THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF EU REGULATION 596/2014 (AS AMENDED) (WHICH FORMS PART OF DOMESTIC UK LAW PURSUANT TO THE EUROPEAN UNION (WITHDRAWAL) ACT 2018 (AS AMENDED)). UPON THE PUBLICATION OF THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.

 

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, SC², 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 Neil Crabb, Chief Executive   Andrew Johnson, Communications & Investor Relations Company website: www.frontierip.co.uk	T: 020 3968 7815 neil@frontierip.co.uk   M: 07464 546 025 andrew.johnson@frontierip.co.uk
Allenby Capital Limited (Nominated Adviser) Nick Athanas	T: 0203 328 5656
Singer Capital Markets (Broker) Charles Leigh-Pemberton / James Fischer	T: 0207 496 3000

 

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, SC². 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 SC², 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 1⁰C a decade. This suggests that by the middle of this Century, we could see maximum summer temperatures of 43⁰C 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 SC² 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 SC² 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.

 

SC² 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 number of shares in issue during the year.	Loss of 10.08p (2024: loss of 2.01p)
Net assets per share       (KPI)	Value of the Group's assets less the value of its liabilities per share outstanding	61.0p (2024: 79.7p)
Total revenue and other operating income            (KPI)	Growth in the aggregate of revenue from services, change in fair value of investments and realised profit on disposal of investments	Negative income of £2,716,000 (2024: positive income of £1,889,000)
Profit before tax                              (KPI)	Profit or loss before tax for the year	Loss of £6,344,000 (2024: loss of £1,337,000)
Total initial equity in new portfolio companies     (APM) Note 1	Aggregate percentage equity earned from new portfolio companies during the year	nil(2024:32.8%)

 

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, SC², 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). 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 CO₂ 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 as alternatives to ceramic tiles	Existing Business
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 data	Existing business
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 strength	Existing Business
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   Other operating income Unrealised (loss)/profit on the revaluation of investments	3     13,14	325     (3,041)		358     1,282
Realised (loss)/profit on disposal of investments		0		249
		(2,716)		1,889
Administrative expenses Share based payments Interest income on debt investments	5	(3,456) (247) 98		(3,508) (225) 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 Debt investments	13 14	33,407 3,066		33,203 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 capital	Share premium account	Reverse acquisition reserve	Share- based payment reserve	Retained earnings	Total equity attributable to equity holders 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  capital	Share premium account	Share- based payment reserve	Retained earnings	Total equity attributable to equity holders 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