Frontier IP Group PLC (LON:FIPP) reported a strong increase in profits in its first half as the intellectual property commercialisation firm saw the value of its portfolio grow by double digits.
In its results for the six months to December 31, 2020, the AIM-listed firm reported a pre-tax profit of £3mln, up 45% year-on-year, while the fair value of its investment portfolio increased by 21% to £23.4mln.
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The company highlighted a step up in fundraising activity during the year, which it said reflected the “growing maturity” of its portfolio with several companies approaching “significant inflection points”.
Post-period end, Frontier noted fundraising from two of its portfolio companies, Exscientia and Pulsiv, as well as evidence of “increasing traction” in Portugal with an investment into one of its Portuguese portfolio companies.
Looking ahead, the company said several of the firms in its portfolio are “now on the cusp of important inflection points marking the significant commercial, technical and industrial progress they made during the first half of the year and beyond” and that the £2.2mln raised by the group during the period will provide it will firepower to take advantage of what it said was an “increasing number of opportunities” in the portfolio.
"The first half of the year and beyond was a story of strong growth and gathering momentum against the backdrop of the [coronavirus] pandemic. Our portfolio is maturing, with several companies approaching inflection points which mark significant and material changes in their progress. This is reflected by an increased pace in fundraising, strengthening of management teams, and the deepening and extending of industrial relationships within the portfolio”, Frontier IP chief executive Neil Crabb said in a statement.
“The continued growth of fair value of our portfolio and increase in profit is evidence our different approach to building businesses and generating value from intellectual property is working…Frontier IP is in a strong position: we have strengthened our team and are strengthening management across the portfolio as several companies approach significant commercial, technical, and industrial inflection points. We are confident of the group's prospects for the remainder of the year", he added.