Frontier IP has announced its results for the year to 30 June 2023. You can read the full statement here.
Financial highlights:
- Net assets per share as at 30 June 2023 decreased 8% to 81.8p (30 June 2022: 88.5p)
- Basic loss per share of 5.85p (2022: earnings per share of 18.60p)
- Part-disposal of holding in Exscientia generated cash of £4,926,000 in the period under review (2022: £6,525,000) realising a loss of £786,000 (2022: profit of £2,867,000)
- Unrealised loss on the revaluation of investments of £966,000 (2022: unrealised gain of £10,908,000)
- Fair value of our equity portfolio decreased by 17% to £32,964,000 (2022: £39,712,000) following disposals of £5,713,000 (2022: £3,659,000) and additions of £745,000 (2022: £1,378,000)
- Loss before tax of £4,370,000 (2022: profit before tax £10,879,000)
- Cash balances at 30 June 2023 of £4,603,000 (2022: £4,368,000)
Corporate highlights
- Generated cash proceeds of £4.93 million from selling shares in portfolio company Exscientia during the year. Following the Exscientia share sales, Frontier IP is interested in 493,550 Advanced Depositary Shares in Exscientia representing 0.4% of Exscientia’s issued share capital. In total the Group has raised net proceeds of £11.45 million through selling Exscientia shares since January 2022. During the period a total of £2.4 million was invested in the portfolio by Frontier IP off its own balance sheet through debt and equity investments and through advances of which £1.08 million was invested into CamGraPhIC.
- Appointed Nigel Grierson and Dr David Holbrook as independent Non-Executive Directors and Professor Dame Julia King, Baroness Brown of Cambridge DBE FREng FRS became a Senior Independent Director in March 2023. All are members of the audit, remuneration and nomination committees. Campbell Wilson stepped down as a Non-Executive Director in April 2023, having served nine years on the board of directors.
- Expanded our portfolio with the incorporation of two new portfolio companies during the year: Enfold Health and GraphEnergyTech. After the year end, the Group took an equity stake in early-stage company Deakin Bio-Hybrid Materials.
- Post period end the Group announced that Chairman Andrew Richmond would not be offering himself for re-election at the coming Annual General Meeting, having served for over eleven years as an independent Non-Executive Director, the majority of which time was as Chairman. Baroness Brown will become Group Chair following the AGM in December.
Portfolio highlights
- The portfolio continues to mature. Several companies are generating revenues having achieved commercial traction. Others have made significant industrial and technical progress and are either at or reaching their inflection points. Chief Executive Officers were appointed at two companies during the year and one post-year end as we strengthened management teams. Two new portfolio companies were incorporated, and a further one joined the portfolio after the end of the year. Despite difficult market conditions, several portfolio companies raised funds.
Highlights included:
- Alusid launched its first range of mass-produced wall tiles made from sustainable materials with Topps Tiles, the retail arm of Topps Tiles plc the UK’s no.1 tile specialist. The company is now developing its first range of floor tiles following a collaboration with Imerys, a world leader in speciality minerals
- CamGraPhIC raised £1.26 million to develop and scale up its graphene-based photonics and announced that Sir Michael Rake, the former chair of BT Group, is to join the board of directors. Post year end, the company secured a loan facility for up to a further £1.5 million
- Pulsiv launched Pulsiv Osmium, a technology to improve the energy efficiency of nearly all mains-powered applications, including power supplies and battery chargers. The company raised £1.5 million, has built a global distribution network, sent reference designs to potential customers and is in talks with major manufacturers
- Celerum appointed David Gladding as CEO during the year and successfully renewed its contract with Colin Lawson Transport, the first customer for its Truck Logistics System software. Post year end, the company added two more customers including Grampian Continental, its first operating internationally
- Steve Cable was appointed CEO of Elute. He has a history of growing software companies as part of his 25 years’ experience. The company is testing a beta version of an IP analysis product for investment professionals
- Cambridge Raman Imaging made first sales of its graphene-based ultra-fast lasers for use in Raman imaging microscopes. In tests, its digital imaging technology helped histopathologists detect tumours ahead of traditional methods
- The Vaccine Group successfully completed two government-backed projects to develop candidates for a transmissible Lassa fever vaccine and a Streptococcus suis vaccine. After the year end, the company announced plans to expand its vaccine portfolio
- Other post period end developments included:
- Pulsiv appointed serial technology entrepreneur Mark Gerhard as chair, and Tim Moore joined full time from his role at SharkNinja
- Fieldwork Robotics announced a £1.5 million fundraise from Elbow Beach Capital, and appointed David Fulton as Chief Executive Officer
