LONDON (Alliance News) - Frontier IP Group PLC on Wednesday said its interim pretax profit more than doubled compared to the prior year due to gains on the revaluation of its investments.
Frontier IP specialises in commercialising university intellectual property.
For the six months to the end of 2018, the company posted a rise in pretax profit to GBP1.2 million from GBP524,000, due to a gain on portfolio revaluation.
Total revenue rose 83% to GBP2.2 million from GBP1.2 million, with the increase reflecting a higher gain on the revaluation of investments of GBP2.0 million versus GBP1.1 million a year prior.
Meanwhile, in the six-month period the fair value of the company's portfolio increased 27% to GBP11.5 million at the end of December from GBP9.1 million at the end of June.
Net assets per share rose to 38.8 pence from 32.0p a year ago, and from 33.2p at June 30 last year.
"Our business model is based on proving the commercial value of intellectual property by working closely with universities, academics and industry. 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," Chief Executive Officer Neil Crabb said.
"We are mindful of the risks in the group. 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, these are strong results."
"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 June 2019, will be ahead of management expectations."
Furthermore, the company said that Matthew White, director of commercialisation since September, has been appointed to its board. He will continue operating in his role.
Frontier IP shares were 2.5% higher at 83.00p each on Wednesday morning.
Frontier Ip (FIPP)