REG - Frontier IP Group - Unaudited Half Year Results
26/03/2025 07:16
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RNS Number : 1485C Frontier IP Group plc 26 March 2025
RNS
AIM: FIPP
26 March 2025
Frontier IP Group plc
("Frontier IP" or the "Group")
UNAUDITED HALF-YEAR RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2024
Frontier IP, a specialist in commercialising intellectual property, is pleased
to announce its unaudited interim results for the six month period ended 31
December 2024.
KEY POINTS
· Pre-tax loss of £1.6 million (31 December 2023: pre-tax profit of
£1.4 million)
· Successfully completed a fundraising with existing shareholders and
new investors in December 2024 generating net proceeds of £3.3 million in the
period under review
· Basic loss per share of 2.81p (31 December 2023: earnings per share
2.67p)
· Net assets per share of 67.6p at 31 December 2024 (30 June 2024:
79.7p; 31 December 2023: 84.2p) reflecting the increased shares in issue
· Fair value of the equity portfolio at 31 December 2024 was £33.2
million (30 June 2024: £33.2 million; 31 December 2023: £35.1 million)
· Cash balances of £3.6 million at 31 December 2024 (30 June 2024:
£2.3 million; 31 December 202:3 £2.7million)
· Significant commercial, funding and technical progress across the
portfolio
Frontier IP and its portfolio companies made good progress both during the
first half of the financial year and post the period close in what was a
difficult environment for both AIM-quoted and early-stage technology
companies.
The Group successfully raised a total of £3.3 million (net of expenses)
through a Placing and Subscription and a separate Retail Offer. Several
portfolio companies completed major equity funding rounds, secured grant
funding, and made significant commercial and technical progress. The portfolio
continues to mature, bringing closer the opportunity for potential exits,
although timings are likely to be affected by the market conditions.
PORTFOLIO AND OPERATIONAL HIGHLIGHTS
The six months to 31 December 2024 and the months after the period end saw
companies across the portfolio either achieve or make strong progress towards
meeting funding, commercial and technical goals. Developments included:
· CamGraPhIC secured a loan facility for £1.5 million and made
substantial progress in development and scale up of its advanced graphene
photonics technology. Post period end, a new company 2D Photonics, set up to
own and manage CamGraPhIC's activities in the UK and Italy, raised €25
million from major multinational institutions from industry, finance and
government, co-led by CDP Venture Capital, Nato, Sony and Join Capital
· Pulsiv made significant technical progress with the launch of what is
believed to be the world's most efficient 65W USB C charger reference design,
which subsequently won the Power Sources Manufacturers Association's first
Global Energy Efficiency Award
· GraphEnergyTech raised £1 million through a pre-seed equity funding
round led by Aramco Ventures, the corporate venturing arm of Aramco, the
world's leading integrated energy and chemical company. Post period close, the
company announced a collaboration with the Taiwan Perovskite Solar
Corporation, Taiwan's Industrial Technology Research Institute and the
University of Cambridge, a project backed by a grant from Innovate UK
· A project led by The Vaccine Group ("TVG") working with the
University of Plymouth and the University of Cambridge, was awarded more than
£1 million by the UK government to develop a vaccine against zoonotic pig
disease Streptococcus suis. Innovate UK awarded TVG and The Animal Plant and
Health Agency more than £400,000 to develop cattle vaccines
· Nandi Proteins raised more than £500,000 from a convertible loan
with investors including UK social innovation agency Nesta and Scottish
Enterprise to support development of an egg-white replacer
· Deakin Bio-Hybrid Materials, the newest member of the Frontier IP
portfolio, raised £693,000 through an initial equity funding round led by
Green Angel Ventures, to scale up its technology to produce bio-based
materials to provide alternatives to ceramics.
· Post period end, Alusid announced its first international
distribution agreement with Dutch sustainable building materials firm FRONT
Materials BV. Topps Tiles plc launched Alusid's mass-produced floor tile range
Mas through its retail chain, the second Alusid-made range it has launched.
Chief Executive Neil Crabb said: "These results represented a resilient
performance in the face of a very difficult market environment, particularly
for AIM-quoted and early-stage technology companies. I am delighted and
grateful that shareholders and new investors backed our fundraising, which
means we are in a good position to meet our working capital requirements and
to provide strategic support where necessary for our portfolio companies.
I am happy to say the portfolio is making good progress. Several companies
successfully put in the spadework to provide the basis for their future
growth. I was particularly encouraged by the breadth of partnerships they were
able to develop across industry, government, academia and finance. Several
completed successful funding rounds, again from a range of sources. I am
confident others will follow.
This wide interest reflects the underlying strength of the portfolio and the
commercial appeal of the technologies our companies are developing. A
connecting thread across them all is they are offering the potential to do
things in a much more cost effective way: they work more efficiently and offer
a lower cost alternative to existing technologies, being cheaper to use and
often to manufacture.
One example is 2D Photonics, a company established to own and manage the UK
and Italian activities of CamGraPhIC. After the period close, it successfully
completed a €25 million funding from investors spanning industry - the Sony
Innovation Fund and Bosch Ventures - finance, through CDP Venture Capital,
Join Capital and Indaco Ventures, and governmental, the Nato Innovation Fund.
Why the wide interest? Initial applications for 2D Photonics' advanced
graphene photonics have the potential to transform Artificial Intelligence and
mobile communications by cutting their costs through improved energy
efficiency and higher speeds. 2D Photonics' prototype graphene transceivers
have outperformed current silicon technologies, work at a greater range of
temperatures, and will consume 80 per cent less energy.
GraphEnergyTech is developing graphene inks and pastes, initially to create
graphene electrodes to replace metal electrodes, particularly silver, in solar
cells. This could make conventional solar cells much cheaper to manufacture
and address major concerns over global silver resources, which are threatened
with exhaustion by 2050 because of solar demand. The electrodes could also
prove to be an enabling technology for perovskite solar cells. Perovskites
have the potential to be more efficient than conventional silicon cells.
However, they suffer because of the poor stability of metallic electrodes when
used with the perovskite solar materials. Graphene electrodes would solve this
problem and help to make perovskite cost effective to make at scale. The
commercial possibilities of the technology are clear. During the first half
year, GraphEnergyTech raised £1 million in an investment round led by Aramco
Ventures, the corporate venturing arm of Aramco. After the period end, the
company announced a collaboration with the Taiwan Perovskite Solar
Corporation, Taiwan's prestigious 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. Again, we see the mix of
industry, government and finance providing a strong testament to the
technology's potential.
Pulsiv, which has the potential to revolutionise power conversion by
converting much more energy into effective power, launched what is believed to
be the world's most efficient 65W USB-C charger reference design, which
subsequently picked up a prestigious industry award. Deakin Bio Hybrid
Materials, which completed a successful fund raising, creates bio-based
materials able to replace ceramics in some circumstances, using ultra-low
energy processes, and therefore means they are more cost effective to
manufacture. Alusid similarly needs less energy to make its premium-quality
tiles made from more than 90 per cent recycled materials. After the period
end, it announced its first international distribution agreement and the
launch of a second range through Topps Tiles. Nandi Proteins functional
ingredients include those to replace more expensive meat fat and eggs in
certain products, offering potential health benefits and making vegetarian
products vegan, as well as cutting costs for manufacturers. The company has
signed a deal with a major food ingredients company and during the period,
raised money via a convertible loan from investors including Nesta Impact
Investments, the investment arm of UK social innovation agency Nesta, and
Scottish Enterprise. The Vaccine Group has now developed a strong pipeline of
vaccines to combat diseases, including zoonotic diseases, in livestock and
companion animals. In the half year, it won grant funding from the UK
government's Department for Environment, Food & Rural Affairs and,
separately, an Innovate UK Smart grant for projects with the Universities of
Plymouth and Cambridge, and the Animal and Plant Health Agency. In addition to
confidence in the technology, these awards show an increasing focus on
preventative measures, such as vaccines, as significantly more effective means
of disease control.
Our companies are helping to tackle some of the greatest challenges we face
today around climate, energy, water, health and food. The high levels of
interest from industry, government and finance, alongside demonstrable
commercial traction, is proof that the technologies they are developing offer
tangible business benefits.
Developments in the half year, and in the immediate months following, mean I
am optimistic that the work done will be reflected in company valuations in
the longer term. The portfolio continues to mature with several companies at
key stages along the road to realisation. All this increases the chances of
successful exits, but the timings of these will be heavily dependent on market
conditions. We continue to keep a tight eye on our operating costs."
Once again, I would like to thank shareholders for their continued support,
and I remain confident about the prospects for the Group."
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 / Daniel Dearden-Williams
Singer Capital Markets (Broker) T: 0207 496 3000
Charles Leigh-Pemberton / James Fischer
Interim Management Statement
Summary
Frontier IP made strong progress during the period and post period end in
developing the portfolio companies and creating value for shareholders by:
· Supporting 2D Photonics, a new company established to manage the UK
and Italian activities of CamGraPhIC, in raising €25 million from major
multinational industrial, financial and governmental investors
· Helping several portfolio companies raise money through equity
financing, convertible loans and grant funding. They include GraphEnergyTech,
Nandi Proteins, DeakinBio and The Vaccine Group
· Supporting portfolio companies in developing relationships and
collaborations with major industry and governmental partners
Operational Review
Frontier IP and its portfolio companies made good commercial and technical
progress during the half year to 31 December 2024 despite a very difficult
market environment for AIM-quoted stocks and early-stage technology companies.
The Group successfully raised £3.3million (net of expenses) via a Placing and
Subscription and a separate Retail Offer to meet working capital requirements
and to provide strategic support to portfolio companies where necessary.
Our portfolio is maturing and several companies are moving closer to the stage
where they could provide a potential exit for the Group. Some companies are
now generating revenues. We further developed relationships with university,
government and industry partners.
Portfolio developments included:
Note: in the following all Frontier stakes are quoted as at 31(st) December
2024
2D Photonics: Frontier IP stake 20.0 per cent
2D Photonics SpA is a new company established to own and manage CamGraPhIC's
activities in in the UK and Italy. It is developing advanced graphene
photonics with the potential to transform Artificial Intelligence and mobile
communications by significantly cutting their 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 sectors. During the period,
CamGraPhIC secured a £1.5 million loan facility and made good technical
progress. After the period end, 2D Photonics raised €25 million through the
Italian subsidiary CamGraPhIC srl to invest in the development and scale up of
the technology, including the creation of a pilot manufacturing plant. The
investment round was co-led by CDP Venture Capital, the Nato Innovation Fund,
the Sony Innovation Fund and Join Capital. Bosch Ventures and Indaco Venture
Partners also participated alongside Frontier IP, which converted all previous
loans made to the company, totalling £2.7 million. Ben Jensen, formerly
Frontier's advanced electronics commercialisation director, joined 2D
Photonics full-time as chief executive officer.
Pulsiv: Frontier IP stake 18.2 per cent
Pulsiv's technology significantly improves the energy efficiency of power
supplies, battery chargers and LED lighting, cutting energy consumption and
customer bills. The technology also extracts more energy from photovoltaic
solar cells. Because it uses fewer components, it can be incorporated into
more compact designs and is cost effective for manufacturers. Commercial
traction is strong and growing: the company is in advanced discussions with
major manufacturers and has put in place a global distribution network. During
the period, Pulsiv launched what is believed to be the world's most energy
efficient 65W USB C charger reference design, which operates at 97.43 per cent
peak and 94.2 per cent average efficiency and at ultra-low operating
temperatures. Post period close, the USB C charger design won the Power
Sources Manufacturers Association's (PSMA) first Global Energy Efficiency
Award. The PSMA, founded 40 years ago, is a leading trade association for the
power electronics industry.
GraphEnergyTech: Frontier IP stake 30.4 per cent
GraphEnergyTech is developing advanced high-conductivity graphene inks.
Initial applications are to create the next generation of solar technology by
developing graphene electrodes to replace expensive metal, and in particular,
silver electrodes in solar cells. Graphene electrodes are cheaper to make than
metal electrodes for use in conventional silicon cells, and, when used in
perovskite solar cells, could solve problems caused by the poor chemical
stability of metal working with perovskite materials. Other applications for
the technology include printed electronics, batteries, super capacitors, LED
lighting and displays. GraphEnergyTech was co-founded by Professor Michael
Grätzel of the Ecole Polytechnique Federale de Lausanne. He is one of the
world's most cited academics. During the period, the company raised £1
million through an investment round led by Aramco Ventures, the corporate
venturing arm of Aramco, the world's leading integrated energy and chemical
company. Post period end, GraphEnergyTech entered a collaboration with the
Taiwan Perovskite Solar Corporation, the Taiwanese Industrial Technology
Research Institute and the University of Cambridge to develop perovskite solar
modules with graphene electrodes. The project was awarded nearly £900,000 by
Innovate UK.
The Vaccine Group: Frontier IP stake 17 per cent
The Vaccine Group ("TVG") is developing a novel herpesvirus-based vaccine
technology able to provide a platform for a wide range of vaccines targeted at
diseases in livestock and companion animals. Some of the diseases are zoonotic
and can be transmitted to humans. The company has developed a strong vaccine
pipeline: diseases targeted include porcine reproductive and respiratory
syndrome, streptococcus suis, African swine fever, bovine tuberculosis, canine
cancers and feline immunodeficiency virus. In September 2024, the company was
involved in projects awarded more than £1.4 million by the UK government. A
project led by the company with the University of Cambridge and the University
of Plymouth, was awarded more than £1 million to develop a vaccine against
Streptococcus suis, a widespread, harmful and zoonotic pig disease, supported
by a grant from the Department for Environment, Food & Rural Affairs
Farming Innovation Programme, delivered by Innovate UK. In October, a
collaboration between TVG and The Animal and Plant Health Agency was awarded
an Innovate UK Smart grant of more than £400,000 to develop vaccines against
cow diseases bovine respiratory syncytial virus and lumpy skin disease.
Nandi: Frontier IP stake 19.8 per cent
Nandi's protein technology transforms commodity proteins into functional food
ingredients. The company has signed a commercial agreement with a global food
ingredients company who will manufacture and take to market Nandi's first
commercial ingredients, which are collagen-based meat and fat replacers for
use in processed meat products, such as sausages and burgers, reducing
calories and cost. The company is also developing a second product, a
vegetable protein-based egg white replacer that has been successfully tested
in a range of applications including meringues, alternative meat products and
multiple bakery products. Other products include vegetable proteins to replace
methylcellulose, a widely used binder in plant-based meat, and whey proteins
to replace chemical emulsifiers in baked products. During the period, the
company raised more than £500,000 via a convertible loan from investors
including Nesta Impact Investments, the investment arm of UK social innovation
agency Nesta and Scottish Enterprise. Nesta has also agreed to back an equity
funding round aimed at raising a further £1 million. Proceeds are being used
to support development of the egg white replacer.
Deakin Bio: Frontier IP stake 33.3 per cent
Deakin Bio-Hybrid Materials is developing low energy processes to produce
advanced bio-based materials as sustainable alternatives to ceramics. The
company recycles organic waste mixed with widely available waste materials,
such as crushed limestone. The resulting materials look, feel and behave like
ceramics, but do not need to be fired or glazed at high temperatures. As a
result, they have a carbon footprint 94 per cent lower than conventional tiles
and creates products with more than 95 per cent recycled content. During the
period, the company raised £693,000 from an oversubscribed equity funding
round led by Green Angel Ventures, one of the UK's leading specialists in
early-stage climate related technology innovation investments.
Post period end developments also included:
Alusid: Frontier IP stake 35.4 per cent
Alusid makes beautiful, premium-quality tiles, tabletops and other surfaces by
recycling industrial waste, ceramics and glass, much of which would otherwise
go to landfill. The company's patented formulations and processes use less
energy and water than conventional tile manufacturing: its new floor tile
range Mas is made from 95 per cent to 98.5 per cent recycled material and
reduces carbon emissions by 51 per cent and water use by 44 per cent compared
to standard tiles produced in Spain. After the period close, Alusid announced
its first international distribution agreement with FRONT Materials BV, a
Dutch sustainable building materials specialist. Topps Tiles also started
selling a second Alusid-made range by launching Mas through its retail chain.
Alusid is also exploring options for an initial public offering, subject to
market conditions.
Corporate developments
In December 2024, Frontier IP raised a total of £3.6 million through a
Placing and Subscription and a separate retail offer with net proceeds of
£3.3 million. The proceeds will be used for general working capital
requirements and to provide strategic support to portfolio companies where
necessary.
Outlook
Market conditions remain difficult for both AIM-quoted companies and
early-stage technology companies. However, our portfolio companies are
developing technologies that offer important commercial upside while meeting
some significant challenges. They are developing technologies that offer
either the same or greater benefits at lower costs than those currently used.
During the period and beyond, portfolio companies were able to raise
significant sums from industry, government and financial backers, and develop
important collaborations with global leaders in their respective fields. The
portfolio is maturing nicely and we expect our news flow to remain positive in
the months to come, although the pace of development might be affected by
market conditions.
Neil Crabb
Chief Executive Officer
Results Summary
Financial assets at fair value through profit and loss as at 31 December 2024
totaled £39,118k (30 June 2024: £38,798k; 31 December 2023: £41,530k). The
fair value of equity investments as at 31 December 2024 was £33,203k,
representing no change since 30 June 2024 (30 June 2024: £33,203k; 31
December 2023: £35,068k). The fair value of debt investments as at 31
December 2024 was £5,915k, an increase of £320k since 30 June 2024 (30 June
2024: £5,595k; 31 December 2023: £6,462k), representing additions of £380k
offset by a small loss in the revaluation of debt investments of £60k.
There were no profits from disposals, or acquisitions of equity investments,
in the period (2023: disposal of part of holding of ExScientia for proceeds of
£839k; addition of Deakin Bio-Hybrid Materials). A loss before tax of
£1,605k (2023: profit of £1,415k) reflected the minimal movement in
valuations of debt investments and absence of upwards or downwards valuations
in equity investments since 30 June 2024. Administrative expenses increased by
5 per cent to £1,886k in the period (6 months ended 31 December 2023:
£1,803k) reflecting inflationary increases. Basic loss per share in the
period was 2.32p (2023: earnings of 2.67p).
Cash balances stood at £3,633k at 31 December 2024, an increase of £1,335k
since 30 June 2024 (30 June 2024: £2,298k; 31 December 2023: £2,737k),
primarily reflecting operating costs in the period of £1,886k offset by net
proceeds of £3,326k in December 2024.Net assets per share as at 31 December
2024 were 67.6p (30 June 2024: 79.7p; 31 December 2023: 84.2p).
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the six months ended 31 December 2024
Six months ended 31 December 2024 (unaudited) Six months ended 31 December 2023 (unaudited) Year ended 30 June 2024 (audited)
Notes
£'000 £'000 £'000
Revenue
Revenue from services 141 203 358
Other operating income
Unrealised profit/(loss) on the revaluation of
investments 8 (60) 2,849 1,282
Realised profit/(loss) on disposal of investments
- 54 249
81 3,106 (1,889)
Administrative expenses (1,886) (1,803) (3,508)
Share based payments (82) (122) (225)
Interest income on debt investments 268 188 409
Other income - 18 36
Profit/(loss) from operations (1,619) 1,387 (1,399)
Interest income on short-term bank deposits 14 28 62
Profit/(loss) from operations and before tax (1,605) 1,415 (1,337)
Taxation 6 - 73 211
Profit/(loss) and total comprehensive income/(expense) attributable to the equity holders of the Company
(1,605) 1,488 (1,126)
Profit per share attributable to the equity
holders of the parent
Basic earnings/(loss) per share 7 (2.81)p 2.67p (2.01)p
Diluted earnings/(loss) per share 7 (2.75)p 2.60p (1.96)p
All the Group's activities are classed as continuing and there were no
comprehensive gains or losses in any period other than those included in the
statement of comprehensive income.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
At 31 December 2024
As at As at As at
31 December 31 December 30 June
2024 2023 2024 (audited)
(unaudited) (unaudited) £'000
£'000 £'000
ASSETS Notes
Non-current assets
Tangible fixed assets 7 10 15
Goodwill 1,966 1,966 1,966
Financial assets at fair value through profit and loss
Equity investments 8 33,203 35,068 33,203
Debt investments 8 5,915 6,462 5,595
41,091 43,506 40,779
Current assets
Trade receivables and other current assets
2,233 1,532 1,629
Advances 9 - 382
Cash and cash equivalents 3,633 2,737 2,298
5,875 4,269 4,309
Total assets 46,966 47,775 45,088
LIABILITIES
Non-current liabilities
Deferred taxation - (138)
- (138) -
Current liabilities
Trade and other payables (389) (351) (315)
(389) (351) (315)
Total liabilities (389) (489) (315)
Net assets
46,577 47,286 44,773
EQUITY
Called up share capital 9 6,890 5,617 5,617
Share premium account 16,845 14,792 14,791
Reverse acquisition reserve (1,667) (1,667) (1,667)
Share based payment reserve 1,519 1,335 1,437
Retained earnings 22,990 27,209 24,595
Total equity
46,577 47,286 44,773
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the six-months ended 31 December 2024
Share-
Share Reverse acquisition based Profit
Share premium reserve payment and loss
capital account reserve account Total
£'000 £'000 £'000 £'000 £'000 £'000
At 1(st) July 2023 5,566 14,627 (1,667) 1,291 25,721 45,538
Issue of shares 51 165 - (78) - 138
Share-based payments
- - - 122 - 122
Profit/comprehensive income for the period
- - - - 1,488 1,488
At 31 December 2023 5,617 14,792 (1,667) 1,335 27,209 47,286
Issue of shares (1) (1) (2)
Share based payment 103 103
Profit/comprehensive income for the period
- - - - (2,614) (2,614)
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
- - - 82 - 82
Profit/comprehensive income for the period
- - - - (1,605) (1,605)
At 31 December 2024 6,890 16,845 (1,667) 1,519 22,990 46,577
CONSOLIDATED STATEMENT OF CASH FLOWS
For the six months ended 31 December 2024
Six months ended 31 December Six months ended 31 December Year ended 30 June
2024 (unaudited) 2023 (unaudited) 2024 (audited)
£'000 £'000 £'000
Cash flows from operating activities
Cash used in operations (1,625) (993) (2,811)
Net cash used in operating activities (1,625) (993) (2,811)
Cash flows from investing activities
Purchase of tangible fixed assets (0) (2) (14)
Purchase equity investments - (68) (68)
Disposal of equity investments - 839 2,547
Purchase of debt investments (380) (1,808) (2,157)
Interest received 14 28 62
Net cash from/(used in) investing activities. (366) (1,011) 370
Cash flows from financing activities
Proceeds from issue of equity shares 3,565 138 136
Costs of share issue (239) - -
Net cash generated from financing activities
3,326 138 136
Net (decrease)/increase in cash and cash equivalents
1,335 (1,866) (2,305)
Cash and cash equivalents at beginning of period
2,298 4,603 4,603
Cash and cash equivalents at end of period
3,633 2,737 2,298
Cash used in operations
Profit/(loss)before tax (1,605) 1,415 (1,337)
Adjustments for:
Share-based payments 82 122 225
Depreciation 9 5 9
Interest received (14) (28) (62)
Unrealised (profit)/loss on revaluation of investments
60 (2,849) (1,282)
Realised (profit) on disposal of investments (54) (249)
Changes in working capital:
Trade and other receivables (149) (507) (602)
Advances (82) 793 413
Trade and other payables 74 110 74
(1,625) (993) (2,811)
NOTES
1. General information
The Company is a limited liability company incorporated in England and with
its registered office at c/o CMS Cameron McKenna Nabarro Olswang LLP, 78
Cannon Street, London EC4N 6AF. The Company's main trading office is situated
at 93 George Street, Edinburgh, EH2 3ES.
The Company is quoted on the AIM market of the London Stock Exchange.
This condensed consolidated interim financial information was approved and
authorised for issue by a duly appointed and authorised committee of the Board
of Directors on 25 March 2025.
This condensed interim financial information has not been audited or reviewed
by the Company's auditor.
2. Basis of preparation
This condensed consolidated interim financial information for the six months
ended 31 December 2024 has been prepared in accordance with International
Accounting Standard 34 "Interim Financial Reporting". The condensed
consolidated interim financial information should be read in conjunction with
the annual financial statements for the year ended 30 June 2024, which have
been prepared in accordance with UK adopted International Financial Reporting
Standards (IFRS).
This condensed consolidated interim financial information does not constitute
statutory accounts within the meaning of section 434 of the Companies Act
2006. The comparatives for the full year ended 30 June 2024 are not the
Company's full statutory accounts for that year. A copy of the statutory
accounts for that year has been delivered to the Registrar of Companies. The
auditor's report on those accounts was qualified on the basis that in the
prior year they were unable to obtain sufficient appropriate audit evidence in
respect of the valuation of certain early stage equity investments valued at
£1.2 million in June 2023, which made the comparability of these figures with
the June 2024 valuations difficult to assess.
3. Going Concern
The accounts for the full year ended 30 June 2024 drew attention to the
existence of a material uncertainty that cast significant doubt on the Group's
ability to continue as a going concern. The material uncertainty was the
amount of proceeds the Group intended to raise from the issue of shares to
cover future operating costs. Since 30 June 2024 the Group has issued
12,731,261 shares for net proceeds of £3.3M, and the Group has sufficient
cash to cover its operating expenditure for the next 12 months. However, to
fund any unplanned investments and to cover operating expenditure beyond the
next 12 months the Group needs to realise cash through further portfolio
exits, the timing and amount of which is subject to material uncertainty.
4. Accounting policies
The accounting policies applied by the Group in these unaudited half year
results are consistent with those applied in the annual financial statements
for the year ended 30 June 2024 as described in the Group's Annual Report for
that year and as available on our website www.frontierip.co.uk
(http://www.frontierip.co.uk) . No new standards that have become effective in
the period have had a material effect on the Group's financial statements.
Taxes on income in the interim periods are accrued using the tax rate that
would be applicable to expected total annual earnings.
5. Segmental information
The chief operating decision-maker has been identified as the Group's board of
directors. The board reviews the Group's internal reporting to assess
performance and allocate resources. Currently the board considers that the
Group has one operating activity, the commercialisation of intellectual
property. The Group's revenue and profit before taxation were derived almost
entirely from its principal activities within the UK. Though the Group has a
Portuguese subsidiary as well as partnerships and spin outs in Portugal the
associated revenues and costs are currently immaterial and, accordingly, no
additional geographical disclosures are given.
6. Taxation
There is no taxation expense or income for the six months to 31 December 2024
(31 December 2023: income of £73,000) either from movements in deferred tax
on unrealised fair value gains, available tax losses or share-based payments.
A deferred tax asset in respect of trading losses arising before 1 April 2017
has not been recognised in view of the uncertainty as to the level of future
taxable trading profits.
7. Earnings per share
The calculation of the basic earnings per share for the six months ended 31
December 2024 and 31 December 2023 and for the year ended 30 June 2024 is
based on the earnings attributable to the shareholders of Frontier IP Group
Plc in each period divided by the weighted average number of shares in issue
during the period.
Basic earnings per share Weighted average number of shares
Earnings attributable to shareholders Basic earnings
per share
£'000 Number Pence
Six months ended 31 December 2024 (1,605) 57,038,007 (2.81)
Six months ended 31 December 2023 1,488 55,825,307 2.67
Year ended 30 June 2024 (1,126) 55,986,153 (2.01)
Weighted average number of shares
Diluted earnings per share Earnings attributable to shareholders Diluted earnings
per share
£'000 Number Pence
Six months ended 31 December 2024 (1,605) 58,437,018 (2.75)
Six months ended 31 December 2023 1,488 57,271,415 2.60
Year ended 30 June 2023 (1,126) 57,673,312 (1.96)
8. Financial assets at fair value through profit and loss
Equity investments comprise the following:
Unquoted Equity Investments Quoted Equity Investments Total
£'000 £'000 £'000
At 1(st) July 2023 30,667 2,297 32,964
Additions 68 - 68
Disposals (784) (784)
Fair value increases 2,944 123 3,067
Fair value decreases (247) (247))
At 31(st) December 2023 33,432 1,636 35,068
Additions - -
Fair value increases
Disposals (1,636) (1,636)
Fair value increases 4,675 4,675
Fair value decreases (4,904) - (4,904)
At 30(th) June 2024 33,203 - 33,203
Additions - - -
Disposals - - -
Fair value increases - - -
Fair value decreases - - -
At 31(st) December 2024 33.203 - 33,203
No unquoted equity investments increased or decreased in value in the six
months to December 2024, and no new investments were added.
Debt investments comprise the following:
Unquoted Debt Instruments
£'000
At 1(st) July 2023 4,625
Additions 1,808
Fair value increases 216
Fair value decreases (187)
At 31(st) December 2023 6,462
Additions 349
Fair value increases
Conversion of debt -
Fair value decreases (1216)
At 30(th) June 2024 5,595
Additions 380
Fair value increases 30
Fair value decreases (90)
At 31(st) December 2024 5,915
Debt investments are loans to portfolio companies to fund early-stage costs,
provide funding alongside grants and bridge to an equity fundraise. Certain
debt investments carry warrants granting the option to purchase shares.
The most significant loan made during the six months to 31 December 2024 was
to Cambridge Raman Imaging (£280,000). £100,000 was loaned to The Vaccine
Group. The most significant debt investments at 31 December 2024 were loans to
CamGraPhIC, renamed as 2D Photonics (£2,606,000).
9. Equity shares and share options
The Group issued 12,731,261 new ordinary shares in the six months to December
2024, making the total number of shares in issue 68,898,207. The Group also
issued share options to employees on 19(th) December 2024, 889,775 LTIP
options with a strike price of £0.10 and 110,628 CSOP options with a strike
price of £0.28.
10. Copies of Half Yearly Report
Copies of the Half Yearly Report will be available on the Company's website,
www.frontierip.co.uk (http://www.frontierip.co.uk/) , and on request from the
Company's offices at 93 George Street, Edinburgh EH2 3ES no later than 31
March 2025.
11. Equity holdings
All Group equity holdings in portfolio companies in the interim
results statement are as at 31 December 2024.
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