SkinBioTherapeutics Reports 284% Revenue Growth in FY25 with Key Partnerships

SkinBioTherapeutics FY25: 284% revenue jump, royalties begin, retail lands

SkinBioTherapeutics plc has posted a transformational year to 30 June 2025. Revenue rose 284% to £4.6 million on the back of acquisitions, the first Croda royalties from Zenakine (the cosmetic name for SkinBiotix), and steady growth in AxisBiotix food supplements. Losses narrowed sharply and the balance sheet looks far healthier after two equity raises and the conversion of the prior convertible loan.

The bigger picture: the group is shifting from a single-technology story to a broader, more integrated consumer-health business, with royalty upside from Croda and a new retail route via Superdrug.

What drove the growth in FY25

• SkinBiotix/Croda: development work completed, commercial terms finalised, and Zenakine launched globally in April 2025. The first tranche of royalty income was recognised – exact sums are not disclosed, but this is the first time it has hit the P&L.
• AxisBiotix: direct sales reached £280,000 (FY24: £248,000) and retention improved to 86% (FY24: 80%). A second line for blemish-prone skin was readied.
• Superdrug deal: a two-year exclusive agreement signed in June 2025 for both AxisBiotix lines. Post year end, products launched in around 180 stores, with a phased nationwide roll-out scheduled from Spring 2026.
• Dermatonics (acquired Jan 2024): full-year contribution of £2.2 million revenue and £0.5 million EBITDA, slightly under plan due to timing and added costs, but set up for growth into FY26.
• Bio-Tech Solutions (acquired Oct 2024): £1.4 million revenue and £0.1 million EBITDA for nine months, a little light due to order timing. Its GMP/ISO facility gives the group in-house manufacturing and packaging – strategically important for both AxisBiotix and future topical products.

Financial performance at a glance

Metric	FY25	FY24
Revenue	£4.64 million	£1.21 million
Gross margin	62%	57%
Adjusted EBITDA	£(0.4) million	£(2.1) million
Operating loss	£1.1 million	£2.9 million
Loss before tax	£0.72 million	£2.95 million
Cash and cash equivalents (30 Jun)	£4.8 million	£0.8 million
AxisBiotix direct revenue	£280,000	£248,000
Dermatonics revenue / EBITDA	£2.2m / £0.5m	£1.0m / £0.1m
BTS revenue / EBITDA (9 months)	£1.4m / £0.1m	n/a

Definitions: adjusted EBITDA is earnings before interest, tax, depreciation and amortisation, adjusted for items management treats as non-core. Gross margin is gross profit as a percentage of revenue.

Cash, funding and balance sheet: from fragile to fortified

Cash at year end was £4.8 million, helped by two fundraisings – £1.56 million (gross) in August 2024 and £4.2 million (gross) in June 2025 – and incoming balances from BTS. Crucially, the £1.6 million convertible facility drawn in FY24 has been fully converted and the facility closed.

To acquire BTS, the company took a £950,000 loan at 13% with a supportive shareholder. After warrant exercises, borrowings stand at £600,000, shown as non-current. Management states they “have been able to update expectations further to be cash positive for the foreseeable future.”

Croda royalties and Superdrug shelves: why it matters

Two things investors usually want from platform tech: proof that a big industry partner can sell it, and proof that consumers will buy products made with it. FY25 delivered early signals on both:

• Royalty meter running: while Croda’s sales expectations are confidential, receiving the first royalty is a milestone. If Zenakine finds its way into multiple global formulations, revenue could scale with little added cost to SBTX.
• High Street validation: AxisBiotix is now on shelf in around 180 Superdrug stores, with a broader roll-out from Spring 2026. This puts the brand in front of a far wider audience than the direct-to-consumer channel alone.

There’s added credibility from the US National Psoriasis Foundation’s Seal of Recognition for AxisBiotix-Ps – potentially useful for future US expansion.

Strategy check: partnerships plus consolidation

The dual-track strategy is clear: license SkinBiotix into sectors where partners excel (Croda for cosmetics), and acquire complementary businesses to add products, distribution and manufacturing. Dermatonics adds brands, routes to market and regulatory expertise. BTS adds capacity and a development platform for higher-grade topical products. Management plans phased BTS site enhancements to support AxisBiotix packaging and enable different cosmetic/medical grades, funded internally and triggered by profitability milestones.

Outlook and guidance for FY26

Trading has started “very positively” and the Board expects to meet market expectations of £6.2 million revenue and £0.7 million adjusted EBITDA for the year to 30 June 2026. The big swing factors are:

• Rate of adoption for Zenakine by Croda’s customers – hard to forecast, but early feedback is “greatly encouraging”.
• Superdrug sell-through and the Spring 2026 roll-out pace for both AxisBiotix lines.
• Execution of BTS upgrades and the capture of Dermatonics-BTS manufacturing synergies.

My take: the good, the tricky, and the to-do

What looks positive

• Top-line step-change with gross margin up to 62% and operating loss reduced by 61% to £1.1 million.
• First royalties from Croda provide a scalable, high-margin income stream if adoption builds.
• Retail validation via Superdrug, plus strong AxisBiotix retention at 86% – a healthy sign for subscription economics.
• In-house manufacturing via BTS should improve control, margins and speed-to-market over time.
• Balance sheet strengthened; convertible risk removed and borrowings long-dated at £600,000.

What to watch

• Dermatonics and BTS were slightly below expectations due to timing – FY26 needs to show the promised acceleration.
• Royalty visibility is limited; Croda’s sales outlook and formulation wins are confidential, so quarterly numbers may be lumpy.
• BTS site investment and integration risk – execution must be tight, especially with medical-grade ambitions.
• Still loss-making at the operating level in FY25 and dilution from equity raises – delivery now needs to translate into sustained cash generation.
• R&D has been pared back while priorities are reassessed. Useful for cash, but pipeline depth should be watched.

Investor takeaways

• FY25 proves the model can scale: revenue £4.6 million, first royalties, and a UK retail footprint.
• Balance sheet is much stronger, giving time to execute the Superdrug roll-out and bed in BTS.
• FY26 guidance (£6.2 million revenue, £0.7 million adjusted EBITDA) implies continued momentum and a credible path toward profitability.
• Key catalysts: Croda customer launches featuring Zenakine and Superdrug’s national expansion from Spring 2026.

Helpful jargon buster

• Adjusted EBITDA: a measure of profit before interest, tax, depreciation and amortisation, adjusted for exceptional/non-core items.
• Royalty income: revenue earned as a percentage of a partner’s product sales.
• Gross margin: gross profit divided by revenue; a proxy for product economics.
• WRAP Retail Offer: a retail-focused share placing mechanism alongside an institutional placing.
• FY: financial year. Here, the year ended 30 June 2025.

Dates and housekeeping

• AGM: 9am GMT, 29 December 2025, Boldon Park, Witney Way, Boldon, NE35 9PE.
• CEO interview: 5 December 2025; shareholder presentation planned for January 2026.

Overall, this is the most commercially meaningful update SBTX has delivered: royalties have started, retail is live, and the group now owns the means to make and package a broader product set. The next 12 months are about conversion – turning store listings and a Croda launchpad into predictable, growing cash flows.