Frontier IP, the university spin-out investment group with an Alternative Investment Market listing, saw losses widen from £269,000 to £380,000 in its second full year and cash drop from £582,000 to £44,000.
The group is currently undertaking a fundraising that is "fundamental to the future of the business". The shares, listed at 25p in January last year, were unchanged at 13.5p, valuing Frontier at £940,000.
Revenue from services rose by £4000 to £162,000, while total revenue slipped by £84,000 to £223,000 due to a smaller increase in the value of its holdings, slippage in the receipt of equity from new spin-outs, and a delay in the completion of two licence agreements. Administrative expenses were up 5% due to higher personnel costs.
Frontier said the fundraising was "in its final stage" and the net proceeds would provide for working capital, the development of existing relationships and allied advisory roles, commitments to existing funds, and sector specific funds.
Neil Crabb, executive chairman, said: "Frontier IP has made good progress with helping its existing portfolio companies to deploy their technologies and with deepening and extending its relationships within its three university partnerships."
It continued to develop new opportunities including a fund management agreement with Narec Capital and a collaboration with the University of Central Lancashire.
"The new financial year has started well and we believe that, dependent on the successful outcome of the fundraising, Frontier IP will be well placed to make further progress," he added. The group received equity in three new spin-out companies during the year, including Glycobiochem and Kinetic Discovery both created at Dundee University.
Kinetic is already trading profitably and is "embedded" within the university, an approach Frontier is looking to develop across its partnerships.
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