Frontier IP Group PLC: Interim Results
Portfolio Value Continues to Grow Strongly
Frontier IP Group (“Frontier IP”) provides commercialisation services in return for equity in private technology companies. The Group’s equity holdings are in four high growth technology clusters comprising: artificial intelligence, robotics and big and sparse data; pathogens and cell imaging; food and agritech; and engineered particles and materials. Interims (unaudited) to December 31, 2020, reported today, saw Frontier IP’s revenue portfolio value increase by 21% to £23.4m and the unrealised profit on revaluation of investments rise by 33% to £4.0m, resulting in pre-tax profits up 45% to £3.0m. Net assets per share were up 21% to 56.8p.
Portfolio Companies are Attracting Equity Funding
First equity funding rounds raised £0.25m for Elute Intelligence (announced post period end) to accelerate development of its Patent Reader product for searching patent databases and £0.25m was raised for Cambridge Raman Imaging to help develop graphene-based, ultrafast laser technology for use in medical devices. Fieldwork Robotics raised £0.68m (announced post period end) to accelerate development of the company's raspberry harvesting robot and, separately, a cauliflower harvesting robot in collaboration with Bonduelle, one of the world's largest vegetable producers.
Industry Collaboration Increases
Frontier IP works closely with Universities, Research Institutes and Academics to identify IP that can be commercialised. During the period, three industry collaborations were announced: Fieldwork Robotics announced separate partnerships with Bosch and Bonduelle, a leading multinational vegetable producer, and The Vaccine Group with ECO Animal Health Group plc and The Pirbright Institute.
Recommendation
Of the 19 portfolio companies, a number are at a point of acceleration in commercial development, paving the way for a step up in valuation or a potential exit. Frontier IP has a proven record in commercialising University IP and increasing its EPS and NAV as portfolio company valuations rise. We believe that Frontier IP represents an excellent opportunity for investors to gain exposure to early-stage technology companies, based on leading edge IP, which meets the needs and demands of international markets. We reiterate our Buy Recommendation.
Phil Smith, Technology Analyst | T: +44 (0)20 3617 5187 | E: psmith@vsacapital.com
VSA Capital Limited, New Liverpool House, 15-17 Eldon Street, London EC2M 7LD | www.vsacapital.com
This email is intended solely for the named recipient. It may contain privileged and/or confidential information. If you are not one of the intended recipients, please notify the sender immediately, and destroy this email: any disclosure, copying to any person or any action taken or omitted to be taken in reliance on this e-mail, is prohibited and may be unlawful. Any views expressed in this message are those of the individual sender, except where specifically stated to be the view of VSA Capital Limited, its subsidiaries or associates. Whilst all efforts are made to safeguard inbound and outbound emails, VSA Capital Limited and its subsidiaries or associates cannot guarantee that attachments are virus-free or compatible with your systems and do not accept any liability in respect of viruses or computer problems experienced.
VSA Capital Limited will use your personal information to administer your account in order to provide any products and services you have requested from us. Your personal information will be kept secure and will not be shared with any other party unless you provide consent to that effect.
VSA Capital Limited is Authorised and Regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.
The Company is registered in England with company number 2405923 at New Liverpool House, 15-17 Eldon Street, London EC2M 7LD.