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Currency in GBP
Last close As at 28/03/2023
GBP0.25
▲ −1.00 (−3.85%)
Market capitalisation
GBP92m
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. In 2020 Creo acquired Albyn Medical, which provides it with profitable products and a direct salesforce in Europe.
Creo’s products are in a large and lucrative market. Conmed estimates the GI endoscopic technologies market alone is approximately $3.0–3.2bn with the RF energy based surgical device market at $2.7–2.9bn pa. Entering the robotics and laparoscopic markets further increases the scale of opportunity open to Creo.
Managing Director - Head of Content, Healthcare
Craig Gulliford
CEO
David Woods
Chief commercial officer
Rhys Davies
Communications manager
Richard Rees
CFO
Forecast net cash (£m)
6.3
Forecast gearing ratio (%)
N/A
| % | 1M | 3M | 12M |
|---|---|---|---|
| Actual | (13.0) | 2.4 | (76.8) |
| Relative | (7.5) | 2.7 | (76.2) |
| 52 week high/low | 108.6p/18.4p |
In a bid to strengthen its balance sheet and support development programmes, Creo has announced a £28.5m (£26.8m net proceeds) fund- raise through institutional investors by placing 142.5m new ordinary shares at 20p/share (a 28% discount to the 15 February closing price). The fund-raising, subject to shareholder approval (AGM expected on 8 March), was oversubscribed against the minimum target of £25m, indicating strong shareholder support. In addition, Creo has announced an open offer to shareholders to raise another £5.2m in funds via the conditional issue of c 26m ordinary shares. Creo plans to use these funds to support its commercialisation plans, ongoing R&D efforts, licensing and partnering opportunities as well as working capital requirements. Notably, we estimate these funds to be sufficient to take Creo to net profitability (H126 as per our projections). We will incorporate the fund-raise into our estimates following shareholder approval and completion of the process.
| Y/E Dec | Revenue (£m) | EBITDA (£m) | PBT (£m) | EPS (p) | P/E (x) | P/CF (x) |
|---|---|---|---|---|---|---|
| 2020A | 9.4 | (21.4) | (23.0) | (12.75) | N/A | N/A |
| 2021A | 25.2 | (26.7) | (29.7) | (14.58) | N/A | N/A |
| 2022E | 27.1 | (23.4) | (26.4) | (12.36) | N/A | N/A |
| 2023E | 31.0 | (19.0) | (21.8) | (10.22) | N/A | N/A |
