Full-year figures from Imperial Innovations (IVO) don’t tell the real story about the technology commercialisation and investment company. True, profits fell, but the group is now poised to make significant realisations from its investment portfolio - a number of companies it has invested in are reaching the value creation stage, with gains crystallised typically through a stock market flotation.
One of them, Oxford Immunotec, has just begun the process which could see it list on Nasdaq - Imperial has an 8 per stake in the company whose blood tests can detect TB. And after making solid progress in trials for several allergy treatments, the net carrying value of Imperial’s biggest asset, Circassia, jumped by £8.5m to £45.1m. And while net cash from realisations fell from £1.6m to £0.2m, the portfolio is now worth £188.2m, up 21 per cent on the year before. Chief executive Russ Cummings points out that many companies were sufficiently well funded, and needed less additional capital this year, too. That did, however, reduce corporate finance fee income from £4.3m to £3.3m, and together with a halving in finance income, explains the drop in profits.
Yet group finances remain in good shape, with Imperial's cash pile supplemented by a £30m loan from the European Investment Bank, of which half was drawn down in July. JP Morgan Cazenove expects an adjusted loss per share of 2.8p in 2014.
| IMPERIAL INNOVATIONS (IVO) | ||||
|---|---|---|---|---|
| ORD PRICE: | 410p | MARKET VALUE: | £409m | |
| TOUCH: | 395-430p | 12-MONTH HIGH: | 430p | LOW: 245p |
| DIVIDEND YIELD: | nil | PE RATIO: | 89 | |
| NET ASSET VALUE: | 231p | NET CASH: | £50.8m | |
| Year to 31 Jul | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2009 | 4.32 | 5.32 | 9.23 | nil |
| 2010 | 4.34 | 5.54 | 9.35 | nil |
| 2011 | 4.52 | 0.57 | 0.93 | nil |
| 2012 | 4.26 | 5.08 | 8.10 | nil |
| 2013 | 3.29 | 3.76 | 4.60 | nil |
| % change | -23 | -26 | -43 | - |
