SkinBioTherapeutics PLC said on Monday it is investigating its former chief executive after receiving new information that casts "significant doubt" on the validity of a royalty income item included in its reported 2025 revenue. The firm said the reversal of £770,000 in royalty income will reduce reported revenue for 2025 by roughly 17% and materially increase losses for the year.
The company said the royalty income is believed to have been included because of a "potential misrepresentation" by Stuart Ashman. Ashman was suspended on Feb. 13 pending an inquiry into his conduct, subsequently resigned, and was informed of the specific allegations on Feb. 15. SkinBioTherapeutics has passed its findings to its auditors.
As a result of the revenue adjustment, the business expects its adjusted EBITDA for fiscal 2025 to shift to a loss of £1.17 million, compared with the previously reported adjusted EBITDA loss of £410,000. Operating losses are also set to widen to £1.47 million. The company noted these adjustments remain subject to confirmation by auditors.
SkinBioTherapeutics cautioned that its financial performance for the year ending June 30, 2026, will be "significantly below current market expectations". Analysts' forecasts cited by the company place consensus expectations at £6.2 million of revenue and £700,000 of adjusted EBITDA for the year; the board said its forthcoming results will fall materially short of those figures.
The firm reported a cash balance of £2.92 million as of Feb. 13, down from £4.78 million at the end of June 2025. Non-Executive Chairman Martin Hunt has taken on the role of Executive Chairman temporarily while the board seeks an interim chief executive and a permanent replacement.
The board has launched a broader probe to review financial reporting and operational controls across all of SkinBioTherapeutics' group businesses, although it stated that it currently views the incident as isolated. The company added that contracts with key partners remain intact and that its two subsidiaries, Dermatonics and Bio-Tech Solutions, are trading in line with expectations.
SkinBioTherapeutics develops skin-health products built around its SkinBiotix technology for skincare and therapeutic applications. The company said the reversal and the ongoing inquiry will reshape near-term financial metrics while it completes the audit review and the wider internal examination.
Context and next steps
- The company has notified auditors and is conducting an internal investigation focused initially on a specific royalty item and the conduct of its former CEO.
- Leadership change is in progress, with the Non-Executive Chairman acting as Executive Chairman while a search for interim and permanent CEOs proceeds.
- Operationally, the business reports its subsidiaries continue to trade as expected and key partner contracts remain in place.