The Chepstow medical devices firm said 25 staff will transfer over to a new company established by a management buyout team
Chepstow-based medical devices firm Creo Medical has agreed a sale of its manufacturing operation as part of an ongoing efficiency drive. The deal, the value of which has not been disclosed, is expected to be finalised next month via a management buyout.
Creo, which specialises in devices in the emerging field of minimally invasive surgical endoscopy for pre-cancer and cancer patients, said that 25 staff will transfer over to new entity NewCo, which will become a third party manufacturer of Creo devices.
It said the manufacturing disposal is consistent with its strategy to pivot to a “lean, new product introduction company that designs, builds and tests medical devices that are then produced by third party partners.” Having considered various options, it added that a management buyout represented the best outsourcing option.
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Peter Tomlinson, current chief operating officer at Creo and chief executive of NewCo, said: “his strategic decision marks an exciting new chapter for the Creo Medical operations team. Having developed the manufacturing capability within Creo, we see a clear opportunity to establish a focused, world-class medical device manufacturing and engineering business.
“We will have the agility to invest, scale, and support a wide range of medical device innovators while continuing to serve as a trusted partner to Creo. Our ambition is to build a highly capable and globally competitive manufacturing platform for advanced medical technologies.
“We remain deeply committed to supporting Creo Medical’s growth and innovation, and the long-term partnership between our organisations will continue to be a cornerstone of our future.”
Creo’s chief executive Craig Guliford said: “We have a commitment to improve the operational efficiency of the business and focus on our core strengths as a world class medical device design, clinical application and sales execution business. The outsourcing of product manufacturing has been a key part of this strategy, having already outsourced our next generation bipolar range in our near-term product launch program. This is a further important milestone enabling us to scale our business with increasing volumes on the back of a maturing manufacturing process.
“We are extremely proud of the sophisticated manufacturing operation and talented team we have developed for our class leading products over the last few years which have enabled us to reach this point.
“Having looked at the options available for our outsourcing strategy, it became very clear that the capability within the operations team stands out in the UK peer group we evaluated. I am excited to see our volumes grow in the short term and working closely with Peter and the team as they embark on realising the growth potential in this area of the devices market.
“This enables the team at Creo to focus on that which is unique to us, significantly differentiated product design, clinical application and sales execution through our sales channels with real traction and momentum.”
In a trading statement in January, and in line with market expectation and management guidance, Creo said it achieved a revenue growth of 50% in 2025, to £6m with a far strong second half to the year. Underlying operating losses reduced by more than 40% to £13.3m with cash and cash equivalents of £12.4m (£8.7m at year end 2024). It will publish its full accounts for the year this summer.
In a brokers note Shore Capital said it believes that Creo is on track to reaching an Ebitda breakeven position in 2028.
It said: “Creo Medical is at a commercial inflection point. In FY25, sales of its surgical endoscopy tools grew substantially (up 50%) despite a tightening cost base ( down 20%), establishing that the model is starting to scale as clinical adoption compounds. With US reimbursement secured for Speedboat and a new suite of products expected to launch in the next 12 months, we see growth continuing to accelerate and believe the framework now exists for CREO to grow to a place of self-sufficiency and reach Ebitda breakeven in FY28.
“£Further progress with its MicroBlate lung cancer programme, which is being advanced in collaboration with robotics behemoth Intuitive Surgical, is also expected in this timeframe and could crystalise significant unrecognised value.”








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