Healthcare – AIM – M cap £45m – Price 12.00p – Update
CREO MEDICAL
Rightsized and refocused
Creo Medical’s FY24 results unveiled a streamlined business model focused on its core advanced energy platform, following the divestment of a 51% stake in its consumables arm, Creo Medical Europe (CME; discontinued operations in the FY24 accounts). The c 74% y-o-y growth in core revenues (to £4m) was encouraging, with management guiding for a 40–60% uptick in FY25, supported by recent product launches and a growing user base. Cost optimisation efforts in H224 should deliver opex savings in the medium term (£5m anticipated in FY25), driving margin improvement. Management expects EBITDA break even by FY28, a timeline we view as undemanding, contingent on consistent execution and user base scaling. With current cash at hand (£26.5m), we estimate Creo to be funded to this milestone, with incremental optionality from the retained 49% stake in CME. We value Creo at £419m or 102p/share (£407m or 99p/share previously).
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