Shore Capital says Frontier IP Group PLC (LSE:FIPP, FRA:8WT) is reaching the stage where it can realise value from its biggest holdings, after one of its portfolio companies attracted fresh external funding.
The broker was responding to news that Fieldwork Robotics, developer of an autonomous raspberry-harvesting robot, had secured a £300,000 investment from SEED Innovations.
Shore Capital said it was encouraged by the funding, noting Fieldwork was not among the six companies it had flagged as the main drivers of shareholder value in its recent initiation note.
It put Frontier IP's last reported stake in Fieldwork at around 22%.
The broker said it saw six holdings that could each be worth at least 20p a share, with three having the potential to realise value within the next 12 months.
It pointed to an April grant of €211 million for portfolio company 2D Photonics, which it said implied a value of 22p a share for Frontier IP at the time.
Shore Capital also noted that portfolio company Pulsiv had been valued at £60 million in its latest fundraising, while Alusid was planning an AIM listing in 2026.
The broker said Fieldwork was likely to fit into the trade sale category, with the catalyst potentially being its robot fleets becoming operational in 2027.
It added that Frontier IP's recent £4.4 million equity raise extended its cash runway for at least 12 months and would support efforts to secure up to £2 million of debt financing.
That funding would help continue development of SC2, a Cambridge property leased as a pipeline engine for new companies.
Shore Capital said that once one core investment was realised in cash, Frontier IP would be able to support existing and future investments, buy back shares and potentially seed a venture capital fund.
