Creo Medical (AIM: CREO)

Last close As at 21/02/2024

GBP0.33

−0.25 (−0.75%)

Market capitalisation

GBP121m

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

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Healthcare | Flash note

Creo Medical — Solid FY23 lays the groundwork for 2024

Healthcare | Flash note

Creo Medical — UltraSlim launch – kicking off FY24 momentum

Healthcare | Flash note

Creo Medical — FDA nod for UltraSlim

Healthcare | Flash note

Creo Medical — Potential UltraSlim upside with swift EU pathway

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 debt (£m)

5.7

Forecast gearing ratio (%)

9

Share Price Performance

Price Performance
% 1M 3M 12M
Actual (19.88) 2.31 (0.75)
Relative (21.8) (0.36) 3.28
52 week high/low 48.1p/22.8p

Financials

Creo Medical has released a trading update for FY23, an active year for the company, with progress made across all business segments. Traction improved in H223, following Speedboat Inject’s European clearance for upper gastrointestinal (GI) procedures and the accelerated approval and launch of Creo’s slimmest electrosurgical device, Speedboat UltraSlim. Top-line growth was supported by continued streamlining of the cost structure, resulting in a better-than-expected underlying EBITDA loss (improving to £16.4m vs our £17.0m estimate) and slower cash burn. Gross cash at end January 2024 was £22.8m, which we estimate will take Creo to net profitability in H126 (compared to management’s target of FY25). We await the release of the final FY23 results to update our estimates.

Y/E Dec Revenue (£m) EBITDA (£m) PBT (£m) EPS (p) P/E (x) P/CF (x)
2021A 25.2 (20.0) (29.7) (14.58) N/A N/A
2022A 27.2 (20.8) (31.0) (14.85) N/A N/A
2023E 32.8 (20.7) (24.3) (6.57) N/A N/A
2024E 40.8 (11.5) (14.8) (3.49) N/A N/A

Thematics

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