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Frontier IP shares lifted as portfolio value jumps 27% in first half

The intellectual property investor reported that for the six months to 31 December 2018, the fair value of its portfolio had increased to £11.5mln from £9.1mln in the prior six months

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Revaluation of investments had also boosted the company's pre-tax profits by 138% year-on-year

Frontier IP Group PLC (LON:FIPP) shares were lifted in mid-morning trading on Wednesday after it reported a 27% increase in the value of its portfolio in the first half.

The intellectual property investor reported that for the six months to 31 December 2018, the fair value of its portfolio had increased to £11.5mln from £9.1mln in the prior six months, while pre-tax profit had risen 138% year-on-year (YOY) to £1.25mln, reflecting a higher gain on revaluation of investments. Revaluation also boosted revenues by 83% YOY to £2.18mln.

READ: Frontier IP upgrades full year forecasts as portfolio firm Exscientia inks deal with biotech giant Celgene

Frontier’s chief executive Neil Crabb said four of the companies in its portfolio had announced collaboration agreements in the period with partners who were “among the leaders in their respective sectors”.

He added that the company had also spun out three new companies, two of which were in Portugal, a market where Frontier is aiming to become a market leader.

The new spin-outs included NTPE, a company focusing on a technology to print electrical circuits on paper, Des Solutio which develops safer alternatives to chemicals used in beauty products, and Amprologix, an antibiotics developer.

Looking ahead, Crabb said the firm was seeing “strong interest” in its portfolio from a “growing number” of industry leading firms and that the momentum generated in the first-half had continued into the second, with Frontier’s performance for the full year expected to be “ahead of management expectations”.

The upgraded forecasts had been initially unveiled last week after Frontier said it had seen several "positive portfolio developments" since the start of 2019.

“The first half of the year provides further evidence our approach is gaining traction with stakeholders,” Crabb said.

Commercialisation director appointed to board

In a separate announcement, Frontier said Matthew White, who had joined the company’s senior management team as director of commercialisation in September, would join the board with immediate effect.

Before joining Frontier, White was head of innovation at AB Sugar, part of FTSE 100 group Associated British Foods PLC (LON:ABF).

“[White’s] experience is central to what we do at Frontier IP in supporting our portfolio companies through early industry engagement to ensure their technology works, can be scaled up and meets the needs and demands of customers in the real world. His well-deserved appointment to the board reflects the invaluable work he has undertaken to date," said Crabb.

Shares were up 2.5% at 83p.

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Quick facts: Frontier IP Group PLC

Price: 63 GBX

AIM:FIPP
Market: AIM
Market Cap: £31.77 m
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Frontier IP Group PLC's (LON:FIPP) Neil Crabb tells Proactive London's Andrew Scott he's confident their portfolio will continue to grow after profits in its latest full-year increased 160%. The fair value of the group’s investment portfolio also increased by 47% to £13.25mln, while it ended...

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