Sales up, losses down as Fusion set to reap the rewards

Sheffield-based Fusion said revenues grew 15 per cent to £2.09m in the six months to the end of January and pre-tax losses decreased from £1.2m to £414,000.

Fusion has the exclusive rights to commercialise research generated by the universities of Sheffield and Cardiff.

In January it launched Perlemax, a new spin-out from Sheffield, which has developed microscopic bubble technology which its scientists believe could revolutionise chemical engineering.

Perlemax’s ‘fluidic oscillator’ efficiently generates micro-sized bubbles in a liquid. Its scientists believe the process could significantly reduce the energy demands of chemical processes such as those used in water purification, waste water treatment, biodiesel manufacturing and carbon sequestration.

Chief executive David Baynes said developments such as this, plus its maturing portfolio of companies, gives Fusion “considerable optimism”.

“We continue to make good progress and believe we have an exciting portfolio of companies, a number of which have potential to generate significant value,” said Mr Baynes.

“This value is not always fully reflected in the carrying value of our investments.

“An increasing number of our companies are generating revenue and are growing fast and we look forward to continuing to grow the value of our portfolio and updating shareholders with progress in the year ahead.”

Fusion also revealed finance director Tony Gardiner is quitting the business at the end of April to pursue other business interests.

Fusion also has stakes in Sheffield-based firms including ultra-bright lighting business Seren Photonics and magnetic technology company Magnomatics.

During the six months the carrying value of Fusion’s investments in its 19 portfolio companies increased by 19 per cent to £12.88m. Excluding spin-out costs and amortisation, the group’s profits increased 42 per cent to £1.22m.

“The company has a robust financial position and continues to make progress, with our portfolio improving in quality,” said chairman Doug Liversidge.

“We now have a number of companies that we consider to have considerable future value, potentially well in excess of the current value of Fusion.

“The board is focusing its resources on realising this value.”

Fusion ended the period with £3.2m in cash, down £1.4m on a year earlier.

It said this is sufficient to support its current portfolio of companies, plus create new ones.

Its shares closed unchanged last night at 26.50p.