Creo Medical (AIM: CREO)

Last close As at 21/05/2024

GBP0.37

0.00 (0.00%)

Market capitalisation

GBP128m

UK-based Creo Medical focuses on the development and commercialisation of minimally invasive electrosurgical devices. Its six products in the flagship CROMA platform have all been CE marked, with five cleared by the FDA. Acquired in 2020, Albyn Medical provides Creo with profitable products and a direct salesforce in Europe.

Creo’s products are in a large and lucrative market. Conmed estimates that the GI endoscopic technologies market is worth c $3.0–3.2bn and the radiofrequency energy-based surgical device market is $2.7–2.9bn pa. Entering the robotics and laparoscopic markets further increases the scale of opportunity open to Creo.

Latest Insights

View More

Healthcare | Update

Creo Medical — Setting the stage for pivotal growth

Healthcare | Flash note

Creo Medical — NHS data validates Speedboat’s economic merit

Healthcare | Flash note

Creo Medical — MicroBlate Flex progresses with first robotics use

Healthcare | Flash note

Creo Medical — Solid FY23 lays the groundwork for 2024

creo05

Sector

Healthcare

Equity Analyst

Soo Romanoff

Soo Romanoff

Managing Director - Head of Content, Healthcare

Nidhi Singh

Nidhi Singh

Analyst

Jyoti Prakash

Jyoti Prakash

Analyst, Healthcare

Arron Aatkar

Associate analyst

Key Management

  • Craig Gulliford

    CEO

  • David Woods

    Chief commercial officer

  • Richard Rees

    CFO

Balance Sheet

Forecast net cash (£m)

0.1

Forecast gearing ratio (%)

N/A

Share Price Performance

Price Performance
% 1M 3M 12M
Actual 5.0 9.0 50.5
Relative (1.7) (0.2) 38.6
52 week high/low 48.1p/23.2p

Financials

Creo Medical’s FY23 results recapped strategic, regulatory and operational wins for its core electrosurgical device suite, including Speedboat’s approval for upper gastrointestinal (GI) procedures in Europe and launch of Speedboat UltraSlim. With MicroBlate and SpydrBlade nearing commercial launch and increased traction with partners Intuitive Surgical and CMR Surgical, we anticipate the product uptake curve to steepen in the medium term. FY23 was a solid year with 13.4% y-o-y revenue growth and Creo’s core portfolio more than doubled to £2.3m, with a c 120% increase of its user base. Q124 core revenues were c 14% higher compared to the FY23 quarterly average. Cost optimisation drove the narrowing of operating losses to £16.4m (FY22: £20.8m) and we continue to project topline growth and current cash at hand (gross cash of £17.4m at end-Q124) to support break-even in H126, slightly more conservative than management’s FY25 target. With minor adjustments to our estimates and rolling our model forward, we value Creo at £506m or 140p/share.

Y/E Dec Revenue (£m) EBITDA (£m) PBT (£m) EPS (p) P/E (x) P/CF (x)
2022A 27.2 (28.3) (28.6) (13.52) N/A N/A
2023A 30.8 (22.4) (22.1) (6.17) N/A N/A
2024E 40.1 (16.3) (16.6) (3.89) N/A N/A
2025E 54.1 (4.7) (4.8) (1.00) N/A 323.4

Thematics

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