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Creo Medical Group plc
("Creo", the "Company" or the "Group")
H1'25 Trading Update
40% Core Technology revenue growth, in line with management expectations
Tracking on plan with full year guidance
Creo Medical Group plc (AIM: CREO), the medical device company focused on the emerging field of minimally invasive surgical endoscopy for pre-cancer and cancer patients, provides a trading update for the six-month period ended 30 June 2025 (H1'25).
Financial highlights
H1'25 Core Technology revenues from continuing operations were up 40% to £2.2m (H1'24: £1.6m), in line with management expectations for first half performance. The Board is pleased with current trading into the second half of the financial year and believes the Company is tracking on plan for 40% to 60% revenue growth for the full year, in-line with prior guidance, with a continued historical H2 weighting.
Creo has continued to implement efficiencies and cost reductions, and H1'25 has benefitted from the full impact of the proactive management of its cost base already undertaken in 2024. Underlying operating costs on a continuing basis have reduced to £ 9.1 m (H1'24: £ 12.8 m). Underlying operating loss on a continuing basis has reduced to £6.9m (H1'24: £12.1m).
Cash and cash equivalents at 30 June 2025 was £ 20.5 m (31 December 2024: £8.7m).
Operational overview
Recent developments in the US have provided positive support for the long-term roll-out of Creo's products . The two new Category I CPT reimbursement codes for upper gastrointestinal ("GI") and lower GI Endoscopic Submucosal Dissection procedures are expected to enable and encourage the use of next-generation products such as Speedboat® UltraSlim, and Speedboat® Notch, designed specifically for such procedures. The Board believes this financial incentive will encourage the US market to move from diagnostic procedures to therapeutic procedures in upper and lower GI.
In other positive news for commercial traction in the US, in June 2025, the Company announced FDA clearance for its SpydrBlade™ Flex device, a unique multi-modal endoscopic device designed for precision and adaptability in therapeutic endoscopy procedures a nd the latest product in Creo's GI suite of advanced energy products .
As set out in the full year results, the Company expects more sites to come online in 2025 using MicroBlate™ Flex in the treatment of lung tumours, with the expectation that these sites will become revenue generative in due course. Commercial sales of MicroBlate™ Flex from the initial sites have already commenced. Earlier this month the Company announced first patient treatment in a post-market multi-centre "ablate and resect" clinical study to evaluate MicroBlate™ Flex safety and performance. The study is taking place at the Amsterdam University Medical Centre in the Netherlands and at the Royal Brompton Hospital in the UK.
Wider clinical adoption of Creo's Core Technology portfolio continues to be supported by a significant number of papers, abstracts and case studies from clinicians around the world who have used Creo's advanced energy devices. Many can be viewed here:
https://www.creomedical.com/en/investors/creo-medical-clinical-resources-bibliography
As detailed in the full year results, in September 2024, the Group announced the agreement to sell a 51% interest in Creo Medical Europe ("CME") to Micro-Tech (NL) International B.V., a wholly owned subsidiary of Micro-Tech (Nanjing) Co. Ltd (SHA: 688029) (the "Sale"). The Sale completed on 12 February 2025.
The Company's 49% stake in CME will bring revenue and cash inflows via annual dividends distributed from annual profits going forwards. Current trading at CME is reported to be above its management expectations for growth at both revenue and EBITDA levels. We are now working actively with Micro-Tech to explore strategic growth opportunities both within CME and Creo's wider advanced energy portfolio.
On completion of the Sale, a €36m investment asset was recognised and held on the balance sheet, providing future balance sheet strength to the Group. This will be an exceptional gain during H1'25.
With the completion of Creo's suite of advanced energy products allowing the business to move into a more streamlined and simplified commercial organisation, the Company has agreed heads of terms to divest part of its Chepstow site for £1.75m. Once complete, the divestment will provide additional non-dilutive cash for the business's day-to-day operations.
Outlook
The Board of Creo remains confident in the outlook for 2025 and expects another year of strong growth in Core Technology, allowing the Company to build self-sustaining cashflows and improve outcomes for pre-cancer and cancer patients worldwide.
Notice of Results and Capital Markets Event
Creo will announce unaudited interim results for the six months ended 30 June 2025 before the end of September 2025. A further announcement confirming a date for publication of the interim results will be issued in due course.
Creo also announces that it will hold a Capital Markets Event for investors and analysts on Thursday 9 October 2025 at the offices of Deutsche Numis. A further announcement with details of the agenda and how to register for the event will be published in due course.
For further information please contact:
| Creo Medical Group plc |
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| Richard Craven, Company Secretary |
Via Walbrook PR |
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| Deutsche Numis (Nominated Adviser, Broker and Financial Adviser) Freddie Barnfield / Duncan Monteith / Sher Shah |
+44 (0)20 7260 1000 |
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| Walbrook PR Ltd |
Tel: +44 (0)20 7933 8780 or creo@walbrookpr.com |
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| Paul McManus / Alice Woodings
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Mob: +44 (0)7980 541 893 / +44 (0)7407 804 654 |
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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
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