Frontier IP Group PLC (AIM:FIPP) CEO Neil Crabb talked with Proactive about the company's annual results, a £3 million placing and subscription, and ongoing portfolio developments. Despite challenging financial markets, the company saw a modest gain in portfolio value and reduced losses, signalling resilience and growth potential.
Proactive: Neil, very good to speak with you. You are out with your annual results and also news of a £3 million placing and subscription as well as a retail offer. Let's start with the results because you made a lot of progress despite challenging financial markets.
Neil Crabb: I think it's certainly true that markets continue to be challenging, although there is some evidence that they're beginning to soften or improve slightly. Turning to our results, we saw a modest gain on the value of the portfolio, which, against the backdrop of still falling venture prices generally, was a good relative performance. Obviously, we have our own running costs as well, so that mapped to a bottom-line loss, but it was significantly reduced from the prior year. However, we've seen very encouraging progress in the portfolio, with three fundraisings closing even since the year-end. I think that points to some improvement in market conditions, driven by the interest rate cycle beginning to turn, inflation coming down, and people feeling more optimistic about the direction of travel. That said, it's still a fairly tough environment out there.
Proactive: Let's chat about the portfolio because you have a very good mix of companies at different stages of maturity. Several are approaching the point where you're considering how to realize value from those. You mentioned a few of them in the results, so perhaps we could start with Pulsiv, which has strengthened its board and introduced a new charger design.
Neil Crabb: Pulsiv is focused on power conversion, a very inefficient process at present. More than half of generated electricity doesn't do useful work due to losses in transmission and conversion. There's now a move to standardize on USB-C charging, which your viewers may know as the common standard for phones and laptops. Pulsiv has developed what we believe to be the most efficient converter for USB-C chargers, reducing heat generation and potentially lowering material costs for manufacturers. This has sparked global interest, and we recently showcased it at a major tradeshow with a strong response. We're now looking forward to news around customer uptake as this develops into 2025.
Proactive: Another company making progress is Cambridge Raman Imaging. Could you update us on that and perhaps Nandi Proteins as well?
Neil Crabb: Certainly. Cambridge Raman Imaging commenced sales last year, and we're now seeing significant growth, including partnerships with industrial players. Originally, sales were focused on research groups, but this broadening of the customer base is important. Their label-free imaging technology, which uses AI to analyze biopsies without traditional staining, has applications in cancer diagnosis and drug discovery. Nandi Proteins, meanwhile, signed its first commercial licensing partner this year. Products using Nandi's ingredients are expected to hit the market next year, targeting the large processed food industry. As volumes grow, we anticipate a rapid increase in adoption.
Proactive: And how about CamGraphIC? Could you share some insights into their graphene photonics work?
Neil Crabb: The semiconductor sector is experiencing strong demand driven by AI and the need for greater processing power. With Moore's Law nearing its limits, graphene offers a way to improve silicon chip performance, particularly in photonics. Moving data with photons instead of electrons requires less energy and enables greater capacity. CamGraphIC is leveraging graphene to address these needs, driven by collaborations in the UK and Italy.
Proactive: On a group level, you've made some changes, including a new Chair and CFO. Could you elaborate?
Neil Crabb: Jo Stent joined as CFO, bringing broad experience, while our previous CFO, Jim, continues to work with portfolio companies. We're also delighted to welcome Professor Dame Julia King, Baroness Brown of Cambridge, as Chair. Her expertise and network are invaluable, and she has also invested significantly in our recent round.
Proactive: Speaking of the round, you've raised £3 million through placing and subscription, with a retail offer closing this evening. How do you plan to use these funds?
Neil Crabb: A portion will support our team as they work on commercializing portfolio companies and driving value creation. Selective support may go to the portfolio itself, but our primary focus is on preparing for exits and realizing value.