Sigma spin-out set to pounce on rivals

FRONTIER IP, the spin-out firm set up by Sigma Capital to commercialise university research, is poised to pounce on rivals, one of its directors yesterday revealed.

Marilyn Cole, finance director of parent company Sigma, said she expected consolidation within the sector and that Frontier was well positioned to swallow other investment firms.

Frontier was spun out from Sigma in May and floated on the Plus stock market through a reverse takeover of ARH Leisure. Cole said the listing made Frontier a more high-profile player.

The sale netted Sigma 3.6 million but the Edinburgh-based group's interim pre-tax profit was depressed by write-downs on its property investments.

In the six months ended 30 June, Sigma wrote down 1.8m on the value of its City Wharf development in Aberdeen, due to be completed later this year.

Pre-tax profit stood at 1.6m, up from 500,000 at the interim stage last year. Total revenue was static at 3m, although revenue from services fell from 3.3m to 1.3m on the back of reduced activity in Sigma's property subsidiary.

Frontier is working closely with the Robert Gordon University in Aberdeen and Dundee University to commercialise research. In July, the firm set up an investment fund for Robert Gordon and created a fund for Dundee earlier this month.