Technology investment company Angle has reduced its costs but a fall in the value of its investments has led to a loss in the year to April 2009.
A gain on the value of investments of £3.91m in 2007-08 was turned into a drop in value of £2.93m in 2008-09. That latest figure includes a £403,000 reduction in the value of potential deferred consideration for Acolyte Biomedica. This reflects the uncertainty about if, or when, this deferred consideration will be paid. Another Acolyte shareholder is fighting a court action with the purchaser but this might take some time to be resolved.
Nearly all of group revenues, which increased from £3.84m to £5.06m, come from management services. Angle lost £3.37m, against a profit of £1.12m the previous year.
The management services business is trading strongly and it increased its profit contribution from £1.1m to £1.6m. This helped Angle to generate cash before any additional investments in its portfolio.
Angle has completed its contract for the Qatar Science & Technology Park, which contributed £1.7m to revenues last year. The Carbon Trust has renewed Angle’s contract and the company has won other additional business but this may not cover all the lost revenues from Qatar. The management services order book for the next three years has fallen slightly from £5.1m in April 2008 to £4.8m in June 2009.
The 78%-owned foetal cell capture technology developer Parsortix is exploring corporate deals. The 82%-owned IVF embryo viability company Novocellus has already done a deal with MediCult, now known as Origio. A product could be launched commercially by the end of 2010 and there should be milestone payments before that. Geomerics, a computer games software business where Angle owns 47%, is talking to a number of potential technology company partners.
Graphics software business Aguru Images, whose technology was used on the film GI Joe, failed to secure a corporate deal and the investment has been written down to nil value.
There is still £319,000 in cash in the bank. There will be little further investment in portfolio companies.
Shares in Angle rose 0.5p to 10p each, which values the company at £2.71m. The net asset value is £5.45m, including £1.52m of potential deferred consideration for Acolyte.
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