- The portfolio attracts high-profile technology investors
- Deduct 50 percent of the stock price to the net asset value
Based in Edinburgh Limits of intellectual property The technology investment firm (FIPP:40p), which provides marketing services to university-based startups in exchange for “free stock” stakes, has announced a successful capital increase for portfolio company Alusid. Alusid creates high-quality architectural tiles and surfaces by recycling industrial waste such as ceramics, glass and other materials, most of which ends up in landfill.
As part of a larger £1.13m funding round, Octopus AIM VCT Funds are investing £0.5m in Alusid, valuing the company at £9.5m. Frontier IP holds a 35.4 per cent stake in Alusid worth £3.3 million. The cash proceeds will be used to support Alusid's expansion into new product ranges and territories. For example, the company is developing heavy-duty floor tiles, which are expected to launch commercially this year, and the company is in discussions with potential distributors in Scandinavia and Northern Europe. It is also exploring options for an IPO later this year.
There is a clear momentum in the master's work. Last year, the company launched eco-friendly products with Topps Tiles, the UK's largest tile retailer, and collaborated with Imerys, a global leader in specialty metals, to develop floor tiles. Other clients include H&M, Pret a Manger, BBC and Starbucks.
The potential for further gains in the Frontier portfolio is woefully underestimated. To put this into perspective, Frontier has a £2.3m liquid stake in Nasdaq-listed shares Science (US: EXAI), a clinical stage pharmaceutical technology company, has initial cash of £2.5m (after taking into account operating expenses in the last six months), an equity portfolio of £33m, £5.9m of debt investments and £1m of receivables. Commercial. Ignoring the possibility of a valuation hike in the upcoming interim results, the company with a market capitalization of £22.5m was rated at a 50 per cent discount to book value.
This is a significant discount given the progress made by many of its investee companies including its largest holding, the University of Plymouth spin-out Pulsiv Solar, a green technology company that has developed on-chip technology to improve energy efficiency in power supplies, battery chargers and LEDs. Lighting and photovoltaic solar cells. Frontier IP's 18 per cent stake in Pulsiv received a reading valuation of £9.3m following Pulsiv's latest fundraising.
So, even though Frontier IP's stock price is slightly lower than your last buy call ('Get a tech buy deal, October 31, 2023), there is a clear disconnect between the value embedded in an exciting investment portfolio and the price attributed to its investments by the market. He buys.
■ special offer. Simon Thompson wrote Successful stock picking strategies And Picking stocks for profit It can be purchased online at www.ypdbooks.com At a special discounted price of £5 per book plus UK price and price of £4.95, or £10 for both books plus UK price and price of £5.75, subject to stock availability.
They include case studies of market outperforming bargain stock portfolio companies that outline the characteristics that have made them successful investments. Simon also highlights other investment methods and stock screens that he uses to identify small companies with potential capital. Full details of the books' content can be found at Global Communication Network.ypdbooks.com
