REG - Frontier IP Group - Final results for the year ended 30 June 2025
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RNS Number : 6194K Frontier IP Group plc 08 December 2025
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8 December 2025
Frontier IP Group plc
("Frontier IP", the "Company" or the "Group")
Final results for the year ended 30 June 2025
Financial highlights
· Fair value of the Company's equity portfolio is broadly in line with
prior year at £33,407,000 (2024: £33,203,000) following the unrealised loss
on investment of £2,697,000 (2024 unrealised gain of £2,468,000), additions
of £3,081,000 (2024: £68,000) offset by disposals of £180,000 (2024:
£2,297,000).
· Fair value of the Company's debt portfolio reduced significantly
compared to prior year to £3,066,000 (2024 : £5,595,000) primarily due to
the conversion of £2,685,000 debt investments in Camgraphic Ltd to equity in
2D Photonics (referenced below as £2,607,000 loan plus unrealised gain of
£78,000) as well as an unrealised loss of £344,000 (2024 : £1,287.000).
These movements were partially offset by new loans issued of £500,000 (2024 :
£2,157,000) to two portfolio companies.
· Disposals in both our equity and debt portfolio related to Camgraphic
Ltd. Equity shares valued at £180,000 and the loan valued at £2,607,000
together with accrued interest of £217,000 were exchanged for a shareholding
in 2D Photonics of £3,081,000 in a non-cash transaction including an
unrealised gain of £78,000 (2024: ExScientia disposal generated cash of
£2,545,000 with a realised gain of £249,000).
· Unrealised loss on the revaluation of investments of £3,041,000
(2024: unrealised gain of £1,282,000) comprising unrealised losses on equity
investments of £2,697,000 (2024: unrealised gain of £2,468,000) and
unrealised losses on debt investments of £344,000 (2024: unrealised losses of
£1,187,000).
· Cash balances at 30 June 2025 of £2,584,000 (2024: £2,298,000).
· Net assets per share as at 30 June 2025 reduced to 61.0p (30 June
2024: 79.7p) in part due to the additional 12.7m shares issued as part of the
fund raise in December 2024.
· Loss before tax of £6,344,000 represents a significant increase on
prior year (2024; £1,337,000) and is driven by the unrealised losses across
debt and equity investments of £3,041,000 (2024: gain £1,282,000) as well as
operating expenses incurred of £3,456,000 which were modestly reduced versus
prior year (2024: £3,508,000).
· Basic loss per share of 10.08p, Diluted loss per share of 9.87p
(2024: basic loss per share 2.01p, Diluted loss per share 1.96p).
Corporate highlights
· Entered a strategic partnership with Abstract Mid-Tech Limited, an
associate company of Abstract Securities Limited, to create a new innovation
hub, SC(2), in the South Cambridge Science Centre, one of Cambridge's most
advanced facilities dedicated to science and technology. Abstract paid
Frontier IP £1 million for becoming an anchor tenant and will provide the
space rent free for the first 12 months. The Group plans to sublet the
majority of the space to portfolio companies and other innovative start-ups.
The move will reduce dependency on exits and potentially create positive
cashflow and the opportunity to leverage the balance sheet. It will also
enable Frontier IP to strengthen its presence at the heart of the Cambridge
science and technology ecosystem and, by extension, within the UK's innovation
golden triangle of Cambridge, Oxford and London.
· Raised £3.6 million through a placing and retail offer to provide
working capital and for selective support to portfolio companies.
· Post-period end two executive directors announced their intention to
leave the Group to pursue other opportunities with successor recruitment
underway:
- Chief Commercialisation Officer Matthew White is to become Chief
Executive Officer of an early-stage medical devices company. It is currently
intended that he will remain with the Group until the end of his six month
notice period on 24 March 2026.
- Chief Financial Officer Jo Stent is to join a private equity-backed
specialist financial services provider. She will step down as a director no
later than 30 April 2026. This will enable her to oversee publication of the
interim results for the six months to December 2025.
Portfolio highlights
· The Group's portfolio includes companies at different stages of
development. Frontier IP is actively considering potential realisations from
several companies. Companies made good technical and commercial progress,
attracting support from major backers at home and abroad. Five companies
raised money during the year via equity funding rounds, convertible loans,
grants, or a combination of the three, despite a difficult funding
environment.
Highlights included:
o 2D Photonics raised €25 million through a Series A funding round for its
wholly-owned Italian subsidiary CamGraPhIC Srl. Investors included CDP Venture
Capital, the Nato Innovation Fund, the Sony Innovation Fund, Join Capital,
Bosch Ventures, part of Bosch Group, and Indaco Ventures. 2D Photonics was set
up to own and manage CamGraPhIC's activities in the UK and Italy.
o Alusid signed two international distribution agreements. The first was
with Dutch sustainable materials firm FRONT Materials BV, the second with
Italian distributor 3D Wall Panels Italia. The company also launched its Mas
floor tile range through Topps Tiles plc retail chain, the second range to be
launched by Topps.
o Dekiln, (the trading name of Deakin Bio-Hybrid Materials), raised
£693,000 through an initial equity fundraising, led by Green Angel Ventures.
o GraphEnergyTech raised £1 million through an investment round led by
Aramco Ventures, the corporate venturing arm of Aramco. The company
subsequently entered a collaboration with the Taiwan Perovskite Solar
Corporation and University of Cambridge to develop next generation perovskite
technology, a project backed by a grant worth nearly £900,000 from Innovate
UK
o Nandi Proteins raised more than £500,000 via a convertible loan with
investors including Nesta and Scottish Enterprise.
o Pulsiv launched the world's most efficient 65W USB C design to enable
operations at much lower temperatures, minimise energy loss and reduce the
number of critical components. The ground-breaking design subsequently won the
Power Sources Manufacturers Association's first Global Energy Efficiency
Award.
o The Vaccine Group (TVG) is leading a project awarded a £1 million grant
from the UK's Department for Environment, Food & Rural Affairs to
develop vaccines for Streptococcus suis (S.suis), a zoonotic pig disease.
Collaborators include the Universities of Cambridge and Plymouth. The company
and Global animal health group Syva signed an option to license agreement for
a S.suis vaccine. The Animal and Plant Health Agency won an Innovate UK Smart
Grant to develop vaccines for two bovine diseases.
Post-period end developments:
o Amprologix raised £740,000 through a pre-Series A funding round backed by
Plutus Investments, institutional and angel investors to complete pre-clinical
development lead candidate epidermicin NI01 and into Phase I clinical trials.
o The Vaccine Group announced outstanding results from the first cattle
trial testing their Bovine Respiratory Disease Virus vaccine candidates and
that discussions with potential commercial partners were underway.
o Alusid signed a third international distribution agreement with one of
Sweden's largest tile suppliers, Kakelspecialisten, a subsidiary of
Saint-Gobain.
o Pulsiv signed a global stocking agreement with distribution giant Farnell
and was shortlisted for the Power System Product of the Year in the Elektra
Awards.
o Dekiln completed its first commercial installation and moved into bigger
premises to scale up.
Key extracts from the Annual Report can also be viewed below which include the
basis for a qualified audit opinion and material uncertainty relating to going
concern.
The financial information in this announcement has been extracted from the
Group's Annual Report and Statement of Accounts for the year to 30 June 2025
and is prepared in accordance with international accounting standards in
conformity with the requirements of the Companies Act 2006 and in accordance
with UK adopted international accounting standards. Whilst the financial
information included in this preliminary announcement has been computed in
accordance with International Financial Reporting Standards (IFRS), this
announcement does not itself contain sufficient information to comply with
IFRS and the financial information set out does not constitute the Company or
Group's statutory accounts for the years to 30 June 2025 or 30 June 2024.
ENQUIRIES
Frontier IP Group Plc T: 020 3968 7815 neil@frontierip.co.uk (mailto:neil@frontierip.co.uk)
Neil Crabb, Chief Executive
M: 07464 546 025
Andrew Johnson, Communications & Investor Relations andrew.johnson@frontierip.co.uk (mailto:andrew.johnson@frontierip.co.uk)
Company website: www.frontierip.co.uk (http://www.frontierip.co.uk/)
Allenby Capital Limited (Nominated Adviser) T: 0203 328 5656
Nick Athanas
Singer Capital Markets (Broker) T: 0207 496 3000
Charles Leigh-Pemberton / James Fischer
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.
Chair's Statement
Performance
This year saw Frontier IP take an enormously exciting step forward with the announcement of our new innovation hub in Cambridge, SC(2). The hub will cement our position at the heart of the Cambridge life sciences and deep technology ecosystem and, by extension, within the broader innovation triangle of Cambridge, Oxford and London. This major strategic development is expected to provide us with a regular income stream and ensure we can maximise the potential of our portfolio companies based there. They will be working in one of the most advanced facilities for scientific innovation in Cambridge, purpose-built to meet their needs and those of companies like them.
The hub will also help us to weather the inevitable vicissitudes involved when working with start-up, early stage and maturing technology businesses. This was exemplified by our performance this year. In the round, portfolio companies made good commercial and technical progress. Five companies raised funds during the year. They attracted investment and support from major corporations, government agencies and other institutions. But the move towards exits was hampered by the exceptionally difficult conditions in the private and public markets. Our pre-tax losses widened. This is, of course, a disappointment and I can assure you, our shareholders, that generating a realisation remains a key focus for the chief executive and board of directors in the coming year. Neil's statement addresses some of the issues and discusses portfolio progress and future direction, including the thinking behind SC(2), in more detail.
Despite the difficulties, I firmly believe in the Group's strategy and the business model. Having worked in senior roles in industry and academia, it solves a lot of the problems experienced on both sides. The fact portfolio companies are being supported by multinationals such as Aramco, Bosch, Sony, the Taiwan Perovskite Solar Corporation, as well as financial institutions, provides evidence that a need is being met.
More broadly, the portfolio is also very well positioned to meet some of the greatest challenges we face today, around climate, health, energy, water and food.
An example: one of my roles is chair of the UK Climate Change Committee's Adaptation Committee. For all those who might want it to be otherwise, or deny it is happening, the climate is changing. In the 19(th) Century, global average temperatures were fairly constant: there were years when the climate was hotter and years when it was colder.
Now the trend is only getting hotter. 2023 was the hottest year on record: 2024 was even hotter - 11 of the hottest years on record have occurred since 2010. In the South East of England, the hottest daytime temperatures are now rising by almost 1(0)C a decade. This suggests that by the middle of this Century, we could see maximum summer temperatures of 43(0)C and more.
The big gains in emissions reduction and efficiency improvement needed to stop temperatures from rising will come from system-wide changes, but there are areas where Frontier IP's portfolio companies can make a significant impact.
Pulsiv's technology improves the efficiency of energy conversion and can be applied wherever power is converted - from a domestic phone charger to the heavyweight industrial converters used in data centres and wind turbines. 2D Photonics graphene photonic and semiconductor devices will work at 80 per cent greater energy efficiency than their silicon equivalents, and GraphEnergyTech's graphene electrodes could cut the costs of solar power by replacing silver in solar cells and enable the potential of more energy efficient perovskite technology.
Reducing the carbon footprint of buildings is critical to addressing climate change, and here Dekiln and Alusid produce ceramics and ceramic alternatives with dramatically lower carbon footprints than conventional products.
Climate is only one of the challenges portfolio companies are helping to tackle. Given their scale and the consistent, long-term direction of the portfolio, it seems only right that we should enshrine our sustainability principles more formally in the way the company operates. Which is why from next year, we are introducing a new key performance indicator: the percentage of Portfolio Companies Licensing and/or Selling Technologies which align with the United Nations Sustainable Development Goals.
On the people front, I am sorry to see that Matthew White, our Chief Commercialisation Officer, and Chief Financial Officer, Jo Stent, will be leaving the Group. Matt has accepted a Chief Executive Officer role at a medical devices start up, while Jo is going to pursue an opportunity with a private equity-backed specialist financial services provider. I would like to thank them both for their valuable work and wish them all the very best for the future.
Corporate Governance
Good governance is vital for long-term sustainable growth, and we strive to achieve the highest standards appropriate to a business our size. We currently adhere to the Quoted Companies Alliance Corporate Governance Code, and our Board adopted the new 2023 Code on 16 April 2025.
The QCA Code takes the key elements of good governance and applies them in a manner which is workable for the different needs of growing companies. It outlines 10 broad principles and related disclosures.
The Corporate Governance Statement of this report sets out each principle and explains in detail how we are complying.
Results
Results were solid in what continued to be a tough environment for start-up and early-stage companies, for making successful exits and for AIM-quoted stocks. The rise in fair value of our equity portfolio to £33,407,000 reflected disposals of £180,000 and additions of £3,081,000. We made an unrealised loss on the revaluation of investments of £2,697,000 against an unrealised gain for the year to June 2024 of £2,712,000.
Our cash balances at 30 June 2025 were £2,584,000 (2024: £2,298,000).
Outlook
I remain confident about the long-term prospects for Frontier IP and its portfolio companies. They are helping to solve some of the most difficult challenges we face today. They made solid commercial, financial and technical progress. However, shorter-term political, global and market uncertainty mean the timing of developments remain difficult to predict.
Professor Dame Julia King, Baroness Brown of Cambridge, DBE FREng FRS FMedSci
Chair
7 December 2025
Chief Executive Officer's Statement
The year to June 2025 can be summed up as one of solid progress across the
portfolio hampered by difficult public and private market conditions. I regret
to say that pre-tax losses widened and market issues, particularly for
AIM-quoted and early-stage technology companies, obstructed our path towards
making a successful exit.
Announcing our innovation hub SC(2) was the year's undoubted highlight. I
believe it will transform our business. The hub occupies 18,000 square feet in
the South Cambridge Science Centre, which was developed by our strategic
partners, Abstract Mid-Tech, part of Abstract Securities.
First, the centre will put us on to a sounder financial footing. As an anchor
tenant, we were paid a £1 million inducement fee and given the space rent
free for the first year. Our plan is to sublet the space to portfolio
companies and to other start-up and early-stage science and technology
businesses that align with our focus on life sciences and deep technology to
generate a steady income.
I believe SC(2) will prove highly attractive to prospective tenants. The South
Cambridge Science Centre is high quality, the city's first development for
years custom-built to house science and technology businesses. This is no
converted office block where compromise and kludges are often required to
accommodate serious scientific work. Our space can be configured to meet
specialist demands: there is a proper ventilation system and sinks, fume hoods
and other equipment to handle liquids and gases can be easily installed if the
need is for wet lab space or removed when things change.
SC(2) will help to position us at the heart of the Cambridge innovation
ecosystem, raising a profile not just within Cambridge, but also in the wider
UK innovation triangle of Cambridge, Oxford and London. It will also bring
together our commercialisation team, portfolio companies and like-minded
businesses under one roof and open all kinds of networking opportunities. It
will become simpler to identify and access new deal flow. Being closer to our
portfolio companies will improve operational efficiency to speed their
development and growth while driving down costs. Ultimately, it will help us
to accelerate exits and realisations by providing a single location to meet
corporate backers and investors.
Exits and realisations remain a key focus. At the half year I warned that
timings would be difficult to predict and heavily dependent on market
conditions. This is still the case. Exits have been difficult for everyone,
and not just in the UK. After hitting a high of $917 billion in 2021, global
realisations fell to a nadir of $151 billion in 2024, according to Pitchbook
data. There are now signs markets might be picking up, but at this stage, I
would emphasise that optimism must remain cautious.
However, the day when we do complete an exit does move closer. Portfolio
companies did make commercial and technical progress through the year and
beyond. The strength of our businesses is reflected in the fact that despite
the tricky markets, several raised funds and / or gained support from major
multinationals, investment firms, government agencies and organisations. Our
technologies have strong commercial appeal.
Among those raising funds was 2D Photonics, a company established to own and
manage the UK and Italian activities of CamGraPhIC, raised €25 million in a
Series A round backed by the Nato Innovation Fund, the Sony Innovation Fund,
Bosch Ventures, CDP Venture Capital, Join Capital and Indaco Ventures.
GraphEnergyTech raised £1 million in an investment round led by Aramco
Ventures, the corporate venturing arm of Aramco. The company also announced a
collaboration with the Taiwan Perovskite Solar Corporation, Taiwan's
Industrial Technology Research Institute, and the University of Cambridge to
develop the next generation of solar technology combining perovskite solar
cells with the company's graphene electrodes. The project is backed by
Innovate UK.
Dekiln raised £693,000 through an initial equity funding round led by Green
Angel Ventures and completed the first commercial installation of its ceramic
tile alternatives. Nandi Proteins received a £500,000 convertible loan
supported by Nesta and Scottish Enterprise, and, after the period end,
Amprologix raised £740,000 to take its lead candidate epidermicin NI01, the
first in a new class of antibiotics, through pre-clinical development and into
Phase I clinical trials.
Commercial progress included Alusid signing two international distribution
agreements one in the Netherlands and the other in Italy. We are hopeful they
will bear fruit soon. Topps Tiles launched Mas, the second Alusid-made range
now available in its stores.
Technical developments included Pulsiv launching the world's most energy
efficient 65W USB-C reference design, which subsequently one the inaugural
Global Energy Efficiency Award run by the global Power Sources' Management
Association. After the period close, global distributor Farnell signed a stock
agreement with the company.
Finally, The Vaccine Group led a project awarded £1 million by the UK
government's Department for the Environment, Food and Rural Affairs and,
alongside The Animal and Plant Health Agency, won an Innovate UK grant to
develop vaccines for two bovine diseases. After the period close, it was
announced that two vaccines to tackle bovine respiratory syncytial virus
achieved outstanding results and strong validation for the company's
innovative vaccine deliver platform.
What we do is important. This year's Nobel prize for economics was awarded to
three economists who have shown that innovation driven by science and
technology has been the major reason for the sustained growth the world has
seen for the last 200 years. Former Italian prime minister Mario Draghi has
pointed out that the main difference between EU and US productivity growth
over the last 20 years has been America's success in developing new
technologies. To sustain growth for the next 200 years, it is vital that
innovation is enabled to succeed innovation. We play a part in that.
I would like to thank you, our shareholders, for your continued support this
year. Although market conditions remain difficult to predict, I am confident
the quality of our portfolio will eventually come through.
Neil Crabb, Chief Executive Officer
7 December 2025
Basis for qualified audit opinion
The Directors were unable to obtain sufficient appropriate audit evidence in
respect of the valuation of certain investments, specifically those
investments described as 'Stage 2' by management in Note 13 to the financial
statements, which have been valued at £1.3 million as at 30 June 2025 in the
Group's Consolidated Statement of Financial Position and the Parent Company's
Statement of Financial Position. Therefore, the external auditor was unable to
obtain sufficient, appropriate audit evidence in respect of the valuation of
these investments as at 30 June 2025. The external auditor was also unable to
perform alternative procedures to satisfy themselves concerning the valuation
of the £1.3 million Stage 2 investments held by the Group and Parent Company
as at 30 June 2025. Consequently, the external auditor was unable to determine
whether any adjustment was necessary to these amounts as at 30 June 2025 or
whether there was any consequential effect on the Group and Parent Company's
other comprehensive income for the year ended 30 June 2025.
In addition, the external auditor refers to their audit opinion for the year
ended 30 June 2024 was also qualified because we were unable to obtain
sufficient appropriate audit evidence in respect of the valuation of £1.2
million of 'Stage 2' investments held by the Group and Company as at 30 June
2023 and consequently were unable to determine whether there was any
consequential effect on the Group and Parent Company's other comprehensive
income for the year ended 30 June 2024. Their audit opinion on the financial
statements for the year ended 30 June 2024 was qualified accordingly. The
valuation of £1.3 million of 'Stage 2' investments held by the Group and
Company as at 30 June 2024 was not material and hence the external auditor's
opinion on the Statement of financial position as at 30 June 2024 was
consequently not qualified in this respect. Their opinion on the current
year's financial statements is also qualified because of the possible effect
of this matter on the comparability of the current year's figures and the
corresponding figures.
Material uncertainty related to going concern
The Company is a holding entity and as such its going concern is dependent on
the Group therefore the going concern assessment for the Company was performed
as part of the Group's assessment.
The Group's strategy is to develop a growing portfolio of spin out companies
that will provide cash inflows through realisation of investments. In
assessing the going concern, the Directors considered the Group's cash
requirements over the three years to 30 June 2028. The forecast included
operating activities, including in relation to South Cambridge Science Centre,
and known near term purchase of investments. It did not include cash from the
purchase of unplanned investments. The analysis showed that as at 30 June 2025
the Group had insufficient cash to cover its operating expenditure for the 12
months from the date of signing of these financial statements. However, the
Directors intend to realise further cash through a combination of the
potential issue of ordinary shares, borrowing and subleases of its property
asset, which they reasonably expect will provide the Group with sufficient
cash to cover its operating expenditure for this period. The Directors also
expect that these funding options will, where appropriate, assist the Group in
supporting portfolio companies during this period. The Group and the Company
are reliant on additional funding for which the timing and amount are not
guaranteed.
Based on the above, this indicates the existence of a material uncertainty
which may cast significant doubt over the Group and Company's ability to
continue as a going concern and managements plan to deal with these events or
conditions and therefore, they may be unable to realise their assets and
discharge their liabilities in the ordinary course of business.
The Directors have a reasonable expectation that the funding will be
forthcoming. Consequently, the Directors continue to adopt the going concern
basis in preparing the Group and Company's financial statements.
These financial statements do not contain any adjustments that may arise if
they were not drawn up on a going concern basis.
The financial statements do not include the adjustments that would be required
should the going concern basis of preparation no longer be appropriate.
Key Performance Indicators and Alternative Performance Measures
The Key Performance Indicators and Alternative Performance Measures for the
Group are:
KPI / APM Description 2025 Performance
Basic earnings per share (KPI) Profit or loss attributable to shareholders divided by the weighted average Loss of 10.08p (2024: loss of 2.01p)
number of shares in issue during the year.
Net assets per share (KPI) Value of the Group's assets less the value of its liabilities per share 61.0p (2024: 79.7p)
outstanding
Total revenue and other operating income (KPI) Growth in the aggregate of revenue from services, change in fair value of Negative income of £2,716,000 (2024: positive income of £1,889,000)
investments and realised profit on disposal of investments
Profit before tax Profit or loss before tax for the year Loss of £6,344,000 (2024: loss of £1,337,000)
(KPI)
Total initial equity in new portfolio companies (APM) Note 1 Aggregate percentage equity earned from new portfolio companies during the nil(2024:32.8%)
year
Note 1 - The total initial equity in portfolio companies is not an IFRS
measure. It is used by Directors to measure the total percentage equity stakes
received in all new spin-out companies during the year. It does not reflect
holdings in individual spin-outs and does not include equity received through
post spin-out investment. For 2024 it is the aggregate percentage holding from
one new spin-out company during the year. There were no new portfolio
companies added in 2025.
The Group did not meet any of the Key Performance Indicators or Alternative
Performance Measures during the year, reflective of the prevailing market
conditions.
Net assets per share decreased to 61.0p (2024: 79.7p) reflecting a loss after
tax of £6,344,000. The value of the Group's equity investments remained in
line with prior year at £33,407,000 (2024: £33,203,000) This result includes
an unrealised loss on the revaluation of equity and debt investments combined
of £3,041,000 (2024: gain of £1,282,000) and reflects a decrease in services
revenue to £325,000 (2024: £358,000). Administrative expenses of
£3,456,000 (2024: £3,508,000) decreased modestly compared to prior year
reflecting the continued focus by management on cost efficiency.
During the year, the Board reviewed its current Key Performance Indicators
& Alternative Performance Measures and considered these to continue to be
appropriate.
However, the Board approved an additional Alternative Performance Measure with
a specific focus on sustainability:
Percentage of Portfolio Companies Licensing and/or Selling Technologies which
align with UN SDGs (APM)
This measure was implemented for the year beginning 1(st) July 2025 and
performance against this measure will be reported in the Group's Annual Report
for year ended 30(th) June 2026.
Frontier IP and the United Nations Sustainable Development Goals
Frontier IP's purpose is to create high value businesses from intellectual
property developed by universities, academics, scientists and engineers.
Science and technology are vital to solving some of the most pressing problems
the world faces today. There is global focus by governments and industry on
issues such as climate change ― in particular, the move to net zero ―
health, the environment and making the most efficient use of resources.
Opportunities lie for technology companies in contributing to addressing these
issues for the benefit of all.
Our strengths are to identify promising intellectual property and to oversee
its commercial development with direct, hands-on support with validation and
scale up. Most often we work in collaboration with industrial partners who
understand market needs and demands, and who have stated their commitments to
sustainability.
Our portfolio is a mix of pioneering companies with the potential to have big
societal and environmental impacts. Many are at an early stage, however, and
the extent and success of these impacts will only become evident over time.
There are two approaches to current environmental, social and governance
reporting. There is the reactive, where the focus is on mitigating existing
impacts, such as offsetting carbon emissions, and the proactive, where the
emphasis is on opportunity for investment in new technologies for the future.
We are very much focused on the latter. Frontier IP Group itself has minimal
impact. We employ 18 people working from serviced offices in Cambridge and
Lisbon.
To reflect the forward-looking nature of our business, we have decided to
screen, evaluate and monitor portfolio companies by aligning them to the
United Nations Sustainable Development Goals (UN SDGs). The UN developed the
17 goals to form the core of its 2030 Agenda for Sustainable Development,
adopted by all UN member states, including the United Kingdom, in 2015. They
are designed to provide a blueprint for a sustainable future and balance
social, environmental and economic concerns.
We have conducted a mapping exercise of the Group and its portfolio companies
against the goals. There are two aspects to the mapping: first at a Group
level, representing the cumulative impact of activity across our portfolio;
second at the level of each portfolio company. We expect this to evolve over
time, as our companies mature.
At the Group level we align to six goals, reflecting a focus on sustainable
technologies in each of our clusters:
· SDG 3: ensure healthy lives and promote well-being for all at all
ages. Companies within our portfolio are developing technologies directly
designed to prevent or treat a wide range of communicable and non-communicable
diseases, while others have an indirect impact through their efforts to
improve nutrition, sanitation and water treatment.
· SDG 5: achieve gender equality and empower all women and girls. We
continue to be committed to equal opportunities when it comes to recruitment,
appointing and development. At the year-end, around 50 per cent of our team
were women and women were represented at all levels within the Group.
· SDG 8: promote sustained, inclusive and sustainable economic growth,
full and productive employment and decent work for all. Within the Group, our
success strongly depends on attracting and retaining skilled people. Our
employee turnover is extremely low, and our incentives and rewards are
available at all levels within the business. Looking outward, we aim to
encourage such behaviour in our portfolio and our business model is designed
to support productive activities, high value job creation, entrepreneurship,
creativity and innovation, and encourage the formation and growth of
successful companies.
· SDG 9: build resilient infrastructure, promote sustainable
industrialisation and foster innovation. This is at the heart of what we do.
We are currently working with 18 portfolio companies and across two projects
with the potential for significant growth and positive societal or
environmental impact.
· SDG 12: ensure sustainable production and consumption patterns. Seven
of our portfolio companies are developing technologies directly involved in
this goal, which maps to our Innovative Materials, Food and Agritech, and AI
clusters.
· SDG 13: take urgent action to combat climate change and its impact.
Pulsiv is developing technology that reduces the energy consumed by a very
wide range of devices by 80 per cent or more, reducing stress on electricity
grids and improving the viability of renewable sources. Other companies in the
portfolio are working on technologies to reduce the energy consumed by
telecoms networks, improve agricultural efficiency (and, potentially, meat
dependency), and improve logistics and industrial process efficiency. Eight of
our portfolio companies and projects directly contribute to this goal and
aligned to the Group's focus on AI, Innovative Materials, and Food and
Agritech.
To find out how individual portfolio companies align to the goals, please see
the relevant company in the following portfolio overview.
Operational Review
Frontier IP launched a major strategic development during the period. The
Group announced plans to create a new innovation hub, SC(2), in the South
Cambridge Science Centre, one of Cambridge's most advanced facilities
dedicated to science and technology, developed by strategic partner Abstract
Securities. Abstract paid Frontier £1 million for becoming an anchor tenant
and will provide the space rent free for the first 12 months. Frontier IP
plans to sublet the space to portfolio companies and other innovative start
ups and early-stage businesses.
The innovation hub will reduce the Group's dependency on exits, and provide
the potential to generate positive cash flows and to leverage the balance
sheet. It will also enable Frontier IP to strengthen its presence at the heart
of the Cambridge science and technology ecosystem and, by extension, within
the UK's innovation golden triangle of Cambridge, Oxford and London.
The Group also raised £3.6 million through a placing and retail offer to
provide working capital and for selective support to portfolio companies.
Post-period end two executive directors announced their intention to leave the
Group to pursue other opportunities. Chief Commercialisation Officer Matthew
White is to become Chief Executive Officer of an early-stage medical devices
company, while Chief Financial Officer Jo Stent is to join a private
equity-backed specialist financial services provider.
Portfolio Review
Frontier IP strives to develop and maximise value from its portfolio. We do so
by taking founding stakes in companies at incorporation and then working in
long-term partnerships with shareholders, academic and industry partners.
Companies made good technical and commercial progress, attracting support from
major backers at home and abroad. Five companies raised money during the
year via equity funding rounds, convertible loans, grants, or a combination of
the three, despite a difficult funding environment.
As part of our sustainability agenda, we have mapped our portfolio companies
to relevant United Nations Sustainability Development Goals (UN SDGs).
(https://sdgs.un.org/goals) All equity holdings are as at 30 June 2025.
2D Photonics: Frontier IP stake 9.1 per cent
2D Photonics was established during the year to own and manage CamGraPhIC's
activities in the UK and Italy. The company is developing advanced graphene
photonics with the potential to transform Artificial Intelligence and mobile
communications by cutting costs, improving energy efficiency and increasing
speeds. Prototype transceivers have outperformed current silicon photonics
technology and will consume 80 per cent less energy. There are potential
applications in other major sectors.
During the year, the company raised €25 million in a Series A funding round
for its wholly-owned Italian subsidiary CamGraPhIC Srl to accelerate
development and scale up of its technology, including development of a pilot
manufacturing plant.
The round was backed by major governmental, industry and financial
institutions, clearly demonstrating the potential of the technology. These
were CDP Venture Capital, the Nato Innovation Fund, the Sony Innovation Fund,
Join Capital, a Berlin-based investor in early-stage deep technology firms,
Bosch Ventures, the corporate venture arm of Bosch Group, and Indaco Ventures,
Italy's largest venture capital company.
UN SDG mapping: SDG 9, industry, innovation and infrastructure, SDG 11,
sustainable cities and infrastructure
Alusid: Frontier IP stake: 35.4 per cent
Alusid creates premium-quality tiles, tabletops and other surfaces from
sustained able materials made by recycling industrial waste, most of which
would otherwise be sent to high-impact landfill. The company's tiles can be
mass manufactured on industry-standard factory equipment, yet use much less
energy than conventional tiles: its Mas floor tiles, for example, are made
from up to 98.5 per cent recycled content, use 51 per cent less energy during
manufacture and 44 per cent less water.
During the year, the company signed two international distribution agreements
and launched a second range, Mas, through Topps Tiles Plc's UK retail chain.
The first international agreement is with Dutch sustainable building materials
firm FRONT Materials BV, which will have exclusive rights to distribute
Alusid's tile ranges in the Netherlands, and in the rest of Europe and the US
on a non-exclusive basis. The second agreement is with 3D Wall Panels Italia,
a leading supplier based in Milan, who will provide commercial distribution
across Italy. Post-period end, the Company signed a third distribution
agreement with one of Sweden's largest tile distributors, Kakelspecialisten, a
subsidiary of Saint-Gobain.
UN Sustainable Development Goal mapping: SDG 9, industry, innovation and
infrastructure; SDG 12, responsible consumption and production.
Amprologix: Frontier IP stake: 10.7 per cent
Amprologix was created to commercialise the work of Mathew Upton, Professor of
Medical Microbiology at Plymouth's Institute of Translational and Stratified
Medicine.
The company continued to make progress with development of its new family of
antibiotics based epidermicin, which is derived from bacteria found on human
skin, to tackle antimicrobial-resistant MRSA and other superbugs.
Antimicrobial Resistance is deemed one of the major risks to global health by
the World Health Organisation. During the year, a political declaration at the
United Nations General Assembly set a series of targets to reduce deaths from
resistant bacteria. After the year end, Amprologix successfully raised
£740,000 in an equity funding round. Investors included Plutus Investments,
an institutional investor and angel investors.
UN SDG mapping: SDG 3, good health and well-being
AquaInSilico: Frontier IP stake: 29.0 per cent
AquaInSilico is developing sophisticated software tools able to understand and
predict how biological and chemical processes unfold in different operating
conditions.
These can be used to optimise wastewater treatment across many industries,
including municipal wastewater treatment plants, oil groups, brewers, pulp,
paper and steel makers, food processing and waste recovery businesses.
The company's digital tools have been implemented by a client in Cape Verde as
part of the Phos-Value project to recycle environmentally harmful nutrients as
biofertilisers and improve water quality. The project was supported by the
United Nations Development Program. During the year, the company commercially
launched UPWATER® wastewater management technology and is now providing
services to clients such as Bondalti Water, Copam and ETSA.
UN SDG mapping: SDG 6, clean water and sanitation, SDG 12, responsible
consumption and production, SDG 14, life below water
Cambridge Raman Imaging: Frontier IP stake: 25.4 per cent
Cambridge Raman Imaging is developing advanced Raman imaging technology based
on ultra-fast fibre lasers able to generate high-quality digital images in
near real time. Initial applications are for use in medicine to detect and
monitor cancerous tumours in human tissue and cells. Advanced artificial
intelligence analyses the results to make diagnosis even faster and more
accurate. Tests have shown that tumours can be detected before they can be
seen by the human eye.
The company's technology has been backed by grants supporting two prestigious
pan-European projects and launched commercially. Sales are strong, and CRI is
exploring other applications of the technology, both for further medical
applications, and more broadly across industry in sectors such as
semiconductors, batteries, environment and food.
UN SDG mapping: SDG 3 good health and well-being
Celerum: Frontier IP stake: 33.8 per cent
Celerum is developing novel artificial intelligence to improve the operational
efficiency of logistics and supply chains.
The company's technology uses specialist algorithms based on nature-inspired
computing, software and algorithms based on natural processes and behaviours.
During the year, Celerum added new customers following its success in
attracting a first cross-border client, Grampian Continental, in the prior
year, and continued to develop more sophisticated versions of the software to
meet the needs of further customers.
UN SDG mapping: SDG 9, industry, innovation and infrastructure
Dekiln: Frontier IP stake: 24.8 per cent
Dekiln (the trading name of Deakin Bio-Hybrid Materials) makes advanced
bio-based materials as sustainable alternatives to ceramics using novel
ultra-low energy processes. Its lead product, Eralith, which is used to make
tiles, is made from more than 95 per cent recycled material and a 94 per cent
lower CO(2) footprint than conventional tiles.
During the year, an oversubscribed initial equity funding round, led by Green
Angel Ventures, raised £693,000 and valued the company at £2.69 million.
Post-period end, Dekiln completed its first commercial installation at a
Sustainable Ventures workspace in Manchester and moved into bigger premises as
it began to scale up from lab-based batch production to pilot mass production
techniques. This work is being supported by the Henry Royce Institute via the
Royce Industrial Collaboration Programme and the Centre for Process
Innovation.
UN Sustainable Development Goal mapping: SDG 9, industry, innovation and
infrastructure; SDG 12, responsible consumption and production.
Des Solutio: Frontier IP stake: 25.0 per cent
Des Solutio is developing safer and greener alternatives to the toxic solvents
currently used to extract active ingredients by the pharmaceutical, personal
care, household goods and food industries.
It does this through the use of Natural Deep Eutectic Solvents. These are
combinations of naturally occurring (often plant based) sugars, acids,
alcohols and amino acids that can be used as safe solvents. These new green
solvents can be used to replace toxic organic solvents used in conventional
processing , such as ethanol, employed currently. This means it is
contributing to the environmentally sound management of chemicals, and
reducing their release to air, water and soil.
Des Solutio made strong technical progress during the year and is working with
global cosmetic manufacturers to develop new products based on Deep Eutectic
Solvents. The company is also focused on the commercial launch of its own
portfolio of botanical extracts for the cosmetics industry.
UN SDG mapping: SDG 9 industry, innovation and infrastructure; SDG 12,
responsible consumption and production.
DiaGen AI: Frontier IP stake: 4.15 per cent
DiaGen AI is a Canadian company focused on AI-driven protein and peptide
design for medical applications. The Group earned the state in DiaGen,
formerly known Proteic Bioscience, in return for advisory services.
DiaGen was founded in 2021 to develop an AI-engine for protein design, drug
discovery and diagnostics for health, wellness, longevity and precision
medicine.
UN SDG mapping: SDG 3 good health and well-being
Elute Intelligence: Frontier IP stake: 40 per cent
Elute's software tools are designed to help users intelligently search,
compare and analyse massive quantities of complex documents. There are a huge
range of potential applications, from scoring patent portfolios and comparing
contracts, to detecting evidence of plagiarism, collusion and copyright
infringement.
During the year the company achieved significant development milestones and
began beta testing of Insights IDS, its patent-based investment
decision-support platform, which is now analysing over 140 million patents
globally. Beta trials have been launched with selected investment houses, and
the company has engaged with institutions to explore integration into
investment research workflows.
UCAS renewed a five year licence of Elute's plagiarism-detecting software
CopyCatch, maintaining recurring revenue and supporting R&D investment.
The software will assess up to four million student applications across the
period. Elute also strengthened IP assets and data infrastructure to support
future scaling and potential commercial rollout.
UN SDG mapping: SDG 9, industry, innovation and infrastructure
Fieldwork Robotics: Frontier IP stake: 18.2 per cent
Fieldwork Robotics is developing agricultural robots for fruit and vegetable
harvesting, with an initial focus on raspberry picking.
During the year, the company launched Fieldworker 1, an updated harvesting
robot, and entered a collaboration with Costa Group, Australia's leading
producer of fresh fruit and vegetables. The company also entered a
collaboration with Burro, a manufacturer of autonomous and collaborative
mobile robot platforms. Fieldwork is seeing strong traction with a growing
customer pipeline in Australia, USA and Portugal.
UN SDG mapping: SDG 2, zero hunger; SDG 12 responsible consumption and
production
GraphEnergyTech: Frontier IP stake 23.97 per cent
GraphEnergyTech is developing high-conductivity graphene inks for use across a
range of applications, one of which could help save global silver reserves
from exhaustion by 2050.
The inks' initial target applications are for use in graphene electrodes to
replace expensive silver electrodes in solar cells. GraphEnergyTech's
electrodes are 22 per cent cheaper than silver at pilot stage with further
reductions expected as the technology is scaled up. Other applications for the
technology include batteries, super capacitors, LED lighting and displays.
Using graphene inks will also reduce the environmentally damaging extraction
of metals, including the use of mercury and cyanide
During the year, the company raised £1 million through an investment round
led by Aramco Ventures, the corporate venturing arm of Aramco, a leading
global integrated energy and chemicals company. The company also entered a
collaboration with the Taiwan Perovskite Solar Corporation, Taiwan's
Industrial Technology Research Institute and the University of Cambridge to
drive development of the next generation of solar technology. The project has
been awarded a grant of nearly £900,000 by Innovate UK, with
GraphEnergyTech's technology holding the potential to be a key enabler for
perovskite solar cells, which struggle with metal electrodes.
UN SDG mapping: UN SDG 7 affordable and clean energy, UN SDG 9, industry,
innovation and infrastructure,
InSignals Neurotech: Frontier IP stake: 32.9 per cent
InSignals Neurotech continues to make progress with its novel technology to
analyse the motor symptoms of Parkinson's disease and other neurological
disorders.
The company is developing wireless devices to measure motor symptoms, such
as wrist rigidity, in real time to help surgeons and neurologists assess the
extent of the disease. Initial prototypes were designed to help identify the
best locations to place implants in the brain. However, an improved version
can now be used to monitor symptoms more broadly for disease tracking and to
understand better how patients are responding to treatment.
During the year, the company secured a PRR Green Vouchers €30,000 grant to
start developing a digital health app aimed at supporting patients with
Parkinson's Disease.
The spin out from the Portuguese Institute for Systems and Computer
Engineering, Technology and Science ("INESC TEC"), with the support of São
João University Hospital, part of the University of Porto.
UN SDG mapping: SDG 3 good health and well-being
Molendotech: Frontier IP stake: 9.5 per cent
Molendotech has developed Bacterisk+, a proprietary screening test for faecal
contamination in water. The tests, which can be used on site, cuts testing
times from up to two days to under 30 minutes because samples do not need to
be sent to a laboratory, enabling environmental agencies and other authorities
to assess water quality swiftly. The product was commercially launched during
the prior year and has been selling steadily. It being used to screen marine
bathing waters, inland recreational waters, irrigation water and food process
water.
The company has also developed a test to detect specific bacterial strains,
including pathogens, for use in the food industry, animal feeds, veterinary
practices and ballast waters.
UN SDG mapping: SDG 6, clean water and sanitation; SDG 12 responsible
consumption and production
Nandi Proteins: Frontier IP stake: 19.7 per cent
Nandi Proteins signed a commercial licensing agreement with a global food
ingredients group in the year to June 2024 to make Nandi's meat and fat
replacement products. The first production facility to produce the meat
replacer was commissioned by Nandi's partner and the partner is now awaiting
customer commitments.
The meat / fat replacer is one of several high volume applications to replace
ingredients in processed foods. During the year, the company secured
investment from Nesta Impact Investments, the investment arm of UK social
innovation agency Nesta, and Scottish Enterprise, as part of a £500,000
investment made via a convertible loan.
Post- period end Nandi converted several loans to equity and has taken steps
to streamline operations to preserve cash until royalty income is generated.
UN SDG mapping: SDG 2, end hunger; SDG 12, responsible consumption and
production
Plastometrex: Frontier IP stake: 0.4 per cent
The Group holds a small equity stake in Plastometrex, a University of
Cambridge spin out focused on developing mechanical testing systems for metal
materials. The company has wide range of industry partners, including Airbus,
Babcock and Nasa.
SDG 9: build resilient infrastructure, promote sustainable industrialisation
and foster innovation
Pulsiv: Frontier IP stake: 17.3 per cent
Pulsiv has developed and patented innovative technology to intelligently
manage electrical power wherever it is converted, either from grid to devices,
or devices to grid. The company has built out a global distribution network
and is now in advanced discussions with potential customers.
During the year, the company launched a 65 Watt USB-C fast charger reference
design. The charger operates at 96 per cent efficiency, believed to be a world
best, which means only 4 per cent is lost through heat. The company is
targeting applications where space and heat sensitivity are an issue, with
initial markets being in-wall plug sockets that incorporate USB-C charging.
The 65 Watt USB-C fast charger reference design subsequently won the first
Global Energy Efficiency Award overseen by leading trade body the Power
Sources Manufacturers Association.
Post-period end, the company signed a global stock agreement for the reference
design with distribution giants Farnell. Pulsiv's technology has very
applicability across the power industry, from consumer devices to heavyweight
industrial applications and solar.
UN SDG mapping: SDG 7, affordable and clean energy; SDG 13, climate action
The Vaccine Group: Frontier IP stake: 16.95 per cent
The Vaccine Group continued to make good progress in developing its strong
pipeline of innovative vaccines for use in livestock, pets and wildlife, in
forging relationships with government and industrial partners, and in raising
funds.
A project led by TVG, the University of Plymouth and the University of
Cambridge was awarded more than £1 million by the UK Department for
Environment, Food & Rural Affairs. The project aims to develop a vaccine
against pig diseases Streptococcus suis. S.suis is widespread, harmful and
zoonotic. It can jump from pigs to humans, in whom it can cause meningitis,
septicaemia and other symptoms. The company also won a £400,000 Innovate UK
Smart Grant to develop vaccines for bovine respiratory syncytial virus (BRSV)
and lumpy skin disease. It also signed an option to license agreement with
global animal health group Syva for a S.suis vaccine.
Post period-end, the company announced that its two vaccine candidates to
tackle BRSV demonstrated outstanding success in preventing the disease in
trials conducted by the UK government's Animal and Plant Health Agency. BRSV
costs British farmers £54 million a year, while the cost globally is
estimated at £5.6 billion.
UN SDG mapping: SDG 2, end hunger; SDG 3 good health and well-being.
Core Portfolio Summary at 30 June 2025
Portfolio Company % Issued Share Capital About Source
Alusid Limited 35.4% Recycled materials University of Central Lancashire
Amprologix Limited 10.7% Novel antibiotics to tackle antimicrobial resistance Universities of Plymouth and Manchester
AquaInSilico Lda 29.0% Digital tools to optimise wastewater treatment FCT Nova
Cambridge Raman Imaging Limited 25.4% Medical imaging using ultra-fast lasers University of Cambridge and Politecnico di Milano
2D Photonics 9.1% Graphene-based photonics University of Cambridge and CNIT
Celerum Limited 33.8% Near real-time automated fleet scheduling Robert Gordon University
Deakin Bio-Hybrid Materials Limited 24.8% Sustainable materials made from organic waste and inorganic powders, initially Existing Business
as alternatives to ceramic tiles
Des Solutio Lda 25.0% Green alternatives to industrial toxic solvents FCT Nova
DiaGen AI Inc 4.15% AI-driven protein and peptide design for drug discovery and use in health Existing business
Elute Intelligence Holdings Limited 40.0% Software tools able to intelligently search, compare and analyse unstructured Existing business
data
Fieldwork Robotics Limited 18.2% Robotic harvesting technology for challenging horticultural applications University of Plymouth
GraphEnergyTech Limited 23.97% High conductivity graphene inks University of Cambridge / École Polytechnique Fédérale de Lausanne
Insignals Neurotech Lda 32.9% Wearable medical devices supporting deep brain surgery INESC TEC
Molendotech Limited 9.5% Rapid detection of water borne bacteria University of Plymouth
Nandi Proteins Limited 19.7% Food protein technology Heriot-Watt University, Edinburgh
Plastometrex Limited 0.4% Machines and software for high-speed testing of material yields and tensile Existing Business
strength
Pulsiv Limited 17.3% High efficiency power conversion and solar power generation University of Plymouth
The Vaccine Group Limited 16.95% Herpesvirus-based vaccines for the control of bacterial and viral diseases University of Plymouth
The Group holds equity stakes in 1 further portfolio company with nil equity
value as at 30 June 2025. As at 30 June 2024, the Group held equity stakes in
3 portfolio companies with nil equity value.
Financial Review
Key Highlights
Losses before tax of £6,344,000 increased significantly versus prior year
(2024 : £1,337,000) primarily due to unrealised losses across the equity and
debt investment portfolio combined of £3,041,000 (2024 : gain of £1,282,000)
in addition to operating expenses incurred of £3,456,000 (2024 :
£3,508,000). Administration expenses declined modestly year on year as a
result of cost efficiencies to offset the impact of inflation across most line
items.
In December 2024 the Group raised net proceeds of £3,326,000 via the issue of
new shares. This increase to Net Asset Value was offset by losses after tax
of £6,344.000 (2024 : £1,126,000) for a net reduction in Net Asset Value
of £3,018,000 as at 30 June 2025 (2024 : reduction of £765,000) Net assets
per share decreased by 23% to 61.0p (2024: 79.7p) reflecting a reduction in
Net Asset Value of £2,772,000 as well as the increased number of shares in
issue in relation to funds raised in December 2024.
Revenue and Other Operating Income
Services revenue decreased by 9% to £325,000 (2024: £358,000) while other
operating income, comprising realised and unrealised gains on investments,
reflected a loss of £3,041,000 (2024: gain of £1,531,000). There were no
realised gains or losses during the year.
Administrative expenses decreased to £3,456,000 (2023: £3,508,000). The
Group continues to focus on cost efficiency, with operating costs modestly
reduced versus prior year in spite of inflationary increases applied across
most line items.
Earnings Per Share
Basic loss per share was 10.08p (2024: loss per share of 2.01p). Diluted loss
per share was 9.87p (2024: loss per share 1.96p).
Statement of Financial Position
The principal items in the statement of financial position at 30 June 2025 are
financial assets at fair value through profit and loss comprising equity
investments of £33,407,000 (2024: £33,203,000) and debt investments of
£3,066,000 (2024: £5,595,000). The carrying value of these items is
determined by the Directors using their judgement when applying the Group's
accounting policies. The matters taken into account when assessing the fair
value of the portfolio companies are detailed in the accounting policy on
investments. The movement during the year in equity and debt investments is
detailed in notes 13 and 14 to the financial statement, respectively.
The Group had goodwill of £1,966,000 at 30 June 2025 (2024: £1,966,000). The
considerations taken into account by the Directors when reviewing the carrying
value of goodwill are detailed in Note 10 to the financial statements.
The Group had net current assets at 30 June 2025 of £4,286,000 (2024:
£3,994,000) The net current assets at 30 June 2025 include trade receivables
of £1,218,000 (2024 : £940,000) which are more than 90 days overdue. The
portfolio company debtors are in the process of raising funds and the
directors are confident that the amounts due to the company will be paid.
The Group has reflected the initial recognition of the South Cambridge Science
Centre lease in line with the provisions of IFRS 16 which has introduced a
Right of Use Asset (£11m) as well as a short term lease liability of £0.3m
and a long term lease liability of £11.8m in the balance sheet as at 30 June
2025.
Net assets per share
Net assets of the Group decreased to £42,003,000 at 30 June 2025 (30 June
2024: £44,773,000) resulting in net assets per share of 61.0p (30 June 2024:
79.7p).
Cash
The Group's cash balances increased during the year by £286,000 to
£2,584,000 at 30 June 2025. Operating activities consumed £3,482,000 (2024:
£2,811,000). Investing activities generated a total of £453,000 including
£1,000,000 on signing the lease for the South Cambridge Science Centre (2024
: £370,000); and financing activities generated £3,326,000 through the issue
of shares.
Principal Risks and Challenges affecting the Group
The specific financial risks of price risk, interest rate risk, credit risk
and liquidity risk are discussed in note 1 to the financial statements. The
principal broader risks - financial, operational, cash flow and personnel -
are considered below.
The key financial risk in our business model is the inability to realise
sufficient income through the sale of our holdings in portfolio companies to
cover operating costs and investment capital The other principal financial
risk of the business is a fall in the value of the Group's portfolio. With
regards to the value of the portfolio itself, the fair value of each portfolio
company represents the best estimate at a point in time and is subject to
significant estimation risk. As such, the fair values may change significantly
in subsequent years thereby directly impacting the Group's value and
profitability. This risk is partly mitigated as the number of companies in the
portfolio increases. The Group continues to pursue its aim of actively seeking
realisation opportunities within its portfolio to reduce the requirement for
additional capital raising.
The principal operational risk of the business is management's ability to
continue to identify spin out companies from its formal and informal
university relationships, to increase the revenue streams that will generate
cash in the short term and to achieve realisations from the portfolio.
Early-stage companies are particularly sensitive to downturns in the economic
environment. There are currently several areas of concern that could affect
the UK and wider global markets and economy. Global risks include the
continuing war in Ukraine and conflict and instability in the middle east. The
impact of both, particularly the dangers of escalation, on geopolitics,
economically and on markets, is uncertain and difficult to predict.
Any economic downturn would mean considerable uncertainty in capital markets,
resulting in a lower level of funding activity for such companies and a less
favourable exit environment. The impact of this may be to constrain the growth
and value of the Group's portfolio and to reduce the potential for revenue
from advisory work. The Group seeks to mitigate these risks by maintaining a
strong balance sheet, relationships with co-investors, industry partners and
financial institutions, as well as controlling the cash burn rate in portfolio
companies.
Changes to the basis on which IP is licensed in the Higher Education sector
might lead to reduced opportunity or a need to vary the business model. Any
uncertainty in the sector may have an impact on the operation of the Group's
commercialisation partnerships in terms of lower levels of intellectual
property generation and therefore commercialisation activity. The Group seeks
to mitigate these risks by continuing to seek new sources of IP from a wide
range of institutions both within and outside of the UK.
The Group is dependent on its executive team for its success and there can be
no assurance that it will be able to retain the services of key personnel.
This risk is mitigated by the Group through recruiting additional skilled
personnel and ensuring that the Group's reward and incentive framework aids
our ability to recruit and retain key personnel. Post the year end, we
announced the departure of two Directors and members of the executive team,
both of whom are subject to six-month notice periods; successor recruitment is
underway.
After making appropriate enquiries, the Directors consider that it remains
appropriate to adopt the going concern basis in preparing the financial
statements. In assessing the going concern, the Directors considered the
Group's cash requirements over the three years to 30 June 2028. The forecast
included operating activities, including in relation to South Cambridge
Science Centre, and known near term purchase of investments. It did not
include cash from the purchase of unplanned investments. The analysis showed
that as at 30 June 2025 the Group had insufficient cash to cover its operating
expenditure for the 12 months from the date of signing of these financial
statements. However, the Directors intend to realise further cash through a
combination of the potential issue of ordinary shares, borrowing and subleases
of its property asset, which they reasonably expect will provide the Group
with sufficient cash to cover its operating expenditure for this period. The
Directors also expect that these funding options will, where appropriate,
assist the Group in supporting portfolio companies during this period. The
Group and the Company are reliant on additional funding for which the timing
and amount are not guaranteed.
Based on the above, this indicates the existence of a material uncertainty
which may cast significant doubt over the Group and Company's ability to
continue as a going concern and managements plan to deal with these events or
conditions and therefore, they may be unable to realise their assets and
discharge their liabilities in the ordinary course of business.
The Directors have a reasonable expectation that the funding will be
forthcoming. Consequently, the Directors continue to adopt the going concern
basis in preparing the Group and Company's financial statements.
These financial statements do not contain any adjustments that may arise if
they were not drawn up on a going concern basis.
By order of the Board
Neil Crabb
Director
7 December 2025
Audit Committee Report
Key Responsibilities
The Audit Committee's terms of reference are available on the Group's website.
The Committee is required, amongst other things, to:
· monitor the integrity of the financial statements of the Group,
reviewing significant financial reporting issues and the judgements they
contain;
· review and challenge where necessary the accounting policies used,
the application of accounting standards and the clarity of disclosure in the
financial statements;
· keep under review the effectiveness of the Group's internal controls
and risk management systems; and
· oversee the relationship with the external auditor, reviewing their
performance and advising the Board on their appointment and remuneration.
Committee Governance
At 30 June 2025 the Audit Committee comprised the three non-executive
directors, chaired by David Holdbrook. It meets a minimum of two times per
year with the external auditors present. In addition, executive directors may
be asked to attend.
Activities of the Audit Committee during the year
The Committee met on two occasions during the year under review and up to the
date of this Annual Report with all members present and the external auditors
in attendance. The main areas covered by the Committee are outlined below:
Internal controls and risk management
The Board has overall responsibility for internal controls and risk
management. As the Board's three non-executive directors were also the
Committee members during the year, the Group's risk analysis and controls
policy was reviewed and updated by the Board. Further details of business
risks identified can be found in Key Risks and Challenges Affecting the Group.
The risk management process is continually being developed and improved.
Significant estimates and judgements
The focus at the Committee meetings was on the significant estimates,
assumptions and judgements used in the financial statements in arriving at the
value of investments, reviewing goodwill for impairment and assessing the
recoverability of amounts owed to the Group by portfolio companies. The
Committee was satisfied that such estimates, assumptions and judgements used
were reasonable and appropriate. Details of critical accounting estimates and
assumptions and of critical accounting judgements can be found in Note 2 to
the Financial Statements.
External audit
The external auditor reports to the Committee on actions taken to comply with
professional and regulatory requirements and is required to rotate the lead
audit partner every five years. BDO LLP were first appointed as external
auditor in FY19 following their merger with Moore Stephens LLP who were the
external auditor in place since FY15 following their merger with Chantrey
Vellacott DFK LLP who were first appointed in FY08. Timothy West was appointed
lead partner in FY17. Chris Meyrick was appointed lead partner in FY22. Gary
Fensom was appointed lead partner in FY25. The Committee has confirmed it is
satisfied with the independence, objectivity and effectiveness of BDO LLP and
has recommended to the Board that the auditors be reappointed, and there will
be a resolution to this effect at the forthcoming Annual General Meeting. In
addition to their statutory duties, BDO LLP are also engaged to provide
non-audit services where it is felt their knowledge of the business best
places them to provide those services, such as review of the interim results,
and where these non-audit services are permitted under the Financial Reporting
Council's ethical guidelines. No such non-audit services were provided during
the year.
Basis for qualified audit opinion
As noted in the external auditor's report, the Directors were unable to obtain
sufficient appropriate audit evidence in respect of the valuation of certain
investments, specifically those investments described as 'Stage 2' by
management in Note 13 to the financial statements, which have been valued at
£1.3 million as at 30 June 2025 in the Group's Consolidated Statement of
Financial Position and the Parent Company's Statement of Financial Position.
Therefore, the external auditor was unable to obtain sufficient, appropriate
audit evidence in respect of the valuation of these investments as at 30 June
2025. The external auditor was also unable to perform alternative procedures
to satisfy themselves concerning the valuation of the £1.3 million Stage 2
investments held by the Group and Parent Company as at 30 June 2025.
Consequently, the external auditor was unable to determine whether any
adjustment was necessary to these amounts as at 30 June 2025 or whether there
was any consequential effect on the Group and Parent Company's other
comprehensive income for the year ended 30 June 2025.
The external auditor's report also highlights that for the year ended 30 June
2024 their opinion was also qualified because they were unable to obtain
sufficient appropriate audit evidence in respect of the valuation of £1.2
million of 'Stage 2' investments held by the Group and Company as at 30 June
2023 and consequently were unable to determine whether there was any
consequential effect on the Group and Parent Company's other comprehensive
income for the year ended 30 June 2024. Their audit opinion on the financial
statements for the year ended 30 June 2024 was qualified accordingly. The
valuation of £1.3 million of 'Stage 2' investments held by the Group and
Company as at 30 June 2024 was not material and hence the external auditor's
opinion on the Statement of financial position as at 30 June 2024 was
consequently not qualified in this respect. Their opinion on the current
year's financial statements is also qualified because of the possible effect
of this matter on the comparability of the current year's figures and the
corresponding figures.
David Holbrook
Chair of the Audit Committee
7 December 2025
Nominations Committee
The Nominations Committee comprises the whole Board and meetings are convened
as required.
Key duties of the Nomination Committee include:
regularly review the structure, size and composition (including the skills,
knowledge, experience and diversity) of the Board and make recommendations to
the Board with regard to any changes
give full consideration to succession planning for directors and other senior
executives in the course of its work, taking into account the challenges and
opportunities facing the company, and the skills and expertise needed on the
Board in the future
be responsible for identifying and nominating for the approval of the Board
potential candidates for board positions
implement and review the results of the Board performance evaluation process
approve any changes to a director's role.
The Board reviewed its succession planning arrangements during the year and
implemented a Succession Planning Framework. Further detail on this framework
is set out in the Corporate Governance Report.
The Board has overall responsibility for the Board Succession Plan, the
primary objectives of which are set out in our Corporate Governance Report.
Nominations Committee Terms of Reference are available on the Company's
website.
Consolidated Statement of Comprehensive Income
For the year ended 30 June 2025
2025 2024
Notes £'000 £'000
Revenue
Revenue from services 3 325 358
Other operating income
Unrealised (loss)/profit on the revaluation of investments 13,14 (3,041) 1,282
Realised (loss)/profit on disposal of investments 0 249
(2,716) 1,889
Administrative expenses 5 (3,456) (3,508)
Share based payments (247) (225)
Interest income on debt investments 98 409
Other income 3 36
Loss from operations (6,318) (1,399)
Interest income on short term deposits 33 62
Interest payable on building lease (59)
Loss from operations and before tax (6,344) (1,337)
Taxation 7 - 211
Loss and total comprehensive expense attributable to the equity holders of the
Company
(6,344) (1,126)
Loss per share attributable to the equity holders of the Company:
Basic loss per share 8 (10.08)p (2.01)p
Diluted loss per share 8 (9.87)p (1.96)p
All of the Group's activities are classed as continuing.
There was no other comprehensive income in the period (2024:
nil).
Consolidated Statement of Financial Position
At 30 June 2025
2025 2024
Notes £'000 £'000
Assets
Non-current assets
Right-of-use Asset 21 11,027 -
Plant and Equipment 9 33 15
Goodwill 10 1,966 1,966
Equity investments 13 33,407 33,203
Debt investments 14 3,066 5,595
49,499 40,779
Current assets
Trade receivables and other current assets 15 1,776 1,629
Advances 16 546 382
Cash and cash equivalents 2,584 2,298
4,906 4,309
Total assets 54,405 45,088
Liabilities
Current liabilities
Lease liability 21 (274) -
Trade and other payables 17 (346) (315)
(620) (315)
Net current assets 4,286 3,994
Non-current liabilities
Lease liability 21 (11,782) -
(11,782) -
Total liabilities (12,402) (315)
Net assets 42,003 44,773
Equity
Called up share capital 18 6,890 5,617
Share premium account 18 16,845 14,791
Reverse acquisition reserve 19 (1,667) (1,667)
Share based payment reserve 19 1,684 1,437
Retained earnings 19 18,251 24,595
Total equity 42,003 44,773
Company Statement of Financial Position
At 30 June 2025
Notes 2025 2024
£'000 £'000
Assets
Non-current assets
Right-of-use Asset 21 11,027 -
Investment in subsidiaries 12 2,412 2,412
Equity investments 13 31,312 31,108
Debt investments 14 1,935 4,351
Amounts receivable from group undertakings 15 520 400
47,206 38,271
Current assets
Trade receivables and other current assets 15 938 929
Advances 416 287
Cash and cash equivalents 2,526 2,290
3,880 3,506
Total assets 51,086 41,777
Current liabilities
Lease liability 21 (274) -
Trade and other payables (179) (161)
(453) (161)
Net current assets 3,427 3,345
Non-current liabilities
Non-current lease liability 21 (11,782) -
Amounts payable to group undertakings 17 (6,126) (6,399)
(17,908) (6,399)
Total liabilities (18,361) (6,560)
Net assets 32,725 35,217
Equity attributable to equity holders of the Company
Called up share capital 18 6,890 5,617
Share premium account 18 16,845 14,791
Share-based payment reserve 19 1,684 1,437
Retained earnings 19 7,306 13,372
Total equity 32,725 35,217
The Company has elected to take the exemption under section 408 of the
Companies Act 2006 to not present the Company statement of comprehensive
income. The total loss of the Company for the year was
£6,066,000 (2024: loss of £1,095,000).
Consolidated and Company Statements of Changes in Equity
For the year ended 30 June 2025
Group
Share- Total equity
Share Reverse acquisition based payment attributable to
Share capital premium reserve reserve Retained earnings equity holders
account of the Company
£'000 £'000 £'000 £'000 £'000 £'000
At 1 July 2023 5,566 14,627 (1,667) 1,291 25,721 45,538
Issue of shares 51 164 - (79) - 136
Share-based payments - 225 225
Loss/total comprehensive expense for the year
- - - - (1,126) (1,126)
At 30 June 2024 5,617 14,791 (1,667) 1,437 24,595 44,773
Issue of shares 1,273 2,054 - - 3,327
Share-based payments - - - 247 - 247
Loss/total comprehensive expense for the year
- - - - (6,344) (6,344)
At 30 June 2025 6,890 16,845 (1,667) 1,684 18,251 42,003
Company
Share- Total equity
Share based payment attributable to
Share premium reserve Retained earnings equity holders
capital account of the Company
£'000 £'000 £'000 £'000 £'000
At 1 July 2023 5,566 14,627 1,291 14,467 35,951
Issue of shares 51 164 (79) - 136
Share-based payments - - 225 - 225
Loss/total comprehensive expense for the year
- - - (1,095) (1,095)
At 30 June 2024 5,617 14,791 1,437 13,372 35,217
Issue of shares 1,273 2,054 - 3,327
Share-based payments - - 247 - 247
Loss/total comprehensive expense for the year (6,066)
- - - (6,066)
At 30 June 2025 6,890 16,845 1,684 7,306 32,725
The financial statements on pages 65 to 95 were approved by the Board of
Directors and authorised for issue on 7 December 2025 and were signed on its
behalf by:
Chief Financial Officer
Registered number: 06262177
Consolidated and Company Statements of Cash Flows
For the year ended 30 June 2025
Group Group Company Company
2025 2024 2025 2024
Notes £'000 £'000 £'000 £'000
Cash flows from operating activities 22 (3,494) (2,811) (3,173) (2,058)
Cash flows from investing activities
Purchase of tangible fixed assets 9 (35) (14) - -
Disposal of tangible fixed assets 9 12 - - -
Right-of-use lease asset legal fees 21 (57) (57)
Purchase of equity investments 13 - (68) (68)
Disposal of equity investments - 2,547 -
Purchase of debt investments 14 (500) (2,157) (500) (1,987)
Disposal of debt investments -
Lease inducement 1,000 1,000
Net amounts receivable from group undertakings - - (393) 2,988
Interest income 33 62 33 55
Net cash from investing activities 453 370 83 988
Cash flows from financing activities -
Proceeds from issue of equity shares 3,566 136 3,565 136
Costs of share issue (239) - (239) -
Net cash generated from financing activities 3,327 136 3,326 136
Net increase/(decrease) in cash and cash equivalents 286 (2,305) 236 (934)
Cash and cash equivalents at beginning of year 2,298 4,603 2,290 3,224
Cash and cash equivalents at end of year 2,584 2,298 2,526 2,290
Accounting Policies
The material accounting policies are summarised below. They have all been
applied consistently throughout the year and the preceding year.
Basis of accounting
The financial statements of the Group and the Company have been prepared in
accordance with UK adopted International Financial Reporting Standards (IFRS)
and in the case of the Company financial statements, as applied in accordance
with the Companies Act 2006.
The financial statements have been prepared on the historical cost basis,
except where IFRS requires an alternative treatment. The principal variations
from historical cost relate to financial instruments.
Going Concern
As described in the Directors' Report, the Group's strategy is to develop a
growing portfolio of spin out companies that will provide cash inflows through
realisation of investments. In assessing the going concern, the Directors
considered the Group's cash requirements over the three years to 30 June 2028.
The forecast included operating activities, including in relation to South
Cambridge Science Centre, and known near term purchase of investments. It did
not include cash from the purchase of unplanned investments. The analysis
showed that as at 30 June 2025 the Group had insufficient cash to cover its
operating expenditure for the 12 months from the date of signing of these
financial statements. However, the Directors intend to realise further cash
through a combination of the potential issue of ordinary shares, borrowing and
subleases of its property asset, which they reasonably expect will provide the
Group with sufficient cash to cover its operating expenditure for this period.
The Directors also expect that these funding options will, where appropriate,
assist the Group in supporting portfolio companies during this period. The
Group and the Company are reliant on additional funding for which the timing
and amount are not guaranteed.
Based on the above, this indicates the existence of a material uncertainty
which may cast significant doubt over the Group and Company's ability to
continue as a going concern and managements plan to deal with these events or
conditions and therefore, they may be unable to realise their assets and
discharge their liabilities in the ordinary course of business.
The Directors have a reasonable expectation that the funding will be
forthcoming. Consequently, the Directors continue to adopt the going concern
basis in preparing the Group and Company's financial statements.
These financial statements do not contain any adjustments that may arise if
they were not drawn up on a going concern basis.
Changes in accounting policies
a) New standards, interpretations and amendments effective 1 January
2025
Amendments to IAS1: Classification of liabilities as current and non-current.
Liabilities have been classed as current or non-current according to payment
obligations and timescales, with no material impact on the financial
statements of the Group.
a) New standards, interpretations and amendments not yet effective
IFRS 18, Presentation and Disclosure in Financial Statements, mandatory for
reporting periods after 1 January 2027, will impact the categorisation of
income and expenses, with particular regard to the Group's future property
business. The Group intends to adopt this standard when reporting for
2025-26.
IFRS 9, Financial Instruments and IFRS 7, Financial Instruments: Disclosures.
The Group is aware of updates to IFRS 9 and IFRS 7 which are mandatory for
financial periods from January 2026. These may affect the dates of recognition
or derecognition of financial assets and liabilities in the Group accounts
from the period ending June 2027 onwards.
Basis of consolidation
The Group financial statements consolidate the financial statements of
Frontier IP Group Plc and its subsidiary undertakings. Subsidiary undertakings
are consolidated using acquisition accounting from the date of control. An
entity is classed as under the control of the Group when all three of the
following elements are present: power over the entity, exposure, or rights to,
variable returns from its involvement with the entity and the ability of the
Group to use its power over the entity to affect the amount of those variable
returns.
Segmental reporting
The Group operates in one market sector, the commercialisation of University
Intellectual Property, and primarily within the UK. The Group conducts
business in Portugal, but transactions during the year were immaterial.
Therefore, revenue, profit on ordinary activities before tax and net assets do
not need to be analysed by segment.
Goodwill
Goodwill arising on consolidation represents the excess of the cost of
acquisition over the Group's interest in the fair value of the identifiable
assets and liabilities of a subsidiary at the date of acquisition. Goodwill is
recognised as an asset and reviewed for impairment annually. Goodwill arising
on acquisition is allocated to cash-generating units. The recoverable amount
of the cash-generating unit to which goodwill has been allocated is tested for
impairment annually, or on such other occasions that events or changes in
circumstances indicate that it might be impaired. Any impairment is recognised
immediately as an expense and is not subsequently reversed.
Property, plant and equipment
Owned equipment is all computer and computer-related equipment, stated at cost
less depreciation and any provision for impairment. Leased assets are
accounted for under IFRS 16, covered by the separate paragraph below.
Depreciation
Depreciation is provided at rates calculated to write off the cost less
estimated residual value of each asset on a straight-line basis over its
expected useful life. The assets' residual values and useful lives are
reviewed, and adjusted if appropriate, at the end of each reporting period.
The rates of depreciation are as follows:
Building
lease
5% per annum
Fixtures and office
equipment
50% per annum
EV
lease
Over length of lease agreement
Financial instruments
Financial assets and financial liabilities are recognised in the Group's
statement of financial position at fair value when the Group becomes a party
to the contractual provisions of the instrument.
IFRS 9 divides all financial assets into two classifications - those measured
at amortised cost and those measured at fair value. Where assets are measured
at fair value, gains or losses are either recognised entirely in profit or
loss or in other comprehensive income. Impairments are recognised on an
expected loss basis. As such where there are expected to be credit losses
these are recognised in the profit and loss.
Trade receivables
Trade receivables are recognised initially at fair value and subsequently
measured at amortised cost using the effective interest method, less provision
for an appropriate allowance for credit losses over the expected life of the
asset. An allowance for expected credit loss is established when there is
expectation that the Group will not be able to collect all amounts due. The
Group applies the IFRS9 general approach to measuring expected credit loss,
details of which are provided at Note 15.
Cash
Cash and cash equivalents comprise cash at bank and in hand and short-term
deposits and is measured at fair value.
Equity Investments
Equity investments are held with a view to the ultimate realisation of capital
gains and are recognised and derecognised on the trade date. They are
classified as financial assets at fair value through profit and loss and are
initially measured at fair value and the realised gain represents the
difference between the carrying amount at the beginning of the reporting
period, or the transaction price if it was purchased in the current reporting
period, and the consideration received on disposal. The unrealised gain
represent the difference between the carrying amount at the beginning of the
period, or the transaction price if it was purchased in the current reporting
period, and its carrying amount at the end of the reporting period. Gains and
losses are presented through the profit or loss in the period in which they
arise. Equity investments are classified as non-current assets.
The Group has interests of over 20% but these are not accounted for as
associates as the Group elects to hold such investments at fair value in the
statement of financial position. IAS 28 Investments in Associates and Joint
Ventures does not require investments held by entities which are similar to
venture capital organisations to be accounted for under the equity method
where those investments are designated, upon initial recognition, as at fair
value through profit and loss.
The fair value of equity investments is established in accordance with
International and Private Equity and Venture Capital Valuation Guidelines
("IPEV Guidelines"). The Group uses valuation techniques that management
consider appropriate in the circumstances and for which sufficient data are
available to measure fair value, maximising the use of relevant observable
inputs and minimising the use of unobservable inputs taking into account any
discounts required for non-marketability and other risks inherent in
early-stage businesses. The fair value of quoted investments is based on the
bid price in an active market on the measurement date. The Group's investments
are primarily in seed, start-up and early-stage companies often with no
short-term earnings, revenue or positive cash flow making it difficult to
assess the value of its activities and to reliably forecast cash flows. The
Group normally receives its initial equity prior to any third-party funding
and some companies progress without third party funding. In selecting the most
appropriate valuation technique in estimating fair value the Group uses a
standard valuation matrix to categorise companies. The valuation matrix is as
follows:
1. Initial Equity
When the Group has received its initial equity prior to transfer of IP to the
portfolio company, the company is valued based on the cost of the initial
equity. If advisory services are provided by the Group prior to spin out in
return for its equity stake, the cost is the value of services invoiced. If no
advisory services have been invoiced prior to spin out, the cost is the
nominal value of the shares received.
2. IP Transferred
Once the IP is transferred to the company, but prior to the company raising
investment funds, the valuation is based primarily on the value attributed to
the IP. The method of valuation will involve evaluating the portfolio
company's progress against technical measures, including product development
phases and patents. In addition, where grant funding is awarded in relation to
its product development costs the value of the grant may be included in the
company valuation to the extent that management is satisfied that the company
will derive commensurate economic benefit. The assessment of inputs used in
valuing companies in advance of a funding round are highly subjective and
accordingly caution is applied.
3. Trading Prior to Investment
When the portfolio company commences trading, the Group considers if this
indicates a change in fair value. If there is evidence of value creation the
Group may consider increasing the value and would seek comparable company
valuations to estimate fair value.
4. Price of Recent Investment
If the company receives third party funding, the price of that investment will
provide the starting point for the valuation. The Group considers whether any
changes or events subsequent to the investment would indicate a change in fair
value using a milestone based approach. The milestone based approach involves
performing an assessment on the success of relevant milestones that were
agreed at the time of investment, including inputs such as revenues, IP
assessment, patents, cash burn rates, product testing phases and market
traction. Any adjustment made is, whenever possible, based on objective data
from the company in addition to management's judgement.
5. Other Valuation Techniques
As the company develops and generates predictable cash flows a combination of
valuation techniques are applied as appropriate, such as discounted cash flow,
industry specific valuation models and comparable company valuation multiples.
6. Quoted companies.
The fair value of quoted companies is based on the bid price in an active
market on the measurement date.
Investment in subsidiary companies is stated at cost, which is the fair value
of consideration paid, less provision for any impairment in value. If the
recoverable amount of an investment in a subsidiary is estimated to be less
than its carrying amount, the carrying amount is reduced to its recoverable
amount. Impairment losses are recognised as an expense immediately through
profit or loss. Where an impairment loss subsequently reverses, the carrying
amount of the investment in subsidiary is increased to the revised estimate of
its recoverable amount, but so that the increased carrying amount does not
exceed the carrying amount that would have been determined had no impairment
loss been recognised in prior years.
Debt investments
Debt investments are unquoted debt instruments, are loans to portfolio
companies and are valued at fair value. None of the instruments are held with
a view to selling the instrument to realise a profit or loss. Instruments
which are convertible to equity at a future point in time or which carry
warrants to purchase equity at a future point in time are considered to be
hybrid instruments containing a fixed rate debt host contract with an embedded
equity derivative. The Group does not separate the embedded derivative from
the host contract and the entire instrument is measured at fair value through
profit or loss. The fair value of debt investments is derived by applying
probability weightings to the conversion and repayment values of the debt
investment plus the value of warrants. Inputs to the conversion value are the
nominal value of the loan, interest to conversion, conversion discount and
time to conversion. Inputs to the repayment value are the nominal value,
interest to repayment and time to repayment. Both values are discounted at a
rate appropriate to the portfolio company's stage of development. Where
warrants are attached to a debt instrument, the fair value is determined using
the Black-Scholes-Merton valuation model. Any indications of changes in the
credit risk of the portfolio company borrower are considered when valuing debt
investments at subsequent measurement dates.
Financial liabilities and equity
Financial liabilities and equity are classified according to the substance of
the financial instrument's contractual obligations rather than the financial
instrument's legal form. An equity instrument is any contract that evidences a
residual interest in the assets of the Group after deducting all of its
liabilities.
Trade payables
Trade payables are not interest bearing and are stated at their amortised
cost.
Equity instruments
Equity instruments issued by the Company are recorded at the proceeds
received, net of direct issue costs.
Current and deferred tax
The charge for current tax is based on the results for the year as adjusted
for items which are non-assessable or disallowed. It is calculated using rates
that have been enacted or substantively enacted by the statement of financial
position date.
Deferred tax is accounted for using the statement of financial position
liability method in respect of temporary differences arising from differences
between the carrying amount of assets and liabilities in the financial
statements and the corresponding tax basis used in the computation of taxable
profit. Deferred tax liabilities are recognised for all taxable temporary
differences and deferred tax assets are recognised to the extent that it is
probable that taxable profits will be available against which deductible
temporary differences can be utilised. Such assets and liabilities are not
recognised if the temporary difference arises from goodwill or from the
initial recognition (other than in a business combination) of other assets and
liabilities in a transaction which affects neither the tax profit nor the
accounting profit.
Share options
The Group issues equity-settled share-based payments to certain employees.
Equity-settled share-based payments are measured at fair value at the date of
grant. The fair value determined at the grant date of the equity-settled
share-based payments is expensed on a straight-line basis over the vesting
period, based on the Group's estimate of shares or options that will
eventually vest. The corresponding credit is recognized in retained earnings
within total equity. Fair value is measured using the Black-Scholes-Merton
pricing model. The expected life used in the model has been adjusted, based on
management's best estimate, for the effects of non-transferability, exercise
restrictions, and behavioural considerations.
Revenue recognition
The Group's revenue streams are recognised in accordance with IFRS 15. The
Group applies IFRS 15 to each of its revenue streams analysing its nature, the
timing of satisfaction of performance obligations and any significant payments
terms.
Fees for services provided by the Group are measured at the fair value of the
consideration received or receivable, net of value added tax. The Group's
revenue is derived from the following streams:
Business support services are governed by engagement agreements which
typically provide for a fixed monthly fee for services to be performed on an
on-going monthly basis. The services are invoiced at the end of each month and
the revenue recognised for that month.
Fees for corporate finance work are governed by separate engagement agreements
where the fee is typically based on a percentage of funds raised and/or a
fixed fee. Revenue is recognised when the service is provided and the
respective transaction has completed.
Interest income on debt investments in portfolio companies is recognised when
it is probable that the economic benefits will flow to the Group and the
amount can be reliably measured. Interest income on cash deposits is accrued
on a time basis by reference to the principal outstanding and the applicable
interest rate.
Where the consideration for spin out services is equity in companies spun out
by a university, the revenue recognized is the Group's percentage of equity
received applied to the value attributed to the portfolio company on initial
spin out. The percentage of equity received is governed by an agreement with
the university and revenue is recognized upon spin out. When the consideration
for services is a share in licencing income the revenue is recognised on an
accruals basis in accordance with the terms of the licensing agreements.
Leases
The Group rents office premises, and leases electric vehicle as part of the
employee benefit EV lease scheme. The Group accounts for these arrangements
according to the length and terms of the agreements involved.
As at June 2025, the Group has leased one floor of a science centre. The
science centre lease is for 20 years with a lease inducement, rent-free period
of one year, no break point, stepped rental terms, and dilapidations at the
end of the term..
On signing a long-term lease, the Group recognises a right-of-use asset,
measured at the present value of future lease payments to be made over the
lease term, less any inducements received, plus any direct costs paid. In
calculating the present value of lease payments, the Group uses as discount
rate the Group's incremental cost of borrowing. The Group also recognises a
lease liability to the value of present value of future lease payments
calculated in the same way as for the right-of-use asset. After the
commencement date, the right of use asset is depreciated in a straight line
over the period of the lease. The amount of lease liability is increased to
reflect the accretion of interest and reduced for the lease payments made. The
Group recognises a short term liability of lease payments due in the next
twelve months, and a long-term liability for payments beyond twelve months. In
addition, the carrying amount of lease liabilities is remeasured if there is a
modification, a change in the lease term, or a change in the in-substance
fixed lease payments
The vehicle lease costs are paid not by the company but by deductions from
employee salary which offset both the rental payments to the vehicle supplier
and insurance against any liabilities arising on termination. .As at June 2025
serviced office rentals are less than a year. For short term leases and leases
of low value assets, the Group recognises the expense on a straight-line basis
as permitted by IFRS 16.
Retirement benefit costs
The Group operates a defined contribution retirement benefit scheme. The
amount charged to the income statement in respect of retirement benefit costs
are the contributions payable in the year. Differences between contributions
payable in the year and contributions actually paid are shown as either
prepayments or accruals in the statement of financial position.
Notes to the Financial Statements
1. Financial risk management
Financial risk factors
(a) Market risk
Interest rate risk
As the Group has no borrowings it only has limited interest rate risk. The
impact is on income, debt investments and operating cash flow and arises from
changes in market interest rates. Cash resources are held in floating rate
accounts.
Price risk
The Group is exposed to equity securities price risk because of equity
investments classified on the consolidated statement of financial position as
financial assets at fair value through profit and loss. The maximum exposure
is the fair value of these assets which is £33,407,000 (2024: £33,203,000).
Equity investments are valued in accordance with the Group's accounting policy
on equity investments. Management's monitoring of and contact with portfolio
companies provides sufficient information to value the unquoted companies and
the Board regularly reviews their progress, prospects and valuation.
Information on reasonable possible shifts in the valuation of equity
investments is provided in note 13 to the financial statements.
(b) Credit risk
The Group's credit risk is primarily attributable to its debt investments,
trade receivables, other debtors and cash equivalents. The Group's current
cash and cash equivalents are held with two UK financial institutions,
principally the Bank of Scotland plc and a small account maintained at
Barclays Bank plc. Bank of Scotland and Barclays Bank UK plc have a credit
rating of A1 (long term); and P-1 (short term) from credit rating Moody's
indicating that Moody's consider that bank has a "superior" ability to repay
short-term debt obligations (2024 ; long term A-1, short term P-1 rating). The
concentration of credit risk from trade receivables and other debtors varies
throughout the year depending on the timing of transactions and invoicing of
fees. Details of major customers to the Group are set out in Note 4. Details
of trade receivables, including ageing of debt, and other current assets,
are set out in note 15. Details of significant debt investments are set out
in Note 14. Management's assessment is aided through representation on the
Board and/or through providing advisory services to the companies.
The maximum exposure to credit risk for debt investments, trade receivables,
other current asset and cash equivalents is represented by their carrying
amount.
(c) Capital risk management
The Group in 2024-5 was funded by equity finance only. Total capital is
calculated as 'total equity' as shown in the consolidated statement of
financial position. The Group's objectives for managing capital are to
safeguard the Group's ability to continue as a going concern in order to
provide returns for shareholders and benefits for other stakeholders and to
manage the cost of capital. In order to maintain the capital structure, the
Group may issue new shares as required. The Group had no debt at the balance
sheet date.
(d) Liquidity risk
The Group seeks to manage liquidity risk to ensure sufficient liquidity is
available to meet the requirements of the business and to invest cash assets
safely and profitably. The Group's business model is to realise cash through
the sale of investments in portfolio companies and in the absence of such
realisations the Group would plan to raise additional capital. The Board
reviews available cash to ensure there are sufficient resources for working
capital requirements and investments. At 30 June 2025 and 30 June 2024 all
amounts shown in the consolidated statement of financial position under
current assets and current liabilities mature for payment within one year.
(e) Climate related risk and opportunity
The Group is affected by climate risk in the way in which any small
office-based operation by factors such as increasing energy costs, changing
weather patterns affecting travel and insurance, and possible futures such as
flooding risk or future epidemics. Assessment of the risks is based on
generally available government and UN data and also contact with scientific
institutions and research bodies to which the Group has links through its
investments. As well as risk, climate change opportunity is an aspect of the
Group's business model. Our investee companies are developing technologies
which mitigate the effect of climate change, by directly reducing carbon
emissions, or in addressing future challenges in nutrition or medicine.
Sustainability risks and opportunities are disclosed in the directors'
report.
2. Critical accounting estimates and assumptions
Estimates and judgements are continually evaluated and are based on historical
experience and other factors, including expectations of future events that are
believed to be reasonable under the circumstances. Actual results may differ
from these estimates and judgements.
The Group makes estimates and assumptions concerning the future. The resulting
accounting estimates will, by definition, seldom equal the related actual
results. The estimates and assumptions that have a significant risk of causing
a material adjustment to the carrying amounts of assets and liabilities within
the next financial year are addressed below:
(i) Valuation of investments
In applying valuation techniques to determine the fair value of unquoted
equity investments the Group makes estimates and assumptions regarding the
future potential of the investments. As the Group's unquoted investments are
in seed, start-up and early-stage businesses it can be difficult to assess the
outcome of their activities and to make reliable forecasts. Given the
difficulty of producing reliable cash flow projections for use in discounted
cash flow valuations, this technique is applied with caution. Adjustments made
to fair value are, by their very nature, subjective and determining the fair
value is a critical accounting estimate. In applying valuation techniques to
determine the fair value of debt investments the Group makes estimates and
assumptions regarding the time to repayment or conversion, discount rate and
credit risk. Where warrants are attached to a debt instrument, the fair
value is determined using the Black-Scholes-Merton valuation model. The
significant inputs to the model are provided in note 14.
(ii) Impairment of goodwill
The Group tests annually whether goodwill has suffered any impairment, in
accordance with the stated accounting policy. The recoverable amount is
determined using a value in use value model which requires a number of
estimations and assumptions about the timing and amount of future cash flows.
As future cash flows relate primarily to proceeds from sale of investments,
these estimates and assumptions are subject to a high degree of uncertainty.
Note 10 describes the key assumptions and sensitivity applied.
(iii) Consideration of credit losses
The Group believes that the most significant judgement areas in the
application of its accounting policies are establishing the fair value of its
unquoted equity investments and the consideration of any impairment to
goodwill. The matters taken into account by the Directors when assessing the
fair value of the unquoted equity investments are detailed in the accounting
policy on investments.
The considerations taken into account by the Directors when reviewing goodwill
are detailed in Note 10. In addition, the Directors judge that the Group is
exempt from applying the equity method of accounting for associates in which
it has interests of over 20% as they consider the Group to be similar to a
venture capital organisation and elects to hold such investments at fair value
in the statement of financial position.
IAS28 Investments in Associates and Joint Ventures permits investments held by
entities which are similar to venture capital organisations to be excluded
from its scope where those investments are designated, upon initial
recognition, as at fair value through profit and loss.
The matters taken into account in the recognition of credit losses include
historic, current and forward-looking information. The Group's exposure to
credit losses is with companies from its own portfolio whose ability to settle
their debts is primarily dependant on their ability to raise capital rather
than their current trading. The age of debt is not the most significant
factor in assessing credit loss as the outcome is expected to be binary. The
debt is also concentrated in a small number of companies; five companies
account for 71% of trade receivables; four account for 86% of debt
investments at 30 June 2025. Management has in-depth knowledge of these
companies and has active board members in all four of them . Management focus
on the factors which impact the ability of these companies to successfully
raise capital and a probability of default as a result of the failure to raise
capital is applied to determine the expected credit loss. Details of the
expected credit loss are provided in note 15
3. Revenue from services
During the year the Group earned revenue from the provision of services to
portfolio companies and university partners as follows:
2025 2024
£'000 £'000
Retainers with portfolio companies 325 315
Corporate finance fees from portfolio company fundraisings - 43
325 358
4. Major customers
During the year the Group had five major customers that accounted for 71% of
its revenue from services (2024: five customers accounted for78%). Four of
the same customers were also in the top five in 2024. The revenues generated
from each customer were as follows:
2025 2024
£'000 £'000
Customer 1 48 80
Customer 2 48 66
Customer 3 48 50
Customer 4 47 48
Customer 5 40 40
231 284
5. Administration expenses
Expenses included in administrative expenses are analysed below.
£'000 £'000
Employee costs 2,447 2,451
Consultant 79 142
Travel and subsistence 50 36
Depreciation 34 9
Bad and doubtful debts 214 245
Fees payable to auditor:
- audit fee 116 137*
-non-audit services - -
Legal, professional and financial costs 290 257
Serviced offices cost 150 157
Administration costs 76 74
3,456 3,508
*2024 audit fees included billing from 2023. All figures are exclusive of VAT.
6. Directors and employees
The average number of people employed by the Group during the year was:
2025 2024
Number Number
Business and corporate development 20 21
2025 2024
£'000 £'000
Wages and salaries 1,785 1,774
Social security 259 247
Pension costs - defined contribution plans 209 234
Non-executive directors' fees 120 137
Other benefits 74 59
Total employee administration expenses 2,447 2,451
At 30(th) June 2025, all employees were employed by Frontier IP Group plc.
The key management of the Group and the Company comprise the Frontier IP Group
Plc Board of Directors. The remuneration of the individual Board members is
shown below.
Remuneration comprises basic salary, pension contributions and benefits in
kind, being private health insurance and life assurance. The type of
remuneration is consistent from year to year. Ad hoc bonuses may be paid to
reward exceptional performance, as decided by the Remuneration Committee, with
none awarded in the period. Share options are also awarded to employees from
time to time. The granting of share options to individual employees is
determined taking into account seniority, commitment to the business and
recent performance.
The total remuneration for each director is shown below.
Amounts in £'000
Salary Other benefits Pension Share option exercise Share Based Payment Total
Year 25 24 25 24 25 24 25 24 25 24 2025 2024
Executive
N Crabb 212 206 6 6 21 21 0 19 54 49 293 301
J McKay 112 112 7 6 61 61 0 8 39 36 219 222
M White 162 163 6 5 17 16 0 0 42 37 227 222
J Stent 204 39 2 - 21 4 0 0 10 0 237 43
J Fish* - 87 - 5 - 66 - 34 - 34 - 226
Non-executive
J King 49 41 - - - - - - - - 49 41
N Grierson 36 34 - - - - - - - - 36 34
D Holbrook 36 34 - - - - - - - - 36 34
A Richmond* - 28 - - - - - - - - - 28
811 744 21 22 120 168 0 61 145 156 1,097 1,151
*Former Director
7. Taxation
2025 2024
£'000 £'000
Current tax - -
Deferred tax - (211)
Tax (credit)/charge for the year - (211)
A reconciliation from the reported (loss)/profit before tax to the total tax
(credit)/charge is shown below:
2025 2024
£'000 £'000
(Loss)/profit before tax (6,344) (1,337)
-
(Loss)/profit before tax at the effective rate of corporation tax in the UK of
25% (2024: 25%)
(1,586) (334)
Effects of:
Fair value movement in investments not recognised in deferred tax 674 (617)
Expenses not deductible for tax purposes 62 71
Movement in deferred tax asset of losses not recognised 850 688
Other adjustments (19)
Tax (credit)/charge for the year 0 (211)
Deferred Tax
Group Group
Deferred tax liabilities at 30 June 2025 2024
Unrealised gains investments (60) (67)
Short-term timing differences - fixed assets (7) (3)
(67) (70)
Deferred tax assets at 30 June
Tax losses 67 70
67 70
Net deferred tax (liability) / asset - -
Company Company
Deferred tax liabilities at 30 June 2025 2024
Unrealised gains investments (60) (67)
(60) (67)
Deferred tax assets at 30 June
Tax losses 60 67
60 67
Net deferred tax (liability) / asset - -
Group Company
Deferred tax movement
(Liability)/asset at 1 July 2023 (211) 330
Credited 211 (330)
Debited to equity
At 30 June 2024 - -
Group Company
Deferred tax movement
(Liability)/asset at 1 July 2024 - -
At 30 June 2025 - -
No deferred tax liability has been recognised on the difference between base cost and fair value of certain financial assets at fair value through profit and loss which qualify as equity investments and which are expected to be exempt from tax under the substantial Shareholding Exemption on their subsequent disposal.
No deferred tax asset has been recognised on the gross temporary difference of
£7,637,000 (2024: £3,075,000) by the Group in respect of carried forward
losses, share options due to uncertainty in respect of availability of future
taxable profits against which the deferred tax asset will unwind.
8. Earnings per share
a) Basic
Basic earnings per share is calculated by dividing the profit attributable to
the shareholders of Frontier IP Group Plc by the weighted average number of
shares in issue during the year.
(Loss) / profit attributable to shareholders Weighted average number of shares Basic (loss) / earnings per share amount in pence
£'000
Year ended 30 June 2025 (6,344) 62,919,366 (10.08)
Year ended 30 June 2024 (1,126) 55,986,153 (2.01)
b) Diluted
Diluted earnings per share is calculated by adjusting the weighted number of
ordinary shares outstanding to assume conversion of all dilutive potential
ordinary shares. The Company has only one category of dilutive potential
ordinary shares: share options. A calculation is done to determine the number
of shares that could have been acquired at fair value (determined as the
average annual market value share price of the Company's shares) based on the
monetary value of the subscription rights attached to outstanding share
options. The number of shares calculated as above is compared with the number
of shares that would have been issued assuming the exercise of the share
options.
(Loss) / profit attributable to shareholders Weighted average number of shares adjusted for share options Diluted (loss) / earnings per share amount in pence
£'000
Year ended 30 June 2025 (6,344) 64,307,567 (9.87)
Year ended 30 June 2024 (1,126) 57,673,312 (1.96)
9. Tangible fixed assets
Electric Vehicle Fixtures and Equipment
Cost
At 1 July 2023 - 43
Additions 10 4
Disposals - -
At 30 June 2024 10 47
Additions 28 7
Disposals (10) (11)*
At 30 June 2025 28 43
Depreciation
Accumulated depreciation at 1 July 2023 - (30)
Charge for the year to 30 June 2024 (3) (9)
Disposals - -
Accumulated depreciation at 30 June 2024 (3) (39)
Charge for the year to 30 June 2025 (9) (7)
Disposals 10 10
Accumulated depreciation at 30 June 2025 (2) (36)
Net book value
At 30 June 2024 7 8
At 30 June 2025 26 7
*Disposal proceeds of £12,000 relate to return of leased EV and an insurance
claim for replacement laptops. Other retirals were fully written down.
10 Goodwill
Group Company
£'000 £'000
Cost
At 1 July 2023, 30 June 2024 and at 30 June 2025 1,966 -
Impairment
At 1 July 2023, 30 June 2024 and at 30 June 2025 - -
Carrying value
At 30 June 2024 1,966 -
At 30 June 2025 1,966 -
The Group conducts an annual impairment test on the carrying value of goodwill
based on the recoverable amount of the Group as one cash generating operating
unit. The recoverable amount is determined using a value in use model. The net
present value of projected cash flows is compared with the carrying value of
the Group's investments and goodwill. Projected cash flows are based on
management approved budgets for a period of three years and key assumptions
over a further seven years. A longer time horizon is deemed appropriate by
management in order to reflect the timeframe of the average scale up and
commercialisation process. When determining the key assumptions, management
has used both past experience and management judgement, but as future cash
inflows are derived primarily from the realisation of investments, these
assumptions are subject to a high degree of uncertainty and are shown in the
table below.
Assumptions 2025 2024
Rate of return 29% 29%
Average yearly realisations 7% 7%
Annual growth in trading income 6% 6%
Annual growth in cost base 7% 6%
Discount 15% 15%
The following changes in assumptions would reduce the recoverable amount below
the carrying amount from year 1 and thus trigger an impairment : a decrease
in the rate of return from 29% to 19% ; an increase in the discount rate from
15% to 20%; or an increase in the cost base annual growth from 7% to 41%.
Given the unlikelihood of each of these scenarios, the Board considers that
the recoverable amount of the Group as one cash generating operating unit is
greater than its carrying value and no impairment is required.
11. Categorisation of Financial Instruments
At fair value through profit or loss
£'000 Amortised cost
£'000 Total
Financial assets £'000
At 30 June 2024
Equity investments 33,203 - 33,203
Debt investments 5,595 - 5,595
Trade and other receivables - 1,629 1,629
Advances - 382 382
Cash and cash equivalents 2,298 2,298
38,798 4,309 43,107
At 30 June 2025
Equity investments 33,407 - 33,407
Debt investments 3,066 - 3,066
Trade and other receivables - 1,786 1,786
Advances 546 546
Cash and cash equivalents 2,584 2,584
Total 36,473 4,916 41,389
All financial liabilities are categorised as other financial liabilities and
recognized at amortised cost.
All net fair value losses in the year are attributable to financial assets
designated at fair value through profit or loss. (2024: all net fair value
gains were attributable to financial assets designated at fair value through
profit or loss.)
12. Investment in subsidiaries
Company Company 2024
2025
£'000 £'000
At 1 July 2,412 2,383
Addition - conversion of FIP Unipessoal Lda loan - 29
At 30 June 2,412 2,412
Group Investments
The Company has investments in the following subsidiary undertakings.
Country of Proportion of ordinary
incorporation shares directly held by the Company
Frontier IP Limited Scotland 100%
- principal activity is commercialisation of IP
Frontier IP Management Limited Scotland 100%
- principal activity is investment advisory and marketing services
FIP Portugal, Unipessoal Lda. Portugal 100%
- principal activity is commercialisation of IP
The registered office of all subsidiaries registered in Scotland is c/o CMS
Cameron McKenna Nabarro Olswang LLP, Saltire Court, 20 Castle Terrace,
Edinburgh EH1 2EN.
The registered office of FIP Portugal, Unipessoal, Lda is Rua Herman Neves 8
Piso 3, Escr 7, V2440, 1600-477 Lisbon, Portugal.
13. Equity investments
Equity investments are valued individually at fair value in accordance with
the Group's accounting policy on investments. All but one of the Group's
equity investments are unquoted and these have been categorised as being level
3, that is, valued using unobservable inputs. The quoted investment are
categorised as being level 1, that is, valued using quoted prices in active
markets for identical assets or liabilities which the Group can access at the
measurement date. All gains and losses relate to assets held at the year end,
and the fair value movement has been shown in the income statement as other
operating income.
Equity Investments Group Group Company Company 2024
2025 2024 2025
£'000 £'000 £'000 £'000
At 1 July 33,203 32,964 31,108 28,259
Additions 180 68 180 68
Conversion of debt investments 2,901 - 2,823 -
Disposals (180) (2,297) (180) -
Unrealised (loss)/profit on revaluation (2,697) 2,468 (2,619) 2,781
At 30 June 33,407 33,203 31,312 31,108
The table below sets out the movement during the year in the value of unquoted
equity investments by the valuation matrix stages described in the accounting
policy on equity investments:
Equity Investments
Stage Stage 2 Stage Stage 4 Stage Stage 6 Total
1 3 5
Fair value category 3 3 3 3 3 1
£'000 £'000 £'000 £'000 £'000 £'000 £'000
1 July 2023 - 1,193 5,873 23,601 - 2,297 32,964
Transfers between stages - (613) (1900) 2,513 - - -
Fair value change through other operating income - - (244) 2,712 - 2,468
Additions - - - 68 - - 68
Disposals - - - - (2,297) (2,297)
30 June 2024 - 580 3,729 28,894 - - 33,203
Transfers between stages - 700 - (700) - - -
Fair value increase through other operating income - (2,697) - (2,697)
Additions - - 3,081 - - 3,081
Disposals - - - (180) - (180)
30 June 2025 - 1,280 3,729 28,398 - - 33,407
The table below provides information about equity investment fair value
measurements. (See the accounting policy on investments for a description of
the valuation matrix stages)
Valuation matrix stage No of Investments Fair value Unobservable Inputs Reasonable possible shift
£'000 % +/- £000
At 30 June 2024
Stage 1 3 - Early stage with no unobservable inputs. - -
Stage 2 2 580 IP transferred; Grants from which economic benefit is derived 36% 209
Stage 3 5 3,729 performance against milestones and likely imminent fundraising 42% 1,566
Stage 4 14 28,894 price of last funding round and subsequent re-assessment of price/valuation. 31% 8,957
Stage 5 - - N/A - -
Stage 6 - - N/A - -
30 June 2024 33,203 31% 10,732
At 30 June 2025
Stage 1 1 - Early stage with no unobservable inputs - -
Stage 2 3 1,279 IP transferred; Grants from which economic benefit is derived. 36% 460
Stage 3 4 3,729 performance against milestones and likely imminent fundraising. 42% 1,566
Stage 4 13 28,399 price of last funding round and subsequent re-assessment of price/valuation.. 31% 8,804
Stage 5 - - N/a -
Stage 6 - - N/a -
30 June 2025 33,407 10,830
The percentage reasonable possible shift for each stage is the blended
percentage reasonable possible shift of each company at that stage which are
based on the Directors' assessment of the level of uncertainty attached to the
valuation inputs.
Equity investments are carried in the statement of financial position at fair
value even though the Group may have significant influence over those
companies. This treatment is permitted by IAS28, Investments in Associates. At
30 June 2025 the Group held an economic interest of 20% or more in the
following companies:
Name of Undertaking Registered Address % Issued Share Capital Share Class
2025 2024
AquaInSilico Avenida Tenente Valadim, nº. 17, 2º F, 2560-275 Torres Vedras, Portugal 29.0% Ordinary
29.0%
Alusid Limited Richard House, Winckley Square, Preston, Lancashire, PR1 3HP 35.4% Ordinary
35.4%
Cambridge Raman Imaging Limited Botanic House,100 Hills Road, Cambridge, CB2 1PH 25.4% Ordinary
25.4%
Celerum Limited 30 East Park Road, Kintore, Inverurie, AB51 0FE 33.8% Ordinary
33.8%
Des Solutio LDA Avenida Tenente Valadim, nº. 17, 2º F, 2560-275 Torres Vedras, Portugal 25.0% Ordinary
25.0%
Elute Intelligence Holdings Limited 21 Church Road, Tadley, RG26 3AX 40.71% Ordinary
40.71%
Enfold Health Limited The Officers' Mess, Royston Road, Duxford, Cambridgeshire, United Kingdom, 75.8% Ordinary
CB22 4QH
75.8%
GraphEnergyTech Limited The Officers' Mess, Royston Road, Duxford, Cambridgeshire, United Kingdom, 23.97% Ordinary
CB22 4QH
30.4%
Insignals Neurotech Lda Rua Passeio Alegre, 20 Centro de Incubacyo e Aceleracyo Do Porto, Porto 32.9% Ordinary
4150-570, Portugal
32.9%
Deakin Bio-hybrid Materials t/a Dekiln 73 Temperance Street, Ardwick, Manchester, England,M12 6HU 33.3% 33.3% Ordinary
The nature of these companies' business is provided in the Portfolio Review
section of the Strategic Report where the holding carries a value.
14. Debt investments
Debt investments are loans to portfolio companies to fund early-stage costs,
provide funding alongside grants and bridge to an equity fundraise. Loans
ranging from £100,000 to £400,000 were made to two companies during the
period. All debt investments are categorised as fair value through profit or
loss and measured at fair value. These have been categorised as being level 3,
that is, valued using unobservable inputs. The Group uses valuation techniques
that management consider appropriate in the circumstances and for which
sufficient data are available to measure fair value, maximising the use of
relevant observable inputs and minimising the use of unobservable inputs The
price at which the debt investment was made may be a reliable indicator of
fair value at that date but management consider the financial position and
prospects for the portfolio company borrower when valuing debt investments at
subsequent measurement dates.
Year 2025 2024
Debt investments balance 3,066,000 5,595,000
Increase in time to repay/convert 20% 20%
Reduced balance 2,978,104 5,561,668
Increase in discount rate 25% 25%
Reduced balance 2,950,693 5,510,000
Certain debt investments carry warrants granting the option to purchase
shares. The exercise price is generally the price of shares issued at the
first equity fundraising following the grant and the period of exercise is
generally at any time from the first equity fundraising to an exit event. The
fair value of the warrants is determined using the Black-Scholes-Merton
valuation model. The significant inputs into the model for each warrant were
the exercise price, the current share price valuation, volatility of 70%
(2024: 70%), expected life of between three and six years and annual risk-free
interest rates to end of term of between 3.74% and 3.97% (2024: 3.95% and
4.64%). The value of warrants included in debt investments at 30 June 2025 is
£408,903 (2024: £439.787).
The movement of debt investments during the year is set out below:
Group Group 2024 Company Company 2024
2025 2025
£'000 £'000 £'000 £'000
At 1 July 5,595 4,625 4,351 3,557
Additions 500 2,157 500 1,987
Conversion to unquoted equity investments (2,685) - (2,685) -
Unrealised profit/(loss) on revaluation (344) (1,187) (231) (1,193)
At 30 June 3,066 5,595 1,935 4,351
Debt investments with four portfolio companies accounted for 86% of the value
of debt investments at 30 June 2025: Nandi Proteins (£844,000), Elute
Intelligence (£608,000), Cambridge Raman Imaging (£575,000) and The Vaccine
Group (£568,000).
All debt investments are classed as non-current. Certain debt instruments have
conversion or repayment terms dependent on the amount and timing of an equity
fundraising by the portfolio company borrower. The exercise of a conversion
right would reclass the debt investment as a non-current equity investment.
The expectation is to exercise the right to repayment, however there is
uncertainty over the timing and amount of equity fundraisings. Furthermore,
notwithstanding the right to repayment being triggered, the Group may decide,
depending on the circumstance at the time, to defer repayment or convert into
equity for the benefit of the portfolio company borrower in which the Group
also holds an equity stake.
15. Trade receivables and other current assets
Group Group Company Company
2025 2024 2025 2024
£'000 £'000 £'000 £'000
Trade receivables 1,050 804 647 474
Receivables from Group undertakings - - 520 400
VAT 27 17 13 7
Prepayments and accrued income 101 104 34 29
Other debtors (excluding advances) 62 79 4 4
Accrued interest 708 906 344 645
1,948 1,910 1,562 1,559
Expected credit loss at 1 July 281 103 230 89
Other current assets provided for in the year 227 178 207 141
Other current assets written off in the year (336) - (333) -
Expected credit loss at 30 June 172 281 104 230
Less receivables from Group undertakings - non current
- - 520 400
Current portion 1,776 1,629 938 929
Trade receivables
Group Group Company Company
2025 2024 2025 2024
£'000 £'000 £'000 £'000
Trade receivables not past due 74 27 64 17
Trade receivables past due 1-30 days 27 32 17 23
Trade receivables past due 31-60 days 24 21 15 12
Trade receivables past due 61-90 days 24 21 15 11
Trade receivables past due over 90 days 1,218 940 732 568
Gross trade receivables at 30 June 1,367 1,041 843 631
Expected credit loss at 1 July 237 207 157 125
Debts provided for in the year 82 30 41 32
Debts written off in the year (2) - (2) -
Expected credit loss at 30 June 317 237 196 157
Net trade receivables at 30 June 1,050 804 647 474
Trade receivables are amounts due from portfolio companies for services
provided with net amounts recorded as revenue in the consolidated statement of
comprehensive income. Other current assets include short-term advances to
portfolio companies of working capital, and accrued interest on long-term
portfolio company loans.
The expected credit losses are estimated by reference to the financial
position and specific circumstances of the portfolio companies. Historical
information, current and forecast information is used in assessment of credit
risk in line with the IFRS general model.
The nature of the services provided to portfolio companies means the Group has
in-depth knowledge of the companies' prospects both for trading and raising
capital and the number of companies with past due receivables is small
enabling a full assessment of recoverability by company The Group's history of
credit loss is not sufficiently material to inform future expectations and
therefore management focus on the factors which impact the ability of its
debtor companies to successfully raise capital and a probability of default as
a result of the failure to raise capital is applied to determine the expected
credit loss. A significant increase in credit risk will lead to the
application of a lifetime expected credit loss. Credit loss changes are
reflected in finance costs in the statement of comprehensive income.
Receivables from Group undertakings in the Company statements carry interest
of 2.0% above Bank of England base rate (2024: 2.0%).
16. Advances
Group 2025 Group 2024 Company 2025 Company 2024
£'000 £'000 £'000 £'000
Advances 546 382 416 287
In the period to 30 June 2025 the Group advanced money to seven portfolio
companies on a short-term basis. The largest of these advances was £190,000
to Cambridge Raman Imaging Ltd.
17. Trade and other payables
Group Group Company Company
2025 2024 2025 2024
£'000 £'000 £'000 £'000
Trade payables 86 49 76 71
Payables to group undertakings - - 6,126 6,399
Social security and other taxes 86 92 - -
Other creditors 21 16 0 -
Accruals and deferred income 153 158 104 90
At 30 June 346 315 6,306 6,560
Less payables to Group undertakings - non current
- - (6,126) (6,399)
Current portion 346 315 180 161
18. Share capital and share premium
Number of shares issued and fully paid Ordinary shares of 10p
Share premium
Total
£'000 £'000 £'000
At 30 June 2024 56,166,946 5,617 14,791 20,408
Issue of shares 12,731,261 1,273 2,054 3,327
At 30 June 2025 68,898,207 6,890 16,845 23,735
19. Reserves
The reverse acquisition reserve was created on the reverse takeover of
Frontier IP Group Plc. The fair value of equity-settled share-based payments
is expensed on a straight-line basis over the vesting period and the amount
expensed in each year is transferred to the share-based payment reserve. The
amount by which the deferred tax asset arising on the intrinsic value of the
outstanding share options differs from the cumulative expense is also
transferred to the share-based payment reserve. Included in retained
earnings are unrealised profits amounting to £27,328,294 (2024:
£29,096,000). Consequently, there were no distributable reserves at 30 June
2025 or 30 June 2024. The movement in reserves for the years ended 30 June
2025 and 2024 is set out in the Consolidated and Company Statement of Changes
in Equity.
20. Share options
Frontier IP has three option schemes:
Under the Frontier IP Group Plc Employee Share Option Scheme 2011 - Amended 26
March 2018, both enterprise management incentive options and unapproved
options are granted. No payment is required from option holders on the grant
of an option. The options are exercisable starting three years from the date
of the grant with no performance conditions. The scheme runs for a period of
ten years but no new options can be granted as the Group has ceased to be a
qualifying company for EMI purposes No options were granted during the year
under this scheme.
Under the Frontier IP Group plc Company Share Option Plan 2021 ("CSOP"), no
payment is required from option holders on grant of an option. The options are
exercisable starting three years from the date of the grant with no
performance conditions. The scheme runs for a period of ten years. 110,628
share options were granted during the year under the CSOP.
Under the Frontier IP Group plc Unapproved Share Option Plan 2021 ("LTIP"), no
payment is required from option holders on grant of an option. The options are
exercisable starting three years from the date of grant provided certain
performance conditions have been met. The scheme runs for a period of ten
years. 889,775 share options were granted during the year under the LTIP.
Movements in the number of share options outstanding and their related
weighted average exercise prices were as follows:
2025 2025 2024 2024
Weighted average exercise price Weighted average exercise price
Options Options
Pence per share Pence per share
At 1 July 29.47 5,293,749 32.22 5,099,064
Granted 6.11 1,000,403 16.98 836,019
Exercised - - 27.12 (508,793)
Lapsed 46.47 (10,018) 99.32 (132,541)
At 30 June 24.75 6,284,134 29.47 5,293,749
Of the 6,284,134 outstanding options (2024: 5,293,749) , 3,622,858 had vested
at 30 June 2025 (2024: 3,622,858). The vested options have a weighted average
exercise price of 33.51p
Share options outstanding at the end of the year have the following expiry
date and exercise prices:
Exercise price 2025 2024
Pence per share Number Number
2026 26.63 650,000 650,000
2027 40.00 352,000 352,000
2028 65.00 233,000 233,000
2028 10.00 432,000 432,000
2029 66.00 466,034 466,034
2029 66.25 96,578 96.578
2029 10.00 729,211 729,211
2030 65.00 353,719 353,790
2030 10.00 310,316 310,316
2032 83.00 71,552 74,646
2033 66.00 115,934 116,850
2033 10.00 642,460 643,376
2033 44.50 166,635 169,181
2033 10.00 664,292 666,838
2034 28.00 110,628 -
2034 10.00 889,755 -
The weighted average remaining contractual life of the outstanding options is
4.1 years.
The weighted average fair value of options granted to executive Directors and
employees during the year determined using the Black-Scholes-Merton valuation
model was 17.4p per option. The significant inputs into the model were the
exercise prices shown above, weighted average share price of 28p, volatility
of 10.4%, dividend yield of 0%, expected life of 5 years and annual risk-free
interest rate of 3.78%. Future volatility has been estimated based on 5 years'
historical daily data.
21. Leases
In June 2025, Frontier IP Group plc signed a 20-year lease with Abstract
Mid-tech Limited for 18,000 sq. ft of floor space at the South Cambridge
Science Centre. The purpose of this acquisition is to provide space for
Frontier IP Group offices in Cambridge, alongside future subleasing of lab
space to portfolio companies and other tenants on commercial terms. The
right of use asset has been recognised at the present value of future lease
payments, discounted at an interest rate of 10%. The discount rate is an
estimate of the Group's incremental borrowing rate, positioned between the
average 9.5% cost of capital of competitors, and the average net asset growth
vs share price over the period of one, five and ten years. To this present
value is added legal payments to the value of £57,000, and a lease inducement
of £1,000,000 is deducted. A lease liability amounting to the present value
of future payments has also been recognised, split between current liability
of £274,000 and non-current liabilities of £11,782,000. The asset has been
depreciated to the end of June, and interest of £59,000 applied to the
liability for the same period.
Other building rental liabilities relate to serviced office space occupied by
Frontier offices, which are being phased out over the year to June 2026. Under
the terms of the rental agreements, the supplier has the right to vary or
terminate the agreement during the period of use, however at inception of the
agreement this was not considered likely to occur. For short term leases (12
months or less) and leases of low value assets, the Group has opted to
recognise a lease expense on a straight-line basis as permitted by IFRS 16's
transitional rules. Currently the longest lease ends in March 2026.
EV leasing as an employee benefit means the Group has a small lease asset and
liability for the period of a lease, with the liability insured in the
instance that the employee payments are not met in full. The right-of-use EV
asset is shown with other fixed assets in Note 9.
Lease Right of Use
asset
Building Lease
Cost
At 30 June 2024 -
Additions 11,054
Disposals -
At 30 June 2025 11,054
Depreciation
Accumulated depreciation at 30 June 2024 -
Charge for the year to 30 June 2025 (27)
Disposals -
Accumulated depreciation at 30 June 2025 (27)
Net book value
At 30 June 2024 -
At 30 June 2025 11,027
2025 2024
Lease liability Land & Buildings Land & Buildings
£'000 £'000
Commitments under non-cancellable leases expiring:
Within one year - Building lease 274 -
Within one year - Serviced office space 35 105
Two to five years 3,157 -
Beyond five years 8,567 -
12,033 105
22. Cash used in operations
Group Group Company Company
2025 2024 2025 2024
£'000 £'000 £'000 £'000
Profit/(loss) before tax (6,344) (1,337) (6,066) (765)
Adjustments for:
Share-based payments 247 225 247 225
Depreciation 33 9 29 -
Bank Interest received (33) (62) (33) (81)
Lease finance costs 59 - 59 -
Unrealised loss/(profit) on the revaluation of investments
3,041 (1,282) 2,929 (1,588)
Realised loss/(profit) on disposal of investments (249) - -
Portfolio company interest received (216) (216)
Changes in working capital:
Trade and other receivables (147) (602) (10 (348)
Advances (165) 413 (132) 498
Trade and other payables 31 74 18 1
Cash flows from operating (3,494) (2,811) (3,173) (2,058)
activities
*Movement in trade and other receivables includes non-cash accrued interest on
debt investments with portfolio companies
23. Related party transactions
Neil Crabb is a director of Graphenergytech Ltd, Pulsiv Limited, CamGraPhIC
Ltd, Cambridge Raman Imaging Ltd, Qupic Limited, and Alusid Limited. Matthew
White is a director of The Vaccine Group Limited, Nandi Proteins Limited and
Dekiln (trading name of Deakin Bio-hybrid Materials Limited). All these
companies are portfolio companies of the Group. The Group charged fees to
these companies and was owed amounts from these companies as follows:
By the Group Fees charged Fees charged Amounts owed Amounts owed
2025 2024 2025 2024
£'000 £'000 £'000 £'000
Nandi Proteins Limited 48 66 350 292
Pulsiv Limited 24 24 5 5
Alusid Limited 36 80 187 155
The Vaccine Group Limited 48 48 193 135
CamGraPhIC Ltd 40 40 214 167
Dekiln 11 25 - -
24. Subsequent events
There were no subsequent events to report.
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. END FR PKFBPKBDKPBK
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