Feb 16 (Reuters) - British skin-health company SkinBioTherapeutics said on Monday it was investigating its former CEO and believes he misrepresented material financial information to the board and
SkinBioTherapeutics Faces Profit Warning Amid CEO Misconduct Investigation
Impact of CEO Misconduct on Financial Performance
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.
Details of the Investigation
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.
Market Reaction and Share Price Impact
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.
Interim Management Changes
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)
