FUSION IP delivers positive trading update

Fusion IP was established in 2002 to commercialise university-generated intellectual property. It has long-term exclusive agreements with the University of Sheffield and Cardiff University.

In a trading update, Fusion IP said Simcyp, the Sheffield-based simulation platform company for the pharmaceutical and biotechnology market, continued to grow strongly in the financial year 2010 to 2011.

The company expects to exceed its forecasts for the seventh year in a row, with unaudited numbers suggesting a 25 per cent increase in turnover and 35 per cent rise in profit before tax. The company remains cash rich and expects strong growth to continue into 2012 and beyond.

At the end of July, Phase Focus, Fusion’s Sheffield-based microscopy and imaging company, raised £865,000 in equity investment to expand its operations, grow sales and conclude commercial deals with its commercial partners.

As a result of this investment Fusion’s stake reduced to 49.1 per cent on an undiluted basis. The company will now be held as an investment and will be deconsolidated from the group’s results.

Magnomatics, Fusion’s Sheffield-based magnetic motor company, continues to grow strongly and has won new clients in the automotive, aerospace and defence sectors. Product development continues to advance on plan and turnover on a like-for-like basis is expected to grow by 70 per cent in the period ending December 2011. Seren, Fusion’s Sheffield based LED business, is close to closing its first commercial deals.

David Baynes, the chief executive of Fusion, said: “I am delighted with the performance of our portfolio and that three more of our portfolio companies have been able to raise additional funding over the last month. The Phase Focus fund raising is particularly pleasing, as the funding achieved a significant uplift in value for Fusion, with the company on the verge of signing a number of significant commercial deals which this money will enable it to conclude. This brings a positive end to what has been another good year for the group.”