LONDON (Alliance News) - Imperial Innovations Group PLC, a technology commercialisation and investment company, on Wednesday said it has the ability to cope with any challenges that arise amid new capital and increased investor interest in the key players in its sector.
The battle cry came as Imperial Innovations said it made a GBP15.1 million pretax profit in the year ended July 31, compared with GBP27.4 million in the prior year, with the fall primarily due to lower fair value gains on investments. No dividend payment was recommended.
Chairman Martin Knight pointed to portfolio company Circassia Pharmaceuticals PLC's "transformation" into a FTSE 250 specialty biopharmaceutical company as a "key highlight" of the year, following its completion of two acquisitions and GBP275.0 million placing.
"The business model is proven beyond doubt. We have created a strong platform, based on access to the UK's finest science-driven intellectual property, a highly professional investment capability and an executive team with a deep understanding of both the academic mind set and know-how to commercialise early-stage technology," Knight said in a statement.
The company said it invested GBP60.8 million across 30 portfolio companies in the year ended July 31, with companies inside its portfolio raising a total of GBP479.9 million. The net value of its portfolio rose by GBP75.2 million to GBP327.2 million over the course of the year.
Imperial Innovations said its expertise in assessing the likely success of new scientific ideas, its ability to attract top managers and fellow investors to businesses, and ability to provide continuity of funding its portfolio companies are the three main reasons it can succeed.
Its six largest unlisted portfolio companies - Nexeon, PsiOxus Therapeutics, Veryan Medical, Cell Medica, Yoyo Wallet and Plaxica - have an average age of 8.2 years, Imperial Innovations said.
"This is a diverse and maturing portfolio of substantial, well-managed and well-capitalised businesses that have raised average funding (including commitments) of GBP39.3 million. They are also good examples of companies in the portfolio that could trigger significant value creation events as they mature," the company said.
"Beyond this leading cohort, there is a very strong and well-funded follow-on pipeline of exciting businesses, as well as new investments, which provide the feedstock for future value creation," the company added.
Imperial Innovations said it is "increasingly confident" that there are companies within its portfolio that could join the public markets over the next few years, with others to be sold in trade sales.
Shares in Imperial Innovations were untraded at 497.50 pence on Wednesday morning.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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