The first half of the year can be summed up as a time of significant commercial and technical progress across our portfolio, while the overarching financial results reflected difficult market conditions for technology firms and early-stage companies, as anticipated at our year-end results.
Frontier IP Chief Executive Officer Neil Crabb
You can read the full statement for the half year to 31 December 2022 here
Key points
- Pre-tax loss of £0.5 million (31 December 2021: profit of £10.3 million)
- Cash balances of £5.8 million at 31 December 2022 (30 June 2022: £4.4 million; 31 December 2021: £0.3 million)
- Basic earnings per share fell by 97 per cent to 0.49p (31 December 2021: 14.54p)
- Net assets per share of 88.2p as at 31 December 2022 (30 June 2022: 88.5p; 31 December 2021: 84.7p)
- Unrealised profit on the revaluation of investments fell by 97 per cent to £0.4 million (31 December 2021: £11.9 million)
- Fair value of portfolio fell by 9 per cent to £36.1 million at 31 December 2022 (30 June 2022: £39.7 million; 31 December 2021: £43.9 million) reflecting disposals of £3.1 million, additions of £0.6 million and fair value decreases of £1.1 million
- Significant commercial and technical progress across the portfolio
- Appointment of two new Non-Executive Directors
Portfolio and operational highlights
The six months to 31 December 2022 saw several companies gather momentum, achieving commercial, technical and funding milestones:
- Pulsiv raised £1.6 million through an equity funding round to develop and scale up its technology to improve the energy efficiency of power supplies, battery chargers, LED lighting and photovoltaic solar cells. The company has announced distribution agreements with a number of partners globally.
- CamGraPhIC’s novel graphene-based photonics technology is now being tested with potential customers after the company raised £1.26 million through an equity funding round to complete fabrication and testing of demonstration devices. Sir Michael Rake, former chair of BT Group plc, has agreed to join the board of directors in due course.
- The Vaccine Group successfully completed two government-funded projects to develop vaccine candidates for zoonotic diseases, including a transmissible animal vaccine to tackle Lassa fever.
- During the period, Nandi Proteins signed heads of terms with a commercial partner for a meat/fat replacer and successfully completed trials of an egg white replacer on commercial production equipment. Post period end, the company commenced trials, which are now approaching completion, with a potential customer for the egg white replacer.
- Celerum and Elute appointed chief executive officers to strengthen their management teams. Following the launch of Truck Logistics System last year, Celerum is now winning customers.
- Celerum and Elute appointed chief executive officers to strengthen their management teams. Following the launch of Truck Logistics System last year, Celerum is now winning customers.
- Two new portfolio companies, GraphEnergyTech and Enfold Health, were incorporated.
- Frontier IP generated net cash proceeds of £3.4 million through the sale of a further tranche of Exscientia shares to provide working capital and to enable the Group to support portfolio companies.
Post period end
- Alusid announced the results of a successful collaboration with Imerys, a global leader in speciality minerals, to make floor tiles. Floor tiles are estimated to constitute about 60 per cent of the UK tile market.
- Nigel Grierson and Dr David Holbrook were appointed to the Frontier IP Board of Directors and Dame Julia King is appointed Senior Independent Director. The changes take place with immediate effect. Campbell Wilson is to step down from the Board of Directors in April 2023 but will continue to work with selected portfolio companies thereafter in an advisory capacity.
