London-based stockbroker, Charles Stanley said in a note to investors this week that Amphion Innovations’ (AIM: AMP) is well positioned should IPO markets open-up later this year. Though several high profile IPO’s failed to happen last week, five companies have announced their intention to float this week alone, suggesting the freeze on IPO’s in London is beginning to thaw.
This should be good news for Amphion, and IP commercialisation company, which was rated as a ‘buy’ this week by analyst at Charles Stanley. Amphion currently trades at a 50% discount to its NAV (net asset value) of 26p per share.
Analysts at Charles Stanley highlighted two key milestones in 2009 which set the ground for a potentially very successful 2010. First, Amphion’s subsidiary, DataTern, signed 14 additional non-exclusive agreements in 2009 taking the total licensing deals to 18, which lifted revenues by 39% in 2009 to US$7.6m, which was a crucial revenue generator for the business. Second, the company had managed to raise £5.6 million of a possible £7 million from convertible promissory notes which allowed it to continue investing in its partner companies.
Kromek is Amphion’s largest technology investment, which continues to make significant progress with its digital x-ray detection technology. Another partner company, WellGen recently launched its first consumer products and announced important pre-clinical progress for its leading product for the management of diabetes.
Charles Stanley sees potential for both companies to list on recognised stock exchanges this year, which would unlock considerable value for Amphion.