SkinBio thud in London, investigation into ex-CEO leads to cut in accounts and guidance

(Il Sole 24 Ore Radiocor) - Yet another nightmarish session on the London Stock Exchange for SkinBioTherapeutics due to the drasticrevision of its 2025 results and 2026 guidance after discovering "inaccuracies" about its accounts during an investigation into the former CEO. The stock of the British skincare biotech plunged more than 40 per cent, after losing 36.5 per cent on Friday 13 February, when it announced the resignation of the suspended CEO.

As stated in a statement, 'in recent days the Board of Directors has urgently initiated an investigation as a result of concerns regarding the conduct of former CEO Stuart Ashman. Based on the newly available information, the board 'has reason to believe that the former CEO provided misleading information to the company's board, management, auditors and advisors'. The information received 'late in the evening of Friday 13 February 2026 raisedsignificant doubts about the validity of the royalty income recorded in the audited financial statements for the year ended 30 June 2025'. The board currently anticipates that these revenues of £0.77m will be removed from the accounts for the 2025 fiscal year, subject to confirmation by the auditors. Fiscal year 2025 revenues will decrease from £4.64m to £3.87m, adjusted EBITDA will be restated to a loss of £1.17m compared to the reported loss of £0.41m, with an operating loss of £1.47m. In addition. the board now expects results for the year to 30 June 2026 to be "significantly less than current market expectations", which point to revenues of £6.2m and £700,000 adjusted Ebitda.

The former ceo was informed of the allegations on Sunday 15 February and the board's investigation is still ongoing, the statement said, adding that the board is 'confident in the company's financial strength due to its strong cash position of £2.92m as at 13 February 2026'. Non-executive chairman Martin Hunt has assumed executive responsibilities, while the board is looking for an interim CEO and, subsequently, a permanent one. SkinBioTherapeutics was founded in 2015. Its technology platform SkinBiotix, is based on discoveries made by the University of Manchester's translational dermatology team.