Susan Searle, CEO of Imperial Innovations
While the effects of the recession are evident, the company has refocused investment strategy on fewer, higher-quality opportunities and now has £14.4 million invested in 20 companies. Over the year six new businesses were funded and launched, and there was one significant exit that has the potential to generate £16.1 million from a £1.5 million investment, plus a royalty stream.
The underlying pipeline remains strong with 50 patents filed, 328 inventions appraised.
The financial highlight is a pre-tax profits of £5.3 million, a huge improvement from the loss of £ 6.7 million in 2008.
Net proceeds from sale of investments were £ 3.9 million, up from £3.3 million a year earlier. Royalty revenues up were up 33 percent to £1.2 million, net asset value stood at £ 85.6 million, compared to £ 80.3 million in 2008, and there was £ 30.7 million cash.
But the recession has certainly focused minds at Imperial Innovations. Following a review in October 2008, it modified its strategy to focus its resources on a smaller group of companies. It is now making fewer but larger investments in companies and focusing on areas where higher returns are more likely. It is also increasingly active in managing the key portfolio companies, leading investment rounds and working closely with founders.
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