Nanostart’s profits skyrocket 66%, helped by less expenses

Nanotechnology investor Nanostart (OTC:NASRY) said its half-year profit surged 66% aided by less expenses for staff, materials and consultancy costs.

Earnings rose to €1.5 million, (US$2.1 million), up from €923,000 (US$1.3 million) for the same period last year.
“This is a 66% increase on the half-year result of the previous year, making it the company's best-ever,” officials said.

Nanostart said the half-year profit stems from other operating income, interest income, less expenses for staff and materials as well as legal and consultancy costs.

The company also said other operating income rose 31% to €2.19 million, resulting from the off-exchange secondary placement of shares in MagForce AG with a strategic financial investor with a long-term investment horizon.

Meanwhile, interest and similar income increased by 14% to €628,000 in the reporting period, up from €549,000.
On the cost side, expenses were stable. Staff costs grew slightly by 10% to €353,000 from €321,000. It said the trend will continue as the company plans to expand.

Frankfurt, Germany-based Nanostart said there were no write-downs on financial investments in the reported quarter because of positive developments in its portfolio.

In the first half of 2011, key areas of operating activities were expanding the portfolio and preparing for further international expansion, the company said.

It said the disposal of BioMicro, initiated with the asset sale to Roche Diagnostics last year, will be completed this year and generate extra cash inflow for the company in the second half of 2011.

At the start of July, Charité in Berlin, Europe’s biggest university hospital, proclaimed the establishment of the first therapy center for the NanoTherm therapy.

MagForce had originally planned to launch the therapy in Germany in the first quarter this year. The requirements of future commercialisation of the therapy and in particular it’s financing currently form a focus of the work.

Frankfurt-based Nanostart provides venture capital financing for nanotechnology companies in various growth phases, with a focus on sectors such as cleantech, life sciences and IT and electronics. Through its subsidiary and venture capital fund in Singapore, Nanostart is also partnered with the Singaporean government.