TIDMCREO
RNS Number : 3506M
Creo Medical Group PLC
23 May 2022
Creo Medical Group plc
("Creo", the "Group" or the "Company")
Final Results
Building momentum: Strong strategic and operational progress
Creo Medical Group plc (AIM: CREO), a medical device company
focused on the emerging field of surgical endoscopy, announces its
audited final results for the 12 months ended 31 December 2021
.
Financial Highlights:
-- Total sales in the period of GBP25.2m (FY 2020: GBP9.4m)
-- Cash and cash equivalents of GBP43.5m at 31 December 2021 (FY
2020: GBP45.1m), including GBP34.3m net raised through Placing and
Open Offer in September 2021
-- R&D expenditure in the year was GBP12.9m (FY 2020: GBP10.2m)
-- Operating loss of GBP29.9m for FY 2021 (FY 2020: GBP23.5m)
including GBP2.6m share based payments (FY 2020: GBP0.7m), in-line
with management expectations
-- Net assets of GBP73.3m at 31 December 2021 (FY 2020: GBP62.8m)
Commercial Highlights (including post-period end):
-- Over 1,000 Speedboat Inject procedures performed to date
-- Speedboat Inject procedure volumes doubled over previous year
-- Pipeline of clinicians to be trained under Clinical Education Programme has doubled
-- 25% increase in the Group's direct sales force since the start of 2021
-- New market penetration with multiple cases of Peroral
Endoscopic Myotomy ("POEMS") procedures in the US using Speedboat
Inject
-- Heads of terms ("HoTs") agreed with multiple partners, with advanced discussions ongoing
-- Strengthened IP portfolio with 376 granted patents and 870 pending patents
-- Health economic study indicated that savings of up to GBP10k
could be saved per Speedboat Inject procedure versus traditional
surgical outcomes, with the NHS saving over GBP2m cumulatively to
date
-- Positive outcome on first pancreatic ablation using MicroBlate Fine
Operational Highlights :
-- Strengthening of supply chain and R&D capabilities
through acquisition of Aber Electronics Limited ("Aber") in
November 2021
-- Fully integrated Albyn Medical and Boucart Medical into the
Creo family, operating in-line with expectations under the Creo
brand
-- Completion of the purchase of the freehold of Creo House,
Chepstow, and the adjacent building for GBP4.25m to support the
Company's planned and sustained growth
-- Opening of US office on the East Coast in Danbury,
Connecticut, to provide a base for US operations and enable
in-person clinical and education programmes
-- Established APAC Hub based in Singapore
Craig Gulliford, Chief Executive Officer, commented:
"It has been a year of strong progress for the Group, as we
continue to build momentum and make progress against our mission of
improving patient outcomes through our 'Build, Buy and Partner'
strategy. We doubled our pipeline of clinicians who are to be
trained under our Clinical Education Programme, with a significant
proportion of those trained during the year now being product
users. Our US office opening, as well as the purchase of the
freehold of Creo House, and the post-period end opening of our
Singapore regional hub, have all been key steps for the Group's
commercial growth and the increased education of clinicians across
our target markets.
"Our acquisition of Aber Electronics during 2021 has added
specialist expertise to our team whilst enhancing a key element of
our supply chain. Our prior acquisitions of Albyn Medical and
Boucart Medical have proved to be successful, with both having
expanded our commercial footprint across Europe, and are now fully
integrated within the Group.
"We have signed non-binding heads of terms with a number of
carefully selected partners, in order to leverage our core
Kamaptive technology in therapeutic areas that the Group is not
already operating.
"Looking ahead we remain well-positioned to continue our
commercial growth and will continue to evaluate further potential
strategic acquisitions. We expect that as restrictions related to
the COVID-19 pandemic continue to ease throughout 2022, we will see
increased rates of clinical education and increased rates of use of
our technology in elective cases."
Creo Medical Group plc www.creomedical.com
Richard Rees (CFO) +44 (0)1291 606 005
Cenkos Securities plc +44 (0)20 7397 8900
Stephen Keys / Camilla Hume (NOMAD)
Michael Johnson / Russell Kerr (Sales)
Numis Securities Limited (Joint
Broker)
Freddie Barnfield / James Black
/ Duncan Monteith +44 (0)20 7260 1000
Walbrook PR Ltd Tel: + 44 ( 0)20 7933 8780 or creo@walbrookpr.com
Paul McManus / Sam Allen / Mob: +44 (0)7980 541 893 / +44 (0)7502
Phillip Marriage 558 258 / +44 (0)7867 984 082
About Creo Medical
Creo Medical is a medical device company focused on the
development and commercialisation of minimally invasive
electrosurgical devices, bringing advanced energy to endoscopy.
The Company's vision is to improve patient outcomes through the
development and commercialisation of a suite of electrosurgical
medical devices, each enabled by CROMA, powered by Kamaptive. The
Group has developed the CROMA powered by Kamaptive full-spectrum
adaptive technology to optimise surgical capability and patient
outcomes. Kamaptive is a seamless, intuitive integration of
multi-modal energy sources, optimised to dynamically adapt to
patient tissue during procedures such as resection, dissection,
coagulation and ablation of tissue. Kamaptive technology provides
clinicians with increased flexibility, precision and controlled
surgical solutions. CROMA currently delivers bipolar radiofrequency
("RF") energy for precise localised cutting and focused high
frequency microwave ("MW") energy for controlled coagulation and
ablation via a single accessory port. This technology, combined
with the Group's range of patented electrosurgical devices, is
designed to provide clinicians with flexible, accurate and
controlled clinical solutions. The Directors believe the Company's
technology can impact the landscape of surgery and endoscopy by
providing a safer, less-invasive and more cost-efficient option for
procedures.
For more information, please refer to the website
www.creomedical.com
Chairman's statement
Like most PLC Chairs, I would have rather not been talking to
shareholders about the COVID-19 pandemic for a third successive
year. The CEO statement below details how restrictions on travel,
limited access to hospitals and delays in elective procedures have
unavoidably slowed the clinical adoption and commercial rollout of
our CROMA Advanced Energy Platform around the world. But despite
these challenges, we have further broadened and deepened our range
of products during the period to treat a longer list of medical
indications and so improve the lives of a broader group of
patients. This continues to stimulate interest in adopting CROMA
from our clinical champions, especially in Europe and the US where
patients are benefitting from Creo's technologies.
Governance
We have not allowed the COVID-19 pandemic to hinder our
corporate governance efforts, which remain front and centre of our
work. In the 2021 Report and Accounts, which will be published in
May, we set out details in respect of our continued ESG commitment,
information regarding our s172 compliance with examples from the
year, as well as the summary of our compliance with the Quoted
Companies Alliance (QCA) Corporate Governance Code. As we continue
to grow, both organically, through acquisition and through
partnerships, the Board is unanimous in its view that it is strong
governance that underpins the success of our activities and
provides a sound framework for the business to operate within.
Management and staff
As in previous years, the Board would like to applaud our
management team and all our employees for another year of important
strategic milestones. Together they have shown perseverance,
flexibility and inventiveness in developing Creo's products and
their international markets, despite the headwinds described above
which have limited the rate at which we were able to train new
users globally. Thankfully, our rightly celebrated colleagues in
the vaccine sector have been remarkably successful in developing
and rolling out effective vaccines in our priority UK, Continental
European and North American markets. We have been encouraged to see
the cautious lifting of travel and other restrictions in our key
markets in recent months.
Integration of acquisitions
The successful integration of the two acquisitions completed in
2020 has been a strategic priority during the year. This nicely
illustrates our Build - Buy - Partner strategy in action and lays
the groundwork for significant shareholder value creation. The
Board thanks the commercial teams led by David Woods and Luis
Collantes who have worked tirelessly together across geographies,
time zones and specialities to leverage Creo's growing and unique
set of strengths and skills.
Albyn Medical and Boucart Medical are both well integrated into
the Group and have been rebranded under the Creo Medical umbrella.
This offers an unrivalled one-stop solution across Europe in the
fields of gastroenterology, urology and endoscopy, backed by strong
customer service and Creo's outstanding innovation, to deliver a
unique and winning combination to our customers. The timing of the
acquisitions was ideal as it has given the business a sound
commercial footing that would not have been feasible to build
organically during a global pandemic.
Shareholders
It is customary for the chair on behalf of the Board to thank
fellow shareholders for their continuing support during the year
under review and we continue that custom sincerely. The successful
Placing and Open Offer raising GBP34.3 million (after costs) in
September 2021 was another important strategic milestone. Executed
in volatile and challenging small cap capital markets, the placing
has widened our already strong and deep shareholder base. We
appreciate the patience and support of our longstanding
shareholders and welcome our new holders onto the share
register.
The Company is deploying the proceeds of the Placing to
accelerate our growth strategy and further product development.
With a strengthened balance sheet we can continue on the path to
being a truly global independent MedTech innovator able to operate
in a market led by much larger US and Asian companies. We need
these resources to optimise the opportunities for our world class
technology and products to compete with competitors, support our
partners in all applicable markets and strengthen our position in
negotiations with potential licensing partners.
We encourage active dialogue with all shareholders to ensure our
strategy and business model is well understood and that we, in
turn, understand the priorities of our shareholders.
Notwithstanding the restrictions on in-person meetings, both the
Executive and Non-Executive Directors have maintained and developed
frequent contact with shareholders backed by regular updates via
RNS and plan more of the same in 2022.
In November, we announced the appointment of Numis as Joint
Broker alongside our Nominated Adviser and broker, Cenkos
Securities. This provides shareholders and potential shareholders
with widened equity research coverage and enhanced international
share trading facilities in the Company's shares.
ESG
Ever since our foundation, Creo Medical has taken seriously our
responsibility to the environment, our diverse stakeholders (led by
the patients) and to ethical, transparent and well governed
business practices. As we grow internationally, we are putting in
place a sector leading ESG framework which is outlined in our 2021
Report and Accounts.
Outlook
Creo Medical continues to innovate, to educate and to
commercialise. While nothing can be guaranteed in an uncertain
world, the Board looks forward to further updating shareholders
during 2022 on important product advancements, meaningful
commercial progress and landmark partnerships. The sound progress
made over the past year underpins the Board's strong confidence in
the Group's opportunities in 2022 and beyond.
Charles Spicer
Non-Executive Chairman
22 May 2022
Chief Executive's Review
I am immensely proud of our progress this year, despite
difficult circumstances in all our regional markets as COVID-19
restrictions persisted. During the year we continued to make strong
progress against our strategic objectives and build momentum
through sustained commercial progress. Revenue from the Group's
core Creo product portfolio is growing and is in-line with
management's cumulative revenue forecasts at the time of IPO in
December 2016 despite the adverse conditions over the last two
years.
We have seen significant growth in commercial orders and
adoption of Speedboat Inject in the US and Europe. Pleasingly, we
have made significant progress against our target to leverage our
IP through our Kamaptive brand by agreeing Heads of Terms ("HoTs")
with a number of carefully selected partners to provide access to
our advanced energy in large and growing markets where the Group is
not currently operating.
The opening of the Group's US headquarters during 2021 has
helped to support Creo's commercial roll-out in the key US market.
Post-period end, we also opened our regional hub in Singapore to
support the commercial roll-out of Creo's products in the APAC
region and this is expected to satisfy the backlog of demand,
following numerous distributor agreements being signed throughout
2021. In addition, Creo completed the purchase of the freehold of
Creo House, our head office in Chepstow, along with the adjacent
building, to support the Group's planned and sustained growth.
These all represent important steps on our journey to
commercialisation. Our successful Placing and Open Offer in
September 2021 positions us well to deliver our strategic
objectives and take the business to the next stage of its
development: to strengthen our product portfolio and enhance our
Kamaptive Advanced Energy Technology for licensing and
partnerships.
Building momentum
We have taken great strides in delivering against our three
strategic pillars: Build, Buy and Partner.
Build
Over the course of 2021, Creo's pipeline of doctors waiting to
be trained through our Clinical Education Programme has more than
doubled compared to 2020. This demand continues to build.
The number of global training centres across our direct markets
increased threefold during 2021. Creo trained a significant number
of leading clinicians in 2021, who are now product users, and the
Group expects this number to rise in 2022.
Even at this early stage, clinicians have identified additional
uses, for Speedboat Inject in new procedures in the upper
gastrointestinal tract ("GI"), including successful application in
Peroral Endoscopic Myotomy ("POEM") procedures, opening up
additional markets where our technology can be effective.
Once the final FDA clearance has been received for SpydrBlade
Flex, all products in our four technology families - Speedboat,
MicroBlate, SlypSeal and SpydrBlade - will be cleared for clinical
use in both the US and Europe. Our focus this year has been on
delivering our best-in-class Clinical Education Programme to
provide training for leading clinicians in the use of our Speedboat
technology and CROMA Advanced Energy Platform.
The recently opened US office in Danbury, Connecticut includes a
learning centre and fully equipped training laboratory where our US
based team has been able to demonstrate products and provide
lab-based training sessions. With on-going travel restrictions
across the world and the postponement of elective procedures to,
understandably, focus resources on caring for patients with
COVID-19, we have used remote technology extensively for live
events, which is yielding positive clinical results and building an
active user community.
Our decision to purchase the freehold of Creo House in Chepstow,
UK strengthens our infrastructure and provides additional
manufacturing capacity for our full suite of devices. It also
provides our team with a secure base to allow us to continue to
build a world class MedTech company.
Buy
We have made excellent progress in integrating our Albyn Medical
and Boucart Medical acquisitions into the Creo family. Both
businesses now operate under the Creo Medical brand and the
extensive European sales-force is now equipped to sell Creo
products across the European markets. This approach is already
delivering benefits which will only accelerate as we introduce the
full product range into other regions.
Towards the end of 2021, we announced the acquisition of Aber
Electronics Limited, a UK based manufacturer and designer of power
amplifiers and radio frequency products. As an existing supplier to
Creo, this acquisition fits well with our 'Buy' strategy, whilst
adding manufacturing operations and specialist microwave and radio
frequency capability to Creo's product development for Kamaptive as
well as securing a key element of our supply chain.
Partner
Early in 2022, I was pleased to report that we had signed
non-binding heads of terms with a number of parties which relate to
the Group's SpydrBlade, Cool Plasma and MicroBlate technologies.
This is accelerating the development of the "powered by Kamaptive"
brand, by enabling partners to leverage our core Kamaptive
technology.
We believe that such partnerships have the potential to create
shareholder value through granting third-party access to Creo's
advanced energy Kamaptive technology in large and growing markets
adjacent to those where the Group is already operating. This
includes fields such as laparoscopic surgery, robotically assisted
surgery, and non-thermal plasma sterilisation.
With the right partners, the Group believes that Creo's
technology has the potential to fundamentally change the way that
patients are cared for and to improve patient outcomes.
Our people and responsibilities
We are a fast growing organisation - now 290 strong. I have been
impressed with the way our management teams have retained and
reinforced our strong culture, in particular as we scale up our
operations, manufacturing capability, international growth and
integrate our acquisitions into the Creo family. We have enhanced
our human resources function to support our growth and ensure we
operate and think as a global organisation from the start.
Our people are clearly the critical element within this. Without
their innovation, can-do spirit and commitment to the business, we
would not have delivered the progress we have during the year and I
would like to thank each and every one of them for making this
possible.
Looking forward
Our mission remains the same: to improve patient outcomes by
bringing advanced energy to therapeutic endoscopy.
We see our strong progress in the commercialisation of our
innovative, minimally invasive, electrosurgical endoscopy devices
accelerating as our user community continues to grow. We anticipate
that high vaccination rates in both Europe and the US will lessen
the impact of COVID-19 during 2022 and allow clinicians to focus on
the huge backlog of elective cases, increasing activity in our key
areas of clinical focus - core GI and soft tissue ablation. Whilst
continued restrictions in Asia have slowed progress in the region,
we have continued to recruit distributors in APAC and in those
other markets where we don't have a direct presence. We are well
placed to support these distributors as they start to satisfy a
backlog in demand in their markets as they emerge from the COVID-19
pandemic.
The successful integration of Albyn Medical and Boucart Medical
have transformed our commercial footprint in Europe and we will
continue to evaluate other strategic acquisition opportunities to
accelerate our reach in other regions including the USA. Along with
the development of licensing partners, we will continue our
transition to a fully integrated specialty medical device
manufacturer with product origination, development and
commercialisation capabilities.
2022 has already started positively, with strong performances
seen from our core product portfolio. Throughout the rest of the
year, we look forward to continuing to execute and expand our
three-tiered organic strategy through the education and training of
clinicians, the roll-out of our product portfolio in APAC and
further commercial orders and adoption of Speedboat Inject in the
US and Europe. With our strong cash position and clear strategy,
Creo is well positioned to drive shareholder value in 2022.
Craig Gulliford
Chief Executive Officer
Financial Review
I am pleased to announce the results for the 12 months to 31
December 2021.The adversity faced by the business from COVID-19
has, in part, been mitigated through the strength of the balance
sheet following the 2021 fund raise. Following our Build, Buy
Partner strategy, the acquisitions of Albyn Medical and Boucart
Medical have been successfully integrated into the business and
have brought immediate revenue and positive cash flow to the Group,
which strengthens the business and confirms Creo as a platform for
future growth.
Revenue and other income
Despite COVID-19 disrupting sales channels and restricting
access to clinical training and travel, the Group has made
significant progress in establishing sales channels through new
products as well as development of our commercial footprint via
acquisitions and organic growth. We opened offices in the US, and
APAC as well as purchased the land and additional buildings at our
UK headquarters. The acquisition of Aber Electronics has helped to
secure our supply chain and the acquisitions of Albyn Medical and
Boucart Medical in 2020 are generating revenues and positive
cashflow to the Group.
Revenues billed in the period in relation to Speedboat Inject
and CROMA totalled GBP0.3m (2020, GBP32k). GBP24.9m was generated
through distribution sales of Creo Europe (formally known as Albyn
and Boucart). Other operating income of GBP0.05m in the 12-month
period to 31 December 2021 (December 2020: GBP0.05m) relates to
research grants.
Gross Margin
Gross margin improved from 42.8% in 2020 to 46.0% in 2021.
Operating loss
The operating loss for the period increased to GBP29.9m
(December 2020: GBP23.5m), reflecting the increased operating
expenses in relation to clinical and development activities
together with further investment in headcount and business
infrastructure including securing US and APAC offices to support
the business and enable it to continue to develop and commercialise
its technology. This continued investment in the business will
support anticipated growth and development in the coming
periods.
The underlying operating loss (also referred to as adjusted
EBITDA) for the period was GBP19.0m (December 2020: GBP18.0m).
Whilst EBITDA is not a statutory measure, the Board believes it
is helpful to include for investors as an additional metric to help
provide a meaningful understanding of the financial information as
this measure provides an approximation of the ongoing cash
requirements of the business as it continues to pursue its future
development and begins to commercialise its approved products. The
adjusted EBITDA position excludes share-based payment expenses
which are non-cash and incorporates the recovery of research and
development expenditure which the Group is able to benefit from
through R&D tax credit schemes.
12 months 12 months
to to
31 December 31 December
(All figures GBP'000) 2021 2020
------------------------------------------ ------------ ------------
Operating loss (29,907) (23,484)
Loss before Income tax (30,339) (23,462)
Total comprehensive loss for the period (26,260) (20,745)
Underlying operating loss adjustments:
Share-based payments 2,564 728
Depreciation and amortisation 2,562 1,597
R&D expenditure recovered via tax credit
scheme 5,744 3,146
Underlying operating loss (non-statutory
measure) (19,037) (18,013)
-------------------------------------------- ------------ ------------
Tax
The tax credits recognised in the current and previous fiscal
year relate mainly to R&D tax credit claims. A deferred tax
asset has been recognised in respect of the business combination
relating to our Albyn subsidiaries. A GBP0.75m deferred tax asset
has been recognised in respect of tax losses in Creo Medical
Limited which we will utilise through group relief of the future
profits in Creo Medical UK Limited. No further tax assets in
relation to these losses has been recognised due to the uncertainty
over the timing of future recoverability.
Expenses
Administrative expenses comprising R&D, operational support,
sales and marketing, and finance and administration costs totalled
GBP41.5m (December 2020: GBP27.6m). R&D spend for the year
totalled GBP12.9m (December 2020: GBP10.2m) reflecting the
continued innovation and development of our technology during the
year. Adjusting for share-based payments, depreciation,
amortisation and tax income as shown in the table above, underlying
administrative expenses are GBP30.6m (December 2020: GBP22.1m).
This annualised increase of GBP8.5m reflects a full year of
trade through Creo Europe, the continued investment made by the
Group in clinical and development activities and the move from
small discrete production batches into full-scale manufacturing.
Personnel costs continue to be the largest expense and represent
approximately 65% of the Group's underlying administrative
expenses.
Loss per share was 15 pence (December 2020: 13 pence).
Dividend
No dividend has been proposed for the period to 31 December 2021
(31 December 2020: GBPnil).
Cash flow and balance sheet
Net cash used in operating activities was GBP26.0m (December
2020: GBP16.3m), driven by the continued investment in research and
development and, establishing a US and APAC presence. Net cash used
in investing activities was GBP7.8m (December 2020: GBP21.0m)
driven by the acquisition of Aber Electronics and purchase of land
and buildings for UK headquarters. Cash generated from financing
activities was GBP32.0m of which GBP34.3m was raised through an
Open Offer and Share Placement during the period.
Total assets at the end of the period increased to GBP100.6m (31
December 2020: GBP92.5m), a 8.8% increase, reflecting the increase
in assets and goodwill as a result of the business combination,
offset by the operating cash outflow for the period. Cash and cash
equivalents at 31 December 2021 was GBP43.5m (31 December 2020:
GBP45.1m). Net assets were GBP73.3m (31 December 2020: GBP62.8m), a
16.7% increase due to fund raise offset by operating loss and share
based payment expense.
Accounting policies
The Group's financial statements have been prepared in
accordance with International Financial Reporting Standards. The
Group's accounting policies have been applied consistently
throughout the period and are described in the 2021 Report and
Accounts.
Key Performance Indicators
As the Group continues to develop and commercialise its core
technology, the Directors consider the key financial performance
indicators to be the level of cash held in the business, sales and
operating expenses controlled to budget. The Board performs regular
reviews of actual results against budget, and management monitors
cash balances on a monthly basis to ensure that the business has
sufficient resources to enact its current strategy.
Certain KPIs concern non-financial measures, such as the number
of trainees for our clinical education programme, integration of
acquired entities, ESG metrics such as carbon emissions and
diversity ratios and progress against our build buy partner
strategy. All non-financial measures are monitored on a monthly
basis.
The Board will continue to review the KPIs used within the
business and assess them as the business grows.
Principal risks and uncertainties
The principal risks and uncertainties facing the Group are set
out in the 2021 Report and Accounts.
Richard Rees
Chief Financial Officer
Consolidated Statement of Profit and Loss and Other
Comprehensive Income
31 December 31 December
(All figures GBP'000) 2021 2020
------------------------------------- ------------ ------------
Revenue 25,161 9,429
Cost of sales (13,576) (5,394)
Gross Profit 11,585 4,035
Other operating income 52 49
Administrative expenses (41,544) (27,568)
Operating loss (29,907) (23,484)
Finance expenses (463) (173)
Finance income 31 195
Loss before tax (30,339) (23,462)
Taxation 5,744 3,146
Loss for the year (24,595) (20,316)
---------------------------------------- ------------ ------------
Exchange loss on foreign subsidiary (1,896) (429)
Changes to the fair value
of equity investments at fair
value through other comprehensive
income 231 -
Total comprehensive loss
for the year (26,260) (20,745)
---------------------------------------- ------------ ------------
Loss per Share
Basic and diluted (GBP) (0.15) (0.13)
Consolidated Statement of Financial Position
As at As at
31 December
(All figures GBP'000) 2021 31/12/2020*
----------------------------------------------- ------------ ------------
Assets
Non-current assets
Intangible assets 8,692 10,268
Goodwill 18,563 18,262
Investments 1,733 500
Property, plant and equipment 8,603 3,378
Deferred tax 1,705 474
Other assets 146 112
39,442 32,994
Current assets
Inventories 8,504 6,812
Trade and other receivables 4,830 4,593
Tax receivable 4,299 2,973
Cash and cash equivalents 43,534 45,092
61,167 59,470
Total assets 100,609 92,464
----------------------------------------------- ------------ ------------
Shareholder equity
Called up share capital 181 158
Share premium 149,448 115,263
Merger reserve 13,603 13,603
Share option reserve 7,940 5,376
Foreign exchange reserve (2,325) (429)
Financial Assets at fair value through other
comprehensive income 231 -
Accumulated losses (95,760) (71,165)
Total equity 73,318 62,806
Liabilities
Non-current liabilities
Interest-bearing liabilities 5,175 6,542
Other liabilities - 1,873
Deferred tax liability 1,786 1,996
Provisions 593 1,219
-
---------------------------------------------- ------------
7,554 11,630
Current liabilities
Interest-bearing liabilities 3,705 4,023
Trade and other payables 9,921 8,504
Non interest-bearing loans 1,676 1,790
Other liabilities 4,221 3,474
Provisions 214 237
19,737 18,028
Total liabilities 27,291 29,658
Total equity and liabilities 100,609 92,464
----------------------------------------------- ------------ ------------
*Prior year restatement of debtors and creditors, which has no
impact on the profit or loss. See restated balance sheet for prior
year in the 2021 Annual Report and Accounts.
Consolidated Statement of Changes in Equity
Changes to the
fair value of
equity
instruments
at fair value
Called up Share through other Foreign
share Accumulated Share Merger option comprehensive Exchange Total
(All figures GBP'000) capital losses premium reserve reserve income Reserve equity
----------------------- ---------- ------------ -------- -------- -------- --------------- --------- ---------
Balance at 1 January
2019 120 (34,938) 65,836 13,603 3,093 - - 47,714
Total comprehensive
loss for the year
Loss for the financial
year - (15,911) - - - - - (15,911)
Total comprehensive
loss - (15,911) - - - - - (15,911)
Transactions with
owners, recorded
directly in equity
Issue of share capital 30 - 49,276 - - - - 49,306
Equity settled
share-based payment
transactions - - - - 1,555 - - 1,555
Balance at 31 December
2019 150 (50,849) 115,112 13,603 4,648 - - 82,664
----------------------- ---------- ------------ -------- -------- -------- --------------- --------- ---------
Total comprehensive
loss for the year
Loss for the financial
year - (20,316) - - - - - (20,316)
Other comprehensive
loss - - - - - - (429) (429)
Total comprehensive
loss - (20,316) - - - - (429) (20,745)
Transactions with
owners, recorded
directly in equity
Issue of share capital 8 - 152 - - - - 160
Equity settled
share-based payment
transactions - - - - 728 - - 728
Balance at 31 December
2020 158 (71,165) 115,264 13,603 5,376 - (429) 62,807
----------------------- ---------- ------------ -------- -------- -------- --------------- --------- ---------
Total comprehensive
loss for the year
Loss for the financial
year - (24,595) - - - - - (24,595)
Other comprehensive
loss - - - - - 231 (1,896) (1,665)
Total comprehensive
loss - (24,595) - - - 231 (1,896) (26,260)
Transactions with
owners, recorded
directly in equity
Issue of share capital 23 - 34,184 - - - - 34,207
Equity settled
share-based payment
transactions - - - - 2,564 - - 2,564
Balance at 31 December
2021 181 (95,760) 149,448 13,603 7,940 231 (2,325) 73,318
----------------------- ---------- ------------ -------- -------- -------- --------------- --------- ---------
Consolidated Statement of Cash Flows
31 December 31 December
(All figures GBP'000) 2021 2020
---------------------------------------------------- ------------ ------------
Cash flows from operating activities
Loss for the period (24,595) (20,316)
Depreciation/amortisation charges 2,562 1,596
Equity settled share-based payment expenses 2,564 728
Fair value adjustment to derivatives 100 0
Finance expenses 463 173
Finance income (31) (195)
R&D expenditure credit - (2)
Taxation (5,744) (3,146)
Impairment of intangible assets - 141
(24,681) (21,021)
(Increase)/decrease in inventories (2,967) 767
Increase in trade and other receivables (3,170) (394)
Increase in trade and other payables 1,875 1,686
(28,943) (18,962)
Interest paid (463) (173)
Tax paid - 153
Tax received 3,395 2,702
Net cash used in operating activities (26,011) (16,280)
Cash flows from investing activities
Purchase of intangible fixed assets (146) (91)
Purchase of tangible fixed assets (5,976) (485)
Acquisition of subsidiary net of cash acquired (1,752) (20,586)
Interest received 31 195
Net cash used in investing activities (7,843) (20,967)
Cash flows from financing activities
Capital repaid in respect of loans (1,844) (497)
Proceeds of new loan 144 2,055
Capital repaid in respect of lease liabilities (515) (391)
Share issue 34,208 159
Net cash generated from financing activities 31,993 1,326
(Decrease) in cash and cash equivalents (1,861) (35,921)
Effect of exchange rates in cash held 303 (35)
Cash and cash equivalents at beginning of the year 45,092 81,048
Cash and cash equivalents at end of the year 43,534 45,092
---------------------------------------------------- ------------ ------------
Notes to the financial statements
1. Financial information set out in this announcement
The financial information set out above does not constitute the
Company's statutory accounts for the period ended 31 December 2021
or 31 December 2020 but is derived from those accounts. Statutory
accounts for the period ended 31 December 2020 have been delivered
to the registrar of companies, and those for the period ended 31
December 2021 will be delivered in due course. The auditor has
reported on those accounts; their reports were (i) unqualified,
(ii) did not include a reference to any matters to which the
auditor drew attention by way of emphasis without qualifying their
report and (iii) did not contain a statement under section 498 (2)
or (3) of the Companies Act 2006.
2. Revenue and other operating income
The revenue split between the Group was as follows:
12 months 12 months
to to
31 December 31 December
(All figures GBP'000) 2021 2020
------------------------ ------------ ------------
Albyn
subsidiaries 24,823 9,397
Creo Medical Limited
subsidiaries 338 32
------------------------ ------------ ------------
Total 25,161 9,429
--------------------------- ------------ ------------
Segmental reporting
Operating segments are identified on the basis of internal
reporting and decision making. Creo currently has one operating
segment which is the research, development and distribution of
electrosurgical medical devices relating to the field of surgical
endoscopy.
The Group has started the process of integrating the previous
Albyn and Boucart brands into the Creo brand and offering customers
our full suite of products. As such the Group is still operating in
a single segment. As the Group continues to grow we expect the
internal reporting structure to change to meet the changing goals
and objectives of the business and additional operating segments
may be identified in future reporting periods.
As there is only one reportable operating segment whole profit,
expenses, assets, liabilities and cashflows are measured and
reported on a basis consistent with the financial statements, with
no additional disclosures necessary.
Other operating income
Other operating income relates to research grants. Income is
recognised as necessary to match it with the related costs in the
profit or loss on a systematic basis over the periods in which the
entity recognises expenses for the related costs for which the
grants are intended to compensate. Furthermore, income is
recognised only when there is reasonable assurance that the Company
will comply with any conditions attached to the grant and the grant
will be received. Grant income received during the year was
GBP0.05m (2020: GBP0.05m).
3. Loss before tax
The loss before income tax is stated after
charging/(crediting):
12 months 12 months
to to
31 December 31 December
(All figures GBP'000) 2021 2020
-------------------------------------------------- ------------ ------------
Depreciation - owned assets 782 582
Depreciation - assets on hire purchase contracts - 36
Depreciation - right of use assets 651 321
Amortisation 1,129 658
Impairment of Intangible Assets - 141
Research and development expenditure 12,869 10,193
--------------------------------------------------- ------------ ------------
4. Loss per share
Loss per share has been calculated in accordance with IAS 33 -
Earnings Per Share using the loss for the period after tax, divided
by the weighted average number of shares in issue.
12 months 12 months
to to
31 December 31 December
(All figures GBP) 2021 2020
----------------------------- ------------- -------------
Loss
Loss attributable to equity
holders of Company (basic) (24,594,919) (20,315,725)
Shares (number)
Weighted average number of
ordinary shares in issue
during the period 164,433,455 155,797,600
Loss per share
Basic and diluted (0.15) (0.13)
-------------------------------- ------------- -------------
5. Share Capital
31 December 31 December
(All figures GBP'000) 2021 2020
----------------------------- ------------ ------------
Balance at start of period 158 150
Issue of share capital
Number of shares 23,208,005 7,512,423
Price per share (GBP) 0.001 0.001
Share value (GBP'000) 23 8
Balance at 31 December 181 158
----------------------------- ------------ ------------
6. Subsequent events
Heads of Terms signed
The Company has entered into non-binding heads of terms with a
number of parties which relate to the licensing of the Company's
SpydrBlade, Cool Plasma and MicroBlate technologies. As outlined
previously, Creo is developing its business through a three tiered
Build, Buy and Partner strategy. Having already demonstrated
execution on the Build and Buy elements, the Partner strategy aims
to create shareholder value through granting third-party access to
Creo's advanced energy technology in markets adjacent to those
where the Company is already operating. This includes fields such
as laparoscopic surgery, robotically assisted surgery, and
non-thermal plasma sterilisation.
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END
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