Shares in AIM-listed Frontier IP rose by over 10 per cent after it reported a pre-tax profit of £647,000, against £27,000 the previous year.

The Edinburgh-based group, which spun off from Sigma Capital three years ago, said total revenue increased by 102per cent to £1.59million, reflecting an unrealised profit on the revaluation of investments of £1.42m.

It said the fair value of portfolio companies also more than doubled, rising by 118 per cent to £2.81m .

The shares, which floated at 13.5p and rose to 39p in April last year, were up 2p at 21.15p, valuing Frontier at £5.6m.

Revenue from services, mainly board retainers, fund management fees and license income slipped by 4per cent to £170,000.

Frontier ended the year on June 30 with cash of £636,000, up from £587,000, after raising £854,000 in a placing.

During the year it added two new portfolio companies, both from Cambridge University, existing companies Nandi Proteins and Alusid secured funding, as did Pulsiv Solar after the year end.

Frontier IP provides IP commercialisation services to institutions and start-ups, to develop a portfolio of commercially viable companies, and provides access to capital for those companies

Neil Crabb, chief executive, said: “I am particularly pleased to report the growth in value of our portfolio, as evidenced by the recent fundraisings. We continue to see strong commercial progress in our core portfolio building the potential for further uplift in value.”