British skin-health company SkinBioTherapeutics said today 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 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 £6.2m in revenue and adjusted core profit of £700,000, 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.
