Creo Medical Group PLC (AIM: CREO) shares surged 27% to 14.44p after the minimally invasive surgical endoscopy specialist unveiled plans to sell its remaining stake in Creo Medical Europe alongside a £5.5 million fundraising and stronger-than-expected full-year results.
The company has signed a non-binding agreement to dispose of its remaining 49% holding in Creo Medical Europe to a vehicle owned by the division’s chief executive, Luis Collantes.
The proposed transaction values the business in line with its carrying value at the end of 2025, with full cash consideration expected on completion.
Both parties are targeting completion within three months, although the deal remains subject to due diligence, financing arrangements and definitive legal documentation.
Creo previously sold a 51% stake in the European arm in 2025, generating proceeds of £24.7 million.
The company said it will retain its commercial relationship with the division, which will continue distributing Creo’s advanced energy products across key European markets.
Alongside the proposed disposal, Creo announced plans to raise approximately £5.5 million through a placing of around 36.7 million new shares at 15p each — a 31.9% premium to the prior closing share price of 11.4p.
Board participation in the placing is expected to total around £2.15 million, while Development Bank of Wales has separately indicated plans to subscribe for £2 million in convertible loan notes.
The fundraising is being managed by Shore Capital as sole bookrunner.
Full-year results for 2025 showed revenues rising 50% to £6 million, with second-half growth accelerating to 58%.
Underlying administrative expenses fell 22% to £18.6 million, while the underlying operating loss narrowed 38.5% to £13.7 million.
Following strong first-quarter trading, where revenues rose around 60% year-on-year, the company tightened its 2026 revenue growth guidance to between 50% and 60%, compared with previous guidance of 40% to 60%.
Management also highlighted additional cost savings from the outsourcing of manufacturing operations announced in April, which are expected to reduce underlying operating costs by a further 15% relative to 2025.
Chief executive Craig Gulliford said the proposed disposal would crystallise value at an attractive valuation while simplifying the group structure and strengthening the balance sheet.
The board added that proceeds from the placing, convertible loan notes and stake sale are expected to fund the business through to sustainable cash generation and profitability.
