LONDON (ShareCast) - (Sharecast News) - Frontier IP on Wednesday reported that its annual profits more than doubled after a rise in the fair value of its investments led to a leap in revenue.
The asset manager, which is focused on the commercialisation of intellectual property, booked a profit before tax of £2.4m for the 12 months ended 30 June, 160% higher than the year before, as revenue increased by 81% to £4.3m.

The AIM traded company attributed the rise in turnover to an unrealised profit on investments of £3.9m, principally due to movement in fair value of Exscientia and The Vaccine Group.

The fair value of Frontier IP's portfolio jumped by 47% to £13.3m, with the company confident of further growth in its new financial year.

Chief executive Neil Crabb said: "The year to June 2019 represented further strong progress for the group. Our innovative business model and committed approach to executing our strategy means we believe we are well placed to weather any market and political headwinds and in a good position to deliver another positive performance over the year to come."

The company also announced plans to raise £3.5m through a placing of at least 7,000,000 new ordinary shares at 50p each, although the target amount could increase to £4m depending on demand.

Proceeds would be used to support the ongoing needs of the business, to exploit future investment opportunities and the continued development and commercialisation of the company's portfolio.

Frontier IP shares were down by 8.11% at 51.00p at 1027 GMT.

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