SkinBioTherapeutics dives on warning of major FY25 revenue restatement

(Sharecast News) - Life sciences company SkinBioTherapeutics traded sharply lower early on Monday after revealing an internal investigation had raised serious concerns over the conduct of its former chief executive and the validity of royalty income booked in its FY25 accounts.

SkinBioTherapeutics said information received late on Friday had cast "significant doubt" over the �770,000 of accrued royalty income recognised in the year ended 30 June 2025, with the board now expecting this revenue to be removed entirely from the audited FY25 results, subject to confirmation from the auditors.

If SkinBioTherapeutics' FY25 royalty income was to be reversed, it said group revenues for the year would fall to �3.87m from the previously reported �4.64m, while adjusted underlying earnings would be restated to a �1.17m loss. It also warned that FY26 results were now expected to come in "significantly below" current market forecasts.

The AIMlisted group said the findings formed part of an urgent investigation launched after initial concerns over the conduct of its former CEO, Stuart Ashman, with SkinBio now believing he may have misrepresented material information to directors, senior management, auditors and advisers.

Despite the expected restatement, SkinBio said its cash position remained robust, standing at �2.92m as of 13 February, and added that contracts with key partners were unaffected.

As of 0850 GMT, SkinBio shares had sunk 37.05% to 7.79p.

Reporting by Iain Gilbert at Sharecast.com