Curse of Woodford spreads tentacles into universities

DATA released last week showed a fall in the amount invested in university spinouts.

These are where ideas from brainy scientists are turned into companies aiming to cure diseases or use technology to solve problems.

The amount raised dropped from £1.4 billion in 2018 to £1.2billion last year – the first slide for six years – according to the report from database Beauhurst in conjunction with university spinout investor Parkwalk Advisors.

There is little explanation given for the reduction. Many industry sources complain that the Neil Woodford scandal hurt investment into firms in which he was a major backer.

Perhaps the fall was due to Parkwalk being owned by IP Group, the listed university commercialisation giant which counted Woodford as an investor until the fund manager’s implosion last year.

IP Group, whose shares have dived 30 per cent in a year, also invested alongside Woodford on a string of deals.

There is now much less appetite to invest in risky start-ups while others have had to buy out his stakes rather than invest new cash.

■ PETRA Diamonds is expected to give details tomorrow about how its operational programme, dubbed Project 2022, is improving performance at its mines.

That will be important because investors have been fretting over lower diamond prices.

Analysts at Peel Hunt have pencilled in a fall in profits for the first half of its financial year, which ended on December 31.

They reckon underlying earnings will drop from $76 million last year to $64million, and expect a net loss of $4million.

Project 2022 is aimed at boosting cash flows to help Petra pay down its $596million (£457million) debts – eye-watering for a company currently worth just £72 million.

■ FRESH from signing two major American deals costing more than $2 billion, British defence giant BAE Systems is poised to unleash its annual results.

Analysts expect underlying earnings of around £2.1billion, up from £1.9billion the year before.

But some think free cash flow might be what shifts the share price on Thursday.

Scribblers at Deutsche Bank predict it will come in at around

£800 million.

BAE, which employs 86,000 people in more than 40 countries, has set guidance at between £700million and £1billion so if it drops below the bottom end the shares could take a nosedive.