Creo Medical Regulatory News (CREO)

Creo Medical Group plc

("Creo" the "Company" or the "Group")

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 development of its core technology business.

Current Trading and Outlook

The start to the year has been positive and the Company is trading in line with management expectations.

Further details on the operational performance of the business, including the growing adoption of Creo Core Technology,will be provided with the full year results expected to be announced in April 2025.

For further information please contact: 

About Creo Medical

Creo is a medical device company focused on the development and commercialisation of minimally invasive electrosurgical devices, bringing advanced energy to endoscopy.

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