SkinBioTherapeutics restates 2025 results amid 'fabricated' figures
SkinBioTherapeutics PLC on Monday said losses in financial 2025 were larger than initially reported after an investigation found its previous chief executive had ‘fabricated’ figures.
The Newcastle Upon Tyne, England-based life sciences company said a report from FRP Advisory showed accrued royalty revenue of £770,000 was inappropriately recognised in audited statements for the financial year to June 2025, necessitating a downward adjustment to the previously reported revenue to £3.9 million from £4.6 million. No other issues related to revenue were identified.
Documentation provided as support for full-year 2025 accrued royalty revenue was identified by FRP as ‘fabricated’ by the former Chief Executive Stuart Ashman, who quit the business in February, having been suspended pending an investigation into matters relating to his conduct.
The adjustment for the full-year 2025 accrued royalty revenue directly impacts operating profit. In addition, other matters were identified, including the award, payment and timing of accounting for bonuses and associated consultancy payments, in financial 2024 and 2025.
Bonuses and consultancy payments paid to certain members of the board at the time, had not been accrued in the correct financial year. These have subsequently been repaid voluntarily and will be reflected in the financial 2026 results.
As a result, adjusted earnings before interest, tax, depreciation and amortisation loss stretched to £1.4 million from £410,000, and adjusted operating loss widened to £2.1 million from £1.1 million.
No issues were found with the group’s reported cash balances but weaknesses in corporate governance and processes were evident. Cash balance remained at £4.8 million as at June 30, 2025.
The firm said all key partners and suppliers contacted, to ‘reassure and reset’ relationships where necessary, while a full review of the business was undertaken to confirm ‘individual revenue streams and identify opportunities for extracting greater value from existing assets and partnerships.’
SkinBioTherapeutics also reported results for the six months to December. Its pretax loss narrowed to £794,259 from £1.0 million the year prior.
Revenue jumped 37% to £2.2 million from £1.6 million, reflecting a full six months’ contribution from Bio-Tech Solutions Ltd, product sales from AxisBiotix and Dermatonics, and initial licensing income.
Dermatonics sales were flat at £1.0 million, while BTS revenue trebled to £1.2 million from £400,000 reflecting a full six months of trading and good revenue growth for the period. Gross profit margins edged down to 55.6% from 55.7%.
SkinBioTherapeutics bought Yorkshire-based manufacturer and supplier of health, hygiene and personal care products BTS for £1.3 million in October 2024.
Shares in SkinBioTherapeutics, which had been suspended pending release of the interim results, were down 6.1% at 9.11 pence each in London on Monday and have fallen 50% in the last 12 months.
Chair Martin Hunt and Cathy Prescott, non-executive director have both stepped down from the board, effective Monday.
The role of interim chair will pass to Alyson Levett, who together with Rachel Parsonage, interim CEO and Emily Bertram, chief financial officer, will comprise the board.
Copyright 2026 Alliance News Ltd. All Rights Reserved.