Feb 16 (Reuters) – British skin-health company SkinBioTherapeutics said on Monday that misrepresentations in its accounts uncovered in an ongoing investigation into its former CEO will leave annual earnings “significantly below” market expectations.
Last Friday, the company suspended CEO Stuart Ashman, who has since resigned, following initial concerns over his conduct, with new information casting doubt on accrued royalty income recorded in accounts for the year ended June 30, 2025.
The group alleges Ashman had misrepresented material information, which would require reversing about 770,000 pounds ($1.05 million) in royalty income from its fiscal 2025 accounts, prompting the restatement of its FY25 results.
The restatement would leave fiscal 2026 results “significantly below” market expectations of 6.2 million pounds in revenue and adjusted core profit of 700,000 pounds, the company said.
Its shares plunged about 45% in early trading on the day.
Non-executive chairman Martin Hunt has assumed executive responsibilities while the board searches for both an interim and permanent replacement CEO.
Ashman, who served as chief executive for nearly seven years, did not immediately respond to a request for comment on LinkedIn on the ongoing investigations.
($1 = 0.7330 pounds)
(Reporting by Ankita Bora in Bengaluru; Editing by Sumana Nandy and Rashmi Aich)
