LONDON (ShareCast) - (Sharecast News) - University intellectual property commercialisation specialist Frontier IP Group reported a 27% improvement in the fair value of its portfolio to £11.51m in its half-year results on Wednesday, or which was an increase of 43% year-on-year.
The AIM-traded firm said total revenue increased 83% for the six month period ended 31 December to £2.18m, which toe board put down to a higher gain on the revaluation of investments of £1.98m.

Revenue from services rose 61% to £0.19m, while profit before tax was 138% firmer at £1.25m.

That increase was said to reflect the higher gain on the revaluation of investments, and accounting for greater administrative costs, which rose to £0.94m from £0.67m year-on-year.

Basic earnings per share were 172% higher at 3.18p, while net assets per share totalled 38.8p as at 31 December, up from 33.2p at the end of June and 32.0p one year prior.

Cash balances stood at £2.53m as at period end, rising from £1.11m at the end of June and £1.85m year-on-year, following a placing in November which raised £2.33m net of expenses.

"Our business model is based on proving the commercial value of intellectual property by working closely with universities, academics and industry," said chief executive Neil Crabb.

"Only when we are confident the technology works, can be scaled up, and meets a market need or demand, will we ask investors to make significant commitments to the portfolio companies.

"The first half of the year provides further evidence our approach is gaining traction with stakeholders."

Crabb noted that four companies announced collaboration agreements with industrial partners during the period, all of which he described as "among the leaders" in their respective sectors.

Three new spin outs joined the portfolio, he added, including the first two in Portugal - a market where Frontier IP aimed to be the market leader.

"Palintest, a subsidiary of FTSE 100 group Halma, has started the commercial roll out of bathing water testing kit SirenBW, based on Molendotech's IP, while Alusid gained strong support for its £1.34 million fundraising to support planning for manufacturing scale up.

"We are mindful of the risks in the group," Crabb explained.

"The nature of the early and development stage companies in our portfolio means their rate of progress or eventual success cannot always be assured."

However, he said the interim numbers were "strong" results.

"We have generated momentum on all fronts - new spin outs, industry partnerships, and raising funds from private and public sector sources - during the first half.

"The momentum has gathered pace into the second half of the year.

"That's why, based on trading for the year to date and what we see coming down the line, we anticipate that the outcome for the full financial year, ending 30 June 2019, will be ahead of management expectations."

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