|
Creo Medical Group PLC confirmed on Friday it has successfully raised £5.5 million through a placing, after earlier announcing plans to sell its remaining 49% stake in Creo Medical Europe SL and reporting narrowed annual losses. Shares in Creo Medical were up 25% to 14.20 pence in London on Friday morning, having traded as high as the 15 pence placing price. The stock is up over 18% the past 12 months. The Chepstow, Wales-based medical device company said revenue in 2025 rose 50% to £6.0 million from £4.0 million a year earlier, while its pretax loss narrowed to £17.5 million from £29.0 million. Creo said it entered 2026 in a strengthened financial position, supported by continued commercial momentum and cost reduction measures following the outsourcing of manufacturing operations announced in April. The company said first-quarter revenue growth was around 60% year-on-year, at the upper end of board expectations, and it now expects full-year 2026 revenue growth of between 50% and 60%, upgraded from previous guidance of 40% to 60%. Later on Friday, Creo confirmed it had raised gross proceeds of £5.5 million through the placing of 36.7 million new shares at 15 pence each. The issue price represented a 31.9% premium to Thursday’s closing middle market price of 11.4p. Chief Executive Officer Craig Gulliford said: ‘We are very pleased to have received this strong support from investors for our business and strategy.’ He added: ‘The placing, alongside the other strategic funding initiatives we announced this morning, strengthens the group’s balance sheet and positions Creo to capitalise on the strong recent commercial and strategic momentum across our business.’ Certain directors subscribed for a combined £2.15 million in the placing, including Chair Kevin Crofton, who subscribed for 13.3 million shares. Admission of the placing shares to AIM is expected on May 28. Earlier on Friday, Creo said proceeds from the placing, alongside £2 million in conditional loan notes from the Development Bank of Wales and the proposed sale of its stake in Creo Medical Europe, would support growth, commercial expansion and working capital requirements. Separately, Creo said it has signed a non-binding agreement with a company owned by Creo Medical Europe Chief Executive Officer Luis Collantes regarding the proposed sale of its entire 49% interest in the business. The proposed transaction is based on an indicative enterprise value in line with the carrying value of Creo Medical Europe at December 31, 2025, with payment expected in cash on completion. Copyright 2026 Alliance News Ltd. All Rights Reserved.
|
