Intellectual property group Fusion IP (LON:FIP) said it expects to meet its profit targets this current year after an “excellent” first half.

Fusion posted a pre-tax loss of £1.7 million in the six months to January (January 2011: loss of £414,000), but said this deficit largely related to the timing differences in completing funding rounds for its stable of investments.

The carrying value of its investments rose by 4% to £17.5 million (June 2011: £16.8 million), but most of an anticipated uplift in their values is now expected in the second half.

Excluding intangibles the group reported an operating loss of £765,000, however, with expected second half fundings, the company said it remains broadly on plan to achieve its profit target for the full year.

Since January, Fusion, which is focused on turning university-derived intellectual property into commercial businesses, has sold Simcyp to Certara for $32 million, generating a return of £4 million.

It has also completed fund raisings for LED specialist Seren, medical devices group Asalus and drug developer Diurnal to fund the final phase of its Chronocort Phase I trial.

Fusion’s cash balance is currently £8 million following the Simcyp sale.

David Baynes, Fusion’s chief executive, said it had been an excellent period for the company.

“This has been another encouraging period of development for Fusion, in which we raised an additional £5 million for the company, progressed the development of our portfolio, increased our share price by 187 per cent between periods and, most importantly, subsequent to the period end, secured our first major portfolio exit with a £4 million cash return generating a 200 fold pay back on our original investment. 

"We believe this demonstrates the significant potential for our portfolio and for the university pipelines that we hold exclusive rights to.

"The key change is that many of our early stage spinouts are gaining sufficient critical mass to demonstrate clearly the potential value of our exclusive university pipelines," he added.

As at 2.25pm, Fusion shares stood up 2.92 per cent, at 70.50 pence.

Seren’s revolutionary technology was developed by Professor Tao Wang from the University of Sheffield.

The technology greatly increases the efficiency of high brightness LED’s, as it significantly reduces heat generation under normal running conditions. It means that either much brighter LED lamps can be manufactured or that the power consumption of LED lamps can be reduced, Fusion says.

"We are delighted to have secured this significant investment,” said chief executive Carl Griffiths.

“The funds will enable us to accelerate the transfer of Seren's technology to manufacturing partners. 

“This will start with our existing collaboration partner in India and we are already in discussion with HB LED manufacturers in China about the possibility of licensing or creating a joint venture manufacturing facility. We will continue to look for other potential partners outside of these territories."

The company raised the money from a number of investors. I2BF Global Ventures invested £1.1 million, Fusion invested £300,000 and fellow AIM investment firm IP Group contributed £400,000.

Following the investment round Fusion will own a 40.2 per cent stake in Seren.

"We are very pleased to join I2BF Global Ventures and IP Group in this funding round, which will enable Seren to continue its impressive development of its LED technology,” director Peter Grant said.

“We remain confident that Seren can make a significant contribution to enabling the use of LEDs in a variety of different energy efficient applications where there is a continuous need to reduce power consumption and improve product performance.  

“With this funding in place we look forward to the Company securing further deals for the use of its technology internationally."

Fusion IP (LON:FIP) is to receive US$6.4 million (£4.1 million) after the first sale of one of its stable of start-up companies.

Drug group Certara has agreed to buy Simcyp for $32 million.

Fusion has a 20 per cent stake in Simcyp, which has developed a modelling and simulation platform for predicting the fate of drugs in virtual populations.

The sale is conditional on Certara's getting funding for the acquisition funding, but is expected to complete by next week.

Fusion will used the cash to invest in a number of existing portfolio companies and to establish new ventures from its university partnerships. 

In the year to last July, Simcyp made a £1.9 million post-tax profit. 

David Baynes, Fusion’s chief executive said: "We are delighted to announce our first significant exit from our growing portfolio of companies.

Simcyp is a world-class software company and the 200 fold return we have made on our investment amply demonstrates the excellence of our university pipeline agreements and the value that can be extracted from these exclusive relationships."

Fusion has reported strong progress from a number of its portfolio companies in the past month, sending its shares soaring.

Semiconductor testing associate Mesuro announced a pick-up in orders, 43% -owned Diurnal, a drug developer, reported a significant milestone in the progression of Chronocort, a replacement cortisol and Seren Photonics signed its first collaboration agreement for its LED technology. 

Laparoscopic surgery device maker Asalus also raised £232,000 after first closing of a £0.7 million funding.

Asalus, one of the stable of companies controlled by intellectual property group Fusion IP (LON:FIP), expects to launch its key product Innervision in 2013 after completing a first round of fundraising.

Asalus raised £232,000 after first closing of a £0.7 million funding round that followed a pre-clinical study of Innervision, its new electrosurgical smoke clearance device.

Fusion put more money into the group in this funding round alongside Finance Wales and IP Group (LON:IPO).

They have an option to invest a further £392,000, subject to investor approval and the achievement of milestones.

The money will fund the start of Innervision's 'first-in-man' clinical study once regulatory approval comes through and to begin the process of scaling up the technology prior to its expected launch in 2013.

Asalus is developing three products targeted at laparoscopic surgery, a technique that has grown rapidly in recent years.

Laparoscopic or keyhole operations in the abdomen are performed through small incisions and are much less invasive than previous methods.

As well as Innervision, which clears electrosurgical smoke during procedures, Asalus is developing Surehold to manipulate tissue and organs without causing damage, and Snugport, a new type of surgical access port.

Peter Grant, operations director of Fusion, said that Innervision continued to meet its development milestones as well as excite surgeons and distributors alike.

“The product answers a clear requirement within the sector and we are very pleased with the market feedback and progress of this novel product. Asalus is a product of our strong working relationship with Cardiff University.”

Dominic Griffiths, managing director of Asalus added: "These funds will allow us to reach the critical milestone of completing a clinical trial with Innervision and the excellent results obtained in the GLP pre-clinical study give us confidence that the trial will meet its endpoints." 

Following the first closing, Fusion will have a 46% undiluted shareholding in Asalus, which drops to  44% if the further option to invest is taken up.

Fusion shares have been strong performers over the past three months as the group has reported good progress from a number of its stable of companies.

In the past two weeks, the group’s semiconductor testing associate Mesuro announced a pick-up in orders, 43% -owned Diurnal, a drug developer, reported a significant milestone in the progression of Chronocort, a replacement cortisol and Seren Photonics signed its first collaboration agreement for its LED technology. 

Broker Seymour Pierce said keyhole surgery was a rapidly growing market. 

Surgeons use electrosurgical devices with high-frequency electric currents to cut tissue, rather than blades.

One problem with these devices is that they also produce electrosurgical smoke, which can stop surgeons seeing inside the body.

Innervision clears this smoke from minimally invasive and open surgical procedures.  

The broker added that with Surehold and Snugport, Asalus as a business is positioned in some of the most exciting areas of surgical device development. 

“With recent strong news flow from Fusion, and more to come as its portfolio companies continue to make developmental and commercial progress, our outlook on the stock remains positive,” it added.  

Fusion shares jumped 13% to 65p.

It was the third bullish update from a member of Fusion IP’s stable of companies this week.

Mesuro is a spin-off from Cardiff University and focused on commercialising RF test and measurement technologies coming out the university's Centre for High Frequency Engineering.The latest orders came from three customers, Fusion IP said. It has a 47% shareholding in Mesuro.

Richard Emsley, chief executive of Mesuro said the sales demonstrated the huge potential of its RF technology.

It enables device manufacturers to obtain the very highest performance from their designs, maximise device efficiency, reduce power consumption and decrease time to market, he added.

David Baynes, Fusion’s chief executive, added:  "Mesuro is in a transformational year and these sales should be a stepping stone for the company to secure significant sales in 2012. We look forward to working with Mesuro to converting its highly promising pipeline in the coming year."

On Monday, Fusion announced that 43% -owned Diurnal, a drug developer, had achieved a significant milestone in the progression of Chronocort, a replacement cortisol. 

Yesterday, Fusion said Seren Photonics had also signed its first collaboration agreement for its LED technology.

Shares rose 10.2p to 77.7p and have more than tripled in the last six months.

Under the terms of the agreement, the unnamed LED products manufacturer has been granted exclusive rights to its technology for certain lighting applications in India.

The deal also gives the partner the option of a licence for manufacture of product incorporating Seren's processes.

Seren’s technology helps to increase the amount of light created at the very heart of a white high brightness LED.

Dr Godfrey Ainsworth, Seren's Chairman, said: "We estimate that the first sales of manufactured product, incorporating our technology, will start as early as 2013 and lead to an increasing royalty stream, as our partner brings our process in to full production and their own manufacturing capacity increases.”

Dr Ainsworth added that the agreement was the first of many it hopes to sign and that it was for just one for just one application in one territory in the world.

“We are already in discussions with a number of our manufacturers around the world and expect to see further agreements made in a number of territories in 2012/13," he added.

Fusion’s chief executive David Baynes added: “This is another great example of the value of the technology in our pipeline. Seren clearly has the potential to become an extremely valuable portfolio company and we look forward to more deals in the future.”

Fusion IP has a 48 % shareholding in Seren.

Yesterday, Fusion announced that 43% -owned Diurnal, a drug developer, had achieved a significant milestone in the progression of Chronocort, a replacement cortisol.

Technology commercialisation company Fusion IP (LON:FIP) reported today that one of its businesses, Cardiff-based MedaPhor, has signed up its first US hospital to use its ScanTrainer ultrasound simulation system.

ScanTrainer is a virtual ‘real feel’ ultrasound training simulator that provides allows students to replicate the real scan experience. The technology enables trainees to feel what they see on the computer screen in order to develop the complicated mix of cognitive skills and eye-hand movement coordination required to operate an ultrasound machine, but without the need for an ultrasound machine or a patient.

The US hospital that has installed ScanTrainer is the University of Washington Medical Centre in Seattle – one of North America’s leading hospitals. The system was installed in its Institute for Simulation and Interprofessional Studies – a centre dedicated to the use of simulation technologies for training medical professionals.

“This is excellent news for MedaPhor,” said David Baynes, Fusion IP’s chief executive officer. “The US market for any medical related system is an important one and we are delighted that the University of Washington Medical Centre has chosen ScanTrainer for ISIS and that ISIS will be the first Institute in the US that will benefit from training all its practitioners with ScanTrainer’s revolutionary simulator-based OBGYN training modules and case studies.”

Meanwhile, Fusion IP also announced this morning that one of its other businesses, RF testing firm Mesuro, has appointed a non-executive chairman. Dr Godfrey Ainsworth has more than 20 years of experience in the semiconductor industry and currently serves as non-exec chairman at Alternative Investment Market-quoted compound semiconductor manufacturer IQE.

Shares in Fusion IP were up half a penny at 38 pence each this morning.

University commercialisation investor Fusion IP (LON:FIP) today announced that it has raised just over £5 million through a share placing.

It said it has sold new shares in the company to both new and existing investors.

The new funds will allow the company to continue investing in early stage technology companies, based on the research of Cardiff and Sheffield Universities. It will allow support the group’s medium term working capital. 

This means that Fusion can continue investing in its portfolio companies through subsequent financing rounds. 

“We are very pleased to announce this additional investment in the company from both current and new shareholders,” said chief executive David Baynes.

“We believe these funds, plus monies we expect to generate out of our growing portfolio, puts us in a strong position to maximise the return from both our portfolio and future companies."

Broker Seymour Pierce carried out the share placing on the company’s behalf. Fusion said that 17.8 million new shares will be issued at a price of 28p each.

Fusion is currently invested in more than 20 portfolio companies. These companies give the firm a well-balanced asset base of engineering, software and medical businesses, it said.

“The value of the portfolio is growing and the company anticipates it will be able to demonstrate this further in the current financial year, and capitalise on the progress made to date towards its first cash realisation,” the company said today.

While the share placing will support the business in the near term Fusion also emphasised that some realisation of its current investments would provide the group’s medium and long term funding.

Typically, Fusion would realise its investment by either a trade sales or by floating a portfolio company on a stock exchange.

The company today said that talks are currently underway with regards to one potential realisation.

The firm, which turns university-derived intellectual property into businesses, reported that EBITDA in the twelve months to July 31 2011 soared to £3 million from £0.4 million previously, and it made a pre-tax profit of £1 million, compared with a £1.6 million loss.

Chief executive David Baynes said: "We are pleased to announce another successful year for the group, one in which we have increased revenue, portfolio returns, and EBITDA. The value of our portfolio has continued to grow and we anticipate we will be able to demonstrate this further in the current financial year, and remain focused on achieving our first cash realisation. We look forward with confidence."

Fusion said its priority in the year ahead is to continue to focus on the growth of the portfolio and maximise value realisation, through trade sales or flotations, as appropriate.

The group anticipates it will need to raise additional funds during the year, and believes it can achieve this either through trade sale exits or dividends, however the directors continue to review all financing and resourcing options. As at July 31, Fusion had a cash balance of £2 million, compared with £4.6 million a year earlier.

Apart from its established portfolio companies, where six firns are in a trading phase of growth, of which three are trading profitably, Fusion IP has identified several potential rising stars. They are either fast growing, on the cusp of or already breaking through into profit, or with innovative technologies that are meeting development milestones and proving successful in the marketplace.

Among them is Cardiff-based i2L Research, a fast-growing product testing and development centre for the pest control industry and agrochemicals industry across Europe. The company, which has offices in Newcastle and Cardiff, is expanding its operations into Europe, through its new offices in the Czech Republic and Spain.

During the year, i2L increased its turnover by 40 percent to £1.1 million and its profits by 300 percent to £150,000.  Fusion has a 31 percent stake shareholding in i2L Research.

It also holds 38 percent in MedaPhor, also based in Cardiff, an ultrasound simulation business, specialising in the development and sale of advanced, virtual ultrasound training systems for the healthcare service.

The company's new ScanTrainer simulator is designed to teach all the core and advanced obstetrics and gynaecology ultrasound skills in a non-clinical environment. Launched in 2010, the award winning ScanTrainer system has been sold into 12 UK hospitals and the company has recently made its first sales into the all-important US and European market. With distributors covering an additional eight countries in the Far East, the company's sales pipeline is expected to grow in 2012.

Sheffield-based Absynth was founded in 2007 and  is developing vaccine and therapeutic antibody candidates for the prevention and treatment of bacterial infections. The Company's lead program focuses on infections caused by the bacterium Staphylococcus Aureus and the Methicillin-resistant form, MRSA.  Fusion has a 52 percent stake in Absynth.

A further ‘potential star’ is Mesuro, which focuses on providing performance improvements in the design and manufacture of RF (radio frequency) devices, microwave devices and amplifiers.

The Cardiff-based group started generating its first sales in 2011 and has raised an additional £440,000 during this calendar year to support its sales efforts. Fusion has a 47 percent share in Mesuro.

Technology commercialisation specialist Fusion IP (LON:FIP) said it expects to see a “significant uplift” in the valuation of its portfolio companies as it reported a trading update this morning.

The firm, which turns university-derived intellectual property into businesses, said that its Simcyp business continued to grow strongly during its 2010/2011 financial year. Fusion said Sheffield-based Simcyp, whose population-based simulator is designed to help streamline drug development, is expected to exceed forecasts for the seventh year in a row with a 25 per cent increase in turnover and a 35 per cent increase in profit before tax.

At the end of July, Phase Focus – Fusion’s microscopy and imaging company – raised £865,000 in equity investment to expand its operations, grow sales and conclude commercial deals with partners. As a result of this fundraising, Fusion’s stake in the business reduced to 49.1 per cent.

At the start of this month Fusion’s Cardiff-based drug development company, Diurnal, completed a £335,000 funding round that will help its lead product, Chronocort, to continue and complete its Phase I clinical trials. Chronocort is a hydrocortisone formulation for the treatment of congenital adrenal hyperplasia and adrenal insufficiency.

Magnomatics, the magnetic motor company, continues to grow strongly, according to Fusion. During the past year, the firm won prestigious new clients in the automotive, aerospace and defence sectors, while product development continued and turnover on a like-for-like basis is expected to grow by 70 per cent in 2011.

Seren, Fusion’s light-emitting diode business, is nearing the closing of its first commercial deals, while medical device company Asalus and radio frequency technology specialist Mesuro both made progress, with the latter company raising £440,000 to support its growing sales activity.

“I am delighted with the performance of our portfolio and that three more of our portfolio companies have been able to raise additional funding over the last month,” said David Baynes, Fusion’s chief executive officer. “The Phase Focus fundraising is particularly pleasing, as the funding achieved a significant uplift in value for Fusion, with the company on the verge of signing a number of significant commercial deals which this money will enable it to conclude. This brings a positive end to what has been another good year for the group.”

Fusion expects to deliver results for its 2011 financial year in October.

Atkinson had been involved with Fusion IP since its listing on the London Stock Exchange back in 2005. 

"Tony has been on the Board since the Company's listing in 2005, and has been a reliable source of advice and a good friend to all of us since that time,” Fusion IP chairman Doug Liversidge said.

“He will be greatly missed. Our thoughts at this time go to his family."

Atkinson had been involved in several small technology companies. Notably he founded a company named Kymed in 1990 which was later merged with Ofex- listed firm Enact Pharma in 2000. Enact was later merged again, while Atkinson was chief executive, into Protherics in 2003 (the group was eventual acquired by BTG).

Atkinson was also the chairman of two Protherics spin-outs, Morvus Technology and NanoMor Biomedical.

Fusion said it will consider the requirement for an independent non-executive director in due course.