Notes to the Company Financial Statements
Year end 31 July 2009
15. Fixed asset investments
(i) Trade investments
| Fair value |
Quoted £000 |
Unquoted £000 |
Total £000 |
| At 1 August 2007 | 20,508 | 33,218 | 53,726 |
| Additions | – | 6,357 | 6,357 |
| Realisations | (3,557) | (43) | (3,600) |
| Fair value movements | (7,262) | 148 | (7,114) |
| At 31 July 2008) | 9,689 | 39,680 | 49,369 |
| Fair value |
Quoted £000 |
Unquoted £000 |
Total £000 |
| At 1 August 2008 | 9,689 | 39,680 | 49,369 |
| Additions | – | 14,427 | 14,427 |
| Realisations | (1,848) | (10,245) | (12,093) |
| Fair value movements | (1,879) | 5,130 | 3,251 |
| At 31 July 2009 | 5,962 | 48,992 | 54,954 |
Group listed investments are all listed on AIM in the United Kingdom. The Group does not hold 20% or more of the Ordinary Share capital in any of the listed investments.
Additions to unlisted investments in the year ended 31 July 2009 included cash investments of £14,000,000 (2008: £6,149,000) and the balance represented debt to equity conversions as set out at note 18.
At 31 July 2009, the Group has investments where it holds 20% or more of the issued share capital as follows:
| % of Issued Share Capital Held | Net Assets/ (Liabilities) £000 | Profit/(Loss) £000 | Date of Financial Statements | |
| Asep Healthcare Limited | 28.5% | N/A | N/A | 1None Available |
| Atazoa Limited | 24.9% | (2,443) | (718) | 30 June 2008 |
| Bioceramic Therapeutics Limited | 42.9% | 615 | (316) | 30 June 2008 |
| Cardiovascular Imaging Solutions Limited | 24.9% | 94 | 33 | 31 July 2008 |
| Casect Limited | 36.1% | (183) | (24) | 30 November 2007 |
| Cell Medica Limited | 32.1% | (93) | (403) | 30 December 2007 |
| Chembecell Limited | 100.0% | - | - | 31 December 2007 |
| Cortexica Vision Systems Limited | 25.9% | N/A | N/A | 1None Available |
| Emcision Limited | 20.8% | 507 | (78) | 30 June 2008 |
| Eostre Energy Systems Limited | 100.0% | N/A | N/A | 1None Available |
| EPIIC Limited | 20.0% | (75) | (5) | 30 June 2006 |
| Epigeum Limited | 20.0% | 81 | 128 | 31 July 2008 |
| Equinox Pharma Limited | 45.5% | 184 | (289) | 31 July 2008 |
| EVO Electric Limited | 37.6% | (279) | (1,322) | 31 March 2009 |
| Heliswirl Holdings Limited | 20.4% | N/A | N/A | 1None Available |
| i2iNDIA Holdings Limited | 32.8% | N/A | N/A | 1None Available |
| IC 16 Limited | 47.9% | 12 | (31) | 31 August 2008 |
| IC Fineval Limited | 37.7% | 25 | 9 | 31 July 2007 |
| iDext Technology Limited | 20.0% | 1 | - | 30 June 2008 |
| Innovative Materials Processing Technologies Limited | 20.7% | (177) | (124) | 31 July 2008 |
| Ionscope Limited | 26.2% | 250 | (368) | 31 December 2008 |
| Jointanalysis Limited | 100.0% | - | - | 31 December 2007 |
| Medermica Limited | 25.0% | (48) | (304) | 30 April 2008 |
| Membrane Extraction Technology Limited | 24.4% | 426 | 91 | 31 July 2008 |
| Metabometrix Limited | 26.5% | (1,405) | 12 | 30 April 2008 |
| Microtest Matrices Limited | 25.0% | (146) | (192) | 31 July 2008 |
| Midaz Lasers Limited | 46.1% | 223 | (265) | 31 December 2008 |
| Molecular Vision Limited2 | 57.2% | 275 | (289) | 31 July 2008 |
| MyAction Limited | 30.0% | N/A | N/A | 1None Available |
| Myotec Therapeutics Limited | 38.8% | N/A | N/A | 30 November 2007 |
| NanoBioDesign Limited | 26.8% | (553) | (432) | 31 October 2007 |
| Nanosolutions Limited | 25.1% | - | - | 31 December 2006 |
| Navion Pharma Limited | 37.3% | - | - | 30 September 2007 |
| Nexeon Limited | 35.0% | 2,851 | (1,105) | 31 December 2008 |
| Novacem Limited | 43.9% | (61) | (62) | 31 July 2008 |
| Octam Limited | 100.0% | N/A | N/A | 1None Available |
| OSspray Limited | 40.0% | 66 | (622) | 31 December 2008 |
| Permasense Limited | 27.8% | N/A | N/A | 1None Available |
| Photobiotics Limited | 21.7% | 79 | (139) | 31 July 2008 |
| Plaxica Limited | 42.3% | N/A | N/A | 1None Available |
| Process Systems Enterprise Limited | 25.4% | 1,512 | 334 | 31 July 2008 |
| Quantasol Limited | 37.8% | (624) | (625) | 31 December 2007 |
| Riotech Limited | 29.0% | 59 | (161) | 30 November 2007 |
| Sensixa Limited | 42.7% | – | – | 31 July 2008 |
| Smart Surgical Appliances Limited | 36.6% | (44) | (44) | 31 August 2008 |
| Southside Thermal Sciences (STS) Limited | 24.9% | (504) | (115) | 31 July 2008 |
| Think Play Do Group Limited | 21.1% | 20 | 6 | 30 June 2008 |
| Veryan Medical Limited | 37.6% | 4,448 | (846) | 31 December 2007 |
1Financial statements are not available where companies have recently been incorporated or have not yet filed an annual return.
2The Group does not control Molecular Vision Limited and therefore does not consolidate it.
In addition, at 31 July 2009 the Group has the following investments in portfolio companies where it holds less than 20% of the issued share capital.
| Portfolio Company | % of Issued Share Capital |
| The Acrobot Company Limited | 19.6% |
| Ceres Power Holdings plc | 3.6% |
| Circassia Holdings Limited | 14.2% |
| DeltaDOT Limited | 18.0% |
| Duvas Technologies Limited | 13.8% |
| Dynamic Boosting Systems Limited | 10.2% |
| Dynamic Therapeutics Limited | 5.4% |
| D-Gen Limited | 19.6% |
| Evince Limited | 11.9% |
| Heliswirl Petrochemical Limited | 19.8% |
| Hydroventuri Limited | 7.1% |
| IXICO Limited | 18.0% |
| Lontra Limited | 17.0% |
| Microsaic Limited | 13.0% |
| Medcell Limited | 11.3% |
| Orion Logic Limited | 12.5% |
| Polytherics Limited | 18.9% |
| Respivert Limited | 13.4% |
| Solarstructure Limited | 12.5% |
| Storm Bio Inc | 12.6% |
| Vertical Band Limited | 8.0% |
| Ziva Bioscience Limited | 14.9% |
| Argenta Discovery Limited | 0.9% |
| Amura Limited | 0.03% |
| DNA Electronics Limited | 1.8% |
| Lorantis Holdings Limited | 0.5% |
| Omnicyte Limited | 1.8% |
| ParOS plc | 4.6% |
| Spiral Gateway Limited | 0.02% |
| Toumaz Holdings plc | 2.4% |
| Visbion Limited | 1.9% |
| ValiRx plc | 3.5% |
All companies are incorporated in England and Wales with the exception of Toumaz Holdings plc which is registered in the Cayman Islands, Storm Bio Inc which is registered in the US and i2iNDIA Holdings Limited which is registered in Mauritius.
(ii) University Challenge Seed Fund
The Group is the agreed corporate vehicle for holding Imperial College London’s University Challenge Seed Fund (UCSF). This is managed under the terms of an award established by The Office of Science and Technology of the United Kingdom Government. The award established a fund of £4.15 million.
The purpose of the fund is to provide seed funding to early stage companies. The fund is ring-fenced in recognition that the value has to increase threefold before any repayments or disbursements can be made to Imperial College London. Imperial College London has assigned its rights to receive monies greater than £12.45 million to the Group.
The fund is recognised on the Balance Sheet as a non current liability falling due after more than one year.
UCSF advances are initially made as a loan to individual technology businesses. All loans are non-interest bearing. ‘Pathfinder’ loans to a maximum of £25,000 and seed funding loans to a maximum of £250,000 are made to individual portfolio companies. The overall loan cannot exceed £250,000.
The loan is then repayable in cash or converted to equity, at a rate mutually agreed, at the earliest opportunity after the company’s formation. Loans are treated on the same basis as equity for valuation purposes. UCSF equities are bi-annually reviewed for revaluation or impairment. Changes in value arising on revaluation or impairment are set against the fund.
University Challenge Seed Fund – Equity Investments and Loans
| Year ended 31 July 2008 | £000 |
| Equity investments – Fair value | |
| At 1 August 2007 | 1,061 |
| Fair value movements | (258) |
| Disposals | (3) |
| Conversion of loan to equity | – |
| At 31 July 2008 | 800 |
| £000 | |
| Loans - Fair value | |
| At 1 August 2007 | 758 |
| Fair value movements | – |
| Additions | – |
| Conversion of loan to equity | – |
| At 31 July 2008 | 758 |
| Year ended 31 July 2009 | £000 |
| Equity investments – Fair value | |
| At 1 August 2008 | 800 |
| Fair value movements | (523) |
| Disposals | - |
| Conversion of loan to equity | 486 |
| At 31 July 2009 | 763 |
| £000 | |
| Loans - Fair value | |
| At 1 August 2008 | 758 |
| Fair value movements | (230) |
| Additions | - |
| Conversion of loan to equity | (486) |
| At 31 July 2009 | 42 |