Frontier IP Group PLC (AIM:FIPP, OTC:FGPPF) has reported a 27% increase in its net assets per share to 88.5p as of 30 June 2022, up from 69.8p a year earlier.
The intellectual property investor saw its full-year basic earnings per share increase by 6% to 18.60p (2021: 17.47p) while total revenue and other operating income increased by 11% to £14,104,000 (2021: £12,668,000) reflecting the net unrealised profit on the revaluation of investments of £10,908,000 (2021: £12,306,000) and a realised profit on disposal of investments of £2,867,000 (2021: nil),
Frontier IP said the fair value of its equity portfolio increased by 24% to £39,712,000 (2021: £31,982,000) after disposals of £3,659,000 (2021: nil) and additions of £1,378,000 (2021: £347,000).
The company saw its full-year profit before tax increase by 6% to £10,879,000 (2021: £10,242,000) and it had a cash balance as of 30 June 2022 of £4,368,000 (2021: £1,992,000).
In the results statement, Neil Crabb, Frontier IP chief executive officer commented: "The shorter-term outlook is highly uncertain, geopolitical risks abound, and there are fundamental challenges to be addressed - including climate change, energy, water, food and health. But history shows that disruption can drive technology adoption and our portfolio is positioned strongly to meet the challenges we all face."
The company noted that a part-disposal of its holding in Exscientia, following the portfolio company's successful listing on the Nasdaq Global Select Market at a valuation of $2.9bn in October 2021, generated cash of £6,525,000 in the period (2021: nil) realising a profit of £2,867,000 (2021: nil).
Post year-end, the company said it has sold another tranche of shares in Exscientia generating a further £3.4mln in cash with Frontier IP retaining 782,400 shares.
The company said it had been a year of concentrating its existing portfolio, with companies across the portfolio making robust commercial and technical progress during the year, demonstrating their value to prospective partners and investors in difficult economic and market conditions.
The group also said it believes that previous steps taken to strengthen management teams are bearing fruit, with its portfolio continuing to mature and several companies reaching inflection points, reflected by their success in raising funds and developing stronger industry engagement.
Fundraisings and grant awards included:
- Exscientia raised a total of $510.4mln through an initial public offering and concurrent private placement through listing on the Nasdaq Global Select Market in October 2021 with a valuation of $2.9bn. In the six months to 30 June 2022, Exscientia delivered on major new and existing collaborations, and advanced its pipeline programmes
- CamGraPhIC raised £1.6mln through an equity funding round. Post year-end, the company raised a further £1.26mln
- Cambridge Raman Imaging is coordinating CHARM, an international project awarded €3.3mln by the European Innovation Council. The company also raised £1.1mln through an equity funding round
Frontier IP also noted that strong commercial and technical progress was made by a number of portfolio companies, including developing new and existing industry partnerships:
- Exscientia entered into a $70mln collaboration agreement with the Bill & Melinda Gates Foundation and a strategic research collaboration with Sanofi under which the company received an upfront cash payment of $100mln with the potential for a further $5.2bn in milestone payments and tiered royalties
- The Vaccine Group achieved a significant milestone in development of its COVID-19 vaccine with pig trials showing it potentially offered broad immunity against the disease and current and future variants
- Celerum launched its first commercial product and won its first customer, Colin Lawson Transport
- Fieldwork Robotics started commercial trials of its raspberry harvesting agricultural robots - robot-harvested raspberries now available in the shops
- Post year-end, Cambridge Raman Imaging started testing a commercial prototype of its graphene-based Raman imaging device, developed in collaboration with Motic, a leading manufacturer of medical imaging devices
- Pulsiv completed a first close of a new fundraising in July 2022 which was reflected in an increase in the value of the group's holding in Pulsiv by £4,996,000 over the year to 30 June 2022. Adam Westcott joined Pulsiv as chief financial officer during the year
- Elute Intelligence announced the appointment of Steve Cable as chief executive Officer post year-end