Creo Medical Group PLC (AIM:CREO), a specialist in minimally invasive surgical endoscopy technologies, said it remains on course for cashflow break-even in 2025 as it delivered a double-digit increase in revenues for the year just gone alongside a significant cut to the cost base.
It posted 13% top-line growth to £30.8 million in the year ending 31 December 2023, while reducing operating expenditure by £3.7 million, or 10%. Digging further into the numbers, Creo's gross margin improved from 48.3% to 49.6% due to efficient supply chain management and increased sales volumes.
Its EBITDA loss is predicted to have reduced to £16.4 million from £20.8 million, despite a decrease in UK R&D tax credit recoverability impacting financial projections.
More importantly, the company exited 2023 with almost £23 million on the balance sheet providing the cash runway to meet its break-even target.
A standout achievement of the year was the successful launch of the Speedboat UltraSlim device, which has quickly become compatible with routine endoscopes worldwide.
The launch led to a record month for orders and shipments in December 2023, demonstrating the product's strong market demand.
Feedback from the medical community highlights the UltraSlim's transformative potential in surgical procedures, with its enhanced size, energy delivery and handling capabilities.
With plans for regulatory approval of the SpydrBlade technology and ongoing progress in Kamaptive licensing partnerships, Creo is well positioned to meet its growth ambitions.
"With revenues increasing across the group by 13%, operating costs reducing by 10% and an outlook of an increasing product range, increasing Kamaptive programme and having now maximised the miniaturisation of the Speedboat product, all of the indicators are on the right trajectory," said chief executive Craig Gulliford.
"We look forward to another year of strong growth in our core technology from both existing and new users and remain confident of our goal to achieve cashflow break even in 2025."