As an investor in four quoted early-stage technology companies, Imperial Innovations (IVO) was not immune to the downturn in global markets during its first half. The fair value of its quoted portfolio fell by £9.8m. Aim-traded biotech Abzena (ABZA) suffered the worst decline in net carrying value, down £7.2m to £13.1m by the end of the period. The quoted companies' value decline almost completely offset the £10.3m in fair value gains made by its private company portfolio.
However, Imperial increased its rate of investment, ploughing £27.5m into 17 companies. This meant the group's overall net portfolio value increased by 9 per cent to £355m. Chief executive Russell Cummings has high hopes for Circassia (CIR), which is undergoing Phase III trials for its leading cat allergy product. A positive outcome for the trial, which is due to report during the second quarter of the year, could cause an uptick in the share price.
In January management signed an agreement with the UCL Technology Fund, giving the group access to intellectual property produced by the university's researchers, and has already invested almost £25m in the fund.
Analysts at house broker Cenkos expect pre-tax profit of £14.9m and adjusted EPS of 9.4p for the full year to January 2017.
IMPERIAL INNOVATIONS (IVO) | ||||
|---|---|---|---|---|
| ORD PRICE: | 365p | MARKET VALUE: | £579m | |
| TOUCH: | 360-395p | 12-MONTH HIGH: | 540p | LOW: 335p |
| DIVIDEND YIELD: | nil | PE RATIO: | 30 | |
| NET ASSET VALUE: | 262p | NET CASH: | £44.3m* | |
| Half-year to 31 Jan | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2015 | 2.8 | -7.0 | -5.2 | nil |
| 2016 | 2.2 | -5.9 | -4.3 | nil |
| % change | -23 | - | - | - |
*Excludes £20m held in short-term liquidity investments | ||||
