Creo Medical Group PLC (AIM:CREO, OTC:CMEOF) has told investors it is “remaining on track”, with Cavendish highlighting a stronger balance sheet and a pick-up in sales of its core devices.
Interim revenues for the six months to June rose 40% year on year to £2.2 million, thanks to wider use of its resection products, particularly the Speedboat franchise and the newly launched SpydrBlade.
The number of regular device users increased to 232 from 214 at the end of 2024. Cavendish said utilisation per user also improved, helping lift sales.
Losses narrowed. The underlying operating loss fell to £6.8 million from £12 million in the same period last year, reflecting restructuring completed in 2024. Cavendish noted that operating costs dropped by nearly a quarter, and expects further savings in the second half.
The balance sheet was bolstered by the £24.9 million received from selling a 51% stake in Creo Medical Europe to Micro-Tech, which also generated a £26.2 million accounting profit. Cash closed the half at £20.5 million against £8.7 million at year-end.
Operationally, Cavendish pointed to encouraging developments in both core areas. In resection, new US reimbursement codes for endoscopic submucosal dissection should help drive adoption.
In ablation, more hospitals have started using the MicroBlate Flex device to treat lung tumours, with initial commercial sales now booked.
Management guidance for full-year revenue growth of 40–60% remains unchanged. Cavendish leaves its forecast of £6.1 million sales for 2025 intact, rising to £19.3 million by 2027. Cash is forecast to end 2025 at about £17 million before falling to £6.6 million in 2026.
Cavendish’s Chris Donnellan remains upbeat on the group’s prospects: “Creo is delivering revenue growth, supported by a growing user base, is improving its operational efficiency and remains on track to deliver self-sustaining cash flows”.
The shares were flat at 12.13p.