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Started: ShadowCelt, 5 Jun 2024 17:26
Last post: ShadowCelt, 5 Jun 2024 17:26
Creo also a shareholder here https://iqendoscopes.com/our-technology/ can see on companies house https://find-and-update.company-information.service.gov.uk/company/09462661/filing-history/MzQxNTk4Njc2MGFkaXF6a2N4/document?format=pdf&download=0
Last post: Abouttime, 22 May 2024 12:30
Shares in Creo Medical Group PLC (AIM:CREO), a company specialising in surgical endoscopy and advanced energy licensing, are rated by Deutsche Bank as 'buy' up to 80p.
In a short update in the wake of full-year results, the German outfit flagged as its key highlight the approval and launch of the Speedboat UltraSlim, which improves compatibility with a broader range of endoscopes. This development is expected to enhance the company's market position and drive future growth.
According to DB, the numbers were all in line with expectations. Sales grew by 13% to £30.8 million, while core technology revenues, including the Speedboat device, increased significantly from £0.9 million in FY22 to £2.3 million in FY23. Combined licensing and core technology sales amounted to £4 million. Consumables sales grew by 8% to £26.8 million. Creo Medical ended the year with a net cash position of £18.5 million.
In afternoon trading the stock was up 1.3% at 36.98p.
Started: Breadvan, 17 May 2024 14:07
Last post: Troajan, 21 May 2024 12:59
Text book buying the dip. Encouraging.
If a raise were need ( and I don't believe it will), I'm not seeing any justification or need for 15p-20p as some posters here and elsewhere have suggested.
Started: 1eyedman, 16 May 2024 12:28
Last post: drbiotech, 16 May 2024 16:34
There is some goo stuff here
https://www.investormeetcompany.com/meetings/audited-full-year-results
Other sources of funding could include a licensing deal etc.
I wouldn't read too much into the going concern jargon. Whilst it is a real risk, much of what they have to say is obligatory.
Breadvan. Well lets hope so. There's always a bit of doublespeak in such statements though. Profitability might be a couple of quid a year in the black taken in its literal interpretation. In which case a raise is still possible/likely although such a call would be better received generally if there was positive cash flow. Hopefully!.
"We believe that the current revenue trajectory, future licensing deals and operating cost flexibility provide a clear strategy to ensure sufficient cash resources to get us to profitability."
It's going to be tight, but they believe they can do it.
The RNS going concern statement doesn’t sugar coat the situation which is pretty refreshing. In my opinion (for what little it’s worth) there will be another raise looking for around 20m. Normal behaviour would be to wait for some good news to bump up the sp first. Or if the share price starts to decline bring the raise forward while it’s still worth something!.
Started: ripley94, 26 Feb 2024 09:05
Last post: ripley94, 15 May 2024 23:47
Porky9 advised me to sell on 9th March over on VAL bb.
Suggesting a placing around 38p then back at 32p now.
Canaccord reduced their position, they sold down
Whilst porky has a valid point that its going to be tight between ramping up sales and running out of cash he doesn't understand the product. On ADVFN he confuses it a standard endoscope. Make of that what you will.
38 weeks from June 1st is I think last week of feb. So we are at 40 weeks already. I think the timeline is an average rather than strict framework as some products are more complex than others.
The point about Creo not communicating particularly well I think is valid. But thats often the way when there is a bunch of scientists at the top. I've download a few of their brochures from their websites and its a moderately complex read, such as explaining why speedboat uses two different energy forms and how that affects operation. Its understandable to the lay person but we are not the target market.
Its a significant holding for me - they sponsor one of my friends sons junior cricket teams too. Its not without risk, but the potential is huge (the recent lung diagnose and treat in the same procedure being an excellent example). Just have to prove they can make and sell. Not guaranteed, but I think if they can show great growth and get near to breakeven before the cash runs out then getting some bridging finance should be straightforward.
9 hedge funds/ investment advisers hold.
Canaccord Genuity Wealth Management own 12.4% recent increase .
Amati Global Investors Limited 4% increased by 240%
Main broker shows 2 Analysts expect the price to increase by 162%
Started: busicat, 13 May 2024 13:30
Last post: cadburyhill, 15 May 2024 11:50
It may need one more fund raise. If growth goes the way we hope, they’ll be stretched working cap wise. I bought today and would buy aggressively in a future placing. Raising funds to expand a growth business is a good thing. We in U.K. AIM have temporarily forgotten that.
It's worth highlighting the worst case scenario, thanks busicat, but realistically they are likely to find extra funding if they need it. Albeit, it could be another fundraise, but it could equally be another source. The growth numbers are impressive, imo, but evidently slightly below what the market was hoping for. This company rarely report upside surprises, but we live in hope. Possibly a buying opportunity for the quick and the brave, but the dip is relatively small, so far.
I am afraid it is one of those companies you relist in the USA and you get three times the existing market cap. The product is approved in Europe and the USA ! Give it a year to gain traction…they have to train people to use it first !
Hmm - could go either way. Although revenue + costs going in right direction, "Downside scenario" could mean cash exhausted in 12 months.
"We have a clear strategy to ensure sufficient cash resources to get us to profitability, however as a high growth MedTech company future revenues and future investment are not committed and this represents a material uncertainty resulting in significant doubt in respect of going concern as disclosed in the 2023 annual report and accounts. However, we believe that the current revenue trajectory, future licensing deals and operating cost flexibility provide a clear strategy to ensure sufficient cash resources to get us to profitability."
"The Directors have prepared a base case scenario which is based on the Board approved forecast and assumes an increase in revenues particularly from its core revenue streams and Kamaptive licensing programme for the year to 31 December 2024 compared to the year ended 31 December 2023. In addition, the Directors have modelled a severe but plausible downside scenario for the going concern period. This scenario includes sensitivity analysis to delay a proportion of future expected but not contracted growth in revenue and assumes no savings in expenditure are made. This downside scenario indicated that the cash resources of the Group would be exhausted in around 12 months from the date of approval of the financial statements, and a breach of loan covenants will occur within 12 months, before taking account of mitigating actions. The Directors have identified several areas where a reduction in expenditure on the Group's research and development programme and other areas could be made if such a scenario were to occur to ensure the Group would be able to meet its liabilities as they fall due for the going concern period, without needing to obtain waivers on the debt covenants."
"The Group continues to make progress towards profitability as we continue to seek to ramp up commercialisation. The Directors have identified several potential sources of funding which could provide sufficient cash to the business to reach positive cash generation, should a downside scenario arise. At present these sources of funding remain uncommitted and a substantial proportion of the forecast revenues remains uncommitted for the going concern period and beyond. The Directors recognise that if no additional funding is secured during the next 12 months or if the Group fails to secure additional revenue contracts as forecast then the Group may breach debt covenants and may not have sufficient resources to meet its liquidity requirements and be unable to continue as a going concern. "
Final results should confirm cash runway on Wednesday I hope!
Started: BlahBlahDoh, 8 May 2024 00:15
Last post: BlahBlahDoh, 10 May 2024 10:01
150p? Beam me up, Charlie, this planet is full of coconuts
Only if the share price rises above 150p
After the awards ceremony in July Craig Gulliford will presumably be known as King Creo?
Started: cadell, 8 May 2024 09:09
Last post: cadell, 8 May 2024 09:09
It would be nicer to hear from NICE
Started: Troajan, 7 May 2024 12:10
Last post: Troajan, 7 May 2024 12:10
Started: TurkeyGuzzler, 30 Apr 2024 09:48
Last post: drbiotech, 30 Apr 2024 16:05
Nice spot TG. There has obviously been a bit of a PR round today. There is a more in depth article here that mentions Creo directly
https://www.shropshirestar.com/news/uk-news/2024/04/30/hope-for-robotics-to-help-diagnose-and-treat-lung-cancer-in-one-procedure/
Prof Pallav from Royal Brompton sounds happy.
https://news.sky.com/story/robotics-could-be-used-to-diagnose-and-remove-lung-cancer-in-patients-in-one-sitting-medics-says-13125645
Started: Abouttime, 9 Apr 2024 08:56
Last post: kenj, 14 Apr 2024 13:14
What director buying???
The most recent Director share purchase according to the RNS's published on this site, was 13th March 2023; at the Open Offer over 1 year ago.
There have been share awards and Long Term Incentive Plan take ups, but no actual share buying since then.
Loads of Directors buying now, a good sign. Confidence in the company as its making progress and profits.
I doubt that we are profitable yet. Breakeven this year perhaps?
Started: Hibas19, 9 Mar 2024 23:02
Last post: BlahBlahDoh, 26 Mar 2024 03:10
" results were still 6 months away ", "His "6 months" seems a bit like a finger in the air"
Didn't he actually say "within the next 6 months"? Not saying that's reliable, but it's different from "in 6 months"
Thats a great video on the tech aspects (I couldn't get the link to work, easy enough to find "creo proactive on a you tube search). He's comes across as a well meaning person who wants to improve lives but not particularly keyed into the commercial side. His "6 months" seems a bit like a finger in the air comment which is fair enough.
At the first sign this company looks like hitting its targets I think I'll add in a big way. At the moment its 2% of my folio. I think the lung cancer treatment could be huge, but its going to take a while to show its clinically beneficial.
i've seen a lot of noise about when the nice guidelines are due, by their own time lines would expect it to be in march, but according to chris han**** at the proactive investor conference in jan, results were still 6 months away (at around 16.5 minutes in https://youtu.be/fm0486bmyum?si=nvdyaky1pfgnieww). think we may still have a bit of a wait, but hoping for good news when it does land
Started: Winit, 5 Mar 2024 12:24
Last post: Theorist, 6 Mar 2024 13:58
I think the lung procedure is significant. The reason for very low survival rates from long cancer is the colossal difficulty in getting into the lung. Its fern like structure makes large parts of it inaccessible for rigid devices and I know that Creo have been confident for several years that they could crack this problem. The key word is "flex". The Creo device is highly maneuverable and can reach into the lungs crevices, or at least this is how it was explained to me. Sometimes I am disappointed with Creo's PR. They did what I thought was a very poor job supporting the recent trading statement and here is another instance where Creo could have really promoted this achievement. Its the same with their annual report. Page after page of pretty dull stuff but very little of what investors really want to know, addressable markets, sales forecasts and strategy. Plus impossible to extract what their acquisitions really generate in terms of earnings. That said its nice to see the sp regaining ground.
Although I agree the article you posted involves the use of Creo's Microblate flex device, from our perspective it's not directly referred to ...pity.
I'm hopeful that a NICE MTG would be seen as an important step forward and start to generate a more immediate interest in Creo.
But to actually answer your question, yes think the NICE news would be very positive for the share price when it does land
Think it might be more to do with this news https://www.rbhh-specialistcare.co.uk/news/ion-robot-lung-tumour
Not convinced NICE stick to their own guidelines, but could be pleasantly surprised
The NICE website shows process for receiving MTG Medical Technologies Guidance to be 38 weeks. Based on 1 June assessment start date (rns'd) if process has gone ahead to schedule the output will be due about now - mid March.
Assuming a positive outcome do you folks believe this will elevate the SP?
Started: alfredgeorge, 1 Mar 2024 09:26
Last post: alfredgeorge, 1 Mar 2024 09:26
Disappointed market not reacting to this mornings bullish up date !! Added this morning!
Started: bobbust, 1 Mar 2024 07:59
Last post: bobbust, 1 Mar 2024 07:59
I believe that the lung ablation market could be huge.
Very positive RNS
Started: 1eyedman, 7 Feb 2024 11:09
Last post: Porky9, 25 Feb 2024 09:13
This stock is on my watch list but I just can’t quite get to wanting to add it to my portfolio. Happy for the resident bulls here to try and convince me otherwise.
What’s holding me back from buying is my gut feelings on risk/ reward ratio. You see I’m looking at this thinking;
Pros - love the tech, it’s advancing in a very important sector, new versions brilliant, more advanced and better than anything else in market, massive worldwide potential, without doubt will ultimately get brought out, tick tick tick.
Cons - growth rate slower than expected. exiting tech in hospitals does the job albeit not as good as this tech but no rush to spend to update what they have hence why traction slow.
Massively loss making and burning cash at right rate of knots and my gut is telling me they won’t make break even without another raise not with the current traction rate. I cant understand why the cash burn is still this high at this stage? And finally I’m thinking the MCap is £114m no way would someone pay to acquire this at that price with the losses they are making so I’m thinking any upside to the SP is more than already priced in. Possibly I missed the boat at the 20p raise although I can’t help but feel if they do come for more cash I might still get opportunity later in the year back in the 15-20p range anyhow, can you see my problem here?
The unanticipated R&D tax credit reduction actually amounted to "over £2m". Pretty "unfortunate" if the CFO is not monitoring relevant government tax changes, especially ones this significant?
The market was clearly hoping for even faster growth, but when you take the tax issue into account, the figures are satisfactory and all moving in the right direction. With breakeven now only about a year away, and clearly visible, I can't see a need for further fundraising - the trajectory seems firmly upwards over the coming months. Assuming no further similar tax hits (CFO?) then the next results should look comparatively enhanced.
Obviously i refer to the race to profitability before running out of cash. i can see how the initial response might be a little underwhelming (shares down around 5% at this time). Although there are improvements in sales and revenue they are not exactly breathtaking and despite a 10% reduction in costs they are still pretty high as is the subsequent loss. The tax credit hit of (was it 2m?) is a further blow although obviously outside the companies control. The not very well disguised elephant in the room of another placing before profitability will continue to weigh as nothing in the RNS reassures against this (or more specifically does not reassure me).
This is so close as the technology obviously works and is being successfully adopted. On a very personal level (DYOR) I see no particular reason to bail out of my small speculative holding at the moment.
Started: Troajan, 7 Feb 2024 17:05
Last post: Troajan, 7 Feb 2024 17:05
Started: bobbust, 31 Jan 2024 08:14
Last post: Souville, 7 Feb 2024 12:12
This all seems positive to me, no change from what we already knew with no lag in anticipated timescales. As long as they can get the contracts with the various health care providers worldwide this should be a winner. This remains a share not ideally for widows and orphans but I’m happy to keep hold and fingers crossed my ship will come in.
"the Group remains on track to reach cash flow break even as planned, with the Company well positioned to meet its stated growth ambitions."
Thought this might rise today given the bit about breaking even. Anyone?
The significant thing is the start of regulatory approval in a potentially massive market. The Hong Kong doctors response is hilariously sober and restrained, but highly complimentary
But they do need really big year-on-year percentage sales growth just to breakeven....
I do think this will fly when they release sales numbers
Started: Troajan, 19 Jan 2024 10:40
Last post: Troajan, 19 Jan 2024 10:40
Started: BlahBlahDoh, 10 Jan 2024 15:46
Last post: BlahBlahDoh, 10 Jan 2024 15:52
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"
Started: alfredgeorge, 1 Jan 2024 21:35
Last post: Breadvan, 9 Jan 2024 12:21
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.
Started: alfredgeorge, 1 Jan 2024 08:08
Last post: alfredgeorge, 1 Jan 2024 08:08
Last post: Souville, 31 Dec 2023 17:54
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.