Creo Medical starts 2025 in positive fashion, coffers full
Published: 03:22 17 Feb 2025 EST
Creo Medical Group PLC (AIM:CREO) said it has started 2025 in line with expectations, with costs cut by £5 million and also €30 million (£25 million) cash received last week for the sale of its stake in Creo Europe.
The full benefit of the cost-cutting will come this calendar year, the developer of minimally invasive endoscopy equipment said, as the actions were made in the second half of the year.
Last year saw revenues of roughly £30.4 million generated, the AIM-listed company said in a trading update on Monday, compared to £30.8 million the year before.
More crucially, there was a 74% increase in revenues from what it called ‘Creo core technology’ to £4 million, with £2.4 million of sales in the second half.
Core technology includes sales from products such as Speedboat UltraSlim and CROMA platform and “significant” new customer additions during the period, Creo said.
No revenues were recorded from the MicroBlate Flex ablation device for robotic-guided procedures for lung cancer, as the amended agreement with Intuitive Surgical awaits completion of initial cases from two UK sites that are now performing combined diagnosis and ablation procedures using technology from the two companies. 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, the company said.
The sale of Creo’s 51% stake Creo Europe to Micro-Tech, which was announced in September, was completed last Wednesday, 12 February, with the cash proceeds received on Friday.
As a result, group cash and equivalents stood at £31.2 million at this point, with Creo saying this will help it continue to fund ongoing strategic development of its core technology business, while the sale to Micro-Tech strengthens its commercial platform.
