Imperial Innovations into the black

07/10/2009 Robert Tyerman

Imperial Innovations, whose present portfolio of 80 companies includes electric motor developer EVO Electric, enjoyed 7% net ass

University-backed Imperial Innovations Group is optimistic after turning a £6.7 million annual loss into £5.3 million pre-tax profits.

The AIM-quoted company, which has proprietary access to intellectual property from its major shareholder Imperial College, London, invested £14.4 million in 20 technology companies in the year to July and made its first sizeable exit, with the sale of 23.7 per cent in obesity treatment developer Thiakis to Wyeth Pharmaceuticals for an initial £19.6 million. Of this, £2.9 million went to Imperial Innovations, which in addition stands receive up to £16.1 million on top if certain targets are met.

During the year, the company, based at Imperial College in London’s South Kensington, increased its royalty income 33 per cent to £1.2 million, while net assets rose 7 per cent to £85.6 million. Imperial Innovations, which ended 2008-09 with cash down from £43.1 million to £30.7 million, funded and launched six new businesses, filed 50 patents and appraised 328 inventions

According to chairman Martin Knight, the company has changed its original strategy and is now making fewer, larger investments and focusing on areas, such as energy use, healthcare and communications, where ‘breakthrough technologies are of great potential value’. Imperial Innovations’ present portfolio of 80 companies includes Circassa in allergy therapeutics, EVO Electric in electric motors and Nexeon in lithium ion battery technology.

Floated three years ago at 365p, Imperial Innovations shares fell to 207.5p at one point over the past year. They have now rallied to 350p, valuing the company at £202 million and might repay a long-term punt.