Currency in GBP
Last close As at 28/03/2023
GBP0.25
▲ −1.00 (−3.85%)
Market capitalisation
GBP92m
Research: Healthcare
Creo Medical has released a Q122 trading update and is scheduled to publish FY21 results in early May 2022. Management highlighted the increased demand for elective procedures (as well as a rise in endoscopy cases) drove strong volume growth for Creo’s Speedboat products. The month of March was particularly strong with the return of hospital visits as COVID-19 fears and restrictions dissipate. The company’s integration of its recent acquisition of Aber Electronics (November 2021) further strengthens its technology platform. As a further development, in January 2022, the company signed a number of non-binding heads of terms (HoT) agreements for its SpydrBlade, Cool Plasma and MicroBlate technologies, with potential to develop into licensing agreements.
Creo Medical |
Positive Q122 trading update |
Trading update |
Healthcare equipment & services |
29 April 2022 |
Share price performance Business description
Analysts
Creo Medical is a research client of Edison Investment Research Limited |
Creo Medical has released a Q122 trading update and is scheduled to publish FY21 results in early May 2022. Management highlighted the increased demand for elective procedures (as well as a rise in endoscopy cases) drove strong volume growth for Creo’s Speedboat products. The month of March was particularly strong with the return of hospital visits as COVID-19 fears and restrictions dissipate. The company's integration of its recent acquisition of Aber Electronics (November 2021) further strengthens its technology platform. As a further development, in January 2022, the company signed a number of non-binding heads of terms (HoT) agreements for its SpydrBlade, Cool Plasma and MicroBlate technologies, with potential to develop into licensing agreements.
Year end |
Revenue (£m) |
PBT* |
EPS* |
DPS |
DPS |
Yield |
12/19 |
0.0 |
(18.6) |
(13.1) |
0.0 |
N/A |
N/A |
12/20 |
9.4 |
(23.0) |
(12.7) |
0.0 |
N/A |
N/A |
12/21e |
25.9 |
(22.7) |
(12.3) |
0.0 |
N/A |
N/A |
12/22e |
28.4 |
(24.4) |
(13.3) |
0.0 |
N/A |
N/A |
Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.
Although details have not been released, high-level Q122 figures suggest that Creo continues to build on the positive Q421 momentum. The strong Q122 volume growth was largely driven by core product (ie Speedboat Inject) across the US, EMEA and Asia-Pacific. The company benefited from eased COVID-19 restrictions, which allowed for a resumption of elective procedures/endoscopy surgical cases and increased training and adoption of Speedboat Inject during the quarter.
In March, Creo recorded a significantly high number of cases performed using Speedboat Inject device in the United States. Leveraging the Albyn Medical sales network, the company doubled its users and training sites in the UK, Spain, France and Belgium, which have the potential to convert into sales and customers. In addition, Creo launched a regional hub in Singapore, which will help the commercial roll out across Asia-Pacific with distribution partnerships. In January 2022, Creo signed a number of HoT agreements to provide third-party access to its advanced energy technologies (ie SpydrBlade, Cool Plasma and MicroBlate) in an effort to develop a potential market in similar surgical requirements (like laparoscopic surgery, robotically assisted surgery and non-thermal plasma sterilisation) through licensing agreements.
Creo’s trading update is consistent with prior guidance for FY21 revenues over £25m led by higher commercial orders and increased adoption of Speedboat Inject in the US and Europe. During FY21, Speedboat Submucosal Dissection (SSD) procedure volumes and doctors trained (Clinical Education Programme) both doubled compared to the previous year. Additionally, in November 2021, the company announced the acquisition of Aber Electronics, key supplier to Creo’s CROMA Advanced Energy Platform; the acquisition gives Creo an opportunity to develop its technology platform further.
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Research: Investment Companies
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