Shares of Newcastle-based SkinBioTherapeutics plc have plummeted about 67% in the past few days — following the firm’s announcement on February 13 that CEO Stuart Ashman had left the company “pending an investigation into matters relating to his conduct.”
Since February 13, SkinBioTherapeutics shares have collapsed to around 6p, slashing the Newcastle firm’s stock market value to just £16 million.
On February 13, the company said: “SkinBioTherapeutics plc, (AIM: SBTX), the life science business focused on skin health, announces that CEO, Stuart Ashman, has resigned, having been suspended by the Board pending an investigation into matters relating to his conduct.
“The Company is undertaking a full investigation, supported by its professional advisors.
“Martin Hunt, Non-Executive Chairman, will assume the role and responsibilities of Executive Chairman temporarily; he will be supported by the rest of the Board and Leadership team to provide business leadership and continuity.
“The Company has instigated a search to find an interim CEO to appoint as soon as possible, and to find a new, permanent CEO for the longer term.
“The Company will update the Market and shareholders in due course. Until then, there will be no further comment at this time.”
On February 16, the company said: “Over recent days, the Board has been urgently conducting an investigation of the business, following initial concerns over matters of conduct by the former CEO, who was first suspended and who has since resigned.
“In addition to the initial concerns around his conduct, in light of the newly available information, the Board has reason to believe that the former CEO has misrepresented material information to the Board and senior management, the Company’s auditors and advisors.
“The former CEO was informed of these allegations on Sunday 15 February 2026 and the Board Investigation is continuing. The Company has reported the Board’s findings so far to the Company’s auditors.
“Information received late on Friday 13 February 2026 has cast significant doubt on the validity of the accrued royalty income recorded in the audited accounts for the year ended 30 June 2025.
“The Board currently expects that the FY25 Accrued Royalty Income, which amounted to £0.77m, will be removed from the FY25 accounts, subject to confirmation by the Company’s auditors.
“The Board is confident, however, in the underlying financial health of the business due to its robust cash position (£2.92m as at 13 February 2026).
“Whilst the Board believes this is an isolated incident, nevertheless, it has instigated a broader investigation to review all of the Group’s businesses with respect to financial reporting and operations …”
The findings of the Board Investigation to date, together with the information received late on Friday 13 February 2026, have led the Board to conclude the following:
” · Contracts held with key partners and customers remain sound;
” · Strong future potential of the SkinBiotix technology and the Company’s strategy to develop products in skin care and skin health;
” · Accrued Royalty Income was included in the audited FY25 accounts due to a potential misrepresentation, therefore the Board has taken the decision to seek to reverse these sums from the Group FY25 accounts completely, subject to confirmation by the Company’s auditors;
” · Dermatonics and Bio-Tech Solutions are operating as reported at FY25 (audited revenues of £2.20m and £1.38m respectively) and both are trading at cash breakeven. These businesses are trading in line with the current Board’s expectations for FY26;
” · Direct product sales of AxisBiotix are reported correctly in FY25; the partnership with Superdrug Stores plc (“Superdrug”) is still at a very early stage;
“· The Company has a robust cash position which was reported as £4.78m as at 30 June 2025 and is £2.92m as at 13 February 2026;
“The Board believes that the estimated impact of the expected reversal of FY25 Accrued Royalty Income on the audited FY25 results will be as follows:
” · FY25 revenue will become £3.87m from the reported figure of £4.64m
” · Adjusted EBITDA for FY25 will be restated to a loss of £1.17m from the reported loss figure of £0.41m with an operating loss of £1.47m
” · The expected adjustments will be agreed following a review by the Company’s auditors
“As a result of the Board’s Investigation and the subsequent expected removal of the FY25 Accrued Royalty Income, the Board now anticipates that the results for the year ended 30 June 2026 will be significantly below current market expectations.
“Martin Hunt, Non-Executive Chairman, has assumed the role and responsibilities of Executive Chairman temporarily, and the focus of the Board and Leadership team is business continuity. The Board Investigation is confident in the quality of the management team, the future potential of the products and underlying businesses, all supported by a solid cash balance.
“The Company’s search to find an interim CEO and to find a new, permanent CEO for the longer term is progressing and further announcements will be made in due course.
“Market expectations for the year ending 30 June 2026 were revenue of £6.2m and adjusted EBITDA of £0.7 million.”