RCS - Frontier IP Group - Portfolio news – FIPP increases stake in Celerum

Frontier IPAnnouncement

12/02/2020 07:00

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RNS Number : 6770C  Frontier IP Group plc  12 February 2020

RNS Reach

AIM: FIPP

12 February 2020

 

Frontier IP Group plc

("Frontier IP" or the "Group")

 

Portfolio news - Frontier IP raises stake in real-time, nature-inspired
Artificial Intelligence ("AI") company Celerum to 33.8 per cent

Frontier IP, a specialist in commercialising intellectual property, has raised
its equity stake in portfolio company Celerum Limited ("Celerum" or the
"Company") from 10 per cent to 33.8 per cent. The increase is in return for an
investment of £25,000, converting a previous loan of £21,818 into equity,
and for providing £50,000 worth of additional strategic, business and
hands-on software development services.

Celerum, a spin out from Robert Gordon University ("RGU"), Aberdeen, is
developing novel artificial intelligence to help businesses improve the
operational efficiency of logistics and supply chains. It also has the
potential to  tackle a host of other complex scientific, engineering and
industrial challenges. Frontier IP is stepping up its support for the Company
in response to increased industry interest.

As well as helping organisations improve their advanced planning and
scheduling, the software works in real time, allowing them to respond
immediately in the most effective way to unforeseen circumstances. For
example, if an accident blocks a road, the software will immediately work out
the most efficient alternative routes to redirect lorries, automatically
accounting for the knock-on effects on the rest of a fleet, perhaps by
rescheduling other deliveries.

The Company's approach has been proven in a number of projects undertaken by
founder Professor John McCall, Head of the School of Computing, Science and
Digital Media at RGU. They include a knowledge transfer partnership, backed by
Innovate UK, with one of Scotland's biggest privately-owned hauliers ARR Craib
to maximise vehicle use and fleet effectiveness.

Professor McCall has more than 25 years research experience in nature-inspired
computing ("NIC"). NIC looks to develop new software and AI algorithms based
on natural processes and behaviours. Ant colonies, for example, are extremely
effective at finding the most efficient routes to find food; NIC digitally
mimics how they do so to solve human supply chain and logistical issues, for
instance.

Other examples include particle swarm optimisation, based on how birds and
fish behave in flocks and schools, and genetic algorithms, software techniques
based on natural selection and evolutionary genetics.

Celerum was incorporated in 2013 to develop and commercialise Professor
McCall's work. Since then, grant funding to his research group at RGU has
totalled £2,336,814 from 23 grants, including £964,649 from six Innovate UK
grants.

ARR Craib Chief Operating Officer Mike Simpson said: "We've been working with
Professor McCall and his research group at RGU for five years. We're delighted
with the significant benefits their work has delivered for us in improving
visibility of the population of work to be covered.  This covers a number of
different work streams in an extremely dynamic environment, and, most
importantly, includes improved planning and fleet productivity.  We're
pleased to continue to work with Professor McCall as we seek to maximise the
benefits of their work on optimisation technologies."

 Celerum founder and Head of the School of Computing Science and Digital
Media at RGU Professor John McCall said: "This new investment and support
 from Frontier will allow us to take advantage of the strong interest shown
in our optimisation technologies across a range of industries, taking it
beyond logistics and supply chains to help improve operational efficiency,
reduce costs and streamline processes in a number of sectors."

Frontier IP Chief Executive Officer Neil Crabb said: "We are delighted to
increase our equity stake in Celerum. The Company's artificial intelligence
has already proved its worth with industry, and clearly has enormous potential
to improve efficiency within the transport services and logistics sector, and
benefit many other industries."

ENQUIRIES

 Frontier IP Group plc                                                 T: 020 7332 2338
 Neil Crabb, Chief Executive

 Andrew Johnson, Communications & Investor Relations                   M: 07464 546 025

 Group website: www.frontierip.co.uk (http://www.frontierip.co.uk/)
 Allenby Capital Limited (Nominated Adviser)                           T: 0203 328 5656
 Nick Athanas / Nicholas Chambers

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.

 

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