Unaudited interim results

 

THIS ANNOUNCEMENT WAS DEEMED BY THE COMPANY TO CONTAIN INSIDE INFORMATION AS STIPULATED UNDER THE MARKET ABUSE REGULATIONS (EU) NO. 596/2014 AS THEY FORM PART OF UK DOMESTIC LAW BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018. WITH THE PUBLICATION OF THIS ANNOUNCEMENT, THIS INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.

 

 

Creo Medical Group plc

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

 

Unaudited interim results for the six months ended 30 June 2026

 

Continued commercial momentum and a materially lower cost base

Confident in delivering full year performance in line with management expectations

 

Creo Medical Group plc (AIM: CREO), the medical device company focused on minimally invasive surgical endoscopy for pre-cancer and cancer patients, announces its unaudited interim results for the six months ended 30 June 2026, which reflect continued commercial momentum and trading in line with management expectations. The Board remains confident in delivering full year revenue growth of 50% to 60%, with a traditionally stronger H2.

 

Financial Highlights

• H1-26 revenue up 45% to £3.2m (H1-25: £2.2m), in line with management expectations, highlighting continued commercial momentum.
• Underlying operating costs decreased by 15% to £7.9m (H1-25: £9.0m), reflecting disciplined cost control and a simplified operating model.
• Underlying operating loss on a continuing basis* reduced by over 25% to £4.9m (H1-25: £6.7m).
• £5.5m equity placing together with a £2.0m convertible loan note from the Development Bank of Wales completed in May 2026.
• Agreement of a non-binding heads of terms relating to the proposed sale of the remaining 49% interest in Creo Medical S.L. announced during the period. When completed, the transaction will further simplify the Group structure and is expected to provide additional cash resources to support the Company’s financial and operational goals. The sale process continues, and the Company is actively engaged with potential acquirers, including the original proposed purchaser.  The Board’s current expectation is that binding terms will be agreed during Q4 2026, and further updates will be provided in due course.

 

* after adjusting for profit from sale of subsidiary, share-based payments, depreciation and amortisation, R&D tax credits, earnout and other one-off settlements.

 

Operational and commercial highlights

• Commercial momentum continued through H1-26, supported by increased procedural adoption, broader clinician engagement and continued expansion of the Group’s advanced energy platform. Speedboat continues to perform well, with over 10,000 procedures now completed, allowing patients to avoid complex surgical interventions.
• Product and clinical progress continued across the portfolio, including:
  • the first UK private hospital use of Speedboat;
  • Key Opinion Leader presentations at Digestive Disease Week (“DDW”), the largest international gastrointestinal professionals gathering, supporting Creo’s core products;
  • A novel BEAM procedure using SpydrBlade Flex;
  • MicroBlate Fine surpassing 50 clinical cases; and post period, MicroBlate Flex surpassing 100 clinical cases.
• Growing body of external clinical validation, including DDW data from more than 600 Speedboat-assisted ESD cases for colorectal cancer, resection data with no postoperative complications using Creo’s advanced energy platform, and early POEM data showing 100% technical success across 75 patients.
• Operating model further simplified, with disposal and outsourcing of Chepstow manufacturing announced in April 2026 and expected to reduce underlying operating costs by 15% compared with FY25 on an annualised basis further supporting the Group’s path towards profitability and a more scalable operating model.
• Disciplined capital allocation remains an imperative, with continued focus on costs, cash and prioritised investment to support growth responsibly and strengthen resilience.

Taken together, the recent updates show progress across revenue growth, cost improvement, clinical validation and commercial execution, supported by a validated product range, an expanding portfolio of new devices and increasing value of Creo’s Advanced Energy platform for users.

 

Current trading and Outlook:

The Board remains encouraged by trading into the second half of 2026, supported by a strong order book carried into Q3-26, the Group’s usual H2-weighted revenue profile and continued growth in clinical and commercial validation. The Board remains confident in delivering full year revenue growth in line with existing guidance of 50% to 60%, with Q3-26 YTD revenue growth expected to be approximately 50%, supporting the Board’s full year revenue growth guidance.

 

Craig Gulliford, Chief Executive Officer, said:

“We delivered a strong first half, with the actions taken during the period further strengthening the Group’s foundations. Meaningful strategic progress has been achieved, enhancing our operating platform and lowering Creo’s cost base, supporting the Group’s path towards profitability and sustainable cash generation.

 

“Commercial and clinical momentum continues to build across the portfolio, with increasing validation of our advanced energy platform and growing clinician engagement across resection, dissection, coagulation, haemostasis and ablation procedures.

 

“Creo remains well placed for the second half, and we are confident in delivering in line with our full year revenue growth guidance.”

 

For further information please contact: 

 

Creo Medical Group plc		www.creomedical.com
Richard Craven, Company Secretary		Via Walbrook PR
Shore Capital (Nomad and Sole 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 Medical 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 change 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

 

The first half of 2026 has been a period of meaningful progress for Creo. The Group delivered strong revenue growth, reduced its cost base, strengthened its funding position and continued to build commercial and clinical momentum across its advanced energy platform. Throughout the period, the Board has remained actively engaged, with a particular focus on liquidity, capital allocation, operating discipline and the prioritisation of investment in the Group’s highest-value opportunities.

 

Revenue for H1-26 increased by 45% to £3.2m (H1-25: £2.2m), while underlying operating costs decreased by 15% to £7.9m (H1-25: £9.0m). Underlying operating loss on a continuing basis reduced by over 25% to £4.9m (H1-25: £6.7m). These results demonstrate improving operating leverage and support the Group’s path towards profitability and sustainable cash generation.

 

The period also included important corporate actions, including the £5.5m equity placing (with Creo’s management significantly participating in the placing), the £2.0m convertible loan note subscribed for by the Development Bank of Wales, completion of the manufacturing outsourcing and the progression of proposed sale of the Group’s remaining 49% interest in Creo Medical S.L. (the “CME Stake Disposal”).  The CME Stake Disposal reflects the Board’s commitment to monetise this asset. The sale is taking longer than management originally expected, however we have ongoing discussions with a number of potential acquirers, including the original proposed purchaser. Our current expectations are that we will reach agreement on binding terms for the CME Stake Disposal during Q4 2026. Together, these actions support a more focused, scalable and financially flexible business.  In the meantime, we are carefully managing the balance sheet ahead of completion of the CME Stake Disposal and we are in discussions with several parties regarding options for short-term financing. The Company will make further announcements as appropriate but, at this stage, these options are not expected to include an equity fundraise.

 

Creo’s commercial momentum and our operating discipline have continued into the third quarter.
Together with the strategic progress delivered in H1-26, the Board’s confidence in the long-term potential of Creo’s product portfolio and in the Group’s ability to deliver full year revenue growth in line with existing guidance of 50% to 60% remains.

 

On behalf of the Board, I thank our shareholders for their continued support, as well as Creo’s employees, clinicians, customers, suppliers and partners for their commitment and contribution during the period. The Board remains confident in management’s direction of travel and in the Group’s ability to continue delivering strategic, operational and financial progress over the balance of 2026 and beyond.

 

Kevin T. Crofton

Chairman

Chief Executive review

 

Introduction

I am pleased to report a further period of meaningful progress. We continue to build Creo around a simple but important belief: that advanced energy, intelligently applied, can help clinicians treat serious disease in a less invasive, more precise and more scalable way. Building on the significant foundations laid during 2025, we continue to convert commercial momentum into revenue growth, simplify Creo’s operating model and strengthen the business for the next stage of development. Trading for the period was in line with management expectations and supports confidence in the full year outlook.

 

Commercial update - Commercial momentum supported by increased procedural adoption and platform expansion

Commercial execution continued to strengthen during the period. We expanded the reach, relevance and clinical visibility of the Creo platform and revenue increased by to £3.2m (H1-25: £2.2m), with trading in line with management expectations. This 45% growth was supported by continued procedural adoption, increased third-party clinical validation and further engagement across our product portfolio. These developments demonstrate increasing clinician engagement with a broader product portfolio designed to improve treatment pathways and, over time, support the shift from invasive surgery to less invasive endoscopic and energy-enabled procedures. Growth was supported by increasing adoption in the UK, continued development across LATAM and a more focused key account approach in the US, with the Group prioritising markets and centres where clinical engagement, reimbursement pathways and commercial conversion are strongest.

 

(i) Speedboat & SpydrBlade – Resection products for colon cancers, oesophageal cancers and swallowing disorders

Resection products performed well in the first half and continued to support revenue growth. With growing adoption, more clinical users are able to use our Speedboat range of products to treat cancerous and pre-cancerous lesions in the colon and oesophagus, and in procedures to help correct a range of swallowing disorders via the upper gastrointestinal (“GI”) tract, many of which have favourable reimbursement in major markets such as the USA. This clinical utility was reinforced during the period by key opinion leader presentations at DDW supporting Creo’s core products, including Speedboat and SpydrBlade Flex.

 

Our resection device portfolio has been bolstered by SpydrBlade Flex, a unique multi-modal endoscopic device designed for precision and adaptability in endoscopic procedures and suitable for upper and lower GI resections. During the period, the Group reported novel BEAM procedures using SpydrBlade Flex, reinforcing the breadth of applications for the platform and the potential for Creo’s advanced energy products to support more efficient, less invasive clinical workflows.

 

(ii) MicroBlate Flex and Fine – tumour ablation for lung, pancreatic, liver, kidney and bladder cancers

Our MicroBlate product range is designed to ablate nodules and tumours in several tissue types and is focused on treatments for lung, pancreatic, liver, kidney and bladder cancers. During the period, the Group provided a commercial update on MicroBlate Fine, reflecting increasing clinical engagement and continued development of Creo’s ablation portfolio.

 

Subsequent to the period end, we reported that MicroBlate Flex had surpassed 100 clinical cases, reflecting increasing utilisation, growing clinician engagement and accelerating adoption of the technology across leading centres. This milestone further reinforces the expanding relevance of Creo’s advanced energy platform and supports the Group’s confidence in the long-term commercial potential of its ablation technologies.

 

(iii) Supportive clinical data

Wider clinical adoption of Creo’s product portfolio continues to be supported by a growing body of clinical evidence, abstracts and case studies from clinicians and investigators around the world who have used Creo’s advanced energy devices. During the period, key opinion leader presentations at Digestive Disease Week (“DDW”), the largest international gastrointestinal professionals gathering, supported Creo’s core products and provided further external validation of the platform. A selection of recent case studies, abstracts and papers can be obtained at:              

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

 

We will continue to update shareholders as further data is published that supports the commercial adoption of our products.

 

Operational update – improved operating efficiency

H1-26 benefited from the ongoing impact of actions taken to simplify the business, reduce the cost base and improve operating leverage. Underlying operating costs for H1-26 decreased by 15% to £7.9m (H1-25: £9.0m), reflecting disciplined cost control and the benefits of a more focused operating model. The disposal and outsourcing of the manufacturing operations, announced on 16 April 2026, completed during the period and further supports the Group’s path towards profitability and a more scalable operating model. The transition has been implemented without disruption to continuity of supply, with management continuing to work closely with the outsourced manufacturing partner to protect quality, availability and customer service as commercial adoption scales.

 

Since our announcement in May, the proposed CME Stake Disposal continues to progress and we currently expect binding terms to be agreed during Q4 2026. Whilst it has taken longer than originally expected, the Board remains committed to monetise this asset and is actively engaged with potential acquirers, including the original proposed purchaser. When completed, the sale will further simplify the Group structure and is expected to provide additional cash resources to support the Company’s financial and operational goals.  The delay in completing the CME Stake Disposal creates the existence of a material uncertainty as highlighted in the going concern statement set out in note 1. To mitigate this, the Company is in discussions with several parties regarding options for short-term financing. The Company will make further announcements as appropriate but, at this stage, these options are not expected to include an equity fundraise.

 

Outlook

Current trading in the second half continues to develop in line with management expectations. Supported by a validated core product range, an expanding portfolio of new devices, increasing clinical adoption and a more efficient operating model, Creo is establishing a stronger foundation for scalable growth, improved cash generation and long-term value creation.

 

We remain committed to transforming and improving the lives of pre-cancer and cancer patients worldwide, and are executing this commitment with the discipline required to deliver sustainable growth.

 

Craig Gulliford

Chief Executive Officer

 

 

 

 

Financial Review

 

The first half of 2026 was a period of continued financial progress for the Group, with revenue growth, a lower underlying cost base, reduced operating losses and further actions taken to simplify the business and strengthen near-term funding flexibility. The results reflect the continued commercial adoption of Creo’s advanced energy platform, alongside disciplined cost control and the structural benefits of the actions taken during 2025 and H1-26 to focus investment behind the Group’s highest-priority opportunities.

 

Revenue from continuing operations increased by 45% to £3.2m (H1-25: £2.2m), in line with management expectations, and supported by increased procedural adoption, growing clinician engagement and continued progress across the Group’s product portfolio. Gross profit increased to £1.5m (H1-25: £1.0m), with gross margin of 46.9% (H1-25: 45.5%; FY25: 40.0%). The improvement in margin reflects product mix and the benefits of a more focused operating model, while the Board remains focused on maintaining strong product economics as commercial adoption scales.

 

Underlying administrative expenses on a continuing basis reduced by 15% to £7.9m (H1-25: £9.0m), reflecting disciplined cost control, continued simplification of the business and the benefit of a materially lower cost base. Administrative expenses on a statutory basis reduced to £9.5m (H1-25: £11.0m), despite ongoing investment in commercialisation, product development, regulatory activity and clinical evidence generation. The cost reduction achieved in the period demonstrates the benefit of management’s focus on prioritised investment, headcount discipline and tight control of discretionary spend.

 

The disposal and outsourcing of the Chepstow manufacturing operations completed during the period, further simplifying the Group’s operating model and supporting the reduction in the underlying cost base. The transaction resulted in the Group disposing of control of the relevant entity and recognising a gain on disposal under IFRS 10. The retained 40% interest is now accounted for as an associate under IAS 28 and was assessed at a fair value of £nil on completion. The transaction supports the Group’s path towards a more scalable, lower-cost operating model.

 

Operating loss from continuing operations reduced to £6.3m (H1-25: £8.1m), while underlying operating loss on a continuing basis reduced by over 25% to £4.9m (H1-25: £6.7m). Underlying EBITDA improved to a loss of £5.3m (H1-25: £7.2m). These movements demonstrate improving operating leverage as revenue growth is combined with a more efficient cost base. The Group continues to report underlying measures alongside statutory results because the Board believes they provide additional insight into the ongoing operating performance and cash requirements of the business.

 

The statutory loss from continuing operations for the period was £6.4m (H1-25: £8.0m), and the total loss for the period after discontinued operations was £7.2m (H1-25: profit of £18.2m). The prior year comparative benefited from the £26.2m profit generated from discontinued operations following the disposal of the 51% stake in Creo Medical Europe, whereas the current period includes a £0.8m loss from discontinued operations following the disposal of the manufacturing business. As a result, the year-on-year statutory profit comparison should be considered in the context of the significant corporate transactions completed in prior periods and the ongoing transition to a more focused continuing business.

 

The reconciliation below sets out the relationship between statutory operating loss and the Group’s underlying measures. The principal adjustments include depreciation and amortisation, share-based payments and other items which are either non-cash in nature or are not considered by the Board to reflect the underlying trading performance of the continuing business.

 

(All figures £m)				6 months to 30 June 2026	6 months to 30 June 2025	12 months to 31 December 2025
Revenue		2		3.2	2.2	6.0
Cost of Sales				(1.7)	(1.2)	(3.6)
Gross profit				1.5	1.0	2.4
				46.9%	45.5%	40.0%
Other operating income				0.7	0.8	1.2
Administrative expenses				(9.5)	(11.0)	(23.1)
Share of profits of associates accounted for using the equity method				1.0	1.2	1.7
Operating loss				(6.3)	(8.0)	(17.8)
SIP charge				0.1	0.1	0.3
Redundancy costs				-	0.1	0.2
Manufacturing disposal				-	-	0.4
Depreciation & amortisation				0.4	0.6	1.0
R&D expenditure recovered merged tax credit				-	-	0.3
EBITDA adjusted share of NCI of associate				0.5	0.1	0.8
Underlying EBITDA (non-statutory measure) 1				(5.3)	(7.1)	(14.8)
Share based payments expense				0.4	0.4	1.1
Underlying operating loss (non-statutory measure) 1				(4.9)	(6.7)	(13.7)
Underlying administrative expenses (non-statutory measure) 1				(7.9)	(9.0)	(18.6)
1 non-statutory measure from continuing operations

* figures showing '-' are where there is no balance for the period, figures showing '0.0' is where there is a balance, but it is below £0.05m.

 

Non-statutory measures

The Group presents a number of non-statutory measures, including underlying EBITDA, underlying operating loss and underlying administrative expenses, because the Board considers these measures to provide useful additional information on the underlying trading performance, operating leverage and cash requirements of the continuing business. These measures are used by management to monitor performance, assess the impact of cost reduction actions and support internal planning and capital allocation decisions. They are also intended to assist shareholders in understanding the progress made in reducing the Group’s recurring cost base and moving towards profitability and sustainable cash generation.

 

Non-statutory measures are not defined under IFRS and therefore may not be directly comparable with similarly titled measures used by other companies. They should not be viewed in isolation or as a substitute for the Group’s statutory results, but rather as supplementary measures which provide further context to the statutory financial statements. The reconciliation above therefore presents each non-statutory measure back to the closest statutory measure, being operating loss from continuing operations.

 

Underlying EBITDA is calculated by adjusting operating loss from continuing operations for depreciation and amortisation, share-based payment charges, the impact of specific non-recurring or non-underlying items and other adjustments which management considers do not reflect the recurring operating performance of the business. For H1-26, underlying EBITDA improved to a loss of £5.3m (H1-25: loss of £7.2m), reflecting revenue growth, improved gross profit and the benefit of the lower operating cost base.

 

Underlying operating loss is calculated after the adjustments made to derive underlying EBITDA, but before adding back depreciation and amortisation. The Board considers this measure useful because it shows the underlying loss generated by the continuing operations after recognising the recurring non-cash depreciation and amortisation charge. Underlying operating loss on a continuing basis reduced to £4.9m in H1-26 (H1-25: £6.7m), demonstrating the progress made in reducing losses while continuing to invest in commercialisation, product development, regulatory activity and clinical evidence generation.

 

Underlying administrative expenses are presented to show the recurring administrative cost base of the continuing business after excluding items such as share-based payments and other charges that management does not consider reflective of recurring operations. Underlying administrative expenses reduced by 15% to £7.9m in H1-26 (H1-25: £9.0m), consistent with the Group’s stated focus on disciplined cost control, simplification of the operating model and prioritisation of investment behind the highest-value commercial and clinical opportunities.

 

CME Stake Disposal

During May 2026, the Company announced that it had agreed a non-binding letter of intent regarding the proposed sale of its remaining 49% interest in Creo Medical S.L. The Directors’ going concern and working capital assessment assumes completion of the CME Stake Disposal. Whilst the sale process is taking longer than originally expected, the Company is actively engaging with potential acquirers, including the original proposed purchaser, creating additional options to monetise this asset. The Board’s current expectation is that binding terms will be agreed during Q4 2026. When completed, the transaction is expected to further simplify the Group structure and provide significant additional liquidity and strategic flexibility as the Group continues to execute its financial and operational priorities.  The delay in completing the CME Stake Disposal creates the existence of a material uncertainty as highlighted in the going concern statement set out in note 1. To support the Company during the period until the CME Stake Disposal completes, the Company is in discussions with several parties regarding options for short-term financing. The Company will make further announcements as appropriate but, at this stage, these options are not expected to include an equity fundraise.

 

Tax

The Company has not recognised any additional deferred tax assets in respect of trading losses arising in the current financial period. The Company continues to recognise tax assets in respect of claims under the UK research and development tax credit schemes, accrued in line with eligible costs, with any adjustments being made on submission of a claim. The Company has submitted a claim for £1.2m of R&D tax credits relating to the period ending 31 December 2025. As at the date of this statement, payment has not been received.

 

Earnings per share

Basic and diluted loss per share was 2 pence for the period (six months to 30 June 2025: profit of 4 pence), reflecting the loss from continuing operations and, in the prior period, the benefit of profit from discontinued operations.

 

Cash flow and balance sheet

The Group recorded a net cash outflow of £5.0m in the period, resulting in cash and cash equivalents of £7.4m at 30 June 2026 (31 December 2025: £12.4m). The movement principally reflects the operating cash requirements of the continuing business, partially offset by the proceeds from the May 2026 equity placing and the £2.0m convertible loan note subscribed for by the Development Bank of Wales. The cash profile also reflects the Group’s transition to a more focused operating model following the disposal and outsourcing of manufacturing activities, together with continued discipline over cost and working capital management.

 

In May 2026, the Company completed an equity placing raising approximately £5.5m, alongside the establishment of a £2.0m convertible loan note instrument subscribed for by the Development Bank of Wales. These inflows strengthened near-term funding and, together with the CME Stake Disposal (when completed), provide additional strategic flexibility as the Group executes its H2 priorities. Cash utilisation in the period remained focused on supporting commercial growth, clinical and regulatory activity and product development, while maintaining tight control over discretionary expenditure.

 

Working capital movements during the period reflected the normal timing of receipts and payments, alongside the operational changes implemented as the Group simplified its manufacturing and supply chain model. The Board continues to monitor liquidity closely and remains focused on translating the lower cost base into reduced cash burn as revenue scales.

 

Going concern

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.

 

The Directors’ going concern assessment is underpinned by the Group’s H1-26 trading performance, the lower operating cost base established during the period, the completed May 2026 equity placing and the £2.0m convertible loan note subscribed for by the Development Bank of Wales. It also assumes completion of the CME Stake Disposal.

 

The Directors note that completion of the CME Stake Disposal is taking longer than originally anticipated with binding terms now expected during Q4 2026. Without completion of the CME Stake Disposal (or an alternative source of funding), the Group would not have sufficient liquidity throughout the assessment period. The Company is in discussions with several parties regarding options for short-term financing. At this stage, these options are not expected to include an equity fundraise. However, there can be no certainty that the CME Stake Disposal will complete or that short term liquidity is secured within the required timeframe or on acceptable terms.

 

Accordingly, these events and conditions indicate the existence of a material uncertainty that may cast significant doubt upon the Group's ability to continue as a going concern and, therefore, that it may be unable to realise its assets and discharge its liabilities in the normal course of business.

 

Nevertheless, having considered the forecasts prepared, the Group's history of raising funding, the progress made towards the proposed CME Stake Disposal and the mitigating actions available to management, the Directors have concluded that it remains appropriate to prepare the financial statements on a going concern basis.

 

2026 outlook

Looking ahead, the financial priorities for the second half remain clear: achieving revenue targets, maintaining cost discipline, converting revenue growth into improved operating leverage, and managing cash carefully while continuing to invest selectively in the Group’s priority growth opportunities. The revenue profile remains H2-weighted, supported by the order book carried into Q3-26, and the lower operating cost base established during the first half provides a stronger platform from which to progress towards profitability and sustainable cash generation.

 

The anticipated proceeds from the CME Stake Disposal are expected to strengthen the near-term balance sheet position.  The Group’s funding position remains sensitive to delivery of forecast trading, working capital collection, covenant headroom and the timing of the CME Stake Disposal proceeds, and will therefore remain subject to close management and Board monitoring. We are carefully managing the balance sheet ahead of completion of the CME Stake Disposal and we have a number of short term liquidity options under consideration to allow for the extension of the sale process and to mitigate the CME Stake Disposal completing later than mid-Q4 2026.

 

Richard Rees

Chief Financial Officer

 

 

Consolidated statement of profit and loss and other comprehensive income

 

				6 months to 30 June 2026	6 months to 30 June 2025	12 months to 31 December 2025
(All figures £m)	Note			Unaudited	Unaudited	Audited
Revenue	2			3.2	2.2	6.0
Cost of sales				(1.7)	(1.2)	(3.6)
Gross profit				1.5	1.0	2.4
Other operating income				0.7	0.8	1.2
Administrative expenses				(9.5)	(11.0)	(23.1)
Share of profits of associates accounted for using the equity method				1.0	1.2	1.7
Operating loss				(6.3)	(8.0)	(17.8)
Finance expenses				(0.1)	(0.0)	(0.3)
Finance income				0.0	0.3	0.6
Gain/(loss) on foreign exchange				-	(0.3)	-
Loss before tax from continuing operations				(6.4)	(8.0)	(17.5)
Taxation				-	0.0	(0.0)
Loss for the period/year from continuing operations				(6.4)	(8.0)	(17.5)
Discontinued operations	5			(0.8)	26.2	22.8
(Loss)/profit for the period/year				(7.2)	18.2	5.3
Exchange gain/(loss) on foreign subsidiary				-	3.1	(0.0)
Changes to the fair value of equity investments at fair value through other comprehensive income				-	(3.2)	(2.1)
Total other comprehensive income/(loss)				-	(0.1)	(2.1)
Total comprehensive (loss)/profit for the period/year				(7.2)	18.1	3.2
Total comprehensive income for the period/year is attributable to:
Continuing operations				(6.4)	(8.1)	(19.5)
Discontinued operations				(0.8)	26.2	22.8
Total comprehensive (loss)/profit for the period/year				(7.2)	18.1	3.2
(Loss)/profit per Share
Basic and diluted	3			(0.02)	0.04	0.01
Loss per Share Continuing Operations
Basic and diluted	3			(0.02)	(0.02)	(0.04)
(Loss)/profit per Share Discontinued Operations
Basic and diluted	3			(0.00)	0.06	0.06

 

 

Consolidated statement of financial position

				As at 30 June 2026	As at 30 June 2025	As at 31 December 2025
(All figures £m)	Note			Unaudited	Unaudited	Audited
Assets
Non-current assets
Intangible assets				1.6	0.7	1.3
Goodwill				0.0	0.0	-
Investments	6			30.4	32.8	30.9
Property, plant and equipment				3.0	3.6	3.4
				35.0	37.2	35.6
Current assets
Asset held for sale				1.7	1.7	1.7
Inventories				1.9	3.2	2.5
Trade and other receivables				8.9	3.4	5.6
Tax receivable				1.9	2.9	1.3
Cash and cash equivalents				7.4	20.5	12.4
				21.8	31.7	23.5
Total assets				56.8	68.8	59.1
Shareholder equity
Called up share capital	4			0.4	0.4	0.4
Share premium				196.8	191.9	191.9
Merger reserve				13.6	13.6	13.6
Share option reserve				13.5	12.5	13.0
Foreign exchange reserve				(0.0)	-	(0.0)
Financial assets at fair value through other comprehensive income				(1.5)	0.6	(1.5)
Accumulated losses				(174.6)	(158.1)	(167.4)
Total equity				48.2	60.9	50.0
Liabilities
Non-current liabilities
Interest-bearing liabilities				0.8	1.9	1.8
				0.8	1.9	1.8
Current liabilities
Interest-bearing liabilities				3.1	2.3	2.3
Trade and other payables				4.7	3.6	4.9
Other liabilities				(0.0)	(0.0)	-
Provisions				-	0.1	0.1
				7.8	6.0	7.4
Total liabilities				8.6	7.9	9.1
Total equity and liabilities				56.8	68.8	59.1

 

* figures showing '-' are where there is no balance for the period, figures showing '0.0' is where there is a balance, but it is below £0.05m.

 

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 income	Foreign exchange reserve	Total equity
Balance at 1 January 2025		0.4	(173.1)	192.0	13.6	12.0	0.6	(3.1)	42.4
Total comprehensive profit/(loss) for the period
Profit for the financial period		-	18.2	-	-	-	-	-	18.2
Recycling of FX reserve through P&L on disposal of subsidiary		-	-	-	-	-	-	3.1	3.1
Other comprehensive (loss)/income		-	(3.2)	-	-	-	-	-	(3.2)
Total comprehensive profit/(loss)		-	15.0	-	-	-	-	3.1	18.1
Transactions with owners, recorded directly in equity
Issue of share capital	21	0.0	-	(0.1)	-	-	-	-	(0.1)
Equity settled share-based payment transactions	8	-	-	-	-	0.5	-	-	0.5
Transfer of share based payment charge		-	-	-	-	-	-	-	-
Balance at 30 June 2025		0.4	(158.1)	191.9	13.6	12.5	0.6	-	60.9
Total comprehensive profit/(loss) for the period
Loss for the financial period		-	(12.9)	-	-	-	-	-	(12.9)
Other comprehensive (loss)/income		-	3.2	-	-	-	(2.1)	(0.0)	1.1
Total comprehensive profit/(loss)		-	(9.7)	-	-	-	(2.1)	(0.0)	(11.8)
Transactions with owners, recorded directly in equity
Issue of share capital	21	-	-	-	-	-	-	-	-
Equity settled share-based payment transactions	8	-	-	-	-	0.9	-	-	0.9
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
Total comprehensive profit/(loss) for the period
Loss for the financial period		-	(7.2)	-	-	-	-	-	(7.2)
Total comprehensive profit/(loss)		-	(7.2)	-	-	-	-	-	(7.2)
Transactions with owners, recorded directly in equity
Issue of share capital	21	0.0	-	4.9	-	-	-	-	4.9
Equity settled share-based payment transactions	8	-	-	-	-	0.5	-	-	0.5
Transfer of share based payment charge		-	-	-	-	-	-	-	-
Balance at 30 June 2026		0.4	(174.6)	196.8	13.6	13.5	(1.5)	(0.0)	48.2

Consolidated statement of cash flows

				6 months to	6 months to	12 months to
				30 June 2026	30 June 2025	31 December 2025
(All figures £m)	Note			Unaudited	Unaudited	Audited
Cash flows from operating activities
Loss for period from continuing operations				(6.4)	(8.0)	(17.5)
Profit/(loss) from discontinued operations				(0.8)	26.2	22.8
Depreciation/amortisation charges				0.4	0.5	1.0
Share of profits of associates accounted for using the equity method				(1.0)	(1.2)	(1.7)
Equity settled share-based payment expenses				0.5	0.6	1.4
Finance expenses				0.1	0.0	0.4
Finance income				(0.0)	(0.3)	(0.6)
Other income				-	-	(1.2)
Profit on sale of subsidiary				-	(23.1)	(23.1)
				(7.2)	(5.3)	(18.5)
Decrease/(increase) in inventories				0.5	(0.5)	0.2
Increase in trade and other receivables				(4.0)	(2.1)	(3.5)
(Decrease)/increase in trade and other payables				(0.2)	(0.0)	1.0
Interest paid				(0.1)	(0.1)	(0.4)
Tax received				0.3	-	2.1
Net cash used in operating activities				(10.7)	(8.0)	(19.1)
Cash flows from investing activities
Purchase of intangible fixed assets				(0.4)	(0.3)	(0.9)
Net cashflow from disposal of subsidiary				-	20.3	20.3
Dividend received from associate				1.3	-	-
Interest received				0.0	0.3	0.5
Net cash used in investing activities				0.9	20.3	19.9
Cash flows from financing activities
Capital repaid in respect of loans and leases				(2.1)	(0.4)	(0.4)
Proceeds of new loan				2.0	-	-
Principal elements of lease repayments (included above)				-	(0.1)	(0.2)
Share issue				4.9	(0.1)	(0.1)
Net cash generated from financing activities				4.8	(0.6)	(0.7)
(Decrease)/increase in cash and cash equivalents				(5.0)	11.7	0.1
Cash and cash equivalents at beginning of period				12.4	12.3	12.3
Cash and cash equivalents at end of the year including cash held for sale				7.4	24.0	12.4
Less cash held in disposal group				-	(3.5)	-
Cash and cash equivalents at end of the year				7.4	20.5	12.4

 

The cash and cash equivalents per the statement of financial position of £7.4m (30 June 2025: £20.5m) represents the consolidated cash position which is consolidated including cashflows from discontinued operations. Cash outflow in the period is £5m (30 June 2025: £8.2m inflow).  During the period the commercial loan provided by Cardiff Capital Region for the sum of £2.1m was repaid in addition to an equity placing, raising approximately £5.5m (before fees) and a £2.0m convertible loan note from the Development Bank of Wales was completed. Figures showing “-” are where there is no balance for the period; figures showing “0.0” are where there is a balance, but it is below £0.05m.

 

Notes to the interim financial statements

 

1. Basis of preparation

The interim financial report for the period ended 30 June 2026 has been neither audited nor reviewed by the auditor. Comparative financial information for the period ended 30 June 2025 has been presented where applicable and, where relevant, reflects the impact of the completion of the sale of 51% of the issued share capital of Creo Medical S.L. (“Creo Medical Europe” or “CME”) to Micro-Tech (NL) International B.V., a wholly owned subsidiary of Micro-Tech (Nanjing) Co. Ltd (SHA: 688029), on 12 February 2025. The interim financial report for the period ended 30 June 2026 does not constitute statutory accounts as defined in section 434 of the Companies Act 2006. The financial information for the year ended 31 December 2025 has been based on information in the audited financial statements for that period.

 

This interim financial report for the six-month period ended 30 June 2026, including comparatives for the six months ended 30 June 2025, was approved by the Board of Directors on 29 September 2026.

 

Going Concern

The interim financial statements have been prepared on a going concern basis, which the Directors believe to be appropriate for the reasons set out below.

 

The Directors have considered the applicability of the going concern basis in the preparation of the interim financial statements. This assessment included a review of the Group’s financial results, internal budgets, integrated profit and loss, balance sheet and cash flow forecasts, covenant compliance and available mitigating actions for a period of at least 12 months from the expected date of approval of the condensed consolidated interim financial statements for the period ended 30 June 2026.

 

The Directors continue to monitor and update a base case scenario which is based on the latest management accounts, current trading information, the Board-approved operating plan and the funding assumptions available at 30 June 2026. The base case assumes continued revenue growth, disciplined working capital management, maintenance of a materially lower operating cost base and covenant compliance throughout the going concern assessment period. The assessment also reflects the completed equity placing of approximately £5.5m gross, the £2.0m convertible loan note subscribed for by the Development Bank of Wales and received in May 2026 and the completed disposal and outsourcing of the manufacturing operations, which supports the Group’s lower-cost operating model.

 

The base case further assumes completion of the proposed sale of the Group’s remaining 49% interest in Creo Medical S.L. The sale process continues, and whilst it is taking longer than originally expected, the Board remains committed to monetising this asset and is continuing discussions with acquirers, including the original proposed acquirer.

 

The Directors have also considered severe but plausible downside scenarios over the going concern assessment period. These scenarios reflect sensitivities including slower than expected revenue growth or user onboarding, weaker receivables collection, lower working capital efficiency, any delay to receipt of completion proceeds from the CME Stake Disposal, and the possibility that the £2.0m convertible loan note requires repayment in cash rather than being converted into equity.  In such circumstances, the Directors have identified mitigating actions available to management, including deferral of selected capital expenditure, reduction of discretionary spend, regional scale-back in lower-priority markets and tighter working capital interventions. Potential supplementary actions, including alternative debt or bridge funding options and potential asset realisation or financing of Unit 6, whilst being identified and are under consideration, are not treated as primary mitigations because they depend on third-party execution or external market conditions.

 

The Group’s existing property term loan includes a loan-to-value covenant and a minimum Group cash covenant of £5.0m. Management considers the loan-to-value covenant to be satisfied based on current property valuations and the carrying value of the term loan. Forecast cash headroom remains positive in the base case. However, the forecasts are dependent on the timely completion of the CME Stake Disposal and receipt of the related completion proceeds. In downside scenarios, liquidity and covenant headroom are sensitive to trading delivery, the timing of customer collections, the effective and timely execution of mitigating actions and the timing and quantum of the CME completion proceeds.

 

The Group's forecasts demonstrate that continued liquidity and covenant compliance are dependent upon the timely completion of the proposed CME Stake Disposal and receipt of the associated proceeds, or the successful implementation of alternative funding arrangements. Without these funding sources the Group would not have sufficient liquidity throughout the assessment period. Accordingly, the Company is in discussions with several parties regarding options for short-term financing. At this stage, these options are not expected to include an equity fundraise.

 

Whilst the Directors continue to progress the CME Stake Disposal process and have identified mitigating actions available to management, there can be no certainty that the CME Stake Disposal will complete within the required timeframe or that alternative funding or liquidity would be secured on acceptable terms.

 

Accordingly, these events and conditions indicate the existence of a material uncertainty that may cast significant doubt upon the Group's ability to continue as a going concern and therefore that it may be unable to realise its assets and discharge its liabilities in the normal course of business.

 

Nevertheless, having considered the forecasts prepared, the Group's history of raising funding, the progress made towards the proposed CME Stake Disposal and the mitigating actions available to management, the Directors have concluded that it remains appropriate to prepare the financial statements on a going concern basis.

 

Accounting policies

The accounting policies used in the preparation of the financial information for the six months ended 30 June 2026 are in accordance with the recognition and measurement criteria of UK-adopted International Accounting Standards and are consistent with those adopted in the annual financial statements for the year ended 31 December 2025 and those to be adopted in the annual financial statements for the year ending 31 December 2026. 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 fully with international accounting standards. The Group has not applied IAS 34, Interim Financial Reporting, which is not mandatory for UK AIM listed groups, in the preparation of this interim financial report.

 

Changes in accounting policy and disclosures

New standards, amendments and interpretations:

There were no new standards, amendments or interpretations effective in the period that had a material impact on the Group.

 

Future standards, amendments and interpretations:

In April 2024, the IASB issued IFRS 18 Presentation and Disclosure in Financial Statements, which will replace IAS 1 Presentation of Financial Statements. IFRS 18 is effective for annual periods beginning on or after 1 January 2027, with earlier application permitted, and is required to be applied retrospectively. The standard is expected to affect the presentation and disclosure of information in the Group’s financial statements but will not affect the recognition or measurement of assets, liabilities, income or expenses. The Group is in the process of assessing the impact of IFRS 18 and the changes required to comply with the new standard.

 

Principal risks and uncertainties

The principal risks and uncertainties impacting the Group are described in the 2025 Annual Report and remain relevant at 30 June 2026. The Group continues to monitor macroeconomic conditions, healthcare system funding pressures, competitive developments, regulatory developments, supply chain risk, commercial adoption rates, liquidity and funding requirements, and wider geopolitical uncertainty. The Board remains focused on disciplined execution, cost control, cash management and prioritised investment in the areas of highest strategic and commercial return.

 

Critical accounting judgments and key sources of estimation uncertainty

The Group is required 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. Accounting estimates and judgements have been required for the production of these Financial Statements.

 

Share-based payments

Equity-settled share options are granted to certain officers and employees. Each tranche in an award is considered a separate award with its own vesting period and grant date fair value. The fair value of each tranche is measured at the date of grant using the Black-Scholes option pricing model, the Monte Carlo method, or a hybrid model where appropriate. Compensation expense is recognised over the tranche's vesting period based on the number of awards expected to vest, through an increase to equity. The number of awards expected to vest is reviewed over the vesting period, with any forfeitures recognised immediately.

 

Research and 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 evidence that an economic benefit will flow to the Company. During the period we capitalised £290k of research and development costs in relation to our bipolar snare product which we are developing. No other development costs have been capitalised for the period.

 

Deferred tax assets

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 the group 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 the group continue to show tax losses for at least the medium term (to three 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 insufficient certainty over the timing and amount of loss recoverability for any further deferred tax asset to be recognised.

 

Segmental reporting

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. As the Group's global reach has expanded in the period, 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 products and the 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.

 

After 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 explained in the 2025 Annual Report, as the Group continues to grow it is expected that the internal reporting structure will evolve in order to meet the changing activities, goals and objectives of the business and therefore additional operating segments may be identified as appropriate in future reporting periods.

 

Investment in Associate

Investments in Associates with significant influence but not control will be accounted for under the equity method as per IAS 28. The investment will be recognised initially at cost, with share of the profits added to the investment and the investment reduced by subsequent dividends. The investment must be assessed for impairment indicators. 

 

Following the disposal of 51% of Creo Medical Europe in February 2025, the group retained a 49% interest in CME, over which it exercised significant influence but did not have control or joint control. During May 2026, the Company announced the proposed CME Stake Disposal.

 

Asset 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.

 

2. Revenue and other operating income

The revenue split for the Group at 30 June 2026 was as follows:

				6 months to 30 June 2026	6 months to 30 June 2025	12 months to 31 December 2025
(All figures £m)				Unaudited	Unaudited	Audited
UK				1.8	1.0	2.7
Europe				0.1	0.3	0.6
RoW				1.2	0.9	2.7
Continuing operations				3.2	2.2	6.0
UK				-	0.8	0.8
Europe				-	2.0	2.0
Discontinued operations				-	-	2.8
Total				3.2	5.0	8.8
				6 months to 30 June 2026	6 months to 30 June 2025	12 months to 31 December 2025
(All figures £m)				Unaudited	Unaudited	Audited
Creo Core Products				3.2	2.2	6.0
Continuing operations				3.2	2.2	6.0
Creo Consumables				-	2.8	2.8
Discontinued operations				-	2.8	2.8
Total				3.2	5.0	8.8

 

All core revenues are recognised under IFRS-15 at the point the performance obligation is met and goods are made available to customers under Ex-works terms, or services are transferred to customers.

 

At 30 June 2026 the Group had unsatisfied performance obligations under IFRS 15 in relation to the Intuitive collaboration in line with the contract agreement. The value of this unsatisfied performance obligation is in excess of £0.4m (30 June 2025: £0.4m). We expect this to be satisfied and received during 2027.

 

The Group derived no consolidated revenues from sales to CME acting as a distributor following its disposal as a subsidiary in February 2025 (30 June 2025: £2.8m). Under IFRS-8 CME represents more than 10% of total revenues and therefore is considered a major customer.

 

Segmental reporting

Operating segments are identified on the basis of internal reporting and decision making. Creo currently has one operating segment which is the research, development and distribution of electrosurgical medical devices relating to the field of surgical endoscopy.

 

As the Group continues to grow, we expect the internal reporting structure to change to meet the changing goals and objectives of the business and additional operating segments may be identified in future years.

 

As there is only one reportable operating segment whole profit, expenses, assets, liabilities and cashflows are measured and reported on a basis consistent with the financial statements, with no additional disclosures necessary.

 

Other operating income

The Company claims R&D tax relief under the UK’s merged R&D scheme. Under this regime, the credit of £0.7m (30 June 2025: £0.8m) is recognised ‘above the line’ in accordance with IAS 20 Accounting for Government Grants and Disclosure of Government Assistance and is recognised net of the tax credit available under the scheme of £nil (30 June 2025: £nil) consistent with the treatment of deferred tax and the likelihood of future available profits.

 

3. Earnings per share

				6 months to	6 months to	12 months to
				30 June 2026	30 June 2025	31 December 2025
(All figures £)				Unaudited	Unaudited	Audited
Loss
Loss attributable to equity holders of Company (basic)				(6,426,499)	(8,044,612)	(17,572,052)
Shares (number)
Weighted average number of ordinary shares in issue during the year				418,584,430	412,419,262	412,446,291
Loss per share from continuing operations
Basic and diluted				(0.02)	(0.02)	(0.04)
Profit/(Loss)
Profit/(Loss) attributable to equity holders of Company (basic)				(791,818)	26,236,412	22,845,422
Shares (number)
Weighted average number of ordinary shares in issue during the year				418,584,430	412,419,262	412,446,291
Profit/(Loss) per share from discontinued operations
Basic and diluted				(0.00)	0.06	0.06
Profit/(Loss)
Profit/(Loss) attributable to equity holders of Company (basic)				(7,218,317)	18,191,801	5,273,370
Shares (number)
Weighted average number of ordinary shares in issue during the year				418,584,430	412,419,262	412,446,291
Profit/(Loss) per share
Basic and diluted				(0.02)	0.04	0.01
Ordinary shares start of year				412,473,319	412,148,979	412,148,979
Issued in year
Issue 1 – Ordinary				36,666,664	324,340	324,340
Issued with months remaining				1	5	11
Closing ordinary shares				449,139,983	412,473,319	412,473,319
Average ordinary shares				418,584,430	412,419,262	412,446,291
Basic EPS				(0.02)	0.04	0.01
Dilutive Share Options				2,894,680	2,894,680	2,894,680
Adjusted weighted average number of ordinary shares				421,479,110	415,313,942	415,340,971
Diluted EPS				(0.02)	0.04	0.01

 

* figures showing '-' are where there is no balance for the period, figures showing '0.0' is where there is a balance, but it is below £0.05m.

 

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

 

Diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares in issue to assume conversion of all potential dilutive ordinary shares. In comparative years, the potential ordinary shares are considered to be antidilutive on the basis that they reduce the loss per share and are not included in the Company's EPS calculation, meaning that diluted EPS is the same as basic EPS.

 

4. Share capital

 

Balance at 30 June 2023 (£m)				0.4
Issue of share capital
Number of shares				10,360,146
Price per share (£)				0.001
Share value (£m)				0.0
Balance at 31 December 2023 (£m)				0.4
Issue of share capital
Number of shares				225,024
Price per share (£)				0.001
Share value (£m)				0.0
Balance at 30 June 2024 (£m)				0.4
Issue of share capital
Number of shares				50,672,537
Price per share (£)				0.001
Share value (£m)				0.1
Balance at 31 December 2024 (£m)				0.4
Issue of share capital
Number of shares				324,340
Price per share (£)				0.001
Share value (£m)				0.0
Balance at 30 June 2025 (£m)				0.4
Issue of share capital
Number of shares				-
Price per share (£)				0.001
Share value (£m)				0.0
Balance at 31 December 2025 (£m)				0.4
Issue of share capital
Number of shares				36,666,664
Price per share (£)				0.001
Share value (£m)				0.0
Balance at 30 June 2026 (£m)				0.4

 

* figures showing '-' are where there is no balance for the period, figures showing '0.0' is where there is a balance, but it is below £0.05m.

 

 

5. Disposal of manufacturing operations

During the period, the Group completed the disposal and outsourcing of its Chepstow manufacturing operations. As a result of the transaction, the Group lost control of the relevant entity and, in accordance with IFRS 10 Consolidated Financial Statements, derecognised the associated assets and liabilities and recognised the resulting gain on disposal.

 

Following completion on 31 May 2026, the Group retained a 40% interest in the purchasing entity. The retained interest was measured at fair value at and is subsequently accounted for as an associate using the equity method in accordance with IAS 28 Investments in Associates and Joint Ventures. The fair value of the retained interest was assessed as £nil.

 

In determining this fair value, management considered the financial position and future cash flow outlook of the manufacturing entity, including its recent trading performance, expected funding requirements and the commercial terms of the disposal and outsourcing arrangements. Based on this assessment, no positive economic value was attributed to the retained interest at the date of disposal.

 

The disposal has been accounted for as follows:

						6 months to
						30 June 2026
(All figures £m)						Unaudited
Consideration received						0.5
Carrying amount of net assets disposed						(0.5)
Transaction costs incurred on disposal						(0.0)
Investment Retained						-
Profit on disposal						0.0

 

* figures showing '-' are where there is no balance for the period, figures showing '0.0' is where there is a balance, but it is below £0.05m.

 

 

6. Equity-accounted investees

				As at	As at	As at
				30 June 2026	30 June 2025	31 December 2025
(All figures £m)				Unaudited	Unaudited	Audited
Fair value investment in associate				30.9	31.6	29.5
Share of profits of associates accounted for using the equity method				1.0	1.2	1.7
Elimination of unrealised profit on downstream sales				(0.2)	-	(0.3)
Foreign exchange movements				-	-	-
Dividend received from associate				(1.3)	-	-
Investment in associate				30.4	32.8	30.9
				As at	As at	As at
				30 June 2026	30 June 2025	31 December 2025
(All figures £m)				Unaudited	Unaudited	Audited
Percentage of ownership interest				49%	49%	49%
Revenue (100%)				16.8	12.7	27.5
Profit from continuing operations (100%)				2.1	2.4	3.5
Other comprehensive income (100%)				-	-	-
Total comprehensive income 100%				2.1	2.4	3.5
Total comprehensive income 49%				1.0	1.2	1.7
Elimination of unrealised profit on downstream sales				(0.2)	-	(0.3)
Consortium tax relieved to associate				0.2	-	0.3
Group’s share of total comprehensive income				1.0	1.2	1.7
Depreciation (49%)				0.1	0.1	0.2
Taxation (49%)				0.4	0.0	0.5
Finance expense (49%)				0.0	0.0	0.0
Group’s share of EBITDA				1.5	1.3	2.5

 

The Group’s investment balance principally represents its retained interest in Creo Medical S.L., which is accounted for as an associate under IAS 28 Investments in Associates and Joint Ventures. Under the equity method, the investment is initially recognised at cost and subsequently adjusted for the Group’s share of the associate’s profit or loss and other comprehensive income, with distributions received reducing the carrying amount of the investment. The movement in the period reflects the Group’s share of the associate’s post-acquisition result and other movements recognised in accordance with IAS 28.

 

Richard Rees

Chief Financial Officer

 

29 September 2026