Creo Medical Group PLC (AIM:CREO, OTC:CMEOF) said it remains on track to deliver 40–60% revenue growth this year after reporting a strong first-half performance and a sharply reduced loss.
The AIM-listed medical device company, which develops minimally invasive surgical tools for treating cancer and pre-cancer patients, posted a 40% rise in revenue to £2.2 million for the six months to June.
Underlying operating losses narrowed by 43% to £6.8 million after cost cuts, while statutory profit before tax reached £16.1 million, boosted by the sale of a majority stake in its European business to Chinese partner Micro-Tech.
Cash on hand at the half-year stood at £20.5 million, up from £8.7 million at the end of 2024. The company said further annualised savings would come through in the second half.
Craig Gulliford, chief executive, said: “Current trading in the second half continues to support our guidance of delivering 40% to 60% revenue growth for the full year.
"With continued growth, improved operational efficiencies and cost reductions, and a solid cash position, the board and management team remain confident in the company’s goals to deliver self-sustaining cashflows and increased value for shareholders.”
The group’s tools are increasingly being used in specialist endoscopic procedures, including operations on the oesophagus and lungs.
Its Speedboat Notch device is gaining traction for complex procedures such as per-oral endoscopic myotomies, while its MicroBlate Flex tool has been employed in studies for treating lung tumours.
Creo also launched its SpydrBlade Flex in the US, UK and EU after receiving regulatory clearances during the half.
Clinical adoption continued to grow, with 232 active product users at the end of June, up from 214 at the end of last year.
Management said its European joint venture with Micro-Tech, in which it retains a 49% stake, was trading ahead of expectations and should continue to provide balance sheet strength as well as a share of future profits.