TIDMFIPP
RNS Number : 0574F
Frontier IP Group plc
17 March 2022
17 March 2022
Frontier IP Group plc
("Frontier IP" or the "Group" or the "Company")
UNAUDITED HALF YEAR RESULTS FOR THE SIX MONTHS TO 31 DECEMBER
2021
Frontier IP, a specialist in commercialising intellectual
property, is pleased to announce its unaudited interim results for
the six month period ended 31 December 2021.
KEY POINTS
-- Pre-tax profits rose by 239 per cent to GBP10.3 million (31 December 2020: GBP3.0 million)
-- Unrealised profit on the revaluation of investments rose by
197 per cent to GBP11.9 million (31 December 2020: GBP4.0
million)
-- Fair value of portfolio rose by 37 per cent to GBP43.9
million at 31 December 2021 (30 June 2021: GBP32.0 million; 31
December 2020: GBP23.4 million)
-- Basic earnings per share increased by 162 per cent. to 14.54p (31 December 2020: 5.56p)
-- Net assets per share increased to 84.7p as at 31 December
2021 (30 June 2021: 69.8p; 31 December 2020: 56.8p)
-- Post period end, the Group realised approximately GBP6.1
million through the sale of 25% of its holding in Exscientia
Frontier IP made strong progress during the first half of the
financial year. The results are ahead of management expectations,
as anticipated in the trading update released on 12 January
2022.
The Group saw good progress across its portfolio, with a focus
on the achievement of technical, commercial, or funding milestones
and building management teams.
The highlight was Exscientia's successful listing on the Nasdaq
Global Select Market at a valuation of $2.9 billion in October
2021, the first of our portfolio companies to float. After the
period end, the Group sold 25% of its shareholding in the company,
raising a total of approximately GBP6.1 million in cash for an
aggregate realised gain of GBP2.79 million. The Group intends to
use the cash proceeds to provide further support for the portfolio
and for general working capital purposes. Frontier IP retains
1,173,600 shares in Exscientia.
The Vaccine Group announced a major technical milestone in the
development of its next-generation COVID-19 vaccine for use in
humans with successful pre-clinical trials.
CamGraPhIC raised GBP1.6 million through an equity fundraising
to accelerate development and scale up of its graphene-based
photonics technology for high-speed telecommunications.
Pulsiv strengthened its management team with the appointment of
Adam Westcott as Chief Financial Officer.
Post period end, Celerum launched its first commercial product
and announced it had signed its first customer. A pan-European
project coordinated by Cambridge Raman Imaging was awarded EUR3.3
million by the European Innovation Council to develop a high-speed,
low-cost Raman imaging device with the potential to transform
cancer diagnosis and treatment.
The Group was also delighted to welcome Dame Julia King,
Baroness Brown of Cambridge, DBE FREng FRS to the Frontier IP board
as an independent non-executive director. Her immense experience
across industry and government will be invaluable.
The proceeds raised from the sale of Exscientia shares
significantly strengthened the balance sheet. The Group is well
placed to provide support to its business and portfolio for the
foreseeable future, despite the risks and uncertainties currently
faced. These include the impact of the Russian invasion of Ukraine,
energy costs and inflation, as well as the continued impact of
COVID-19. Progress across the portfolio remains encouraging and the
Group looks forward to announcing further positive news in the
coming months.
PORTFOLIO AND OPERATIONAL HIGHLIGHTS
The six months to 31 December 2021 saw momentum growing across
the portfolio and continuing after the period end. Several
companies are now at or approaching important inflection
points:
-- Exscientia raised a total of $510.4 million through an
upsized initial public offering and concurrent private placement as
it listed on the Nasdaq Global Select Market with a valuation of
$2.9 billion. The company also announced a $70 million
collaboration agreement with the Bill & Melinda Gates
Foundation to develop antiviral therapeutics.
-- The Vaccine Group announced a significant milestone in the
development of its next generation COVID-19 vaccine. Pre-clinical
pig trials demonstrated the company's vaccine candidate had the
potential to provide broad immunity against SARS-CoV-2 and future
variants.
-- CamGraPhIC raised GBP1.6 million through an equity funding
round to accelerate development and scale up of its graphene-based
photonics technology for scalable, faster, cheaper and more energy
efficient optical transceivers.
-- Pulsiv strengthened its management team with the appointment
of Adam Westcott as Chief Financial Officer. Adam has more than 20
years' finance experience at senior levels.
-- Dame Julia King, Baroness Brown of Cambridge DBE FREng FRS
joined the Frontier IP Group board as an independent non-executive
director. She replaced Michael Bourne, who stepped down during the
period under review.
Post period end:
-- Frontier IP significantly strengthened its balance sheet by
raising approximately GBP6.1 million through the sale of part of
its stake in Exscientia, which is the Group's first realisation
from the portfolio.
-- Exscientia announced a strategic research collaboration with
Sanofi to accelerate the discovery of new drugs across oncology and
immunology. The agreement is worth $100 million to Exscientia in an
upfront cash payment with the potential for $5.2 billion in total
milestones plus tiered royalties.
-- Cambridge Raman Imaging announced it is coordinating a
pan-European project to develop high-speed, low-cost Raman imaging
devices for cancer diagnosis and treatment. The project, called
CHARM, has been awarded EUR3.3 million by the European Innovation
Council.
-- Celerum has launched Truck Logistics System, its first
commercial product using novel artificial intelligence based on
nature inspired computing. The software improves road haulage
efficiency, cutting costs, carbon emissions and delivery times. A
road haulier has become the first customer.
FINANCIAL HIGHLIGHTS
-- Profit before tax increased 239 per cent. to GBP10,281,000
(31 December 2020: GBP3,033,000), with the increase reflecting the
higher gain on revaluation of investments
-- Unrealised profit on the revaluation of investments increased
197 per cent. to GBP11,914,000 (31 December 2020: GBP4,009,000)
-- Fair value of the portfolio of equity investments increased
37 per cent. to GBP43,892,000 at 31 December 2021 (30 June 2021:
GBP31,982,000), an increase of 87 per cent. year on year (31
December 2020: GBP23,449,000)
-- Revenue from services decreased 11 per cent. to GBP163,000 (31 December 2020: GBP184,000)
-- Basic earnings per share increased by 162 per cent. to 14.54p (31 December 2020: 5.56p)
-- Net assets per share increased to 84.7p as at 31 December
2021 (30 June 2021: 69.8p; 31 December 2020: 56.8p)
-- Cash balances stood at GBP346,000 as at 31 December 2021 (30
June 2021: GBP1,992,000; 31 December 2020: GBP3,818,000). Post
period end, the Group raised an aggregate of GBP6,088,000 through
the sale of 25% of its holding in Exscientia
Chief Executive Neil Crabb said: " These results are ahead of
management expectations and reflect an excellent performance for
the first half of the year. The growth in fair value and unrealised
profit on revaluation of investments demonstrates our distinctive
business model and innovative approach to commercialising
intellectual property continues to deliver. The results demonstrate
good growth and gathering momentum across the portfolio.
This time last year, I said we would be looking to strengthen
management teams across the portfolio as companies reached
important inflection points and started to gain tangible commercial
traction. We then announced the appointments of Darrel Kingham,
Jeremy Salt and David Flower as Chief Executive Officers of Pulsiv,
The Vaccine Group and Nandi Proteins respectively.
During the first half of this year, we continued to build our
portfolio management teams. Pulsiv appointed Adam Westcott as Chief
Financial Officer. He has more than 20 years' experience in senior
finance roles, which will prove invaluable as the company moves
forward.
I am delighted with the impact the strengthened teams are having
on accelerating progress within our companies. The Vaccine Group
announced highly encouraging progress in developing a
next-generation COVID-19 vaccine with the potential to provide
broad immunity against SARS-CoV-2 and any future variants. Pulsiv
and Nandi are also developing strongly: we are hopeful of positive
news in the coming months.
Post period end, Celerum launched its first commercial product
and announced its first customer. The company is developing novel
artificial intelligence based on nature-inspired computing. A
project coordinated by Cambridge Raman Imaging to develop
high-speed, low-cost Raman imaging technology and artificial
intelligence to transform cancer diagnosis and treatment won a
EUR3.3 million grant from the European Innovation Council, also
after the period end.
Two portfolio companies raised equity funding during the period.
CamGraPhIC raised GBP1.6 million to accelerate development of its
graphene-based photonics technology, which has the potential to
become a core enabling technology for 5G telecommunications and
beyond. It has garnered strong interest from major telecom
companies.
Exscientia is now firmly established as a world leader in using
artificial intelligence to drive the discovery of new drugs several
years faster than industry benchmarks. The company successfully
raised a total of $510 million in October 2021 through an upsized
initial public offering on Nasdaq and private placement. It also
announced a $70 million collaboration with the Bill & Melinda
Gates Foundation to develop new anti-viral therapeutics against
coronavirus and other viruses with pandemic potential. Post period
end, the company unveiled a strategic research collaboration with
Sanofi with an upfront payment of $100 million.
In January and February, we sold a quarter of our holding in
Exscientia, raising a total of approximately GBP6.1 million in
cash, our first realisation. Frontier IP was one of the founding
shareholders in the company, so we are very proud of its success
and have every confidence in its future prospects.
We are now in a time of considerable economic and market
uncertainty. Even before the Russian invasion of Ukraine, risks
were building. The COVID-19 pandemic has yet to end; there remains
the possibility of new variants emerging. Supply chains, such as
those for semiconductors, are under pressure. There are other
potential political flashpoints outside of Ukraine . Energy prices
and inflation were already rising before the war began and, of
course, the conflict could compound these problems. All these could
affect the ability of our portfolio companies to continue to make
progress at the desired rate. This is a challenge we are managing.
We have reviewed the portfolio to identify specific risk factors to
be in a position to mitigate or manage them.
In these febrile times, it is difficult to predict what might
happen in the coming months and how we might be affected. However,
the companies in our portfolio are seeking to help tackle some of
the most pressing long-term problems we face today. Pulsiv, for
example, could have a major impact on the energy sector by
significantly reducing the energy taken from the grid by a huge
range of different devices, and improving the output from
photovoltaic cells. Celerum improves the efficiency of supply
chains and logistics: Alusid cuts the energy needed to make a tile
by up to 29 per cent. Exscientia, The Vaccine Group, and Cambridge
Raman Imaging are all striving for better health outcomes, while
Fieldwork Robotics and Nandi Proteins meet a range of food and
agricultural challenges.
The Exscientia share sales mean we have a strong balance sheet.
We are well placed to provide additional support to our portfolio
companies should it be required. The fundamentals of our business
and those of our portfolio companies remain. We are in a good
position to weather the highly uncertain climate we are currently
experiencing and stay confident in our future prospects."
ENQUIRIES
Frontier IP Group Plc T: 020 3968 7815 neil@frontierip.co.uk
Neil Crabb, Chief Executive
M: 07464 546 025
Andrew Johnson, Communications & Investor andrew.johnson@frontierip.co.uk
Relations
Company website: www.frontierip.co.uk
Allenby Capital Limited (Nominated T: 0203 328 5656
Adviser)
Nick Athanas / George Payne
Singer Capital Markets (Broker) T: 0207 496 3000
Sandy Fraser / Harry Gooden / George
Tzimas
ABOUT FRONTIER IP
Frontier IP unites science and commerce by identifying strong
intellectual property and accelerating its development through a
range of commercialisation services. A critical part of the Group's
work is involving relevant industry partners at an early stage of
development to ensure technology meets real world demands and
needs.
The Group looks to build and grow a portfolio of equity stakes
and licence income by taking an active involvement in spin-out
companies, including support for fund raising and collaboration
with relevant industry partners at an early stage of
development.
Interim Management Statement
Summary
Frontier IP made strong progress during the period in developing
portfolio companies and creating value for shareholders by:
-- Realising funds from the portfolio. Post period end, the
Group raised approximately GBP6.1 million by selling part of its
stake Exscientia to ensure financial strength for the foreseeable
future.
-- Supporting portfolio fundraisings: CamGraPhIC completed a
GBP1.6 million equity funding round.
-- Strengthening the board of directors. Dame Julia King,
Baroness Brown of Cambridge DBE FREng FRS joined the Group as an
independent non-executive director and now sits on the audit and
remuneration committees. She is an engineer with immense experience
across industry and government, and has held senior roles at
Rolls-Royce, Imperial College and Aston University. She is
currently chair of the Carbon Trust.
-- Helping to support industry partnerships across the
portfolio. Alusid has signed a commercial agreement to supply a
major tile retailer. We expect to announce further positive news in
the coming months.
-- Increasing portfolio value: fair value of the portfolio of
equity investments increased 37 per cent. to GBP43,892,000 at 31
December 2021 (30 June 2021: GBP31,982,000), an increase of 87 per
cent. year on year (31 December 2020: GBP23,449,000).
Operational Review
The Group and its portfolio companies made strong financial,
commercial and technical progress during the half year to 31
December 2021. Our portfolio continues to grow in value and mature
with several companies now at or approaching important inflection
points. We further developed our relationships with university,
government and industry partners, and strengthened our board of
directors. Much of the work conducted during the first half of the
year is expected to result in strong positive news flow in the
coming months.
Portfolio developments included:
Alusid: Frontier IP stake 35.6 per cent
Alusid's innovative formulations and processes create beautiful,
premium-quality tiles, tabletops and other surfaces by recycling
industrial waste ceramics and glass, most of which would otherwise
be sent to landfill. Its processes also use less energy and water
than conventional tile manufacturing.
Alusid's sustainable process technology uses up to 29 per cent
less energy than conventional tile manufacture while still running
on the same equipment, reducing CO(2) emissions. Its product is
made from recycled waste, much of which would otherwise end in
high-impact landfill. During the period, Alusid signed a commercial
agreement to supply a major tile retailer.
CamGraPhIC: Frontier IP stake 20.8 per cent
CamGraPhIC is developing graphene-based photonics for high-speed
data and telecommunications. These are seen by the company's
industrial partners as a key enabler for 5G technologies and
beyond, and they have potential applications in other sectors.
Current versions of the technology have indicated speeds of up to
100Gbps per lane, operation across multiple wavebands and very low
energy loss. Their speed is about twice that achieved in laboratory
conditions by equivalent technologies, while they consume 75 per
cent less energy. The company raised GBP1.6 million during the
period to accelerate development and scale up of the
technology.
Exscientia: Frontier IP stake 1.3 per cent
Exscientia is a world leader in using artificial intelligence
for drug discovery, taking years off the time it takes to develop
new drugs through traditional methods. The company is collaborating
with a range of pharmaceutical firms, including Bristol Myers
Squibb, Bayer, Apeiron and Rallybio. During the period, the company
listed on the Nasdaq Global Select Market, raising a total of
$510.4 million through an upsized initial public offering and
concurrent private placement. The company also announced a $70
million collaboration agreement with the Bill & Melinda Gates
Foundation to develop antiviral therapeutics to tackle
coronaviruses and other viruses with pandemic potential. After the
period end, the company announced a strategic research
collaboration with Sanofi, worth $100 million in upfront payments
and with the potential for a further $5.2 billion in milestone and
tiered royalty payments.
Pulsiv: Frontier IP stake 18.3 per cent
Pulsiv is developing a unique power conversion technology which
significantly improves the efficiency with which electricity is
converted from AC to DC and vice versa. Conventional technologies
waste up to half the energy consumed by a device - one reason, for
example, that laptop power converters get warm as the wasted energy
is lost through heat. Pulsiv's technology converts about 90 per
cent of electricity going into a device. The company is gaining
commercial traction, and its solutions have the potential to
enhance a broad range of mains-powered products, battery chargers
and lighting applications. It can also extract more power from
photovoltaic solar cells. During the period, the company announced
the appointment of Adam Westcott as Chief Financial Officer. Adam
has more than 20 years' experience at senior levels for both
entrepreneurial growth businesses and in investment banking, where
he advised companies working on equity, debt, mergers and
acquisitions.
The Vaccine Group: Frontier IP stake 17 per cent
The Vaccine Group is developing novel herpesvirus-based vaccines
to protect against infectious diseases that can have significant
social and economic impact. They fall into two broad categories:
zoonotic diseases, such as COVID-19, which jump from animals to
humans; and diseases which have a high impact on production of
economically important livestock. The company is developing
vaccines to address a growing number of diseases, all for use in
animals with the exception of its COVID-19 vaccine, which is being
developed for use in humans. Diseases targeted include Lassa fever,
Ebola, streptococcus suis (an emerging zoonotic disease in pigs),
African swine fever, and porcine reproductive and respiratory
syndrome. This is being developed in collaboration with The
Pirbright Institute and ECO Animal Health Group. During the period,
the company announced that pre-clinical trials in pigs demonstrated
that its next-generation COVID-19 vaccine candidate had the
potential to provide broad immunity against SARS-CoV-2 and future
variants.
Other post period end portfolio developments
Cambridge Raman Imaging: Frontier IP stake 25.8 per cent
Cambridge Raman Imaging (CRI) is developing graphene-based
ultrafast lasers and artificial intelligence to generate digital
images of patient tissue, removing the need for chemical staining.
The images can also be viewed remotely, allowing histopathologists
to work more efficiently and to support regions and countries short
of qualified staff. CRI is part of CRIMSON, a pan-European project
developing technology to monitor diseases, such as cancers,
unfolding in cells in real time. This has the potential to deepen
understanding of the cellular origins of disease and enable the
development of new treatments. The company is also collaborating
with Motic, a major medical devices manufacturer. After the period
close, CRI announced it was coordinating a pan-European project
awarded EUR3.3 million by the European Innovation Council. The
project, CHARM, aims to develop a low-cost, high-speed Raman
imaging technology and artificial intelligence to transform cancer
diagnosis and treatment. Partners include the University of
Cambridge, the Politecnico di Milano and Consiglio Nazionale Delle
Ricerche and Jena University Hospital.
Celerum: Frontier IP stake 33.8 per cent
Celerum is developing novel artificial intelligence based on
nature inspired computing to optimise the operational efficiency of
logistics and supply chains. Nature inspired computing creates
algorithms using lessons from the natural world where evolution has
overcome inefficiency. For example, bees and ants are extremely
good at finding the best routes to food sources or returning to
their nests. A pilot project including Celerum organised by
Highlands and Islands Enterprise found that NIC-based artificial
intelligence cut carbon emissions by up to 40 per cent across food
and drink supply chains when allied to behavioural changes such as
load sharing between producers and hauliers. A wider ranging
follow-up project is now being planned. Post period end, Celerum
announced the launch of its first commercial product, Truck
Logistics System, which has won its first customer, a road
haulier.
Corporate developments
The Group appointed Dame Julia King, Baroness Brown of Cambridge
DBE, FREng FRS, as an independent non-executive director in October
2021. Baroness Brown is an engineer with immense experience across
industry and government. Following an academic career at the
University of Cambridge, Julia held senior engineering and business
roles at Rolls-Royce, before returning to academia as Principal of
Engineering at Imperial College and then as Vice Chancellor and
Chief Executive of Aston University. She is currently chair of the
Carbon Trust and chairs the Science and Technology Committee in the
House of Lords, where she is a crossbench peer.
After the period close, the Group realised approximately GBP6.1
million in cash by selling part of its stake in Exscientia.
Outlook
Frontier IP faces the future with confidence. However, we are
mindful of the likelihood of a period of uncertainty driven by a
number of global factors including, most recently, the Russian
invasion of Ukraine. The money raised through the partial sale of
our Exscientia equity holding means our balance sheet is strong,
providing us with the capital to support the Group and its
portfolio companies.
Across the portfolio we are seeing continued momentum, with
companies reaching important inflection points marking significant
commercial, technical and industry progress. We expect this
progress to be reflected by strong positive news flow in the months
to come.
Neil Crabb
Chief Executive Officer
Results Summary
Financial assets at fair value through profit and loss at 31
December 2021 increased to GBP46,665,000 (30 June 2021:
GBP34,302,000; 31 December 2020: GBP25,093,000). Unrealised profit
on the revaluation of investments over the first half increased by
197 per cent. to GBP11,914,000 (2020: GBP4,009,000) with the
increase in the value of Exscientia providing the most significant
contribution. Revenue from services decreased to GBP163,000 (2020:
GBP184,000). The profit before tax increased by 239 per cent. to
GBP10,281,000 (2020: GBP3,033,000) reflecting the higher investment
revaluations while profit after tax increased by 164 per cent. to
GBP7,998,000 (2020: GBP3,033,000). Administrative expenses
increased by 65 per cent. to GBP1,733,000 (2020: GBP1,049,000)
reflecting a company-wide bonus of GBP494,000, which is to be paid
in March 2022. The share-based payment charge remained flat at
GBP161,000 (2020: GBP160,000). Basic earnings per share were 14.54p
(2020: 5.56p).
Cash balances stood at GBP346,000 as at 31 December 2021 (30
June 2021: GBP1,992,000; 31 December 2020: GBP3,818,000). Post
period end, the Group realised GBP6,088,000 through the sale of 25%
of its holding in Exscientia. Net assets per share as at 31
December 2021 were 84.7p (30 June 2021: 69.8p; 31 December 2020:
56.8p). Debt investments reflecting loans made to portfolio
companies stood at GBP2,773,000 as at 31 December 2021 (30 June
2021: GBP2,320,000; 31 December 2020: GBP1,644,000).
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the six months ended 31 December 2021
Six months Six months Year ended
ended 31 ended 31 30 June
December December 2021 (audited)
Notes 2021 (unaudited) 2020 (unaudited)
GBP'000 GBP'000 GBP'000
Revenue
Revenue from services 163 184 362
Other operating income
Unrealised profit on the revaluation
of
investments 7 11,914 4,009 12,306
12,077 4,193 12,668
Administrative expenses (1,733) (1,049) (2,171)
Share based payments (161) (160) (368)
Other income 97 25 104
Profit from operations 10,280 3,009 10,233
Interest income on short-term
bank deposits 1 24 9
Profit from operations and before
tax 10,281 3,033 10,242
Taxation 5 (2,283) - (676)
Profit and total comprehensive
income attributable to the equity
holders of the Company 7,998 3,033 9,566
================== =================== ================
Profit per share attributable
to the equity
holders of the parent
Basic earnings per share 6 14.54p 5.56p 17.47p
Diluted earnings per share 6 13.67p 5.31p 16.62p
All the Group's activities are classed as continuing and there
were no comprehensive gains or losses in any period other than
those included in the statement of comprehensive income.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
At 31 December 2021
As at 31 As at 31 As at
December December 30 June
2021 (unaudited) 2020 (unaudited) 2021 (audited)
GBP'000 GBP'000 GBP'000
ASSETS Notes
Non-current assets
Tangible fixed assets 9 8 11
Goodwill 1,966 1,966 1,966
Financial assets at fair
value through profit and
loss
Equity investments 7 43,892 23,449 31,982
Debt investments 7 2,773 1,644 2,320
Trade receivables and other
non-current assets - 9 -
------------------- ------------------- ----------------
48,640 27,076 36,279
------------------- ------------------- ----------------
Current assets
Trade receivables and other
current assets 924 506 595
Cash and cash equivalents 346 3,818 1,992
------------------- ------------------- ----------------
1,270 4,324 2,587
Total assets 49,910 31,400 38,866
LIABILITIES
Non-current liabilities
Deferred taxation (2,507) - (237)
------------------- ------------------- ----------------
(2,507) - (237)
------------------- ------------------- ----------------
Current liabilities
Trade and other payables (809) (159) (208)
------------------- ------------------- ----------------
(809) (159) (208)
------------------- ------------------- ----------------
Total liabilities (3,316) (159) (445)
------------------- ------------------- ----------------
Net assets 46,594 31,241 38,421
=================== =================== ================
EQUITY
Called up share capital 5,501 5,501 5,501
Share premium account 14,576 14,576 14,576
Reverse acquisition reserve (1,667) (1,667) (1,667)
Share based payment reserve 1,451 637 1,276
Retained earnings 26,733 12,194 18,735
------------------- ------------------- ----------------
Total equity 46,594 31,241 38,421
=================== =================== ================
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the six-months ended 31 December 2021
Share-
Share Reverse based Profit
Share premium acquisition payment and loss
capital account reserve reserve account Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 1st July 2020 5,076 12,819 (1,667) 477 9,161 25,866
Issue of shares 425 1,757 - - - 2,182
Share-based payments - - - 160 - 160
Profit/comprehensive
income for the
period - - - - 3,033 3,033
At 31 December
2020 5,501 14,576 (1,667) 637 12,194 31,241
---------- ---------- -------------- --------- ----------- --------
Share-based payments - - - 639 - 639
Profit/comprehensive
income for the
period - - - - 6,541 6,541
---------- ---------- -------------- --------- ----------- --------
At 30 June 2021 5,501 14,576 (1,667) 1,276 18,735 38,421
---------- ---------- -------------- --------- ----------- --------
Share-based payments - - - 175 - 175
Profit/comprehensive
income for the
period - - - - 7,998 7,998
At 31 December
2021 5,501 14,576 (1,667) 1,451 26,733 46,594
========== ========== ============== ========= =========== ========
CONSOLIDATED STATEMENT OF CASH FLOWS
For the six months ended 31 December 2021
Six months Six months Year ended
ended 31 ended 31 30 June
December December 2021 (audited)
2021 (unaudited) 2020 (unaudited) GBP'000
GBP'000 GBP'000
Cash flows from operating activities
Cash used in operations (1,196) (573) (1,466)
Taxation paid - - -
------------------ ------------------ ----------------
Net cash used in operating activities (1,196) (573) (1,466)
------------------ ------------------ ----------------
Cash flows from investing activities
Purchase of tangible fixed assets (2) (6) (12)
Purchase equity investments (69) (52) (71)
Purchase of debt investments (380) (725) (1,618)
Disposal of debt investments - - -
Interest received 1 24 9
Other income - - -
------------------ ------------------ ----------------
Net cash used in investing activities (450) (759) (1,692)
------------------ ------------------
Cash flows from financing activities
Proceeds from issue of equity shares - 2,334 2,334
Costs of share issue - (152) (152)
------------------ ------------------ ----------------
Net cash generated from financing
activities - 2,182 2,182
------------------ ------------------ ----------------
Net (decrease) / increase in cash
and cash equivalents (1,646) 850 (976)
Cash and cash equivalents at beginning
of period 1,992 2,968 2,968
------------------ ------------------ ----------------
Cash and cash equivalents at end
of period 346 3,818 1,992
================== ================== ================
Cash used in operations
Profit before tax 10,281 3,033 10,242
Adjustments for:
Share-based payments 161 160 368
Depreciation 4 3 6
Interest received (1) (24) (9)
Other income - - -
Fair value (gain) on financial assets
at fair value through profit or loss (11,914) (4,009) (12,306)
Changes in working capital:
Trade and other receivables (329) 315 235
Trade and other payables 602 (51) (2)
(1,196) (573) (1,466)
================== ================== ================
NOTES
1. General information
The Company is a limited liability company incorporated in
England and with its registered office at c/o CMS Cameron McKenna
Nabarro Olswang LLP, 78 Cannon Street, London EC4N 6AF. The
Company's main trading office is situated at 93 George Street,
Edinburgh, EH2 3ES.
The Company is quoted on the AIM market.
This condensed consolidated interim financial information was
approved and authorised for issue by a duly appointed and
authorised committee of the Board of Directors on 16(th) March
2022.
This condensed interim financial information has not been
audited or reviewed by the Company's auditor.
2. Basis of preparation
This condensed consolidated interim financial information for
the six months ended 31 December 2021 has been prepared in
accordance with International Accounting Standard 34 "Interim
Financial Reporting". The condensed consolidated interim financial
information should be read in conjunction with the annual financial
statements for the year ended 30 June 2021, which have been
prepared in accordance with International Financial Reporting
Standards (IFRS) as adopted by the EU.
This condensed consolidated interim financial information does
not constitute statutory accounts within the meaning of section 434
of the Companies Act 2006. The comparatives for the full year ended
30 June 2021 are not the Company's full statutory accounts for that
year. A copy of the statutory accounts for that year has been
delivered to the Registrar of Companies. The auditor's report on
those accounts was unqualified and did not contain a statement
under sections 498(2) or 498(3) of the Companies Act 2006.
3. Accounting policies
The accounting policies applied by the Group in these unaudited
half year results are consistent with those applied in the annual
financial statements for the year ended 30 June 2021 as described
in the Group's Annual Report for that year and as available on our
website www.frontierip.co.uk . No new standards that have become
effective in the period have had a material effect on the Group's
financial statements.
Taxes on income in the interim periods are accrued using the tax
rate that would be applicable to expected total annual
earnings.
4. Segmental information
The chief operating decision-maker has been identified as the
Group's board of directors. The board reviews the Group's internal
reporting to assess performance and allocate resources. Currently
the board considers that the Group has one operating activity, the
commercialisation of intellectual property. The Group's revenue and
profit before taxation were derived almost entirely from its
principal activities within the UK. Though the Group has a
Portuguese subsidiary as well as partnerships and spin outs in
Portugal the associated revenues and costs are currently immaterial
and, accordingly, no additional geographical disclosures are
given.
5. Taxation
The taxation expense for the six months to 31 December 2021 of
GBP2,283,000 (31 December 2020: nil) represents the recognition of
a deferred tax liability on unrealised fair value gains less the
recognition of available tax losses.
A deferred tax asset in respect of trading losses arising before
1 April 2017 has not been recognised in view of the uncertainty as
to the level of future taxable trading profits.
6. Earnings per share
The calculation of the basic earnings per share for the six
months ended 31 December 2021 and 31 December 2020 and for the year
ended 30 June 2021 is based on the earnings attributable to the
shareholders of Frontier IP Group Plc in each period divided by the
weighted average number of shares in issue during the period.
Basic earnings per share Weighted
Earnings average
attributable number of Basic earnings
to shareholders shares per share
GBP'000 Number Pence
Six months ended 31 December
2021 7,998 55,005,546 14.54
Six months ended 31 December
2020 3,033 54,521,275 5.56
Year ended 30 June 2021 9,566 54,761,420 17.47
Weighted
Diluted earnings per share Earnings average Diluted
attributable number of earnings
to shareholders shares per share
GBP'000 Number Pence
Six months ended 31 December
2021 7,998 58,509,845 13.67
Six months ended 31 December
2020 3,033 57,119,246 5.31
Year ended 30 June 2021 9,566 57,548,082 16.62
7. Financial assets at fair value through profit and loss
Equity investments comprise the following:
Unquoted Quoted Equity Total
Equity Investments Investments
GBP'000 GBP'000 GBP'000
At 1(st) July 2020 19,444 - 19,444
Additions 52 - 52
Fair value increases 4,512 - 4,512
Fair value decreases (559) - (559)
-------------------- -------------- --------
At 31(st) December
2020 23,449 - 23,449
-------------------- -------------- --------
Additions 20 - 20
Disposals - - -
Conversion of debt 276 - 276
Fair value increases 8,325 - 8,325
Fair value decreases (88) - (88)
-------------------- -------------- --------
At 30(th) June 2021 31,982 - 31,982
-------------------- -------------- --------
Additions 69 - 69
Conversion of debt 135 - 135
Reclassification (13,211) 13,211 -
Fair value increases 2,044 9,695 11,739
Fair value decreases (33) - (33)
-------------------- -------------- --------
At 31(st) December
2021 20,986 22,906 43,892
==================== ============== ========
The valuation of the Group's investment in Exscientia at 31
December 2021 was GBP22,906,000, 52% of the Group's total equity
investments and 49% of its net assets at 31 December 2021. The
increase in the value of the Group's holding in Exscientia over the
six months to 31 December 2021 was GBP9,695,000, 81% of the Group's
net unrealised profit on the revaluation of investments and 94% of
profit before tax for the six months to 31 December 2021.
Debt investments comprise the following:
Unquoted
Debt Instruments
GBP'000
At 1(st) July 2020 863
Additions 725
Fair value increases 136
Fair value decreases (80)
------------------
At 31(st) December
2020 1,644
------------------
Additions
Fair value increases 893
Disposals -
Conversion of debt (276)
Fair value increases 136
Fair value decreases (77)
------------------
At 30(th) June 2021 2,320
------------------
Additions 380
Conversion of debt (135)
Reclassification -
Fair value increases 246
Fair value decreases (38)
------------------
At 31(st) December
2021 2,773
==================
Debt investments are loans to portfolio companies to fund
early-stage costs, provide funding alongside grants and bridge to
an equity fundraise. Certain debt investments carry warrants
granting the option to purchase shares.
The most significant loans made during the six months to 31
December 2021 were to CamGraPhIC. (GBP170,000) and Alusid
(GBP100,000). The most significant debt investments at 31 December
2021 were loans to CamGraPhIC (GBP1,117,000), Nandi Proteins
(GBP606,000) and Alusid (GBP351,000).
8. Copies of Half Yearly Report
Copies of the Half Yearly Report will be available on the
Company's website, www.frontierip.co.uk , and on request from the
Company's offices at 93 George Street, Edinburgh EH2 3ES no later
than 21(st) March 2022.
9. Subsequent events
After the period end, the Group sold 25% of its shareholding in
Exscientia, raising a total of approximately GBP6.1 million in cash
for a realised gain of GBP2.79 million.
10. Equity holdings
All Group equity holdings in portfolio companies in the interim
management statement are as at 31 December 2021.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
IR FFFLLVLIRLIF
(END) Dow Jones Newswires
March 17, 2022 03:00 ET (07:00 GMT)
Frontier IP (AQSE:FIPP.GB)
Gráfico Histórico do Ativo
De Dez 2024 até Jan 2025
Frontier IP (AQSE:FIPP.GB)
Gráfico Histórico do Ativo
De Jan 2024 até Jan 2025
