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LONDON (Alliance News) - Amphion Innovations PLC Tuesday posted a decline in net asset value for 2014, hit by a fall in the share price of Kromek Group PLC, but expressed confidence for the coming year on the back of the initial public offering of portfolio company Motif Bio PLC.
Amphion invests and partners with companies in the medical and technologies sectors.
The company had a net asset value per share of USD0.011 at the end of 2014, compared to USD0.10 at the end of 2013. This was primarily due to the fall in the share price of radiation technology firm Kromek, which reduced the value of Amphion's holding in Kromek.
The company said that despite repeated profit warnings since Kromek's initial public offering and its disappointing share price, it continues to believe that Kromek's technology "holds great promise".
Amphion posted a pretax loss of USD10.9 million for 2014, widened from a pretax loss of USD4.9 million, mostly as a result of a USD10.0 million fair value loss on investments. Revenue fell to USD484,700 from USD1.0 million.
Motif Bio listed on AIM in early April, and since then has seen a rise in its share price, which Amphion believes on a pro-forma basis will result in a "massive improvement" in its balance sheet and net asset value.
"As expected, the recovery in the stock market and the IPO market in particular has led to an improvement in the overall climate for our business," the company said in a statement.
"With the transformation in Motif's business, we have been able to take advantage of these improved market conditions and with the sharp rise in the valuation of Motif since the IPO we have been able to approach the equity capital markets again for the first time in over seven years," Amphion added.
Motif Bio said Tuesday it raised GBP22 million in a share placing, following which Amphion's diluted holding in the fellow AIM-list firm will be 29%.
Shares in Amphion are trading down 3.1% at 6.66 pence Tuesday morning.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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