
1.2 |
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive profit/(loss) |
|
- |
13.8 |
- |
- |
- |
1.2 |
3.1 |
18.1 |
|
|
|
|
|
|
|
|
|
|
|
|
Transactions with owners, recorded directly in equity. |
|
|
|
|
|
|
|
|
|
|
Issue of share capital |
4 |
0.0 |
- |
(0.1) |
- |
- |
- |
- |
(0.1) |
|
Equity settled share-based payment transactions |
|
- |
- |
- |
- |
0.5 |
- |
- |
0.5 |
|
|
|
|
|
|
|
|
|
|
|
|
Balance at 30 June 2025 |
|
0.4 |
(159.3) |
191.9 |
13.6 |
12.5 |
1.8 |
- |
60.9 |
* figures showing '-' are where there is no balance for the period, figures showing '0.0' is where there is a balance, but it is below £0.05m.
Consolidated statement of cash flows
|
|
|
6 months to |
6 months to |
12 months to |
|
(All figures £m) |
Note |
30 June 2025 Unaudited |
30 June 2024 Unaudited |
31 December 2024 Audited |
|
|
|
|
|
|
|
Cash flows from operating activities |
|
|
|
|
|
Profit / (loss) for the year |
|
16.9 |
(12.3) |
(27.8) |
|
Profit from discontinued operations |
|
0.0 |
- |
(0.9) |
|
Depreciation/amortisation charges |
|
0.5 |
1.8 |
2.5 |
|
Equity settled share-based payment expenses |
|
0.5 |
0.6 |
1.5 |
|
Finance expenses |
|
0.1 |
0.3 |
0.7 |
|
Finance income |
|
(0.3) |
(0.2) |
(0.2) |
|
Impairment of |
|
- |
- |
1.4 |
|
Taxation |
|
(0.8) |
(1.5) |
(1.0) |
|
|
|
|
|
|
|
|
|
16.9 |
(11.3) |
(23.8) |
|
|
|
|
|
|
|
(Increase)/Decrease in inventories |
|
(0.2) |
(0.3) |
0.7 |
|
Increase in trade and other receivables |
|
(1.3) |
(1.5) |
(1.0) |
|
(Decrease)/increase in trade and other payables |
|
(0.0) |
(0.2) |
0.2 |
|
|
|
|
|
|
|
|
|
(1.5) |
(2.0) |
(0.1) |
|
|
|
|
|
|
|
Interest paid |
|
(0.1) |
(0.3) |
(0.7) |
|
Tax paid |
|
(0.0) |
(0.1) |
(0.2) |
|
Tax received |
|
- |
- |
2.6 |
|
|
|
|
|
|
|
Net cash used in operating activities |
|
15.3 |
(13.7) |
(22.2) |
|
|
|
|
|
|
|
Cash flows from investing activities |
|
|
|
|
|
Purchase of intangible fixed assets |
|
(0.3) |
(0.1) |
(0.1) |
|
Purchase of tangible fixed assets |
|
(0.0) |
(0.5) |
(0.3) |
|
Disposal of subsidiary net of cash |
|
(3.0) |
- |
- |
|
Fixed Term Deposits |
|
- |
15.5 |
15.5 |
|
Interest received |
|
0.3 |
0.2 |
0.2 |
|
|
|
|
|
|
|
Net cash used in investing activities |
|
(3.0) |
15.1 |
15.3 |
|
|
|
|
|
|
|
Cash flows from financing activities |
|
|
|
|
|
Capital repaid in respect of loans |
|
(0.4) |
6.2 |
(0.6) |
|
Proceeds of new loan |
|
- |
(0.4) |
6.4 |
|
Principal elements of lease repayments |
|
(0.1) |
(0.3) |
(0.7) |
|
Capital received in respect of long-term borrowings |
|
- |
- |
11.1 |
|
Share issue |
|
(0.1) |
- |
- |
|
|
|
|
|
|
|
Net cash generated from financing activities |
|
(0.6) |
5.5 |
16.2 |
|
|
|
|
|
|
|
Increase/(Decrease) in cash and cash equivalents |
|
11.7 |
6.9 |
9.3 |
|
Effect of exchange rates in cash held |
|
(0.0) |
(0.1) |
(0.0) |
|
|
|
|
|
|
|
Cash and cash equivalents at beginning of the year |
|
12.3 |
3.0 |
3.0 |
|
Cash and cash equivalents disposed |
|
(3.5) |
- |
- |
|
|
|
|
|
|
|
Cash and cash equivalents at end of the year |
|
20.5 |
9.8 |
12.3 |
|
Cashflow statements from discontinued operations
|
|
|
|
|
|
Cash flows from discontinued activities |
|
|
|
|
|
Cash and cash equivalents at beginning of the year |
|
3.6 |
1.0 |
1.0 |
|
Net cashflows from operating activities |
|
0.2 |
(3.9) |
2.8 |
|
Net cashflows from investing activities |
|
- |
(0.4) |
(0.2) |
|
Net cashflows from financing activities |
|
(0.3) |
5.9 |
(0.0) |
|
|
|
3.5 |
1.6 |
3.6 |
* figures showing '-' are where there is no balance for the period, figures showing '0.0' is where there is a balance, but it is below £0.05m.
Notes to the interim financial statements
1. Basis of preparation
The interim financial report for the period ended 30 June 2025 and similarly the period ended 30 June 2024 has been neither audited nor reviewed by the auditor. 2024 H1 result has been restated following the completion of the sale of 51% of the issued share capital of Creo Medical S.L.U ("Creo Medical Europe"), a wholly owned subsidiary of Creo, to Micro-tech (NL) International B.V, a wholly owned subsidiary of Micro-Tech (Nanjing) Co.Ltd (SHA: 688029) on February 12th 2025. The interim financial report for the period ended 30 June 2025 does not constitute statutory accounts as defined in section 434 of the Companies Act 2006. The financial information for the year ended 31 December 2024 has been based on information in the audited financial statements for that period. A copy of the statutory accounts for the year ended 31 December 2024 has been delivered to the Registrar of Companies, the accounts had an unqualified audit opinion and did not contain a statement under section 498(2) or (3) of the Companies Act 2006.
This interim financial report for the six-month period ended 30 June 2025 (including comparatives for the six months ended 30 June 2024) was approved by the Board of Directors on 21 September 2025.
Going Concern
The interim review statements have been prepared on a going concern basis which the Directors believe to be appropriate for the following reasons:
The Directors have considered the applicability of the going concern basis in the preparation of the financial statements. This included the review of financial results, internal budgets, cash flow forecasts and covenant compliance for the period of at least 12-months following the date of approval of the financial statements ("the going concern period").
The Directors continue to monitor and adjust a base case scenario which is based on the Board approved forecast and assumes an increase in revenues, and a decrease in underlying administrative expenses following a strategic review of the underlying cost base. In addition, the Directors have modelled severe but plausible downside scenarios on the going concern period. These scenarios include sensitivity analysis to delay future revenue growth. In such a case the Group would take mitigating actions and the Directors concluded that the Group would be able to reduce expenditure on its research and development programmes and other areas in order to meet its liabilities as they fall due for the going concern period, without needing to obtain waivers on any applicable debt covenants.
Based on the above, the Directors are satisfied that the Group and Company will have sufficient funds to meet their liabilities as they fall due for the going concern period and therefore have prepared the financial statements on a going concern basis.
Accounting policies
The accounting policies used in the preparation of the financial information for the six months ended 30 June 2025 are in accordance with the recognition and measurement criteria of
Changes in accounting policy and disclosures
New standards, amendments and interpretations
The following new standards, amendments and interpretations have been adopted by the Group for the first time for the financial year beginning on 1 January 2025:
- Lack of Exchangeability (Amendments to IAS 21). The amendment clarifies how the Group assesses whether a currency is exchangeable, and when not, how to derive and disclose an appropriate exchange rate. Additional disclosures are required regarding the estimation methodology and the resulting financial impact.
The adoption of this amendment has not had a material impact on the Group's consolidated financial statements.
Future standards, amendments and interpretations:
In April 2024, the IASB issued IFRS 18, which replaces IAS 1. The new standard is effective for annual periods beginning on or after 1 January 2027 (with earlier adoption permitted) and must be applied retrospectively. IFRS 18 will change how the Group presents its financial statements but will not affect the recognition or measurement of assets, liabilities, income, or expenses. The group is in the process of assessing the impact and changes required to meet this new standard.
Principal risks and uncertainties
The principal risks and uncertainties impacting the Group are described in our 2024 Annual Report and remain unchanged at 30 June 2025. We continue to monitor the global inflationary and economic pressures along with other geopolitical macro issues.
Critical accounting judgments and key sources of estimation uncertainty
The Group is required to make estimates and assumptions concerning the future. These estimates and judgements are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The resulting accounting estimates will, by definition, seldom equal the related actual results. Accounting estimates and judgements have been required for the production of these Financial Statements.
Share-based payments
Equity-settled share options are granted to certain officers and employees. Each tranche in an award is considered a separate award with its own vesting period and grant date fair value. The fair value of each tranche is measured at the date of grant using the Black-Scholes option pricing model, the
Research and development costs
Capitalisation of development costs requires analysis of the technical feasibility and commercial viability of the project concerned. Capitalisation of the costs will only be made where there is evidence that an economic benefit will flow to the Company. During the period we capitalised £290k of research and development costs in relation to our bipolar snare product which we are developing. No other development costs have been capitalized for the period.
Deferred tax assets
Management judgement is required on whether the Group should recognise any deferred tax assets for losses. A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available against which the temporary difference can be utilised.
Given the nature and stage of development of
Forecasts for
Segmental reporting
An entity is required to disclose information to enable users of its financial statements to evaluate the nature and financial effects of the business activities in which it engages and the economic environments in which it operates. As the Group's global reach has expanded in the period, management have exercised significant judgement in determining whether presenting segment information on an alternative basis would better adhere to this core principle.
Whilst the operations in different geographical locations form a fundamental part of the Group's long-term strategy, they are in the early stages of development, and the Group continues to focus on the development and commercialisation of its products and the key range of unique endoscopic surgical devices and CROMA Advanced Energy Platform. In making their judgement, the directors considered the Group's activities and the internal reporting structures, and information regularly reviewed by the entity's chief operating decision-maker to make decisions about resources to be allocated and assessing performance.
After the assessment, the directors concluded that financial information at a consolidated Group level appropriately reflects the business activities in which the Group is currently engaged, and the economic environment in which it operates. As explained in the 2024 Annual Report, as the Group continues to grow it is expected that the internal reporting structure will evolve in order to meet the changing activities, goals and objectives of the business and therefore additional operating segments may be identified as appropriate in future reporting periods.
Investment in Associate
Investments in Associates with significant influence but not control will be accounted for under the equity method as per IAS 28. The investment will be recognised initially at cost, with share of the profits added to the investment and the investment reduced by subsequent dividends. The investment must be assessed for impairment indicators.
Following the disposal of CME the group now holds a 49% interest in Creo Medical S.L. over which it exercises significant influence but does not have control or joint control. The asset has been recognised initially at £29.5m, being 49% of the €72m equity value of the purchase by Micro-Tech. As required under the equity method as per IAS 28.
Subsequently, the share of the associates' profits for the 6 months ended 30 June 2025 of £1.2m has been recognised on the investment. Total investment £30.7m (2024: nil), with the remaining investment on the balance sheet £2.1m in IQ Endoscopes Ltd.
Asset Held for sale
Any non-current assets, or disposal groups comprising assets and liabilities, are classified as held for sale if it is highly probable that they will be recovered primarily through sale rather than through continuing use. Such assets, or disposal groups, are generally measured at the lower of their carrying amount and fair value less costs to sell. Any impairment loss on a disposal group is allocated first to goodwill, and then to the remaining assets and liabilities on a pro-rata basis, except that no loss is allocated to inventories, financial assets, deferred tax assets, employee benefit assets, investment property or biological assets, which continue to be measured in accordance with the Group's other accounting policies. Impairment losses on initial classification as held for sale or held for distribution and subsequent gains and losses on remeasurement are recognised in profit or loss. Once classified as held for sale, intangible assets and property, plant and equipment are no longer amortised or depreciated.
2. Revenue and other operating income
The revenue split for the Group at 30 June 2025 was as follows:
|
|
6 months to |
6 months to |
12 months to |
|
(All figures £m) |
30-Jun-25 Unaudited |
30-Jun-24 Unaudited |
31-December-24 Audited |
|
|
1.0 |
0.9 |
1.7 |
|
|
0.3 |
0.3 |
1.2 |
|
RoW |
0.9 |
0.4 |
1.1 |
|
Continuing operations |
2.2 |
1.6 |
4.0 |
|
|
0.7 |
6.3 |
7.2 |
|
|
2.1 |
7.3 |
19.5 |
|
RoW |
- |
- |
- |
|
Discontinued operations |
2.8 |
13.6 |
26.7 |
|
|
|
|
|
|
Total |
5.0 |
15.2 |
30.7 |
|
|
6 months to |
6 months to |
12 months to |
|
(All figures £m) |
30-Jun-25 Unaudited |
30-Jun-24 Unaudited |
31-December-24 Audited |
|
Creo Products |
2.2 |
1.6 |
4.0 |
|
Continuing operations |
2.2 |
1.6 |
4.0 |
|
Creo Consumables |
2.8 |
13.6 |
26.7 |
|
Discontinued operations |
2.8 |
13.6 |
26.7 |
|
|
|
|
|
|
Total |
5.0 |
15.2 |
30.7 |
3. Earnings per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6 months to |
6 months to |
|
12 months to |
|
|
|
|
|
30 June 2025 |
30 June 2024 |
|
31 December 2024 |
|
(All figures £) |
|
|
|
Unaudited |
Unaudited |
|
Audited |
|
|
|
|
|
|
|
|
|
|
Profit/(Loss) |
|
|
|
|
|
|
|
|
Loss attributable to equity holders of Company (basic) |
|
|
|
16,925,834 |
(12,309,680) |
|
(27,776,661) |
|
|
|
|
|
|
|
|
|
|
Shares (number) |
|
|
|
|
|
|
|
|
Weighted average number of ordinary shares in issue during the year |
|
|
|
412,743,602 |
361,663,962 |
|
369,978,970 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit/(Loss) per share |
|
|
|
|
|
|
|
|
Basic |
|
|
|
0.04 |
(0.03) |
|
(0.08) |
|
|
|
|
|
|
|
|
|
|
Shares (number) |
|
|
|
|
|
|
|
|
Dilutive Share Options |
|
|
|
2,894,680 |
- |
|
- |
|
Adjusted weighted average number of ordinary shares in issue during the year |
|
|
|
415,638,282 |
361,663,962 |
|
369,978,970 |
|
Diluted profit/(loss) per share |
|
|
|
0.04 |
(0.03) |
|
(0.08) |
Earnings per share has been calculated in accordance with IAS 33 - Earnings Per Share using the loss for the period after tax, divided by the weighted average number of shares in issue.
Diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares in issue to assume conversion of all potential dilutive ordinary shares. In comparative years, the potential ordinary shares are considered to be antidilutive on the basis that they reduce the loss per share and are not included in the Company's EPS calculation, meaning that diluted EPS is the same as basic EPS.
4. Share capital
|
|
|
|
|
|
Balance at 30 June 2023 (£) |
|
350,891 |
|
|
Issue of share capital |
|
|
|
|
Number of shares |
|
10,360,146 |
|
|
Price per share (£) |
|
0.001 |
|
|
Share value (£) |
|
10,360 |
|
|
|
|
|
|
|
Balance at 31 December 2023 (£) |
|
361,251 |
|
|
Issue of share capital |
|
|
|
|
Number of shares |
|
225,024 |
|
|
Price per share (£) |
|
0.001 |
|
|
Share value (£) |
|
225 |
|
|
|
|
|
|
|
Balance at 30 June 2024 (£) |
|
361,476 |
|
|
Issue of share capital |
|
|
|
|
Number of shares |
|
5,067,254 |
|
|
Price per share (£) |
|
0.001 |
|
|
Share value (£) |
|
50,673 |
|
|
|
|
|
|
|
Balance at 31 December 2024 (£) |
|
412,149 |
|
|
Issue of share capital |
|
|
|
|
Number of shares |
|
324,340 |
|
|
Price per share (£) |
|
0.001 |
|
|
Share value (£) |
|
324 |
|
|
|
|
|
|
|
Balance at 30 June 2025 (£) |
|
412,473 |
|
5. Disposal of investments in subsidiaries
On 12 February 2025 Creo announced the completion of the sale of 51% of the issued share capital of Creo Medical S.L.U. ("CME"), a wholly owned subsidiary of Creo, to Micro-Tech (NL) International B.V., a wholly owned subsidiary of Micro-Tech (Nanjing) Co. Ltd (SHA: 688029) ("Micro-Tech") at an equivalent equity value of €72m on a cash-free, debt-free basis. Along with other customary conditions, completion of the Sale was contingent on Micro-Tech obtaining Outbound Direct Investment clearance in
On 19 March 2025 Aber Electronics Limited ("Aber"), a wholly owned subsidiary of
The impact of both transactions can be seen both on the statement of comprehensive income and the reduction in the statement of financial position. The resulting transaction resulted in a profit on disposal of £26.2m this is broken down as follows:
|
|
|
|
6 months to |
|
(All figures £m) |
|
30 June 2025 |
|
|
|
|
|
|
|
Consideration received |
|
30.7 |
|
|
Debt settled |
|
|
(5.8) |
|
Net consideration |
|
24.9 |
|
|
|
|
|
|
|
Carrying amount of net assets disposed |
(26.8) |
||
|
Transaction costs incurred on disposal |
(1.4) |
||
|
Investment Retained |
|
29.5 |
|
|
Profit on disposal |
|
26.2 |
|
|
|
|
|
Held For sale |
Movement in |
Asset |
|
(All figures £m) |
|
31 December 2024 |
Asset to sale date |
Disposed |
|
|
|
|
|
|
|
|
|
Non-current assets |
|
24.6 |
- |
24.6 |
|
|
Current assets |
|
16.3 |
0.2 |
16.5 |
|
|
|
|
|
|
|
|
|
Total assets held for sale |
40.9 |
0.2 |
41.1 |
||
|
|
|
|
|
|
|
|
Total liabilities held for sale |
14.2 |
0.1 |
14.3 |
||
|
|
|
|
|
|
|
|
Net Asset Held for Sale |
|
26.7 |
0.1 |
26.8 |
|
The Investment retained on the balance represents the 49% associate accounted for under IAS 28 equity method. The disposal removed the requirement for the foreign currency reserve, which has been transferred to reserves. The movement in the asset held for sale reflects the result of discontinued operations adjusted for relevant continuing profits affecting the asset disposed of with £0.1m impact.
6. Asset held for sale
On the 26 May 2025 the board approved the sale of a non-current asset in relation to property at the Chepstow site, as such it was deemed to meet the conditions outlined in IFRS 5 Non-current assets held for sale. The property is held on the balance sheet at its carrying value of £1.7m, no impairment has been recognised given the fair value less cost to sell is in excess of its carrying value. There is no associated operation and therefore no requirement for discontinued operations.
7. Post balance sheet events
None
Chief Finance Officer
22 September 2025
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