Shares in Creo Medical Group PLC on Monday fell after it said full-year revenue would be below market expectations.
The Chepstow, Wales-based medical device company expects to report sales of £30.4 million in the year to December 31, down 1.3% from £30.8 million a year prior.
Chris Donnellan, director of research at Cavendish Securities noted this was below his £31.3 million forecast.
Creo reported a 74% increase in Creo Core Technology revenue to £4.0 million from £2.3 million, with £2.4 million of sales in the second half, representing 50% growth half-on-half.
Donnellan said this was ahead of his £3.4 million projection.
Creo Core Technology revenues include sales from all core products such as Speedboat UltraSlim and Croma platform and significant new customer additions during the period.
The sales shortfall arose in Creo Medical Europe Consumables revenue, Donnellan explained, where revenue is expected to drop to £26.4 million from £26.8 million, reflecting some forex headwinds in the period. Donnellan had expected revenue to pick up to £27.9 million.
In response, shares in Creo Medical were 7.4% lower at 17.50 pence each in London early Monday afternoon.
Creo said actions to reduce costs in the second half of the year resulted in a decrease in operating costs of around £5.0 million with the full benefit to come through in financial 2025.
The start to the year has been positive and the company is trading in line with management expectations, it added.
Donnellan said he remains ‘positive on the shares and confident in Creo’s technology and the benefits it can deliver to patients, care providers and investors.’
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