SkinBioTherapeutics PLC (LON:SBTX) has slashed its 2025 revenue forecast by 17% following a probe into former CEO Stuart Ashman over allegations of financial misrepresentation. The British skin-health company will reverse £770,000 in royalty income, a move expected to significantly widen operating losses and push adjusted EBITDA into a £1.17 million loss for the year. The adjustments, prompted by new information casting doubt on the validity of the royalty income, leave fiscal 2026 results far below market expectations of £6.2 million in revenue and £700,000 in adjusted EBITDA.

The company, which has a current cash position of £2.92 million, warned investors of the substantial impact. Ashman, suspended on February 13th and subsequently resigning, was informed of the allegations on February 15th. The board has launched a broader investigation into financial reporting and operations, though it believes the incident is isolated.

Non-Executive Chairman Martin Hunt has temporarily assumed the role of Executive Chairman while the company searches for an interim CEO. Contracts with key partners remain sound and subsidiaries Dermatonics and Bio-Tech Solutions are trading as expected.