Trading update17 Feb 2025 07:38
FY24 Trading Update
Cash proceeds of c. €30m received
Creo Medical Group plc (AIM: CREO), a medical device company focused on the emerging field of minimally invasive surgical endoscopy for pre-cancer and cancer patients, provides the following trading update for the year ended 31 December 2024 (“FY24”).
Financial and operational highlights
The Company delivered a strong Creo Core Technology performance in FY24 as our technology continued to gain wider acceptance. The Company is transitioning from development phase to full commercialisation which has allowed management to take steps to proactively manage the cost base, with significant cost reductions undertaken in H2 24 with the full benefit to come through in FY25.
The Company expects to report revenues of £30.4m (FY23: £30.8m), reflecting the following:
74% increase in Creo Core Technology revenues to £4.0m (FY23: £2.3m), with £2.4m of sales in H2 24, representing 50% growth half-on-half. Creo Core Technology revenues include sales from all core products such as Speedboat UltraSlim and CROMA platform and significant new customer additions during the period.
Kamaptive: Good progress was made towards the commercial use of the MicroBlate™ Flex ablation device for robotic-guided procedures for lung cancer. Two UK sites are now performing combined diagnosis and ablation procedures using MicroBlate™ Flex with the Intuitive Ion Endoluminal System. As part of the amended agreement with Intuitive (as announced on 2 July 2024), further sites are expected to come on stream in the near future, with the expectation that each site becomes revenue generating once the initial cases have been completed. As such, whilst the initial post-market cases are being completed, no revenues associated with this were recorded in the period (FY23: £1.7m).
Creo Medical Europe Consumables revenues were up 2.6% in constant currency in line with management expectations. Reported revenues expected to be £26.4m (FY23: £26.8m) reflecting some forex headwinds in the period. The Creo Medical Europe Consumables will be held as discontinued activities in the Group’s FY24 audited results following the Sale (as referenced below).
As committed, actions to reduce costs in the second half of the year resulted in a decrease in operating costs of approximately £5.0m with the full benefit of to come through in FY25.
Strategic development & receipt of cash proceeds
In September 2024, the Group announced the sale of a 51% interest in the Company’s Creo Europe business to Micro-Tech with proceeds of approximately €30m payable in cash on completion (the “Sale”). The Sale completed on 12 February 2025, with the cash proceeds received on 14 February 2025. Following completion of the Sale, the Group’s cash and cash equivalents were £31.2m. The strategic transaction with Micro-Tech strengthens Creo’s commercial platform and enables Creo to continue to fund the ongoing strategic
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