Creo Medical Completes Strategic Partnership, Receives €30m Cash
Why we think this is neutral
The trading update from Creo Medical Group provides a mixed picture. While the company has seen a decline in revenues and is facing some near-term challenges as it transitions to full commercialisation, the strategic partnership and cash injection of €30m are positive developments that should help fund the company's ongoing technology development. The overall sentiment is neutral, as the update indicates both positive and negative factors that balance out.
Key Points
- Revenues of £30.4m, down 1.3% year-on-year
- Creo Core Technology revenues up 74% to £4.0m
- Received €30m cash proceeds from strategic partnership with Micro-Tech
- Transitioning from development to full commercialisation, with cost reductions undertaken
- Start to 2025 has been positive, trading in line with expectations
Summary
Creo Medical Group has provided a trading update for the year ended 31 December 2024, reporting revenues of £30.4m, a 1.3% decline from the prior year. The company saw a 74% increase in Creo Core Technology revenues to £4.0m, but this was offset by lower revenues from the Creo Medical Europe Consumables business, which is being held as discontinued activities following the sale of a 51% stake to Micro-Tech. The company also received cash proceeds of approximately €30m from this strategic partnership, which will be used to fund the ongoing development of its core technology. While the start to 2025 has been positive, the company faced some near-term challenges in 2024 as it transitioned from the development phase to full commercialisation.