IP investment group sees profits rise

Shares in AIM-listed Frontier IP moved lower in early trading yesterday despite the intellectual property group reporting a rise in revenues and profits.

Audited annual results show the group, which has made investments in several early stage companies spinningout from Dundee and St Andrews Universities including growing AI-drug design group Exscientia, produced revenues of £2.3 million in the year to June 30, a 14% uplift on the £2.03m of the year previous.

Pre-tax profits in the period climbed by 9% to £1.22m and the fair value of the group’s investment portfolio climbed by 45% from £4.65m to £6.72m.

One of the major highlights of Frontier’s year was the completion of a successful £3m fundraising in March.

The cash, raised through the issue of 7.5m new shares, will be used to accelerate the company’s growth and expand its resourcing in key areas of activity in the UK and overseas.

“I am pleased to report on another year of progress as we continue to develop our portfolio and lay the foundations for future value creation,” said chief executive Neil Crabb.

“Our portfolio is growing, with four new spin-outs during the year, and maturing, with a number of our portfolio companies making significant technical and commercial progress.

“In particular, we have seen strong interest from industry, both scientific and investment, the collaboration and investment deals secured by Exscientia being a prime example.

“The quality of new opportunities that the group is seeing from the academic and research community both within the UK and abroad is growing – we established a third spin-out from the University of Cambridge and we were pleased to welcome our second partnership in Portugal during the year.

“We are looking forward to another productive year and plan to continue to expand our team to meet the needs of our developing portfolio and partnerships.”

Despite the progress, investors were cautious and the group’s shares moved more than 4% lower in early trading.

They closed down 1.98 at 47.02 following yesterday’s trading session.

Daniel Crowther, of Exscentia. Frontier IP was an early stage investor in the AI drug discovery group.