For the 2010 fiscal year, Frankfurt-based nanotechnology investment company Nanostart AG reports the biggest profit in its company history.
• Biggest profit in the company’s history
• Expansion of Singapore business
• Increase of stakes in existing holdings
Net income under German GAAP totaled €2.48 million, up 106 percent on the previous year (2009: €1.2 million). This means another successful year for Nanostart, which has been profitable from the beginning of operations.
Net income stemmed chiefly from the successful sale of shares in holdings, which raised around €4.4 million. In contrast to the previous year, costs were reduced, particularly for wages and salaries (2010: €-0.5 million, 2009: €-1 million). As a result of sound performance levels in the portfolio, the “write-downs on financial investments” item was halved from €-1.4 million in 2009 to €-0.7 million in 2010.
The shares of Nanostart Singapore Early Stage Venture Fund I in the Curiox Biosystems holding were sold in 2010. The transaction proceeds were plowed back into the fund and will be invested in new nanotechnology holdings in Singapore. Nanostart saw two further exits from its portfolio in 2010 with the sale of its shares in the two US holdings NanoGram and BioMicro Systems. The BioMicro transaction will be completed this year, generating further cash inflows for Nanostart in 2011.
Via Nanostart Singapore Early Stage Venture Fund I, a new equity investment was entered into at Singaporean company Microlight Sensors Pte Ltd in 2010. Founded in 2006, the company develops, produces and sells optical high-tech monitoring systems with extremely sensitive sensors. The fund holds around 19 percent of Microlight Sensors. In addition, Nanostart AG increased its stake in German Namos GmbH from 15 to 26 percent and the shareholding of the Singapore fund in Singaporean medical technology company BioMers Pte Ltd from 16 to around 25 percent.
A further equity investment has been entered into via the Singapore fund in the 2011 fiscal year. The new portfolio company is called Membrane Instruments and Technology Pte Ltd (MINT) and develops membrane-based sensors that monitor water quality in water treatment plants in real time. The fund holds 18 percent of MINT.
Nanostart will also be entering the Russian market in the current fiscal year. A €50 million fund is being created in conjunction with Russian company RUSNANO and the governor of Perm. It will invest in young nanotechnology companies in the Perm region and will be managed by Nanostart. Nanostart will receive a management fee of 3 percent p.a. on the fund volume for this. Across the entire fund term of 10 years, this equates to a cash inflow of up to €15 million. In addition, Nanostart AG will receive up to 25 percent of the fund’s profits – equivalent to the economic value of an investment of €12.5 million – as well as the opportunity to invest up to €12.5 million in the fund itself.
For the current fiscal year, the expansion of the Nanostart portfolio is to be continued and the potential value of the existing portfolio is to be leveraged further.
The annual financial statements for 2010 are available on the Investor Relations section of the Nanostart website under “Company Reports”. The 2010 annual report will be published on the company’s website in the next few weeks.
Nanostart AG (OTCQX: NASRY), headquartered in the German financial capital of Frankfurt, is the world’s leading nanotechnology investment company, with portfolio companies spanning the globe from Silicon Valley to Singapore. The company provides venture capital financing for nanotechnology companies in various growth phases with a focus on innovation-driven industries of the future such as cleantech, life sciences and IT/electronics. Through its subsidiary and venture capital fund in Singapore, Nanostart is proud to be the investment partner of the Singaporean government. For further information, please visit www.nanostart.de.