Business
Trading update - COVID-19 impact
Trading update - COVID-19 impact.
About this update from Creo Medical Group Plc
[{"type":"text","content":"\n \n \n RNS Number : 9031G\n Creo Medical Group PLC\n 20 March 2020\n \n \n \n \n Creo Medical Group plc\n \n \n (\"Creo\" or the \"Company\")\n \n \n \n \n \n Trading update - COVID-19 impact\n \n \n \n \n \n Short term slow down, but outlook for medium and long term remains unchanged\n \n \n Cash levels remain strong at £77.6m at the end of Feb\n \n \n \n \n \n Creo Medical Group plc (AIM: CREO), a medical device company focused on the emerging field of surgical endoscopy, provides an update on trading.\n \n \n \n \n \n Progress in the first quarter of the year ending 31 December 2020 in gaining regulatory approvals \n for a further four \n devices \n has been in-line with management expectations. The Company still expects to see significant growth in commercial orders for its Speedboat device over the long term. Understandably, however, the roll out of the \n Clinical Education Programme has been impacted by the ongoing travel restrictions and social distancing policies put in place by governments across the world to limit the spread of COVID-19. Whilst initial revenues from the early uptake of Speedboat are likely to be lower in the short term, EBITDA and cash is likely to be better than expected due to savings as a result of the slow-down. The Company can confirm that, following the Company's £51.9 million fundraising in December 2019, cash reserves at the end of February were £77.6 million and are more than sufficient to secure the business activities and staff through the current situation and beyond.\n \n \n \n \n \n Training and mentoring events across the Company's \n clinical education programme in the US, EU and the UK have been cancelled or postponed. It is also expected that the undertaking of new procedures and elective cases will be significantly reduced worldwide which will impact the volume of expected Speedboat cases in the short term. Whilst the Company has been able to offer online training and remote mentoring via video link, the number of Endoscopists trained on the Speedboat device, will be lower than expected for this year.\n \n \n \n \n \n Whilst the development of near term market development opportunities is heavily restricted, the Company remains focussed on the wider portfolio of flexible endoscopy devices for the GI and pulmonary markets. As previously ann...