www.amphionplc.com
Amphion builds shareholder value in high growth companies in the medical and technology sectors, by using a focused, hands-on company building approach, based on decades of experience in both the US and UK.
Amphion has a significant shareholding in 8 Partner Companies developing proven technologies targeting substantial commercial marketplaces, each in excess of $1 billion. Each Partner Company is chosen with the goal of achieving an exit valuation in excess of $100 million.
Amphion Innovations interims show solid improvement, net asset value holds steady
Shares in Amphion Innovations (LSE: AMP) perked up this morning after the company reported no change in its Net Asset Value (NAV) per share (in US$ terms) and also said that in the first half of 2009 it came “very close to breakeven”.
Amphion’s business model is to invest, and have a ‘hands-on’ approach, in technology and medical companies with high growth potential. The stated goal for each investment is to achieve an exit valuation of at least US$100 million.
Investments include Kromek (19.99%), Firestar Software (15.3%), Axcess International (8.5%), Motif Biosciences (38.5%), MSA Holdings B.S.C. (50%), M2M Imaging Corp (24.4%), Myconostica (22%), Private Markets (25%), WellGen (14.6%), and DataTern (100%).
Amphion’s investments operate in a wide range of sectors, including RFID Systems (Axcess), Digital x-ray systems for medical and security applications (Kromek), MRI coils & tools for clinical and research use (m2m), Molecular diagnostics for fungal diseases (Motif) and Online energy trading marketplace (Private Markets) - to name just a few.
This morning the company released first half results for the period ended 30 June 2009. Net Asset Value per share was virtually unchanged from December 2008 as US$0.44 per share, but in Sterling terms fell 10% to 27 pence due to the stronger US dollar. While some of Amphion’s investments did fall in value, this was offset by a higher valuation at Kromek, which is the company’s largest investment in dollar terms.
Operating results were significantly improved, moving from a loss of US$1.73 million in H1 2008 to nearly breakeven in H1 2009, largely due to DataTern’s ability to generate revenues from licensing some of its intellectual property (‘IP’) to third parties. DataTern’s gross licensing income in the first half of 2009 was US $3.4 million.
Richard Morgan, Amphion’s CEO, said the company has performed relatively well when taking into consideration the recent turmoil in global economies, “In normal economic and financial conditions the inherent value of any one of these companies has gone up by a significant percentage each year for many years, usually a multiple of the capital we invest in them. To us, therefore, standing still is an unnatural act, even if it is considered to be an accomplishment in difficult conditions like these.”
“When Amphion starts or supports the start of a new company, we only commit after we are satisfied that the foundation of the company, particularly its intellectual property, is sound. We look for large unmet market needs and strong, proven technology that will bring innovative solutions to fill a substantial and well-defined need.”
Looking ahead to the second half of 2009, Amphion noted that the improvement in capital markets in recent months was allowing the company to re-start previously postponed plans to take “two or three” of its investments through to IPO (Initial Public Offering).
