Sparks - Creo Medical

Creo Medical’s H126 results show continued commercial progress alongside a materially leaner cost base, although near-term liquidity remains a key consideration. Revenue from continuing operations increased 45% y-o-y to £3.2m, gross margin improved to 46.9% from 45.5%, while underlying operating costs fell 15% to £7.9m. This drove a more than 25% reduction in the underlying operating loss to £4.9m from £6.7m. Operational momentum also remains encouraging. Speedboat has now been used in more than 10,000 procedures, while MicroBlate Fine has surpassed 50 clinical cases and MicroBlate Flex more than 100, supporting the broader commercial potential of Creo’s advanced-energy platform across resection and tumour ablation.

The key near-term sensitivity remains funding. Cash stood at £7.4m at end-H126, including inflows from the £5.5m equity placing (36.7m shares at 15p each) and the £2.0m Development Bank of Wales convertible loan (10% interest rate, 18-month maturity) in May 2026. Management expects the proposed sale of its remaining 49% stake in Creo Medical Europe (CME) to strengthen liquidity, with binding terms targeted in Q426. For context, Creo sold the initial 51% stake to Micro-Tech in February 2025 at an implied €72m equity valuation, generating €30.4m in net proceeds after settling €6.3m of debt. The remaining 49% investment was carried at £30.4m at end-H126, although the eventual sale value remains undetermined and could vary materially.

Overall, we view H126 as a constructive operational update, with improving operating leverage and maintained FY26 revenue growth guidance of 50–60%. However, completion of the CME stake sale, or securing alternative short-term funding, remains critical to support ongoing operations and future expansion plans.