Newcastle Skin Health Firm's Shares Plunge 70% Amid CEO Conduct Probe
Shares at Skinbiotherapeutics Plc, a listed Newcastle-based skincare company, have plummeted by almost 70% in less than a week following the board's decision to lower revenue and profit expectations. This drastic drop comes in the wake of an investigation into the conduct of former CEO Stuart Ashman, which has raised serious concerns about financial misrepresentation.
Investigation Launched After CEO Suspension
The board of Skinbiotherapeutics, which is headquartered at The Core building in the Helix area of Newcastle, suspended Mr. Ashman after issues regarding his conduct emerged. He later resigned, and the investigation was formally announced to investors on the London Stock Exchange late last Friday, February 13, 2026. The company has brought in external advisers to conduct a thorough review of the matter.
Mr. Ashman had led the firm since 2019, overseeing a period of significant growth. The company specializes in using microbiome technology to promote wound healing and reduce infection risks. However, since the investigation began, shares have fallen sharply from 19.52p on Thursday, February 12, to 5.95p by mid-morning on Monday, February 13.
Financial Misrepresentation and Accounting Adjustments
In an update to shareholders, the AIM-listed firm stated that the investigation has revealed the former CEO may have misrepresented material information to the board, senior management, auditors, and advisors. Specifically, accrued royalty income of £770,000 was included in the audited accounts for the fiscal year ending June 30, 2025, due to what the board describes as a potential misrepresentation.
The board now expects to remove this £770,000 from the FY25 accounts, subject to confirmation by the company's auditors. This adjustment has led the board to anticipate that results for the year ending June 30, 2026, will be significantly below current market expectations. Previously, market forecasts had projected revenue of £6.2 million and adjusted EBITDA of £700,000.
Board Confidence and Future Outlook
Despite the financial setbacks, the board has expressed confidence in the underlying health of the business. The company maintains a robust cash position of £2.92 million as of February 13, 2026, and contracts with key partners and customers remain sound. The board believes this incident is isolated but has initiated a broader investigation to review all financial reporting and operations across the group.
Martin Hunt, the non-executive chairman, has temporarily stepped into the role of executive chairman. The board is actively searching for an interim CEO and a permanent replacement, with further announcements expected in due course. They remain optimistic about the future potential of the SkinBiotix technology and the company's strategy in the skincare and skin health markets.
The investigation continues, with findings reported to the company's auditors. Shareholders and the market are closely watching developments as Skinbiotherapeutics navigates this challenging period.
