SkinBioTherapeutics Shares Plummet After CEO Resignation

A crisis has unfolded at SkinBioTherapeutics, an Aim-listed skin healthcare company, following the abrupt resignation of its chief executive, Stuart Ashman. The company revealed significant accounting discrepancies that have led to a dramatic collapse in its share price, which halved following the announcement.

Stuart Ashman, who has served as chief executive since 2019, resigned after being suspended over allegations of misconduct. This move came as the board conducted an internal investigation, which uncovered that Ashman had misrepresented crucial information to the board, senior management, and external auditors.

In a formal update, SkinBio stated that new information had raised serious doubts regarding the validity of accrued royalty income included in its audited accounts for the financial year ending June. The company anticipates removing £770,000 from its accounts, pushing its revenues down to £3.87 million and resulting in a projected loss of £1.17 million for the year.

As a consequence of these revelations, expectations for 2026 have also been revised significantly downwards. The board, now led by chairman Martin Hunt, who has assumed temporary executive control, has initiated a broader investigation into the financial reporting and operations of the business.

Despite the accounting issues, SkinBio remains confident in the underlying financial health of the company and insists that this incident is not indicative of systemic problems. The chairman expressed optimism about the management team and the future prospects of the products currently in development.

The turmoil surrounding the leadership change has raised concerns among investors. Many were anticipating a potential turnaround following recent partnerships and acquisitions aimed at expanding SkinBio’s product portfolio. Among its notable collaborations is an agreement with the University of Manchester, where research has underpinned much of the company’s innovative skincare technologies.

The sudden shift in corporate governance and the accounting crisis signal a challenging period ahead for SkinBioTherapeutics and its stakeholders. Analysts are closely monitoring developments as the company attempts to regain investor confidence.