Creo Medical jumps as it plans GBP5.5 million placing, stake sale

(Alliance News) - Creo Medical Group PLC said on Friday it plans to raise GBP5.5 million through a placing and is seeking to sell its remaining 49% stake in Creo Medical Europe SL, as the company reported narrowed annual losses and stronger revenue growth.

Shares in Creo Medical were up 24% to 14.11 pence in London on Friday morning, having traded as high as the 15 pence placing price. The stock is up over the past 12 months.

The medical device company said revenue in 2025 rose 50% to GBP6.0 million from GBP4.0 million a year earlier, while its pretax loss narrowed to GBP17.5 million from GBP29.0 million.

Creo said it entered 2026 in a strengthened financial position, supported by continued commercial momentum and cost reduction measures following the outsourcing of manufacturing operations announced in April.

The company said first-quarter revenue growth was around 60% year-on-year, at the upper end of board expectations, and it now expects full-year 2026 revenue growth of between 50% and 60%, upgraded from previous guidance of 40% to 60%.

Creo announced a proposed placing of around 36.7 million new shares at 15 pence each to raise approximately GBP5.5 million before expenses. The issue price represents a 31.9% premium to Thursday's closing middle market price of 11.4p.

Certain directors intend to subscribe for around GBP2.15 million in the placing, Creo said.

The company said proceeds from the placing, alongside GBP2 million in conditional loan notes from the Development Bank of Wales and the proposed sale of its stake in Creo Medical Europe, would support growth, commercial expansion and working capital requirements.

Separately, Creo said it has signed a non-binding agreement with a company owned by Creo Medical Europe Chief Executive Officer Luis Collantes regarding the proposed sale of its entire 49% interest in the business.

The proposed transaction is based on an indicative enterprise value in line with the carrying value of Creo Medical Europe at December 31, 2025, with payment expected in cash on completion.

Creo said the sale would allow it to realise value from the minority investment, simplify the group structure and strengthen the balance sheet, while maintaining Creo Medical Europe as a distributor for its advanced energy products in key European markets.

Chief Executive Officer Craig Gulliford said: "This proposed transaction represents an opportunity to crystallise value from our minority interest in CME at an attractive valuation."

By Eva Castanedo, Alliance News reporter

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