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I do think this will fly when they release sales numbers
Robots are nice
Terribly precise
But much more efficient
Not doing things thrice
Take 3 instruments into the oesophagus? Smart robots use Speedboat F-poem, you know it makes sense!
This is a game changer, a revolution, a coup - "We were thrilled to witness the successful execution of the F-Poem procedure using solely the Speedboat device, a task that traditionally requires three separate instruments. This not only showcases the device's efficiency but also enhances the cost-effectiveness of the procedure, underscoring the economic advantages Creo's technology can deliver"
A trading update was published this week last year. I'm looking forward to positive news flow imminently.
I don't see training as an issue - they invested heavily in that a while ago, and now it is well established and widespread. The multiple recent use cases are an example of the large number of practitioners already familiar with the tech. The emergence of the mature product, probably close to the final version, makes the case even stronger for hospitals around the world to get on board and reap the substantial benefits. The robotics companies may also have more incentive to invest in integrating the tool into their systems, because they are now dealing with a standardized, mainstream product form. Target for break-even was sometime in 2025 when they last spoke about it. I'm hoping this year will see a constant drip of positive newsflow, including confirmation that that target is visible and static.
thanks for the link. chris han**** is very impressive. when you listen to him you are in no doubt whatsoever of the quality and value of the creo technology. he is adamant that there are no competitive threats to the creo technology. it is not just the precision of speedblade, it is the fact that procedures can be carried out very quickly plus recovery times are slashed. you are saving the cost of say three nights in hospital, whatever that is, plus you are increasing the capacity of the surgeon or consultant to carry out these procedures maybe threefold. the only downside is that every consultant needs to be trained to use these instruments and that takes time and resources. i see the key to be getting the creo technology coupled with robotics so there are two sales tracks, one necessarily slow and the other much faster. in the interim, as several other posters have observed, there has to be very strict control of headcount and costs. getting to breakeven cashflow before existing cash is depleted has to be the holy grail. whilst another raise could be achievable if progress is very solid it is time for management to start meeting targets. the next sales update could be one of the most important and hopefully the recent sp movement is telling us they are well on course.
Interesting article in Sunday Times magazine about robotic surgery. Creo are bang on the button for this and the normal laparoscopic techniques. The Da Vinci robots being described are made by Intuitive Surgical as referenced previously.
@Theorist
Thanks for the reply, appreciated,
This is certainly on my watch list, product side is certainly impressive. My only concern is the cash burn. They believe they can be cash flow positive in 2025 but a quick calculation of CAB at 30/6 indicates a burn of circa 20m in H1 with 26m remaining so if they spend same in H2 we would have about £6m left in Q1 24 so looks to me a further raise bolted on first quarter which could be why they are at the pitching event on the 11th Jan. you don’t bother with pitching events if you are fully funded. Not a bad thing but I would want to know what that looks like and indications they can make this viable.
Speedboat is VERY impressive for sure but MCap is also fairly racey IMO. I will attend the pitching event if I can get down to London. Add a few in the next placing if they can demonstrate stronger fiscal control.
Good luck with this one, a solid base they are building from for sure
2024 you mean
Nice rise today. Heading in 2025 for my 100p SP target.
Thank you Souville.
Placing of c. £31 million followed by open offer :-
The Company is pleased to announce that, further to the announcement made on 12 August 2021 (RNS No: 5145I ) regarding the Fundraising (the "Launch Announcement"), it is proposing to raise up to approximately £5.07 million (before expenses) through an Open Offer pursuant to which Qualifying Shareholders will have an opportunity to subscribe for an aggregate of 2,775,896 Open Offer Shares at an Offer Price of 182.5 pence per Open Offer Share.
There were raises at 75p and 125p as I recall, do not remember one at 180p.
Yes there was a raise at 20p putting the market cap at around £60m, following a steady decline from a high of around 230p. Main reasons for the decline were failure to get any traction with core sales of devices, not helped by Covid, a blow out with costs including an extraordinary increase in headcount to 350. In March the company pledged to reduce this to 250, something they said they could do because r & d had peaked. Other poor decisions included appointing a new director who promptly joined the remuneration committee which then awarded key directors massive bonuses. Imo a very poor decision. Since the March raise there are signs of a revival, early traction with sales, new fda approvals, a lot of hope of a deal with one or more of the robotic surgery leaders. I am guessing that the recent uplift in sp is on the back of some positive news in the arena but this not confirmed. Would be very interested if anyone has details of current headcount, even better details of cost reductions. I remain confident that the company will prevail because the technology remains cutting edge however I think there is a call for a management refresh. Back to basics, cut costs, narrow focus to sales of devices, maybe even jettison acquisitions which have sucked in cash and distracted from main objective.
Can anyone tell me what the MCap was when this raised significant capital at £1.80 without me having to look it up.
I can see the SP has gone up from the 20p Raise to 37p and we are at £132m value today so I’m guessing the last raise was based on about £60m ? But how does that relate to the earlier raise?
Has the value of the business gone up or down over the last three years? Thanks
Firstly, to address any lingering doubt with regards to future funding requirements, on the current trajectory the evidence strongly suggests further funding would no longer be required to support future organic growth before reaching profitability. With a caveat, should the demand for Speedboat Ultraslim exceed current production capacity to such an extent to trigger a requirement for further investment in manufacturing capacity, or for growth by acquisition.
In either scenario, this would be backed up by a material increase in revenues from the current baseline.
This is now without doubt, a very exciting time for the company and its investors.
A few years ago, Baillie Gifford cited Creo as one of the most exciting and innovative companies they had come across in many years and they became a significant shareholder.
But due recently to the worst market conditions for AIM and small cap growth companies in the living memory of most, and due to being a forced seller because of fund redemptions, their stake in the company has been reduced to 1.995%, down from a previous holding of 7.30% in June last year.
In hindsight, I think BG were a little ahead of their time with Creo.
To quote a famous song from Bob Dylan: "The Times They Are A-Changin’"
As has been seen, Creo have got off to a very positive start ahead of the new year with first use cases of Speedboat Ultraslim in the USA and Europe and most recently, Latin America.
These cases provide a great platform for endorsement and I imagine that their phone lines are ringing hot and the management and salesforce teams are working a lot of overtime.
We anticipate a lot of news on progress in the new year and the update from NICE. Although we don't yet know what the outcome of that will be and Speedboat is already being used to great effect in some UK hospitals, we should be reminded of the recent statement from Creo's CEO in this regard:
"Using our technology, initial
health economic data has
demonstrated that the NHS
can save approximately
£5,000 per procedure"
Excerpt from a research note published by Edison on 14th December 2023 that concludes with:
"In November 2023, Speedboat UltraSlim received 510(k) clearance from the FDA for its Speedboat UltraSlim device, close on the heels of the accelerated clearance pathway in Europe (18 months earlier than anticipated). Management has indicated that the validation work and transfer to manufacturing has now been completed and launch activities should pick up pace in the coming weeks, with a full launch anticipated in early 2024 in Europe. We believe this will be swiftly followed by a launch in the US as well as in other geographies such as Asia-Pacific. We see the launch of the UltraSlim version as a key commercial win for Creo, supporting greater top-line traction for the core portfolio in FY24."
https://www.edisongroup.com/research/ultraslim-launch-kicking-off-fy24-momentum/33060/
From Creo Twitter
Following our EMEA and USA milestones, this week Speedboat UltraSlim was used for the first time in Latin America with Dr Michel Kahaleh, Dr Juan Alcivar and Dr Eduardo Albeniz performing #POEM & #FPOEM procedures at #IECED Hospital, Ecuador.
Strange newsflow. It's as if they read my comment a couple of days ago and decided to reply with a whole raft of use cases from the States ( : Surely they knew about this when the previous RNS went out - or did all these procedures happen this week? ( : Anyway, great news that Creo tech is suddenly addressing so many different patient conditions. Shows how quick adoption can happen. With trained eager physicians ready to go, and manufacturing in place, it feels like most of the hard work has been done now and it's time to reap the rewards and move forward with other products. Not quite certain yet, but it really looks like this is the start of a VERY positive step change in this branch of surgery, with Creo right at the heart of it.
I am in full agreement. The thing clearly holding it back is any ongoing funding worry. If the sales go well however that concern should evaporate in a puff of contracts. I invested in these several years ago at much higher levels but came back in for a lot more recently having decided to take a chance on sales bringing in sufficient income to prevent any future dilutive fund raise. So fingers crossed.
Another step forward for this great little company.
Today's the day, surely? The sales team is strongly building global momentum. This is set to explode. Not a ramp... I feel genuinely inspired by this story.