Creo Medical Share Discussion Threads

[bmcollins] 01/10/2024 08:48

One thing is for certain here, amongst all the possibilities which are rightfully highlighted on this board, & that is that the retail offer at 24p for PI's can safely be ignored with the stock currently being offered in the market at just over 23p.
I do hope I was correct in assuming yesterday afternoon that the institutional placing would go smoothly, perhaps it is not hence the price this morning ?

[nimbo10] 01/10/2024 08:33

I thought this was one of better companies on aim, but they all see to be all similar with bowel in hand for regular funding.

Only diff with this one is that I do believe they will ultimately pull through and not be one of those that don't make it as end products require too much money to get to products for commercialisation.(As many biotechs) The only major hurdle is getting the sales ramped up. Medical field has lots of inertia to change, in converting current methods to newer alternatives.

By giving another 3 years extra for breakeven is giving them plenty of scope to beat this goal. Which they may do with sales taking off in US. It was though very hopeful to convey breakeven in 2025. That may have been the story to ensure earlier fundraise success.

Building a successful company takes time and many challanges, hopefully this is last major challenge and the board aligned with large holdings does backup that view.

[dr biotech] 01/10/2024 07:56

Well fair play to two directors (particularly the chair) for putting their money on the line. Would have been nice to see a few others share the pain though.

I'm pondering what to do - I'm overly emotionally committed here but its only an average size position. The product is (in my mind) excellent but clearly they are struggling to get people to run with it. Doubling the number of training centres but only seeing a very small increase (25, 4 per month) in the number of users seems to show how difficult it is to get them to change. Its a conservative market and whilst the Creo product is better, its seems that familiarity with legacy instruments is hard to get over. Of the sales I'd like to know how many boxes they have sold and how many disposable scopes - just to get an idea of actual usage. Its seems there a few users who love it and have used it 100+ times, there will be some at the other end too. Obviously also depends on their patients.

Could do without the management guff - headline figure says 79% above H1-23, but then say later on that is only 14% above H2-23 because H2 benefitted from a backlog from delayed sales from H1... Picking and choosing your comparators won't convince anyone and just looks disingenuous.

Have to feel for the early investors. I've held plenty of disappointing UK bios. There is still hope here, particularly with Intuitive or CMR. Reducing headcount may be necessary - as painful as that is, its better to cut some now than all of them if it fails. Reducing the exec pay is another less painful option.

[yasirallrico1] 30/9/2024 23:11

I’m Totally exhausted with this Stock. I’m on of the Early investors and Yet again Another Drain on an already Diluted stock. The Pain is unbearable I feel like I’m Trapped in a vortex and and there’s No way off. We have been fed Lies it’s just Never Ending.

[74tom] 30/9/2024 20:40

The fact of the matter is AIM would be far better off without companies like CREO.

Retail investors have been strung along whilst the management have pillaged the company for all it's worth.

As per page 92 of the last annual report the remuneration taken over the last 2 years is shocking;

4 directors took cumulative salaries of £1,963,392 in 2022 + 2023. If that wasn't enough, they took bonuses of £484k in FY22 and £646k in FY23. They also awarded themselves a combined £1.5m in LTIP shares too!

For a company 'attempting' to get to breakeven it's just horrendous greed.

[innnovate] 30/9/2024 18:56

Private holders have been taken for a ride here.
It will have been clear to management for some time that breakeven in 2025 was not going to be achieved.
So they sell a controlling interest in the distribution business for a potential strategic advantage in accessing Asian markets. But it strikes me the Chinese buyer will have more interest in pushing its own products in EU than in facilitating Creo in the East.
To then follow this up with a substantive offer is a double whammy to current holders.
Profitable operation is casually pushed out to 2028.
The principal beneficiaries of the £40M banked are an executive management that has demonstrated a total lack of aptitude for selling what appears to be a bankable product.
My guess is that the tech will in the end be picked up in a fire sale by an organization capable of marketing it.

[peterrr3] 30/9/2024 18:06

I won't participate but am hoping someone of value is buying the placement. Likely to take 20 percent and bail at the next news if it's just the usual crowd the brokers feed.

[bmcollins] 30/9/2024 17:21

@Dr B
I share your delusion with this stock but at these levels is it honestly worth selling ?
I have been a "johnny come lately" to this stock as I was attracted by the slump in price and my average is about 29p but my rationale is that as we KNOW the big boys know much more than us as to what is going on here, if this placing goes through successfully (which I'm sure it will as I suspect they have firm commitments (apart from the PI's) these small company funds would not be willing to see good money follow bad so this might just be the time to stay with it...
I appreciate that my opinion is far from substantive research but I do believe that sometimes it is right to "follow the money" ?

[dr biotech] 30/9/2024 16:58

To answer your previous question cerrito, shares are only suspended when the final audited results are not available 6months after the period end. Interim results don't have to be audited.

I am considering selling up here, such is my disappointment at the performance

[cerrito] 30/9/2024 16:43

I will not be able to participate in the retail offer as my broker Barclays never participates.
I am philosophical about this given that in the secondary market you can generally buy under the offer price.

[bmcollins] 30/9/2024 16:30

@Dr B
Absolutely we were the last to hear this, & companies wonder why AIM has a bad name so isn't a good place these days to raise cash, well who could ever have guessed that ??!!!

[dr biotech] 30/9/2024 16:24

So breakeven now predicted to be 2028, rather than 2025. That is a huge disappointment.

Core sales 1.6m H1-24 vs 1.4m H2-23, This just isn't good enough.

No reduction in headcount

Kamaptive royalties -not so concerned about that as its always going to be lumpy but still disappointing. Consumable sales also disappointing.

I won't be taking part in the placing. As always, it seems others knew this before we did.

[bmcollins] 30/9/2024 16:08

RNS is out now !

[master investor] 30/9/2024 16:07

Plenty of cash available now until the £30m lands from the sale.

[dr biotech] 30/9/2024 16:03

I can't argue with that. Disappointing in multiple ways.

[peterrr3] 30/9/2024 15:58

Should have trusted my instincts and sold

[bmcollins] 30/9/2024 15:49

I just checked their website and nothing is showing as to when the HY announcement is due, but the AIM rules seem pretty clear that HY numbers are to be announced within 3 months of HY which still appears to be 30 June, meaning today should be the last day.
Very odd, unless they are going to come out after the close which would likely be ominous.

[cerrito] 30/9/2024 15:19

If the shares are suspended tomorrow as thr intetims have not been published, we will need a clear explanation as the reasons for the delay.

[dr biotech] 30/9/2024 10:26

Actual rules are 3months for interims, 4 months for finals. I have shares in MEGP. They once issued a "notice of results" and their results on the same day. Its wasnt a good look, but in their case the numbers were decent and it was all forgotten

I guess sorting out the MT deal would have taken a lot of time, and issuing an update would take a day or so if they were to publicise them - but having said that I didn't see a lot of PR for sale.

[peterrr3] 30/9/2024 08:36

Yup got to come out today doc

[dr biotech] 30/9/2024 07:49

My understanding is there is a maximum of 3 months from end of period to reporting. So I’m surprised there is no RNS this morning… does anyone know otherwise? I’m not 100% sure

[nimbo10] 28/9/2024 11:50

Mention in investors chronicle yesterday, don't have access.

[bjfanc] 27/9/2024 19:36

Probably doing the interims over the weekend. Guessing getting last week's deal done, took priority.

[dr biotech] 27/9/2024 11:49

I'm not sure if monday is the final cutoff, but thats the latest they have previously reported. Can't say I'm particularly optimistic given the languishing SP, but they are doing the right things in trying to show clinical superiority.

I'm guessing the sales of the non core products will be OK given that MT want to buy in. That should be in line. Sales of their own core products have probably been a bit slower than they would have liked - it may mean that they push back the timeline to breakeven. This will not be a disaster given the extended cash runway they will have. I guess some could interpret the 51% as a sign that it will take longer than planned. Of course they could prove me wrong and I'll be delighted if they do.