Creo Medical Group plc

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

 

FY25 Final Results

 

Strong financial and operational delivery, in-line with market expectations

H2 commercial momentum has continued into 2026

 

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, announces its audited final results for the 12 months ended 31 December 2025 ("FY25"), which are in-line with market expectations and within prior management guidance.

 

Transformational year delivering strong revenue momentum and significant cost reduction

 

·     Revenue increased by 50% to £6.0m in FY25 (FY24: £4.0m), with momentum building in H2 FY25 as revenue grew by 58% on the same period in FY24 to £3.8m (H2 FY24: £2.4m), demonstrating the accelerating commercial traction and validating the Group's strategy.

·     Underlying administrative expenses† further reduced by c.22% to £18.6m (FY24: £23.8m), as the Group's restructuring programme continued, including full realisation of benefits from FY24 actions and continued tight cost discipline.  

·     Underlying operating loss† reduced by 38.5% to £13.7m (FY24: £22.3m), as revenues scale against a significantly lower cost base.

·     Cash and cash equivalents at 31 December 2025 were £12.4m (31 December 2024: £8.7m).

·     Sale of a 51% stake in Creo Medical Europe ("CME") in FY25 generated a £26.2m profit on disposal and delivered £24.7m of net cash consideration, leaving the Group with an equity investment in CME which generated a dividend received post period end of £1.6m (including £0.3m relating to tax losses).

·    Maintained a clear focus on reducing capital intensity while supporting ongoing commercialisation and product development, progressing towards a more scalable and sustainable operating model.

 

† Underlying operating loss and underlying administrative expenses are after adjusting for share-based payments, depreciation and amortisation, R&D tax credits, earnout and other one-off settlements.

 

Product highlights:

 

·    Speedboat® Notch, launched in April 2025, is already making a meaningful contribution to growth in advanced procedures using Creo's products, notably supporting increasing adoption in upper GI per oral endoscopic myotomies ("POEMs"), a high value procedure area benefitting from favourable reimbursement across major markets.

·    SpydrBlade™ Flex has achieved a strong early clinical reception following regulatory clearance and its commercial launch across the US, UK and EU in 2025, re-enforced post period end with use in a new procedural category, Bariatric Endoscopic Antral Myotomy (BEAM), broadening Creo's procedural footprint.

·    MicroBlate™ Flex continues to gain traction within multiple clinical studies for the treatment of lung tumours and has recently been utilised in the first robotic guided microwave ablation of cancerous lung tissue at a leading UK hospital, underlining the platform's innovative capability and clinical relevance.

·    A limited market release of MicroBlate™ Fine has commenced across selected leading research sites in Europe, APAC and the USA, generating early clinical experience in the treatment of pancreatic and liver lesions and represents an important step towards broader commercialisation.

·    New Category I CPT reimbursement codes have been confirmed for Endoscopic Submucosal Dissection ("ESD") procedures in the US in both the upper and lower gastrointestinal tract. These codes are expected to come into effect in 2027 and represent a significant future reimbursement milestone for advanced endoscopic procedures.

 

Current trading and outlook:

 

·    The Company's 2025 growth momentum has continued into FY26, with a strong trading performance to date.

·    Revenue grew by c.60% in the first quarter year-on-year and the Company has continued to deliver strong commercial progress, with accelerating customer adoption, growing procedural volumes and further conversion of the pipeline into revenue across its key markets.

·    This strong performance in 2026 to date has underpinned the Board's confidence in the growth of the business in FY26 and it now believes that full year revenue growth will be between 50% and 60% on FY25 (previously 40% to 60%).

·    In addition, the post-period end disposal and outsourcing of manufacturing is expected to reduce underlying operating costs by a further c.15% compared to FY25. 

·    The Company announces the conditional subscription for £2m of convertible loan notes ("CLN") by the Development Bank of Wales (see Note 5 below) and has entered into a non-binding agreement regarding the potential sale of its 49% interest in CME for a consideration broadly in line with its carrying value as at 31 December 2025, alongside plans to raise additional equity funding, which will together provide a strengthened financial platform as the Company executes its commercial growth strategy and progresses towards sustainable cashflow generation and profitability.

·    Creo has established a strong platform for growth, supported by a validated core product range, an expanding portfolio of new devices, increasing clinical adoption and future potential from Kamaptive partnerships.

·    Creo's Advanced Energy technology continues to demonstrate its value, both as a standalone solution and as an increasingly integrated platform across multiple surgical environments.

·    The Board remains confident in the outlook for 2026 and beyond, with strong momentum exiting 2025 and a clear focus on scaling adoption, expanding market presence and driving long‑term shareholder value.

 

Commenting on the results and outlook, Craig Gulliford, Chief Executive Officer, said:

"We exited 2025 with strong operational and commercial momentum, driven by the validation of our core product range, progress across our pipeline of new devices and increasing clinical adoption. Our Advanced Energy technology continues to demonstrate increasing clinical and commercial traction, with clear differentiation both as a standalone solution and as an integrated platform across a widening range of surgical environments. With continued positive trading to date in 2026, we remain confident in the Group's prospects. Creo Medical is well positioned to accelerate adoption, expand its market presence and deliver sustainable growth and long‑term shareholder value."

 

For further information please contact: 

 

Creo Medical Group plc		www.creomedical.com
Richard Craven, Company Secretary		Via Walbrook PR
Deutsche Numis (Nominated Adviser and Joint Broker) Duncan Monteith / Sher Shah		+44 (0)20 7545 8000
Shore Capital (Joint Broker) Daniel Bush / Lucy Bowden		+44 (0)20 7408 4090
Walbrook PR Ltd	Tel: +44 (0)20 7933 8780 or [email protected]
Paul McManus / Alice Woodings	Mob: +44 (0)7980 541 893 / +44 (0)7407 804 654

 

 

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

 

 

Chairman's statement

 

Introduction

 

This statement marks the conclusion of my first full year as Chairman of Creo Medical Group plc. I'm proud to say that the Creo team has met every milestone in the business plan introduced at the end of FY2024, delivering 6 successive quarters of top line and bottom-line performance. The Company continues to make strong progress in what is inherently a capital-intensive phase of its evolution, characteristic of innovative medical technology businesses bringing differentiated platforms to global markets.

 

As a reminder, going into last year, we conducted a top‑down/bottom‑up review of Creo's overall business plan.  The motivation behind this review was to create an executable long term business plan that removed all revenue associated with speculative programmes and, at the same time, making sure that the timing of product launches, adoption and release are pragmatic from a revenue forecasting perspective. Other than de-risking the top line forecast(s), the review also focused on lowering the cost structure of the Company while preserving the foundations from which the Company could grow.

 

Of course, the work to reshape the business is still ongoing - moving to an outsourced contract manufacturing model for operational efficiency, continued product launches, and continuous revenue growth are still the priorities for the management team.  To date, the execution to this plan has been excellent, with the executive team fully aligned and engaged with delivery.

 

Overview

 

The Board recognises that companies operating at the intersection of advanced device engineering, clinical validation and international commercialisation require sustained investment over multiple years before reaching meaningful scale. Against this backdrop, we are particularly encouraged by the progress achieved during 2025. This progress reflects a transition from investment-led development towards ever increasing commercial traction and operational leverage.

 

The Group delivered another year of growth. The debut of Speedboat Notch at ESGE Days in April 2025 reinforced the continued adoption of Creo's core Speedboat product range, which remains the foundation of revenues.  Importantly, this traction provides early validation of Creo's advanced energy platform and demonstrates the repeatable nature of our commercial model - an essential milestone in the evolution of any capital-intensive medtech business.

 

We have continued to invest in broadening the product portfolio and gaining valuable clinical evidence. The launch of SpydrBlade Flex, MicroBlate Flex and MicroBlate Fine during the year represents the next phase of platform expansion and very exciting opportunities. While the financial contribution from these additional devices in 2025 was incremental, such product extensions are critical in increasing procedure applicability, deepening customer engagement and driving long-term revenue scalability. The ability to treat more indications enables greater revenue potential.

 

By launching these products in 2025, Creo is now a multi-product company, essential to being successful in the long run. These launches underpin our confidence in a materially stronger growth profile as we move into 2026 and beyond.

 

Clinical progress remains a key value driver for Creo. Increasing levels of published data, combined with encouraging developments in our pulmonary programme through the limited market release with Intuitive, are strengthening the clinical and economic case for adoption. As is typical in our sector, the accumulation of clinical evidence is a fundamental precursor to broader utilisation and reimbursement support.  With greater usage, we gain more clinical evidence either through registries or more formal clinical trials. One example is the Bronchoscopic Microwave Ablation of Lung Tissue trial which is underway at the Royal Brompton and Harefield NHS Foundation Trust and also at the Amsterdam University Medical Centres (Source: ClinicalTrials.gov ID NCT05786625). 

 

From a capital allocation perspective, the Board has taken decisive action, working closely with management, to optimise the Group's structure and enhance capital efficiency. The sale of a 51% interest in Creo Medical Europe ("CME"), completed in February 2025, crystallised value at an attractive return relative to the original investment, while retaining exposure to European markets through our partnership with MicroTech.

 

We have also made strong progress in strengthening the Group's financial position and liquidity. In addition to the proceeds from the CME transaction, post-period end the Group has made steps to secure a £2m convertible debt facility with the Development Bank of Wales and is progressing plans to raise further equity funding. Post-period end we have also entered into a non-binding agreement regarding the potential sale of our remaining 49% interest in CME, which, if completed, would further enhance financial flexibility.  See note 5 of the notes to the financial statements below for further information. These actions reflect the Board's disciplined and proactive approach to capital allocation, supporting the Group's ongoing commercialisation and development priorities, while maintaining a clear focus on capital efficiency and long-term shareholder value.

 

Operationally, we have advanced our transition towards a scalable and capital-efficient model. The sale of CME is one major step in reducing our operating expenses. Another major step in this process is to transition Creo to an outsourced business model. In this vision, Creo becomes a new product introduction company that designs, prototypes, and tests new products and then transfers the discipline of design for manufacturing and subsequent delivery of products to market via a third-party manufacturer. Outsourcing the assembly of the CROMA platform during the year demonstrated the feasibility of this broader outsourced manufacturing model. Post-year end, outsourcing the manufacturing operations for our advanced energy products continued this process. This aligns the business with a model commonly seen in successful medtech companies, where innovation, clinical leadership and commercial execution are retained in-house, supported by specialist contract manufacturing partners for product delivery.

 

Geographically, momentum in Latin America has been particularly strong, with robust performance in 2025 providing a clear indication of demand ahead of formal regulatory approvals in key markets such as Brazil, Mexico and Argentina. This reinforces our view of the significant untapped potential across international markets.

 

Our Team

 

We exited 2025 with a direct team of 104 employees across the USA, UK, Europe and Asia.  As noted last year, this number is significantly reduced from the peak seen in 2022, assisted in part by the divestments which took place during 2025.

 

With a reduced team, talent retention is more important than ever. Within the Group's 2025 Annual Report, which will be published shortly, we provide more details around how we support our teams, optimised through providing valuable, rewarding and challenging work that is competitively compensated.

 

I am humbled by the dedication from all of Creo's hard working staff. They demonstrate Creo's core values on a daily basis and focus on improving lives through their work. Their enthusiasm is infectious. The commitment and personal sacrifices made by all team members continue to allow the Group to deliver groundbreaking products to clinicians for the benefit of their patients.  To know your work has contributed to the successful treatment of a retired colleague's wife, whilst sobering, underscores the importance of the work we do each day.

 

On behalf of the Board, I thank each employee for their hard work and commitment.

 

Board & Governance

 

Following the changes announced in 2024 and 2025, the board continues to build on Creo's governance framework and engage through the existing committees, additional board oversight, and regular robust discussion with shareholders and advisers. 

 

Outlook

 

Looking forward, the Board believes the Group is approaching an important milestone in a Company's growth phase.  Creo has a validated core product, an expanding product portfolio, increasing clinical endorsement, growing clinical evidence and a more efficient operating model that positions the Company into a sustainable, scalable growth cycle.

 

With continued focus on delivery against these elements: continued revenue growth, aggressive cost control, and timely development and delivery of new products Creo is on track to profitability.

 

I hope you agree that the progress made in 2025, which continues in 2026, provides increasing confidence that the foundations are firmly in place to deliver long-term value for shareholders. I would like to thank our employees, partners and shareholders for their continued support as we advance into the next phase of Creo Medical's development and continue to improve lives.

 

Kevin T. Crofton

Non-Executive Chairman

21 May 2026

 

 

 

Chief Executive's Review

 

Introduction

 

2025 was another pivotal year for Creo Medical Group plc, marked by strong commercial progress, continued innovation and important strategic milestones that position us for accelerated growth.

 

At the heart of Creo is a clear and consistent vision: to improve patient outcomes through the application of our unique and innovative Advanced Energy platform.  We believe that by enabling more precise, controlled and minimally invasive procedures, our technology has the potential to transform surgical practice across multiple therapeutic areas.  Our gastrointestinal ("GI") product range represents a major step in delivering on that vision, providing clinicians with differentiated tools that enhance both efficacy and safety in complex endoscopic procedures.

 

In 2025, we continued to translate our vision into tangible commercial progress.  We delivered significant growth in our business. This growth has been driven by increasing adoption of our Speedboat product range, which continues to account for the vast majority of our product revenues to date.  The growing commercial traction we are seeing across our key markets is strong validation of both the clinical value of Creo's products and technology and the effectiveness of our commercial execution.

 

In 2025 Creo delivered 50% revenue growth to £6.0m, with a pronounced acceleration in the second half of the year.  This performance was driven primarily by continued adoption of the Speedboat® product family, reflecting growing clinician confidence, increasing utilisation and expanding procedural breadth.  In addition to this strong revenue growth, FY25 reflected the full‑year impact of decisive cost actions taken in 2024, reducing the annualised cost base by over £5m, with further structural savings delivered following the sale of 51% of CME. Underlying administrative expenses from continuing operations fell 22% to £18.6m (FY24: £23.8m), driven by the completion of major development and regulatory programmes and continued disciplined cost control.

 

Products & Clinical Progress

 

In April 2025 we launched an additional version of Speedboat, Speedboat Notch. Taking on board user feedback, particularly in the upper GI space, we enhanced the design of Speedboat UltraSlim to include additional features designed to support a wider range of reimbursed complex third-space endoscopic procedures, including E-, F-, and G-POEMs. Developed at pace through 2024, Speedboat Notch was launched at ESGE Days in April 2025.

 

At the same time, we expanded the commercialisation of our wider portfolio with the introduction of SpydrBlade in UK and EU markets, an initial limited market release of MicroBlate Fine for pancreatic and liver ablation and the expansion of the use of MicroBlate Flex for the microwave ablation of lung tumours.  While these products made an initial contribution during FY25, they represent an important broadening of the product portfolio now contributing to our revenue growth.  We expect these products to play a much more meaningful role as we progress during 2026 and beyond. Together, they form part of a comprehensive and increasingly versatile suite of devices that build on the strong foundations established by Speedboat.

 

Clinical progress remains central to our strategy and to the long-term adoption of our products. During the year, we saw a continued increase in published clinical data supporting the use of our devices, alongside encouraging developments in our pulmonary programme through the limited market release of MicroBlate Flex with Intuitive Surgical. These advancements are critical in building clinician confidence, supporting training and driving wider utilisation across both existing and new indications.

 

The human impact of the work we undertake at Creo never ceases to motivate and remind us all why the work we do is and products being developed are so important for all of us. Within the Group's 2025 Annual Report we have included a case study on Liz Thomas. Liz's husband Jim played an important role in the development of our product prior to his retirement, and has now become the first directly associated member of the team to experience the life changing impact of Speedboat. Speedboat was used to remove an adenoma in Liz's colon in the endoscopy room when she had initially been told she would need invasive bowel resection surgery. The speed and simplicity of the treatment meant that, within a few days, Liz was back looking after her grandchildren and even baked a birthday cake.

 

Another case I had the privilege to observe during the year in the USA, was a man in his 40's who had been suffering a debilitating swallowing disorder. This had resulted in a dramatic reduction in his quality of life, imprisoned by a diet of baby food and fluids in recent years. Both his social and home life were severely impacted by his condition in many ways.  Upon diagnosis, the doctor was faced with a challenging case.  The decision was to operate endoscopically utilising advanced energy and Speedboat. Accessing his oesophagus with a standard gastroscope; despite the challenging vascular nature of the situation, the doctor was able to tackle significant bleeding vessels and thin, fragile oesophageal lining as a result of the swallowing disorder. The doctor successfully completed the procedure endoscopically with no general aesthetic or interventional surgery. The result - the patient was discharged within 24hrs, with no external scarring and able to get back to a normal life, eating and socialising normally within a few days. Every time one of our products is used, a patient somewhere is demonstrably benefiting from the application of our unique advanced energy.

 

Our innovation pipeline continues to strengthen. The finalisation of designs for our Advanced Energy Bipolar Utility Toolkit range represents a key step forward, with these plug-and-play products expected to enter design transfer to manufacturing during 2026.  This next generation of devices is designed to further enhance usability, compatibility and clinical performance, reinforcing Creo's position at the forefront of advanced energy innovation.

 

Geographically, we are particularly encouraged by the strong performance in Latin America, where results in 2025 have exceeded expectations. Despite awaiting regulatory approvals in key markets such as Brazil, Mexico and Argentina, the level of engagement and demand from our distribution partners provides confidence in continued expansion across the region.

 

Beyond our own product portfolio, the expansion of our Kamaptive partner programme marks an important evolution in how we deliver our technology to the market. By enabling integration of our Advanced Energy platform into third-party systems (including robotic-assisted surgical platforms), we are extending the reach and applicability of our products and technology.  During the year we reached agreement to support initial integration with a major global medtech partner. This represents a significant milestone, and we are pleased to see this strategy beginning to translate into a growing pipeline of opportunities. Kamaptive is increasingly demonstrating its potential as a powerful channel for scaling our technology beyond the boundaries of our direct product portfolio.

 

Operations

 

From a strategic and operational perspective, 2025 was a year of meaningful transformation. The sale of 51% of Creo Medical Europe concluded in early 2025 and not only generated a positive cash outcome for the Group, but maintained strong European market access through our joint venture with MicroTech whist retaining a significant asset on our balance sheet.  Post period end, we received our first dividend from Creo Medical Europe of £1.6m (including £0.3m relating to tax losses) for FY25.

 

In parallel, we have made significant progress in optimising our cost base and improving the scalability of the business. The outsourcing of CROMA production and, post year-end, the agreement to outsource the manufacture of our advanced energy products combined with the externalisation of design-for-manufacture activities has enabled a substantial reduction in operating expenditure.

 

This evolution reflects a deliberate shift in our operating model. Creo is increasingly focused on its core strengths: innovation, clinical excellence and commercial execution. By partnering with high-quality contract manufacturers in the UK, the US and potentially further afield, we are building a more capital-efficient and scalable platform capable of supporting long-term growth.

 

Outlook

 

Looking ahead, the outlook is highly encouraging. We are entering a period where the combination of a validated core product range, an expanding portfolio of new devices, growing clinical endorsement and the future potential from Kamaptive partnerships creates a powerful platform for growth. The value of our Advanced Energy technology, both as a standalone offering and as an integrated solution across multiple surgical environments, is now becoming increasingly evident.

 

These are terrific foundations for our continued commercial execution. As we move into 2026 and beyond, we remain focused on scaling adoption, expanding our market presence and continuing to deliver on our core mission: improving patient outcomes through innovative, advanced energy solutions.

 

I would like to thank our teams, partners and customers for their continued commitment and support as we build on the strong momentum achieved in 2025 and progress into the next phase of Creo Medical's journey.

 

Craig Gulliford

Chief Executive Officer

 

21 May 2026

 

 

Chief Financial Officer's Report

 

2025 was a year of strategic inflection for the Group. We delivered accelerating commercial momentum, fundamentally strengthened our balance sheet and reshaped the business into a more focused, scalable and capital efficient platform. As a result, we exit the year well positioned to accelerate growth, improve operating leverage and progress towards sustainable cash generation.

 

Clear commercial acceleration

 

The Group achieved strong revenue growth during the year, reflecting growing adoption of Creo's differentiated technology across key markets. Commercial execution improved throughout the year, culminating in record Core Technology revenues in Q4 2025, driven by increased utilisation of Speedboat, expanding clinical applications and continued new customer wins.

 

Total revenue increased by 50% to £6.0m (2024: £4.0m), with a pronounced second‑half acceleration - H2 FY25 revenue increased by 58% versus the respective prior period (H2 FY24: £2.4m) at £3.8m.  This increase was supported by broader clinical adoption and rising productivity across the commercial organisation. These dynamics give us increasing confidence in the scalability of the business model.

 

Our core product portfolio continues to demonstrate strong relevance in both resection and ablation markets. Speedboat® Notch is gaining traction in advanced GI procedures, including POEMs, while the launch of SpydrBlade™ Flex across the US, UK and EU has been well received. In ablation, MicroBlate™ Flex and MicroBlate™ Fine are progressing through targeted studies, supporting a growing pipeline of future commercial opportunities.

 

The expanding body of published clinical evidence and growing advocacy from leading clinicians further supports our conviction in Creo's long‑term differentiation and market positioning.

 

A selection of these can be accessed through Creo's Clinical Resources bibliography at:

https://www.creomedical.com/en/investors/creo-medical-clinical-resources-bibliography

 

Financial Summary

 

Continuing operations, which represent the Group's core business, delivered revenue of £6.0m (2024: £4.0m), gross profit of £2.4m (2024: £1.9m) and recorded an operating loss of £17.8m (2024: £28.8m), driven primarily by administrative costs. On an underlying, non-statutory basis, continuing operations recorded a loss of £13.7m (2024: £22.3m), highlighting a significant improvement on the prior year.

 

Discontinued operations contributed revenue of £2.8m and gross profit of £1.2m, but more significantly recorded a profit of £22.8m. This result was attributable to a profit on disposal of a majority stake in a subsidiary, representing a non-recurring gain arising from the Group's strategic decision to exit non-core activities.

 

The actions taken during the year to divest non-core operations have simplified the Group's structure and sharpened strategic focus, positioning the business to concentrate on its core markets. Looking ahead, the Group's financial performance will be increasingly dependent on improving the profitability of continuing operations, with priority given to cost discipline, operational efficiency, and sustainable revenue growth.

 

 

(All figures £m)			Continuing	Discontinued	2025	Continuing	Discontinued	2024
Revenue			6.0	2.8	8.8	4.0	26.7	30.7
Cost of sales			(3.6)	(1.6)	(5.2)	(2.1)	(14.2)	(16.3)
Gross Profit			2.4	1.2	3.6	1.9	12.5	14.4
			40.0%	42.9%	40.9%	47.5%	46.8%	46.9%
Other operating income			1.2	-	1.2	(0.4)	-	(0.4)
Administrative expenses			(23.1)	(1.2)	(24.3)	(30.3)	(12.9)	(43.2)
Share of profits of associates accounted for using the equity method			1.7	-	1.7	-	-	-
Operating (Loss)/profit			(17.8)	(0.0)	(17.8)	(28.8)	(0.4)	(29.2)
SIP Charge			0.3	-	0.3	0.3	-	0.3
Goodwill Impairment			-	-	-	-	1.6	1.6
Redundancy Costs			0.2	-	0.2	1.1	-	1.1
Grant Income			-	-	-	0.4	-	0.4
Manufacturing disposal			0.4	-	0.4	-	-	-
Depreciation & Amortisation			1.0	-	1.0	1.5	1.0	2.5
R&D expenditure merged tax credit			0.3	-	0.3	2.0	-	2.0
EBITDA adjusted share of NCI of associate			0.8	-	0.8	-	-	-
Underlying EBITDA (non-statutory measure) *			(14.8)	(0.0)	(14.8)	(23.5)	2.2	(21.3)
Share based payments expense			1.1	-	1.1	1.2	0	1.2
Underlying Operating (Loss)/profit (non-statutory measure) *			(13.7)	(0.0)	(13.7)	(22.3)	2.2	(20.1)
Underlying Administrative expenses (non-statutory measure) *			(18.6)	(1.2)	(19.8)	(23.8)	(10.3)	(34.1)

 

 

*non-statutory measure. Underlying Administrative expenses is calculated by taking Underlying Operating (Loss)/Profit and adjusting for, gross profit, share of profits of associates and EBITDA adjusted share of NCI associate.

 

Transformational balance‑sheet strengthening

 

The completion of the sale of a 51% interest in Creo Medical Europe ("CME") to MicroTech in February 2025 represents a transformational step for the Group, unlocking significant immediate and future shareholder value. The transaction generated net cash consideration of £24.7m and an exceptional gain of £26.2m, materially strengthening our balance sheet and liquidity position.

 

We have continued to prioritise balance sheet strength and funding flexibility. In addition to the CME proceeds, post-period end the Group has made steps to secure a £2m CLN with the Development Bank of Wales and is advancing plans to raise further equity capital. Post-period end we have also entered into a non-binding agreement regarding the potential sale of our remaining 49% interest in CME. If completed, in aggregate these actions would provide additional liquidity and further enhance financial flexibility.

 

Taken together, these actions demonstrate a clear focus on disciplined capital allocation, balance sheet strength, and the creation of a more scalable, capital-light operating model. This positions the Group to fund its commercialisation strategy while prioritising long-term shareholder returns.

Operating leverage embedded in the model

 

FY25 reflected the full year impact of decisive cost actions taken in 2024, reducing the annualised cost base by more than £5m from £23.8m to £18.6m (c.22%) on a continuing basis. Additional structural cost reductions followed the CME transaction and the completion of the Aber management buy-out in March 2025.

 

The reduction in the cost base was driven by the completion of major development and regulatory programmes and continued disciplined cost control. Further efficiency initiatives implemented during FY25 began to benefit results in the second half and will continue to flow into FY26 and beyond.

 

Post period end, we announced the disposal and outsourcing of manufacturing to a newly established company controlled by the current management of Creo's manufacturing operations. The transaction allows Creo to maintain its current relationships with a sophisticated manufacturing operation and talented team while reducing Creo's ongoing cost base further.

 

We have aligned our cost base with our growth priorities, embedding operational leverage as revenues scale. This positions the business to convert incremental revenue growth into improving margins and cash flow.

 

Improving profitability trajectory

 

The Group reported an operating loss of £17.8m on continuing operations for the year (FY24: £28.8m loss). Underlying operating loss reduced by 38.5% to £13.7m on continuing operations (FY24: £22.3m), reflecting lower operating costs, improving revenue efficiency and a £2.5m EBITDA contribution from our retained interest in CME.

 

Gross margin from continuing operations of c.40.0% (2024: 47.5%) reflects the transition to a distribution led model in EMEA following the CME transaction. As volumes increase, we expect margin expansion driven by higher core product penetration, increased bundling of endotherapy solutions and improving operational scale.

 

Creating a financial platform for growth

 

The Group ended the year with cash and cash equivalents of £12.4m (31 December 2024: £8.7m) and net assets of £50.0m (31 December 2024: £42.4m), representing an 18% year-on-year increase. The balance sheet reflects enhanced liquidity alongside a valuable strategic investment in CME, providing a degree of flexibility to support targeted commercial expansion while maintaining financial discipline.

 

Net cash used in operating activities was £19.1m (FY24: £22.2m), reflecting continued investment in growth and working capital investments on account of strong trading in Q4 2025.

 

Notwithstanding this strengthened financial position, the Group continues to incur operating losses and cash outflows as it invests in commercialisation and research and development. Current forecasts indicate that, without additional funding, the Group would be unable to meet its liabilities as they fall due within the next 12 months. While the Directors are actively pursuing mitigating actions, including raising additional funding, securing debt facilities and progressing the potential disposal of the remaining interest in CME, these actions are not wholly within the Group's control.

 

Accordingly, these conditions indicate the existence of a material uncertainty which may cast significant doubt on the Group's ability to continue as a going concern. Notwithstanding this, the Directors have a reasonable expectation that sufficient funding can be secured and have therefore prepared the financial statements on a going concern basis.

 

Tax

 

The tax credits recognised in the current and previous financial year relate mainly to R&D tax credit claims of £1.2m (2024: £2.0m).  This reduction followed the reduction in underlying admin expenses year on year and the change in scheme to the UK merged R&D scheme which is less favourable.

 

Loss Per Share

 

Underlying loss per share was 4 pence (2024: loss of 8 pence) from continuing operations.

 

Dividend

No dividend has been proposed for the year to 31 December 2025 (2024: £nil).

 

Accounting Policies

 

The Group's financial statements were prepared in accordance with UK-adopted international accounting standards and with the requirements of the Companies Act 2006 as applicable to companies reporting under those standards. The Group's accounting policies have been applied consistently throughout the year.

 

Key Performance Indicators

 

As the Group continues to develop and commercialise its core products, the Directors consider the key financial performance indicators to be the level of cash held in the business, sales and operating expenses. The Board performs regular reviews of actual results against budget, and management monitors cash balances on a monthly basis to ensure that the business has sufficient resources to enact its current strategy.

 

Certain KPIs concern non-financial measures (e.g. the number of trainees for our Pioneer Clinical Education Programme). All non-financial measures are monitored monthly. The Board will continue to review the KPIs used within the business and assess them as the business grows.

 

Principal Risks and Uncertainties

 

The principal risks and uncertainties facing the Group are set out in the 2025 Annual Report and Accounts.

 

Directors

 

Details of the Directors who served during the year ended 31 December 2025 are set out in the 2025 Annual Report and Accounts. Four Directors at the year-end were male and one female.

 

Conflicts of Interest

 

To address the provisions of section 175 of the Companies Act 2006 relating to conflicts of interest, the Company's Articles of Association allow the Board to authorise situations in which a Director has, or may have, a conflict of interest. Directors are required to give notice of any potential situational or transactional conflicts that are to be considered at the Board meeting and, if considered appropriate, conflicts are authorised. Directors are not permitted to participate in such considerations or to vote regarding their own conflicts.

 

Outlook

 

We entered FY26 with a strengthened financial position, a simplified operating structure and increasing commercial momentum. Our priorities are clear: accelerate global adoption and utilisation of our Core Products, expand clinical indications supported by robust evidence, and leverage our enhanced commercial partnerships to scale efficiently.

 

The Company's growth momentum has continued into 2026, with a strong trading performance to date. Revenue grew by c.60% in the first quarter year-on-year and the Company has continued to deliver strong commercial progress, with accelerating customer adoption, growing procedural volumes and further conversion of the pipeline into revenue across its key markets. This strong performance in 2026 to date has underpinned the Board's confidence in the growth of the business in FY26 and it now believes that full year revenue growth will be between 50% and 60% on FY25 (previously 40% to 60%.). Alongside this, the Company expects that it will reduce underlying operating costs by 15 per cent compared to FY25.

While progress has been encouraging, the Group's current cost base and investment plans mean that additional funding will be required to support the next phase of growth. The Board has advanced a number of funding options to ensure the business is appropriately capitalised to execute its strategy which include scaling commercial activities, advancing clinical programmes and strengthening operational infrastructure.

 

However, these funding actions are not wholly within the Group's control, and there can be no certainty that sufficient funding will be secured within the required timeframe or on acceptable terms. As a result, this represents a material uncertainty which may cast significant doubt on the Group's ability to continue as a going concern.

 

Notwithstanding this, with a focused strategy, improving operational leverage and a differentiated technology platform addressing large and growing markets, the Directors remain confident in the Group's ability to secure the required funding and position the business to deliver sustainable growth and long-term value creation for shareholders.

 

Richard Rees

Chief Financial Officer

 

21 May 2026

 

 

Consolidated statement of profit or loss and other comprehensive income

 

(All figures £m)	Note		2025	2024
Revenue	2		6.0	4.0
Cost of sales			(3.6)	(2.1)
Gross Profit			2.4	1.9
Other operating income			1.2	(0.4)
Administrative expenses			(23.1)	(30.3)
Share of profits of associates accounted for using the equity method	7		1.7	-
Operating Loss			(17.8)	(28.8)
Finance expenses			(0.3)	(0.4)
Finance income			0.6	0.2
Loss before tax from continuing operations			(17.5)	(29.0)
Taxation			0.0	1.2
Loss for the year from continuing operations			(17.5)	(27.8)
Discontinued Operations	6		22.8	(0.9)
Profit/(Loss) for the period/year			5.3	(28.7)
Exchange loss on foreign subsidiary			(0.0)	(1.3)
Changes to the fair value of equity investments at fair value through other comprehensive income			(2.1)	-
Total other comprehensive loss			(2.1)	(1.3)
Total comprehensive Profit/(Loss) for the year			3.2	(30.0)
Total comprehensive income for the year is attributable to:
Continuing Operations			(19.6)	(27.8)
Discontinued operations			22.8	(2.2)
Total comprehensive Profit/(Loss) for the year			3.2	(30.0)
Profit/(loss) per Share
Basic and diluted (£)	3		0.01	(0.08)
Loss per Share Continuing Operations
Basic and diluted (£)	3		(0.04)	(0.08)
Profit per Share from Discontinued operations
Basic and diluted (£)	3		0.06	(0.00)

 

Where figures are shown "0.0" this means the figure is lower than £50,000. Where figures show "-" this means the value is nil

 

 

 

 

 

Consolidated statement of financial position

 

(All figures £m)	Note		2025	2024
Assets
Non-current assets
Intangible assets			1.3	0.5
Investments			-	2.1
Investment in Associate	7		30.9	-
Property, plant and equipment			3.4	5.9
Other assets			-	0.1
			35.6	8.6
Current assets
Asset Held for Sale	6		1.7	40.9
Inventories			2.5	2.7
Trade and other receivables			5.6	2.0
Tax receivable			1.3	2.1
Cash and cash equivalents			12.4	8.7
			23.5	56.4
Total assets			59.1	65.0
Shareholder equity
Called up share capital			0.4	0.4
Share premium			191.9	192.0
Merger reserve			13.6	13.6
Share option reserve			13.0	12.0
Foreign exchange reserve			(0.0)	(3.1)
Financial Assets at fair value through other comprehensive income			(1.5)	0.6
Accumulated losses			(167.4)	(173.1)
Total equity			50.0	42.4
Liabilities
Non-current liabilities
Interest-bearing liabilities			1.8	2.0
Provisions			-	0.1
			1.8	2.1
Current liabilities
Liabilities held for sale			-	14.2
Interest-bearing liabilities			2.3	2.4
Provisions			0.1	-
Trade and other payables			4.9	3.9
			7.3	20.5
Total liabilities			9.1	22.6
Total equity and liabilities			59.1	65.0

 

 

Where figures are shown "0.0" this means the figure is lower than £50,000. Where figures show "-" this means the value is nil

 

 

Consolidated statement of changes in equity

 

(All figures £m)		Note		Called up share capital		Accumulated losses	Share premium		Merger reserve		Share option reserve	Changes to the fair value of equity instruments at fair value through other comprehensive (expense)/ income		Foreign Exchange Reserve	Total equity
Balance at 31 December 2023				0.4		(144.4)	180.9		13.6		10.5	0.6		(1.8)	59.8
Total comprehensive loss for the year
Loss for the financial year				-		(28.7)	-		-		-	-		-	(28.7)
Other comprehensive loss				-		-	-		-		-	-		(1.3)	(1.3)
Total comprehensive loss				-		(28.7)	-		-		-	-		(1.3)	(30.0)
Transactions with owners, recorded directly in equity
Issue of share capital				0.0		-	11.1		-		-	-		-	11.1
Equity settled share-based payment transactions				-		-	-		-		1.5	-		-	1.5
Balance at 31 December 2024				0.4		(173.1)	192.0		13.6		12.0	0.6		(3.1)	42.4
Total comprehensive loss for the year
Profit for the financial year				-		5.3	-		-		-	-		-	5.3
Recycling of FX reserve through P&L on disposal of subsidiary														3.1	3.1
Other comprehensive (loss)/income				-		-	-		-		-	(2.1)		-	(2.1)
Total comprehensive Profit/(loss)				-		5.3	-		-		-	(2.1)		3.1	6.3
Transactions with owners, recorded directly in equity
Issue of share capital				(0.0)		-	(0.1)		-		-	-		-	(0.1)
Equity settled share-based payment transactions				-		-	-		-		1.4	-		-	1.4
Transfer of Share based payment charge				-		0.4	-		-		(0.4)	-		-	-
Balance at 31 December 2025				0.4		(167.4)	191.9		13.6		13.0	(1.5)		(0.0)	50.0

 

 

Where figures are shown "0.0" this means the figure is lower than £50,000. Where figures show "-" this means the value is nil

 

 

Consolidated statement of cashflows

(All figures £m)	Note	12 months to 31 December 2025	12 months to 31 December 2024
Cash flows from operating activities
Loss for the year from continuing operations		(17.5)	(27.8)
Profit/(loss) from Discontinued operations	6	22.8	(0.9)
Depreciation/amortisation charges		1.0	2.5
Share of profits of associates accounted for using the equity method	7	(1.7)	-
Equity settled share-based payment expenses		1.4	1.5
Finance expenses		0.4	0.7
Finance income		(0.6)	(0.2)
Impairment loss on goodwill		-	1.4
Taxation		-	(1.0)
Other income		(1.2)	-
Profit on sale of subsidiary	6	(23.1)	-
Decrease in inventories		0.2	0.7
Increase in trade and other receivables		(3.5)	(1.0)
Increase in trade and other payables		1.0	0.2
Interest paid		(0.4)	(0.7)
Tax paid		-	(0.2)
Tax received		2.1	2.6
Net cash used in operating activities		(19.1)	(22.2)
Cash flows from investing activities
Purchase of intangible fixed assets		(0.9)	(0.1)
Purchase of tangible fixed assets		(0.0)	(0.3)
Net cashflow from disposal of subsidiary	6	20.3	-
Fixed Term Deposits		-	15.5
Interest received		0.5	0.2
Net cash generated from in investing activities		19.9	15.3
Cash flows from financing activities
Capital repaid in respect of loans		(0.4)	(0.6)
Proceeds of new loan		-	6.4
Principal elements of lease repayments		(0.2)	(0.7)
Share issue		(0.1)	11.1
Net cash (used)/generated from financing activities		(0.7)	16.2
Increase cash and cash equivalents		0.1	9.3
Cash and cash equivalents at beginning of the year		12.3	3.0
Cash and cash equivalents at end of the year including cash held for sale		12.4	12.3
Less cash held in disposal group		-	(3.6)
Cash and cash equivalents at end of the year		12.4	8.7

 

The cash and cash equivalents per the statement of financial position of £12.4m (2024: £8.7m) represent consolidated cash position less cash held for sale £nil (2024: £3.6m). The above cashflow is consolidated cashflows from discontinued operations, and therefore disposal of £3.5m held for sale during the year.

 

Where figures are shown "0.0" this means the figure is lower than £50,000. Where figures show "-" this means the value is nil

Notes to the financial statements

 

1. Basis of preparation

 

1. Financial information set out in this announcement

The financial information set out in this announcement does not comprise statutory accounts for the year ended 31 December 2025 within the meaning of Section 434 of the Companies Act 2006 as it does not contain all the information required to be disclosed in the financial statements prepared in accordance with UK adopted International Accounting Standards. The financial information in this announcement has been extracted from the audited financial statements for the year ended 31 December 2025. The report of the auditor on the 31 December 2025 statutory financial statements was unqualified, and did not contain a statement under Section 498(2) or Section 498(3) of the Companies Act 2006 but did draw attention to the Group's ability to continue as a going concern by way of a material uncertainty paragraph. The statutory accounts for the year ended 31 December 2025 have not yet been delivered to the Registrar of Companies.

 

The financial information for the year ended 31 December 2024 has been extracted from the Group's audited statutory financial statements which were approved by the Board of Directors on 18 May 2024, and which have been delivered to the Registrar of Companies for England and Wales. The report of the auditor on these financial statements was unqualified and did not contain a statement under Section 498(2) or Section 498(3) of the Companies Act 2006.

 

This announcement was approved by the Board of directors and authorised for issue via RNS on 21 May 2026. 

 

Going Concern

The Directors have assessed the Group's ability to continue as a going concern, taking into account its financial position, cash flow forecasts, liquidity and the principal risks and uncertainties facing the business.

 

For the year ended 31 December 2025, the Group reported a comprehensive loss from continuing operations of £17.5m (2024: £27.8m) and held cash and cash equivalents of £12.4m (2024: £8.7m). On 14 February 2025, the Group received proceeds of €30.4m following the disposal, on 12 February 2025, of a 51% interest in Creo Medical Europe ("CME"), at an implied equity value of €72m on a cash-free, debt-free basis.

 

The Group continues to invest in commercialisation and research and development and is therefore expected to incur operating losses and cash outflows in the near term. Despite actions taken to reduce the cost base during 2024 and 2025, the Group's current expenditure levels indicate that additional funding will be required.

 

The Directors have prepared cash flow forecasts for a period of at least 12 months from the date of approval of these financial statements. These forecasts indicate that, without additional funding, the Group is expected to exhaust its available cash resources and would be unable to meet its liabilities as they fall due within that period.

 

Mitigating actions identified by the Directors include:

 

•             raising additional equity funding;

•             securing debt or alternative financing arrangements; and

•             disposal of the Group's remaining 49% equity interest in CME.

 

Subsequent to the reporting date, as outlined in Note 5, the Group entered into a non-binding agreement regarding the potential sale of its remaining 49% interest in CME. In addition, as outlined in Note 5, the Group has received a conditional subscription for £2m convertible loan notes by the Development Bank of Wales and is actively progressing further equity funding.

 

However, these actions are not wholly within the Group's control, and there can be no certainty that funding will be secured within the required timeframe or on acceptable terms. These conditions indicate the existence of a material uncertainty which may cast significant doubt on the Group's ability to continue as a going concern.

 

Notwithstanding the above, the Directors have a reasonable expectation that the Group will be able to secure sufficient funding and therefore consider it appropriate to adopt the going concern basis of accounting in preparing these financial statements.

 

The financial statements do not include the adjustments that would result if the Group were unable to continue as a going concern

 

Accounting policies

The accounting policies used in the preparation of the financial information for the year ending 31 December 2025 are in accordance with the recognition and measurement criteria of UK adopted international accounting standards. Whilst the financial information included has been prepared in accordance with the recognition and measurement criteria of international accounting standards, the financial information does not contain sufficient information to comply with international accounting standards.

 

Changes in accounting policy and disclosures

New standards, amendments and interpretations

The following new standards, amendments and interpretations have been adopted by the Group for the first time for the financial year beginning on 1 January 2025:

 

-    Amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates - Lack of Exchangeability

-    Other minor and narrow‑scope amendments to IFRS Accounting Standards

 

The adoption of these standards, amendments and interpretations has not had a material impact on the financial statements of the Group or Parent Company.

 

New standards, amendments and interpretations issued but not effective and not adopted early

A number of new standards and amendments to IFRS Accounting Standards have been issued by the IASB but are not yet effective for the year ended 31 December 2025 and have not been early adopted by the Group.

 

These include IFRS 18 Presentation and Disclosure in Financial Statements, which replaces IAS 1 Presentation of Financial Statements and is effective for annual reporting periods beginning on or after 1 January 2027.

 

IFRS 18 introduces new requirements relating to the presentation of the statement of profit or loss, enhanced principles on the aggregation and disaggregation of information, and additional disclosure requirements in respect of management‑defined performance measures.

 

The Group is currently assessing the impact of IFRS 18 on the presentation and disclosures in its financial statements. As the standard does not affect the recognition or measurement of assets, liabilities, income or expenses, the Group does not expect its adoption to have a material impact on the Group's net assets or results.

 

Other standards and amendments issued but not yet effective are not expected to have a material impact on the Group's financial position, financial performance, cash flows or disclosures.

 

Principal risks and uncertainties

The principal risks and uncertainties impacting the Group are described in our 2025 Annual Report. We continue to monitor the global inflationary and economic pressures along with other geopolitical macro issues.

 

Critical accounting judgements and significant estimates in applying the Group's accounting policies

The application of the Group's accounting policies requires judgements in certain areas and to make estimates and assumptions concerning the future. These estimates and judgements are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The resulting accounting estimates will, by definition, seldom equal the related actual results. The following are those areas that are deemed to involve judgements and/or estimation about matters that have the most significant effect on the amounts recognised in the financial statements.

 

Judgements

 

Capitalisation of development costs

Capitalisation of development costs requires analysis of the technical feasibility and commercial viability of the project concerned. Capitalisation of the costs will only be made where there is clear demonstration that future economic benefit will flow to the Company.

 

£0.8m was capitalised in relation to development of a Bipolar suite for our endotherapeutics offering. The product is still in its development stage and we expect further costs in relation to the project to be capitalised in 2026. £0.1m of further development of the Speedboat product suite allowing for longer shelf life.

 

The Group's internal budgets demonstrate that the products will generate probable future economic benefits relating to Speedboat and CROMA and therefore there is no impairment to capitalised development costs currently available for sale.

 

Operating segments

An entity is required to disclose information to enable users of its financial statements to evaluate the nature and financial effects of the business activities in which it engages and the economic environments in which it operates. In previous years, management have exercised significant judgement in determining whether presenting segment information on an alternative basis would better adhere to this core principle. 

 

Whilst the operations in different geographical locations form a fundamental part of the Group's long-term strategy, they are in the early stages of development and the Group continues to focus on the development and commercialisation of its key range of unique endoscopic surgical devices and CROMA Advanced Energy Platform. In making their judgement, the Directors considered the Group's activities and the internal reporting structures and information regularly reviewed by the entity's chief operating decision-maker to make decisions about resources to be allocated and assessing performance.

 

As a result of the sale of the European business, the above determination is deemed to remain consistent and under continuing operations there is in fact less judgement in reaching this decision.

 

As such following the assessment, the Directors concluded that financial information at a consolidated Group level appropriately reflects the business activities in which the Group is currently engaged, and the economic environment in which it operates. As the Group continues to evolve this will be reassessed and the need for further disclosure considered.

 

Estimates

 

Recognition of deferred tax asset

Management judgement is required on whether the Group should recognise any deferred tax assets for losses. A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available against which the temporary difference can be utilised.

 

Given the nature and stage of development of Creo Medical Limited there are significant losses accumulated to date. To determine whether a deferred tax asset should be recognised in relation to the future tax deduction that these losses represent, the Directors have considered the estimated profits over a medium to long-term forecast and the events required to achieve such forecasts.

 

Forecasts for Creo Medical Limited continue to show tax losses for at least the medium term (to four years) as the Group continues to develop and commercialise its products. Given the extent of uncertainty with forecasting over a longer-term horizon, it is determined that there is not the level of convincing evidence that sufficient taxable profit will be available against which further tax losses or tax credits can be utilised. Thus, there is considered to be insufficient certainty over the timing and amount of loss recoverability for any further deferred tax asset to be recognised. The sensitivity of this estimate is not deemed to be material.

 

Variable consideration

Downstream sales to the Group's associate, CME, are made pursuant to a distribution agreement. Under this arrangement, consideration includes a variable element linked to the onward sales price achieved by the distributor. The extent of such variability is constrained by the fixed pricing agreement with the NHS, the Group's most significant end customer. Variable consideration is estimated using historical data and, where relevant, forward-looking information, with appropriate amounts recognised or provided for accordingly.

 

Assets and liabilities held for sale

Any non-current assets, or disposal groups comprising assets and liabilities, are classified as held for sale if it is highly probable that they will be recovered primarily through sale rather than through continuing use. Such assets, or disposal groups, are generally measured at the lower of their carrying amount and fair value less costs to sell. Any impairment loss on a disposal group is allocated first to goodwill, and then to the remaining assets and liabilities on a pro-rata basis, except that no loss is allocated to inventories, financial assets, deferred tax assets, employee benefit assets, investment property or biological assets, which continue to be measured in accordance with the Group's other accounting policies. Impairment losses on initial classification as held for sale or held for distribution and subsequent gains and losses on remeasurement are recognised in profit or loss. Once classified as held for sale, intangible assets and property, plant and equipment are no longer amortised or depreciated.

 

Discontinued operations

A discontinued operation is a component of the Group's business, the operations and cash flows of which can be clearly distinguished from the rest of the Group and which: - represents a separate major line of business or geographic area of operations; - is part of a single coordinated plan to dispose of a separate major line of business or geographic area of operations; or - is a subsidiary acquired exclusively with a view to resale.

 

Classification as a discontinued operation occurs at the earlier of disposal or when the operation meets the criteria to be classified as held for sale. When an operation is classified as a discontinued operation, the comparative Consolidated Income Statement and the comparative Consolidated Statement of Comprehensive Income are represented as if the operation had been discontinued from the start of the comparative year.

 

2. Revenue and other operating income

 

The revenue split between the Group for 2025 was as follows:

 

	12 Months to December 2025			12 Months to December 2024
(All figures £m)	Continuing	Discontinued	Total	Continuing	Discontinued	Total
Creo Core Products	6.0	-	6.0	4.0	-	4.0
Creo Consumables	-	2.8	2.8	-	26.7	26.7
Total	6.0	2.8	8.8	4.0	26.7	30.7
(All figures £m)	Continuing	Discontinued	Total	Continuing	Discontinued	Total
UK	2.7	0.8	3.5	1.0	7.2	8.2
Europe	0.6	2.0	2.6	1.9	19.5	21.4
RoW	2.7	-	2.7	1.1	-	1.1
Total	6.0	2.8	8.8	4.0	26.7	30.7

 

The group derived consolidated revenues from sales to CME acting as a distributor following its disposal as a subsidiary of £2.8m (2024: Nil).  Under IFRS-8 CME represents more than 10% of total revenues and therefore is considered a major customer.

Where figures are shown "0.0" this means the figure is lower than £50,000. Where figures show "-" this means the value is nil

 

 

3. Earnings per share

 

Earnings per share has been calculated in accordance with IAS 33 - Earnings Per Share using the profit/(loss) for the year after tax, divided by the weighted average number of shares in issue.

 

(All figures £)				31 December 2025	31 December 2024
Loss
Loss attributable to equity holders of Company (basic)				(17,549,053)	(27,776,661)
Shares (number)
Weighted average number of ordinary shares in issue during the year				412,446,291	369,978,970
Loss per share from continuing operations
Basic and diluted				(0.04)	(0.08)
Gain/(Loss)
Gain/(Loss) attributable to equity holders of Company (basic)				22,845,422	(945,796)
Shares (number)
Weighted average number of ordinary shares in issue during the year				412,446,291	369,978,970
Gain/(Loss) per share from discontinued operations
Basic and diluted				0.06	(0.00)
Gain/(Loss)
Gain/(Loss) attributable to equity holders of Company (basic)				5,273,369	(28,722,457)
Shares (number)
Weighted average number of ordinary shares in issue during the year				412,446,291	369,978,970
Gain/(Loss) per share
Basic and diluted				0.01	(0.08)
Ordinary shares start of year				412,148,979	361,251,418
Issued in year
Issue 1 - Ordinary				324,340	225,024
Issued with months remaining				11	11
Issue 2 - Ordinary				-	303,428
Issued with months remaining				-	5
Issue 3 - Ordinary				-	50,369,109
Issued with months remaining				-	2
Closing ordinary shares				412,473,319	412,148,979
Average ordinary shares				412,446,291	369,978,970
Basic EPS				0.01	(0.08)
Dilutive Share Options				2,894,680	-
Adjusted weighted average number of ordinary shares				415,340,971	369,978,970
Diluted EPS				0.01	(0.08)

 

In 2024, due to the loss recognised in the year, share options were not deemed to be dilutive as the impact is to further reduce the loss per share.

 

 

4. Share Capital

(All figures £m)	31 December 2025	31 December 2024
Balance at start of the year	0.4	0.4
Issue of share capital
Number of shares	0.3	50.4
Price per share (£)	0.001	0.001
Share value (£'m)	0.0	0.0
Balance at 31 December	0.4	0.4

 

Where figures are shown "0.0" this means the figure is lower than £50,000. Where figures show "-" this means the value is nil

 

5. Post balance sheet events

Subsequent to the reporting date, on 21 May 2026, the Group entered into a non-binding agreement regarding the potential sale of its remaining 49% equity interest in Creo Medical Europe ("CME") for consideration broadly in line with its carrying value as at 31 December 2025. As the agreement is non-binding at the date of approval of these financial statements, completion remains subject to further negotiation, agreement of definitive transaction documentation and customary conditions.

 

In addition, on 21 May 2026, the Group received a conditional subscription for, in aggregate, £2 million fixed term secured convertible loan notes (the "CLNs") from the Development Bank of Wales ("DBW") on commercial terms, with funds expected to be received during May 2026.  The CLNs are secured and subject to personal guarantees from Kevin Crofton (Chairman) and Richard Rees (CFO). The CLNs carry a 10% coupon payable monthly in arrears and the redemption of the CLNs is quarterly with the first falling six months after the date of issue and the final redemption date falling 18 months from the date of issue.  DBW may elect to convert all and not part of the outstanding principal amount of the CLNs at any time. To the extent not already converted or redeemed, the CLNs will automatically redeem on certain future events including, amongst other, the sale of CME, a fundraise in excess of £11 million or an event of default under the terms of the CLN.  The subscription is conditional on certain conditions, including the finalisation and execution of all documentation (including the security and personal guarantees).

 

As this conditional arrangement was entered into after the reporting date, it has been treated as a non-adjusting subsequent event.

 

Rule 13 of the AIM Rules for Companies - Related Party Transaction

The Company is issuing, in aggregate, £2 million (before expenses) of CLNs by way of a conditional subscription by the Development Bank of Wales Public Limited. Amongst other terms of the CLN subscription as described in this announcement, the CLNs are to be secured and subject to personal guarantees from certain Directors of Creo, being Kevin Crofton and Richard Rees, which in aggregate constitute a related party transaction pursuant to Rule 13 of the AIM Rules for Companies. The independent directors for the purposes of Rule 13 of the AIM Rules for Companies (being Craig Gulliford, Ivonne Cantu and Brent Boucher), having consulted with Deutsche Bank AG. London Branch (trading for these purposes as Deutsche Numis), the Company's nominated adviser, consider the terms of the related party transaction to be fair and reasonable insofar as shareholders of the Company are concerned.

 

Management buyout of manufacturing operations

Subsequent to the reporting date, Creo Medical Limited entered into an agreement to dispose of its UK manufacturing operations to a newly incorporated entity controlled by the existing management team of those operations ("NewCo"), as part of a management buyout (the "Manufacturing Disposal").

 

Under the terms of the transaction, and subject to the satisfaction of certain conditions, NewCo will acquire the Group's UK manufacturing operations. As part of the transaction, approximately 25 employees are expected to transfer to NewCo on completion.

 

Management has assessed the transaction under IFRS 5 Non-current Assets Held for Sale and Discontinued Operations and concluded that the criteria for classification as a discontinued operation will be met in the financial year ending 31 December 2026. Accordingly, the results of these operations will be presented as discontinued operations in future financial statements from the point at which the criteria are satisfied.

 

Dividend from Associate

Subsequent to the reporting date, a dividend of £1.3 million was declared by Creo Medical Europe ("CME"), reflecting distributable reserves arising from profits generated during the year ended 31 December 2025. The dividend is payable to shareholders in proportion to their respective equity interests, with the Group entitled to its share of 49% based on its ownership interest in CME.

 

Cash of £1.6m (including £0.3m relating to tax losses) relating to the Group's share of the dividend was received in May 2026.

6. Discontinued Operations

 

On 11 February 2025 Creo Medical Group plc completed the sale of a majority stake in its European subsidiary by selling 51%.  Therefore, evidencing the Board assessment that a deal for the sale of the European business was in an advance state and deemed highly probable at the end of the prior financial year. The circumstances at the year-end were such that the conditions outlined within IFRS 5 Non-current Assets Held for Sale and Discontinued Operations for treatment 'discontinued operations' were met for the period to the 11 February 2025, and this has been reflected in the financial statements. The asset held for sale was disposed of at this date.

 

Similarly, the same circumstances were met with regard to Aber Electronics Ltd in March 2025. 

 

Restated Adjusted EBITDA

 

(All figures £m)			2025 Continuing	2025 Discontinued	2025 Total
Revenue			6.0	2.8	8.8
Cost of sales			(3.6)	(1.6)	(5.2)
Gross Profit			2.4	1.2	3.6
Other operating income			1.2	-	1.2
Adjusted administrative expenses			(20.9)	(1.2)	(22.1)
Income from associate			2.5	-	2.5
Adjusted EBITDA			(14.8)	(0.0)	(14.8)
Exceptional - adjusted Items			(2.1)	-	(2.1)
Depreciation & amortisation			(0.9)	-	(0.9)
Operating Loss			(17.8)	(0.0)	(17.8)
Profit from sale of subsidiary			-	26.2	26.2
Recycling of FX reserve through P&L on disposal of subsidiary			-	(3.1)	(3.1)
Finance expenses			(0.3)	(0.3)	(0.6)
Finance income			0.6	-	0.6
(Loss)/Profit before tax			(17.5)	22.8	5.3
Taxation			0.0	-	0.0
(Loss)/Profit for the year			(17.5)	22.8	5.3

 

 

 

 

 

 

 

 

 

 

(All figures £m)			2024 Continuing	2024 Discontinued	2024 Total
Revenue			4.0	26.7	30.7
Cost of sales			(2.1)	(14.2)	(16.3)
Gross Profit			1.9	12.5	14.4
Other operating income			0.0	-	0.0
Underlying Administrative expenses			(26.2)	(10.3)	(36.5)
R&D expenditure recovered via tax credit scheme			2.0	-	2.0
Adjusted EBITDA			(22.3)	2.2	(20.1)
Exceptional - adjusted Items			(5.0)	(1.6)	(6.6)
Depreciation & amortisation			(1.5)	(1.0)	(2.5)
Operating Loss			(28.8)	(0.4)	(29.2)
Finance expenses			(0.4)	(0.3)	(0.7)
Finance income			0.2	-	0.2
Loss before tax			(29.0)	(0.7)	(29.7)
Taxation			1.2	(0.2)	1.0
Loss for the year			(27.8)	(0.9)	(28.7)

 

 

Impact on the Group Consolidated Income Statement for the year ended 31 December 2025

			2025	2024
(All figures £m)			Discontinued	Discontinued
Revenue			2.8	26.7
Cost of sales			(1.6)	(14.2)
Gross Profit			1.2	12.5
Adjusted administrative expenses			(1.2)	(10.3)
Adjusted EBITDA			(0.0)	2.2
Exceptional - adjusted Items			-	(1.6)
Depreciation & amortisation			-	(1.0)
Operating Loss			(0.0)	(0.4)
Profit from sale of subsidiary			26.2	-
Recycling of FX reserve through P&L on disposal of subsidiary			(3.1)	-
Finance expenses			(0.3)	(0.3)
Finance income			-	-
(Loss)/Profit before tax			22.8	(0.7)
Taxation			-	(0.2)
(Loss)/Profit for the year			22.8	(0.9)

 

 

 

Effects of Assets held for sale on the financial position of the Group in FY25

(All figures £m)			Held for sale 31 December 2025	Held for sale 31 December 2024
Intangible assets			-	5.8
Goodwill			-	16.9
Property, plant and equipment			1.7	1.9
Deferred tax			-	0.2
Other assets			-	0.0
Inventories			-	4.6
Trade and other receivables			-	7.9
Cash and cash equivalents			-	3.6
Total assets held for sale			1.7	40.9
Interest bearing liabilities			-	9.6
Deferred tax liability			-	1.4
Trade and other payables			-	3.2
Total liabilities held for sale			-	14.2
Net Asset Held for Sale			1.7	26.7

 

Effects of business disposals on the financial position of the Group in FY25

The net assets held for sale at the prior balance sheet date were sold at an implied equity value for the entire asset of €72m, with cash received of €35.2m for the 51% controlling interest disposed. Similarly, Aber Electronics completed and is an immaterial transaction during the year.

 

On the 26 May 2025 the board approved the sale of a non-current asset in relation to property at the Chepstow site, as such it was deemed to meet the conditions outlined in IFRS 5 Non-current assets held for sale. The property is held on the balance sheet at its carrying value of £1.7m, no impairment has been recognised given the fair value less cost to sell is in excess of its carrying value. There is no associated operation and as such no requirement for discontinued operations.

 

(All figures £m)				31 December 2025
Consideration received				30.7
Debt settled				(6.0)
Net consideration				24.7
Carrying amount of net assets held for sale b/f				(26.7)
Discontinued operations				0.0
Net assets disposed at transaction date				(26.7)
Loss on disposal of assets held for sale				(2.0)
Transaction costs incurred on disposal				(1.3)
Gain on Investment in associate				29.5
Profit on disposal				26.2
Reclassification of foreign currency reserve				(3.1)
Consolidated Profit on disposal				23.1

 

 

 

 

Cashflows from disposal of subsidiary

(All figures £m)				31 December 2025
Net Consideration				24.7
Cash settled transaction fees				(0.9)
Cash disposed on sale				(3.5)
Cashflows from disposal of subsidiary				20.3

 

Cashflows from discontinued operations

		2025	2024
(All figures £m)		Discontinued	Discontinued
Net cashflows from operating activities		0.2	2.8
Net cashflows from investing activities		20.3	(0.2)
Net cashflows from financing activities		(0.3)	(0.0)
Cash flows from discontinued operations		20.2	2.6

 

These cashflows represent the cashflows in the discontinued operation and are included within the consolidated cashflow. 

 

 

 

7. Investment in Associate

(All figures £m)			As at 31 December 2025	As at 31 December 2024
Fair Value Investment in associate			29.5	-
NCI through the OCI			1.7	-
Elimination of unrealised profit on downstream sales			(0.3)	-
Investment in associate			30.9	-

 

(All figures £m)			As at 31 December 2025	As at 31 December 2024
Percentage of ownership interest			49%	0%
Revenue (100%)			27.5	-
Profit from continuing operations (100%)			3.5	-
Other comprehensive income (100%)			-	-
Total comprehensive income 100%			3.5	-
Total comprehensive income 49%			1.7
Elimination of unrealised profit on downstream sales			(0.3)	-
Consortium tax relieved to associate			0.3	-
Group's share of total comprehensive income			1.7	-
Depreciation (49%)			0.2	-
Taxation (49%)			0.6	-
Finance expense (49%)			0.0	-
Group's share of EBITDA			2.5	-
(All figures £m)			As at 31 December 2025	As at 31 December 2024
Non‑current assets			3.7	-
Current assets			20.2	-
Non-current liabilities			(0.0)	-
Current liabilities			(6.8)	-
Net Assets			17.1	-
Attributable to NCI			8.4	-
Attributable to investees shareholders			8.7	-

 

Richard Rees

Chief Financial Officer

 

21 May 2026