IP GROUP
Audited final results for the year ended 30 June 2014
Frontier IP Group Plc is focused on the commercialisation of intellectual property
Key Points
· Two new portfolio companies added
· Revenue from services increased to £178,000 (2013: £174,000)
· Total revenue increased to £786,000 (2013: £117,000) - reflecting an unrealised profit on the revaluation of investments of £608,000 (2013: unrealised loss of £57,000)
· Profit before tax of £27,000 (2013: loss of £368,000)
· Profit per share of 0.13p (2013: loss of 3.51p)
· Cash balances at 30 June 2014 of £587,000 (2013: £155,000)
· Net assets per share as at 30 June 2014 of 18.1p (2013: 21.1p)
· Two placings during the year raising £1,142,000 (gross)
· Post year-end
- portfolio company Nandi Proteins Limited secured funding
- first spin-out from University of Cambridge, bringing the total number of portfolio companies to 16
· Board remains encouraged about prospects for further progress with portfolio companies and partnerships
Andrew Richmond, Chairman of Frontier IP, said,
"Frontier has made encouraging progress over the year and we are also seeing positive developments in a number of our existing portfolio companies. We have added new portfolio companies and intend to take more significant stakes as we grow our portfolio and extend our sources of deal flow.
Looking ahead, we have strengthened management team, bringing on board additional expertise, and expect to see further progress across our activities as we continue to develop the business."
Enquiries
Frontier IP Group Plc
T: 0131 240 1251
Neil Crabb, Chief Executive
Company website: www.frontierip.co.uk
Cantor Fitzgerald Europe
(Nominated Adviser and Joint Broker)
T: 020 7894 7000
Mark Percy / Catherine Leftley, Corporate Finance
David Banks / Paul Jewell, Corporate Broking
Peterhouse Corporate Finance Limited (Joint Broker)
T: 020 7469 0935
Jon Levinson / Lucy Williams
KTZ Communications
T: 020 3178 6378
Katie Tzouliadis / Deborah Walter
Notes to Editor:
Frontier IP Group plc ("Frontier IP") specialises in the commercialisation of Intellectual Property. It establishes partnerships with individual universities and research institutions to assist with their spin-out and licensing activities and helps to maximise the commercial value of technologies emerging from their research programmes. www.frontierip.co.uk.
Chairman's Statement
Introduction
Frontier IP's core strategy is to generate value from its university partnerships by providing best practice advisory services, developing a portfolio of companies capable of commercial success and providing access to capital for its portfolio companies. I am pleased to report that the Group has made progress in each of these areas over the year.
The increase in our personnel resource and new additions to our board during the year have secured a platform for growth which is already enabling us to extend the range of services we offer. Our expertise in life sciences and energy has also been enhanced by these appointments.
In line with our move towards increasing the size of our equity holdings in portfolio companies, we added two new spin-out companies to our portfolio, including PulsiV Solar Limited, a spin-out from Plymouth University, in which we received a 21% stake. We have also seen encouraging developments in a number of our existing portfolio companies.
After the period end, we were also pleased to announce our first spin-out company with the University of Cambridge and specifically the Department of Chemical Engineering and Biotechnology. The new portfolio company, Cambridge Simulations Solutions Limited, which has developed a method to simulate and control complex chemical processes, takes the total number of portfolio companies to 16.
Our work in providing access to capital for portfolio companies has borne fruit with, post period-end, the completion of a fundraising in Nandi Proteins Limited indicating a significant increase in its value which is reflected in increased total revenue for the year. We continue to pursue our sector-specific fund activities and are exploring a number of opportunities.
Results
For the year to 30 June 2014, revenue from services increased marginally to £178,000 (2013: £174,000). However total revenue increased as a result of booking an unrealised profit of £608,000 (2013: unrealised loss of £57,000) on the revaluation of investments, principally due to the adjustment to the holding value of one portfolio company, Nandi Proteins Limited, following a significant fundraising. Total revenue showed an increase to £786,000 (2013: £117,000).
The profit before tax position was £27,000 (2013: loss of £368,000) and excluding the impact of unrealised profit or losses on the revaluation of investments, the adjusted loss before tax increased by 87% to £581,000 (2013: £311,000). The profit per share was 0.13p (2013: loss of 3.51p).
Cash balances stood at £587,000 at 30 June 2014 (2013: £155,000), principally reflecting the share placings completed in August and December 2013 as previously reported. Net assets per share as at 30 June 2014 were 18.1p (2013: 21.1p).
The Board
In the year, we were pleased to welcome Michael Bourne and Dr. Campbell Wilson to our board as Non-executive Directors. Mike brings investment management expertise in the technology, life sciences and clean technology, whilst Campbell has 35 years' experience in the global pharmaceutical industry with experience in both scientific and business development roles at a senior level.
In addition, the Group welcomed a new executive board member, James Fish, replacing Marilyn Cole as Finance Director and Company Secretary. I would like extend the board's thanks to Marilyn for her significant contribution to Frontier IP during her time as Finance Director. Jim, a chartered accountant, has over 25 years' experience in senior financial positions and a wide range of commercial experience including venture capital funded small/medium-sized enterprises and start-up companies.
Outlook
As we look ahead, we expect to see further progress across our activities over the new financial year. We are working on a number of new spin-out opportunities and intend to continue to grow our core portfolio by taking more significant stakes and extending our sources of deal flow. In line with our strategy of broadening the range of capital available to portfolio companies, we expect to see further portfolio fundraisings during the current financial year.
Andrew Richmond
Chairman
28 November 2014
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