FRONTIER IP has reported increases in revenue and pre-tax profit as it made “excellent” progress across its portfolio in the year to June 30.

The Edinburgh-based company takes equity stakes in spin-out businesses and provides them with intellectual property (IP) commercialisation services.

In the last year the value of its portfolio increased to £6.7 million. Net assets increased to £11.8m from £7.7m reflecting the proceeds of a £3m placing and a £1.2m pre-tax profit.

“I am pleased to report that the success of this strategy is reflected in the continued increase in the value of our portfolio creating a strong platform for further growth,” said chief executive Neil Crabb.

Revenue was up 14 per cent to £2.3m, as revenue from services increased 19 per cent to £264,000. There were also a £2m gain following a revaluation of its investments.

Frontier made four additions to its portfolio in the period, including a 20 per cent stake in Tarsis technology, a third spin-out from the University of Cambridge. The company also opened a Cambridge office in the year.

Elsewhere, Frontier noted strong commercial progress at Exscientia, which secured a €250m collaboration with Sanofi, significantly lifting the value of Frontier’s stake.

The group also signed a second commericialisation agreement in Portugal, with the Universidade NOVA de Lisboa.

Shares fell 4.08 per cent, closing at 47p.