SkinBioTherapeutics plc (LSE:SBTX) has identified potential misrepresentation by its former chief executive that calls into question £0.77 million of accrued royalty income previously recognised in its FY25 audited accounts.
As a result, the company now intends to remove the disputed royalty income, reducing reported FY25 revenue to £3.87 million and increasing adjusted EBITDA losses to £1.17 million. The board has initiated a wider review of financial reporting processes and warned that FY26 performance is expected to fall materially short of market expectations.
Despite the setback, management emphasised that core commercial relationships and operating divisions — including Dermatonics and Bio-Tech Solutions — remain intact. Sales of its AxisBiotix™ product line continue, and the company reported cash balances of £2.92 million as of 13 February 2026. Governance changes are under way, with the chairman assuming temporary executive responsibilities while the company searches for an interim and subsequently permanent CEO.
From an investment standpoint, the outlook is weighed down by financial pressures. Although revenue growth has been strong, recurring losses and negative operating and free cash flow represent ongoing risks. Technical indicators remain weak, with the share price in a broader downtrend below key moving averages and MACD in negative territory. Valuation metrics offer limited reassurance given a negative price-to-earnings ratio and no dividend yield.
More about SkinBioTherapeutics
SkinBioTherapeutics plc is a UK-based life sciences company focused on skin health applications derived from its proprietary SkinBiotix® microbiome platform, developed in collaboration with the University of Manchester. The group operates across cosmetic skincare and gut-skin axis supplements under the AxisBiotix™ brand, supported by commercial partnerships and acquisitions in adjacent skincare and cosmetic markets.
Leave a Reply