Surgical endoscopy specialist Creo Medical PLC confirmed it is on track for cash flow break-even next year after a strong set of full-year results, which saw momentum continue into the current reporting period.
In particular, the med-tech firm saw a 2.5 times increase in core product sales. Overall, revenues were £30.8 million for the 12 months ended December 31, up from £27.2 million in the previous year.
Creo's gross margin also saw a favourable uptick, increasing by 1.1 percentage points to 49.6%, resulting in a gross profit of £15.3 million compared to £13.2 million. The operating loss dropped by £4.9 million to £24.8 million, and, crucially, the company had £17.4 million in the bank as of March 31.
Operationally, Creo achieved significant milestones in expanding its global footprint and enhancing its technological offerings.
It received FDA clearance for its Speedboat UltraSlim in November 2023, with strong initial uptake.
The EU launch was expedited by 18 months due to positive regulatory feedback, achieving first sales in the fourth quarter of last year.
The device was also introduced in Asia Pacific and Latin America by December. User adoption of Creo's core technology surged by 119%, reaching 175 users. The UK regulatory NICE is evaluating Speedboat Inject for clinical guidance.
Additionally, successful first-in-human trials of MicroBlate Flex for lung tissue ablation were conducted in 2023. Creo also received Medical Device Regulation CE clearance for Speedboat, broadening its applications to upper GI indications.
Furthermore, NHS data highlighted cost and operational efficiencies from Speedboat Submucosal Dissection, which has been rapidly adopted in the UK, contributing to reduced waiting times and enhanced patient outcomes.
After a strong end to 2023, the new financial year has started strongly, Creo said, with core revenue up 14% year-over-year, driven by robust sales of Speedboat UltraSlim.
Despite the impact of an early Easter on consumable sales, tight cost control and sustained sales momentum reinforce the company's confidence in meeting its 2024 objectives.
"We expect to launch our SpydrBlade brand during 2024 via our core sales channel. SpydrBlade is also of great interest to our robotic partners, and we are working hard with them to deliver the technology into the robotics space," said Creo CEO, Craig Gulliford.
"The growth seen during the year throughout all key parts of the business, and lowered costs all contributed to a reduced operating loss for the year.
"This, coupled with the continued momentum we've seen to start 2024, encourages me as we move closer towards our goal of achieving cash flow break even in 2025."