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Shares in SkinBioTherapeutics PLC plunged on Monday after the company said its probe into the conduct of its former boss will result in a reduction of revenue and profit. SkinBioTherapeutics was down 47% to 6.61 pence on Monday morning in London, having set a new 52-week low of 5.50p. The stock had already dropped 37% on Friday, after it said Stuart Ashman had resigned immediately as chief executive officer after being suspended by the board over ‘matters relating to his conduct’. SkinBioTherapeutics now is down 64% in total since Thursday’s close. The company now has a market value of £17.7 million. The Newcastle Upon Tyne, England-based life science firm on Monday said it has been ‘urgently conducting an investigation’ into Ashman’s conduct and said it now has reason to believe that he ‘misrepresented material information to the board, senior management, auditors and advisors’. This ‘has cast significant doubt on the validity of the accrued royalty income’ reported in its results for the year ended June 30, 2025, SkinBioTherapeutics said. The company expects this to reduce revenue for financial 2025 to £3.9 million from the previously reported £4.6 million, due to the removal of £770,000 in accrued royalty income. This will widen the company’s adjusted loss before interest, tax, depreciation and amortisation to £1.2 million from the previously reported £410,000. The operating loss will be £1.5 million. SkinBioTherapeutics ‘now anticipates that the results for the [current financial year] will be significantly below current market expectations’. These were for £700,000 in adjusted Ebitda on £6.2 million in revenue. SkinBioTherapeutics said it believes the royalties issue was an ‘isolated incident’, but it has launched a broader investigation of its financial reporting and operations. It insisted the underlying financial health of the business is good and noted that it has a strong cash position of £2.9 million. As announced on Friday, Non-Executive Chair Martin Hunt has moved to executive chair temporarily while the company looks for an interim CEO and then new permanent CEO. Copyright 2026 Alliance News Ltd. All Rights Reserved.
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