Latest news with #OxfordIonics
Yahoo
2 days ago
- Business
- Yahoo
IonQ Advances Millions-Qubit Roadmap but is the Stock Overpriced?
IonQ IONQ has pursued a technology consolidation strategy to accelerate its roadmap toward tens of millions of logical qubits. This approach also strengthens its leadership in quantum computing and networking. The acquisition of Lightsynq brings photonic interconnect technology that enables scalable modular architectures, allowing multiple processors to be linked together and overcoming the single-processor scaling barrier. The pending acquisition of Oxford Ionics adds ion trap-on-chip capability, a breakthrough that supports IonQ's ambitious path to 800 logical qubits by 2027 and 80,000 by 2030, with the long-term potential of millions of qubits per chip at significantly reduced costs. With the recent close of Capella, IonQ is extending its capabilities into space by advancing satellite-enabled quantum networking and QKD infrastructure, positioning itself to deliver secure global communications. Meanwhile, ID Quantique strengthens IonQ's commercial edge as a leader in Quantum Key Distribution, with production-grade, security-certified devices already deployed across governments, telecom and financial institutions. Together, these acquisitions create a strong platform that combines scalable chips, modular interconnects, space-based quantum networking and cybersecurity. This positions IonQ to achieve tens of millions of logical qubits with low-cost, extensible architectures and an unmatched roadmap in the industry. How Are IONQ Competitors Doing? Rigetti RGTI: Technologically, Rigetti is advancing superconducting gate-based hardware via its chiplet architecture, with a 36-qubit system available and a 100+ qubit system at 99.5% two-qubit fidelity expected by year-end 2025. This leaves the company well-positioned to scale while retaining optionality for partnerships or acquisitions. D-Wave Quantum QBTS: It is pursuing a commercially anchored growth strategy with strong M&A ambitions, backed by solid liquidity. D-Wave management recently highlighted plans for strategic acquisitions to accelerate its push into gate-model quantum computing, expanding beyond its annealing roots. Technologically, D-Wave launched Advantage2, its sixth-generation annealer, and is investing in advanced cryogenic packaging to scale both annealing and gate-model systems. IONQ's Price Performance, Valuation and Estimates IonQ shares have gained 14.7% in the past three months, outperforming the Zacks Computer - Integrated Systems industry. Image Source: Zacks Investment Research IonQ's forward 12-month price/sales ratio of 87.18 is far above the industry average, as you can see below. Image Source: Zacks Investment Research For IONQ, the Zacks Consensus Estimate for 2025 loss per share has widened over the past 30 days from 47 cents to 66 cents, as you can see below. The estimated figure, however, indicates a much narrower loss than the year-ago reported loss of $1.56 per share. Image Source: Zacks Investment Research IONQ stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report IonQ, Inc. (IONQ) : Free Stock Analysis Report Rigetti Computing, Inc. (RGTI) : Free Stock Analysis Report D-Wave Quantum Inc. (QBTS) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
BBC News
13-08-2025
- Business
- BBC News
New state-of-the-art quantum computer switched on in Harwell
A new state-of-the-art quantum computer said to be the most advanced in the world has just been switched full-stack computer, called Quartet, has been delivered to the UK's National Quantum Computing Centre at its Harwell campus in Oxfordshire by Oxford Ionics - a leading manufacturer in trapped-ion quantum Chris Ballance, Oxford Ionics chief executive and co-founder, said that meant they could "solve problems in minutes, we otherwise wouldn't think of solvable at all with a computer".The announcement comes after IonQ, a US-listed quantum company, agreed to acquire Oxford Ionics for $1.1bn in June. Speaking to BBC Radio 4, Dr Ballance said quantum computers were "the most powerful form of computer allowed by the laws of physics"."The hardware is fundamentally very different," he said."[It] just calculates problems in a very different way and a conventional computer is much closer to an abacus in conventional compute power than it is to a quantum computer."The company said the delivery marked "a significant step forward in making commercially valuable quantum computing a reality" and "ensuring the UK is equipped with the compute power to solve some of the world's most pressing challenges"."For that right now, if you want to build a better battery, you mostly have to go into a lab and test out some chemicals," Dr Ballance said."Those kind of problems we've known for 50 years how to write down - we just can't solve them on conventional computers. "And quantum computers will allow us to take a lot of that work from the lab into a problem we can now solve on a computer."He said a conventional supercomputer "might use the output of a small power plant to power it". "Our quantum computer uses less power than an electric kettle."The systems we're building next year, which will outperform ... the largest supercomputers humanity will ever build, will still use less power than just one server rack in a standard data centre." Dr Ballance said they had accepted the IonQ deal "because the business logic was incredible"."IonQ has an amazing team and they've had quantum computers operated on major cloud platforms since before I founded Oxford Ionic. "We have this new core technology and plugging those things together jointly allows us to speed up our combined roadmaps by multiple years." You can follow BBC Oxfordshire on Facebook, X (Twitter), or Instagram.
Globe and Mail
06-08-2025
- Business
- Globe and Mail
IonQ Announces Second Quarter Financial Results
IonQ (NYSE: IONQ), the leading commercial quantum computing and networking company, today announced financial results for the quarter ended June 30, 2025. "I am pleased to report that we beat the top end of guidance for Q2 revenue by 15%, and strengthened our balance sheet via the largest equity investment from a single institution in the quantum industry. We also made very tangible progress towards delivering our #AQ64 application performance benchmark, with strong indications that it will be achieved in the near term.' 'Via our closed acquisition of Lightsynq, along with our proposed acquisition of Oxford Ionics, we have created the most advanced and powerful quantum computing and networking roadmap in the world," said Niccolo de Masi, Chairman and CEO of IonQ. "The combination of IonQ hardware and software expertise and Oxford's implementation of ion-trap-on-a-chip provides the team, IP, technology, and momentum to achieve 800 logical qubits in 2027 and 80,000 logical qubits in 2030." 'The close of our acquisition of Capella in July expands our quantum networking vision to include a space-based QKD network," de Masi continued. 'Our networking products are production-grade and are used by many of the world's household-name financial services, telecom, and government agencies. IonQ quantum networking offers the ultimate in communication security, protecting even from the looming threat of quantum decryption." "We've also attracted world-class leaders who are choosing to build the future at IonQ. From the world of finance, Dr. Marco Pistoia has joined us after leading global applied research and quantum computing at JPMorgan Chase. From the highest levels of government, we welcomed Dr. Rick Muller, former Director of IARPA, the intelligence community's advanced research agency. To guide our corporate growth, veteran technology counsel Paul Dacier has taken the helm as Chief Legal Officer, and to sharpen our scientific core, our co-founder Dr. Chris Monroe has assumed the vital role of Chief Scientific Advisor.' 'As I have said before, I believe talent is the proverbial Warren Buffett weighing machine most relevant to any company's long-term prospects, and it is tremendously validating to have such towering figures in the quantum industry become our colleagues at IonQ." Financial Highlights IonQ recognized revenue of $20.7 million for the second quarter, which is 15% above the top end of the previously provided range. Cash, cash equivalents, and investments were $656.8 million as of June 30, 2025 and $1.6 billion pro-forma as of July 9, 2025. The balance increased due to the $1.0 billion equity financing. Net loss was $177.5 million and Adjusted EBITDA loss was $36.5 million for the second quarter.* *Adjusted EBITDA is a non-GAAP financial measure defined under 'Non-GAAP Financial Measures,' below, and is reconciled to net loss, its closest comparable GAAP measure, at the end of this release. Q2 and Recent Commercial Highlights IonQ announced the signing of a Memorandum of Understanding with KISTI to accelerate South Korea's role in the global quantum race, collaborating in four key areas: advanced infrastructure access, education, talent and knowledge exchange, and efforts to expand the quantum ecosystem. IonQ announced AI-focused collaboration with AIST in Japan through a Memorandum of Understanding, paving the way for joint R&D, workforce development initiatives, and access to IonQ Forte-class quantum computers to accelerate real-world quantum-AI applications. IonQ announced a partnership with Sweden's Einride to pioneer quantum-enhanced optimization for the global freight industry, collaborating to create quantum solutions for fleet routing, logistics optimization, and supply chain management. IonQ announced expansion across APAC through a strategic collaboration with Australian company Emergence Quantum, advancing IonQ's global expansion roadmap while strengthening Australia's quantum capabilities, with the Emergence Quantum team bringing decades of experience in trapped ion technology. IonQ backs landmark Texas Quantum Initiative, working with state leaders to position Texas as a U.S. quantum hub through policy support, investment incentives, and expanded opportunities in quantum computing, networking, and sensing technologies. IonQ announced that it secured a landmark $22M deal with utility leader EPB to create America's first commercial quantum hub, demonstrating significant commercial traction and strategic expansion into the critical energy infrastructure market. Q2 and Recent Technical Highlights IonQ announced a 20x speed-up of quantum-accelerated drug development applications with AstraZeneca, AWS, and NVIDIA, in the largest demonstration of its kind, combining leading hardware, platforms, and techniques, marking a significant step toward more efficient pharmaceutical production through hybrid quantum-classical workflows. IonQ announced that the Company and the University of Washington together achieved the first known quantum computer simulation of a process tied to the universe's matter–antimatter imbalance, modeling nuclear dynamics on unprecedented yoctosecond time-scales (10⁻²⁴ seconds) and potentially opening new frontiers in fundamental physics research. IonQ announced that it developed a hybrid quantum computing approach with Oak Ridge National Laboratory to drive power grid efficiencies and meet electricity demand at minimal cost. Q2 and Recent Corporate Highlights IonQ announced an agreement to acquire Oxford Ionics, creating the world's most advanced quantum computing roadmap when combined with IonQ. The combination promises 10,000 physical qubits with logical fidelities of 99.99999% by 2027 and 2 million physical qubits by 2030. IonQ announced the completion of its acquisition of Lightsynq, accelerating its quantum computing and quantum internet roadmaps and offering a clear path to millions of qubits through the integration of Lightsynq's advanced photonic interconnect technologies. IonQ announced the completion of its acquisition of Capella, facilitating its development of a space-based QKD network and the foundation of the quantum internet with the integration of Capella's satellite infrastructure. IonQ announced the pricing of a $1.0 billion equity offering, including shares and warrants, to strengthen its balance sheet to approximately $1.6 billion in pro-forma cash, for continued innovation and growth. IonQ announced the appointment of Marco Pistoia, renowned IBM inventor, quantum computing leader, and former Global Head of Applied Research and Quantum Computing at JPMorgan Chase, as Senior Vice President of Industry Relations. IonQ announced the expansion of its engineering leadership team with the hiring of Rick Muller, former Director of IARPA, as Vice President of Quantum Systems to advance its quantum hardware development. IonQ announced the appointment of Paul Dacier as Chief Legal Officer and Corporate Secretary to bolster its legal and governance framework amid rapid growth in quantum computing. IonQ announced the appointment of its founder Dr. Chris Monroe as Chief Scientific Advisor, where he will be working very closely with Dr. Mihir Bhaskar. IonQ announced that Dr. Grégoire Ribordy will remain in his role post-close to continue building on his 20 years of leadership in quantum networking. 2025 Financial Outlook For the full year 2025, IonQ expects revenue to be between $82 million and $100 million, with between $25 million and $29 million for the third quarter. 2025 Board Update IonQ announced that its Board of Directors has appointed CEO Niccolo de Masi to the additional position of Chairman of the Board, effective immediately. As a result, Peter Chapman has stepped down as Executive Chairman and as a member of the Board. Inder Singh, Lead Independent Director of IonQ, said, 'We are delighted to name Niccolo as Chairman of the Board. Since he became CEO in February 2025, Niccolo has excelled in leading the business forward. We are confident that he is the right person to guide our Board as we continue to oversee the execution of the Company's strategic priorities and the incredible momentum they are driving. We are grateful to Peter for his long-standing service to IonQ and wish him well.' de Masi commented, 'I am honored to receive this further vote of confidence in me by the Board as IonQ continues to extend its leadership in quantum computing and quantum networking. I also want to thank Peter for his seminal work in building the Company over the last six years and our collaboration over the last few months.' Second Quarter 2025 Conference Call IonQ will host a conference call today at 4:30 p.m. Eastern time to review the Company's financial results for the second quarter ended June 30, 2025 and to provide a business update. The call will be accessible by telephone at 844-826-3035 (domestic) or 412-317-5195 (international). The call will also be available live via webcast on the Company's website here, or directly here. A telephone replay of the conference call will be available approximately three hours after its conclusion at 844-512-2921 (domestic) or 412-317-6671 (international) with access code 10200658 and will be available until 11:59 p.m. Eastern time, August 20, 2025. An archive of the webcast will also be available here shortly after the call and will remain available for one year. Non-GAAP Financial Measures To supplement IonQ's condensed consolidated financial statements presented in accordance with GAAP, IonQ uses non-GAAP measures of certain components of financial performance. Adjusted EBITDA is a financial measure that is not required by or presented in accordance with GAAP. Management believes that this measure provides investors an additional meaningful method to evaluate certain aspects of the Company's results period over period. Adjusted EBITDA is defined as net loss attributable to IonQ, Inc. before net loss attributable to noncontrolling interests, interest income, interest expense, income tax (benefit) expense , depreciation and amortization expense, stock-based compensation, change in fair value of assumed warrant liabilities, acquisition transaction costs, and other non-recurring non-operating income and expenses. IonQ uses Adjusted EBITDA to measure the operating performance of its business, excluding specifically identified items that it does not believe directly reflect its core operations and may not be indicative of recurring operations. The presentation of non-GAAP financial measures is not meant to be considered in isolation or as a substitute for the financial results prepared in accordance with GAAP, and IonQ's non-GAAP measures may be different from non-GAAP measures used by other companies. IonQ shows a reconciliation of GAAP to non-GAAP financial measures at the end of this release. About IonQ IonQ, Inc. [NYSE: IONQ] is the leading commercial quantum computing and networking company , delivering high-performance systems aimed at solving the world's most complex problems. IonQ's current generation quantum computers, IonQ Forte and IonQ Forte Enterprise, are the latest in a line of cutting-edge systems that have been helping customers and partners such as Amazon Web Services, AstraZeneca, and NVIDIA achieve 20x performance results. The company is accelerating its technology roadmap and intends to deliver the world's most powerful quantum computers with 2 million qubits by 2030 to accelerate innovation in drug discovery, materials science, financial modeling, logistics, cybersecurity, and defense. IonQ's advancements in quantum networking also positions the company as a leader in building the quantum internet. The company's innovative technology and rapid growth were recognized in Newsweek's 2025 Excellence Index 1000, Forbes' 2025 Most Successful Mid-Cap Companies list, and Built In's 2025 100 Best Midsize Places to Work in Washington DC and Seattle, respectively. Available through all major cloud providers, IonQ is making quantum computing more accessible and impactful than ever before. Learn more at IonQ Forward-Looking Statements This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Some of the forward-looking statements can be identified by the use of forward-looking words. Statements that are not historical in nature, including the words 'pending,' 'look forward,' 'accelerate,' 'anticipate,' 'expect,' 'suggests,' 'plan,' 'believe,' 'intend,' 'estimates,' 'targets,' 'projects,' 'should,' 'could,' 'would,' 'may,' 'will,' 'forecast,' 'offers' and other similar expressions are intended to identify forward-looking statements. These statements include those related to IonQ's position in the quantum computing and networking sector; the efficacy of new applications of quantum computing; the relevance and utility of quantum algorithms and applications run on IonQ's quantum computers; the success of partnerships and collaborations between IonQ and other parties, including development and commercialization of products and services with such parties; IonQ closing anticipated acquisitions; IonQ's ability to utilize the technology of acquired companies to accelerate the development and scale of IonQ's systems and offerings; advancement of quantum networking technology; the Company's technology driving commercial applications in the future; the Company's future financial and operating performance, including our preliminary outlook and guidance; the appearance of new applications of IonQ's products and services; the ability for third parties to implement IonQ's offerings to solve their problems and increase their quantum computing capabilities; expansion of IonQ's sales pipeline; IonQ's quantum computing capabilities and plans; future deliveries of and access to IonQ's quantum computers and services; future purchases of IonQ's offerings by customers using congressionally-appropriated funds from the U.S. government; IonQ's performance of existing contracts in the future, including anticipated timing of completion of research, development and manufacturing by IonQ; IonQ receiving additional revenues under planned subsequent phases of customer contracts; and the scalability and reliability of IonQ's quantum computing offerings. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, including but not limited to: changes in the competitive industries in which IonQ operates, including development of competing technologies; our ability to sell effectively to government entities and large enterprises; changes in laws and regulations affecting IonQ's and its suppliers' businesses; IonQ's ability to implement its business plans, forecasts and other expectations, to identify and realize partnerships and opportunities, and to engage new and existing customers; IonQ's ability to effectively integrate its acquisitions; its inability to effectively enter new markets; IonQ's ability to deliver services and products within currently anticipated timelines; its inability to attract and retain key personnel including personnel of acquired companies; the conditions for closing IonQ's anticipated acquisitions not being met; IonQ's customers deciding or declining to extend contracts into new phases; the inability of its suppliers to deliver components that meet expectations timely; changes in U.S. government spending or policy that may affect IonQ's customers; changes to U.S. government goals and metrics of success with regard to implementation of quantum computing and quantum networking; and risks associated with U.S. government sales, including availability of funding and provisions that allow the government to unilaterally terminate or modify contracts for convenience. You should carefully consider the foregoing factors and the other risks and uncertainties disclosed in the Company's filings, including but not limited to those described in the 'Risk Factors'' section of IonQ's most recent periodic financial report (10-Q or 10-K) and other documents filed by IonQ from time to time with the Securities and Exchange Commission. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and IonQ assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise. IonQ does not give any assurance that it will achieve its expectations. Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Revenue $ 20,694 $ 11,381 $ 28,260 $ 18,963 Costs and expenses: Cost of revenue (excluding depreciation and amortization) 8,327 5,623 12,642 9,037 Research and development 103,359 31,204 143,312 63,572 Sales and marketing 10,877 6,137 19,487 12,838 General and administrative 48,107 13,053 71,913 27,073 Depreciation and amortization 10,616 4,305 17,177 8,260 Total operating costs and expenses 181,286 60,322 264,531 120,780 Loss from operations (160,592 ) (48,941 ) (236,271 ) (101,817 ) Gain (loss) on change in fair value of warrant liabilities (39,577 ) 6,639 (1,083 ) 15,266 Interest income, net 7,138 4,801 12,032 9,600 Other income (expense), net 232 (45 ) 283 (179 ) Loss before income tax expense (192,799 ) (37,546 ) (225,039 ) (77,130 ) Income tax benefit (expense) 15,269 (15 ) 15,257 (23 ) Net loss $ (177,530 ) $ (37,561 ) $ (209,782 ) $ (77,153 ) Net loss attributable to noncontrolling interests (692 ) — (692 ) — Net loss attributable to IonQ, Inc. $ (176,838 ) $ (37,561 ) $ (209,090 ) $ (77,153 ) Net loss per share attributable to IonQ, Inc. common stockholders—basic and diluted $ (0.70 ) $ (0.18 ) $ (0.87 ) $ (0.37 ) Weighted average shares used in computing net loss per share attributable to IonQ, Inc. common stockholders—basic and diluted 250,967,455 211,637,479 239,924,680 209,898,459 IonQ, Inc. Condensed Consolidated Balance Sheets (unaudited) (in thousands) June 30, December 31, 2025 2024 Assets Current assets: Cash and cash equivalents $ 140,067 $ 54,393 Short-term investments 406,784 285,896 Accounts receivable, net 19,114 10,188 Prepaid expenses and other current assets 59,922 28,325 Total current assets 625,887 378,802 Long-term investments 109,902 23,545 Property and equipment, net 58,558 52,761 Operating lease right-of-use assets 11,254 9,470 Intangible assets, net 143,241 29,469 Goodwill 370,720 9,904 Other noncurrent assets 27,046 4,437 Total Assets $ 1,346,608 $ 508,388 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 8,938 $ 5,230 Accrued expenses and other current liabilities 49,190 16,424 Current portion of operating lease liabilities 5,528 3,366 Unearned revenue 16,726 10,678 Current portion of stock option early exercise liabilities 252 387 Total current liabilities 80,634 36,085 Operating lease liabilities, net of current portion 13,737 14,359 Unearned revenue, net of current portion 2,770 — Warrant liabilities 58,042 70,688 Other noncurrent liabilities 12,979 3,394 Total liabilities $ 168,162 $ 124,526 Stockholders' Equity: Common stock $ 27 $ 22 Additional paid-in capital 2,050,344 1,067,403 Accumulated deficit (892,810 ) (683,720 ) Accumulated other comprehensive income (loss) 4,072 157 Total IonQ, Inc. stockholders' equity $ 1,161,633 $ 383,862 Noncontrolling interests 16,813 — Total stockholders' equity $ 1,178,446 $ 383,862 Total Liabilities and Stockholders' Equity $ 1,346,608 $ 508,388 IonQ, Inc. Condensed Consolidated Statements of Cash Flows (unaudited) (in thousands) Six Months Ended June 30, 2025 2024 Cash flows from operating activities: Net loss $ (209,782 ) $ (77,153 ) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 17,177 8,260 Stock-based compensation 132,421 43,040 (Gain) loss on change in fair value of warrant liabilities 1,083 (15,266 ) Deferred income taxes (15,300 ) — Amortization of premiums and accretion of discounts on available-for-sale securities (3,540 ) (4,787 ) Other, net 1,502 2,156 Changes in operating assets and liabilities: Accounts receivable (3,595 ) 3,558 Prepaid expenses and other current assets (25,142 ) (8,341 ) Accounts payable 1,094 (165 ) Accrued expenses and other current liabilities 20,741 (2,116 ) Unearned revenue (4 ) 1,262 Other assets and liabilities (2,254 ) 2,508 Net cash provided by (used in) operating activities $ (85,599 ) $ (47,044 ) Cash flows from investing activities: Purchases of property and equipment (3,501 ) (10,629 ) Capitalized software development costs (1,886 ) (2,129 ) Intangible asset acquisition costs (307 ) (892 ) Purchases of available-for-sale securities (435,130 ) (146,098 ) Maturities of available-for-sale securities 211,180 211,572 Businesses acquired, net of cash paid 28,667 — Net cash provided by (used in) investing activities $ (200,977 ) $ 51,824 Cash flows from financing activities: Proceeds from at-the-market offering, net of issuance costs 358,254 — Proceeds from stock options exercised 7,564 1,185 Proceeds from public warrants exercised 5,592 — Tax withholding receipts (payments) related to vested and released RSUs, net 1,447 141 Net cash provided by (used in) financing activities $ 372,857 $ 1,326 Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash 391 4 Net change in cash, cash equivalents and restricted cash 86,672 6,110 Cash, cash equivalents and restricted cash at the beginning of the period 56,840 38,081 IonQ, Inc. (unaudited) (in thousands) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Net loss attributable to IonQ, Inc. $ (176,838 ) $ (37,561 ) $ (209,090 ) $ (77,153 ) Net loss attributable to noncontrolling interests (692 ) — (692 ) — Interest income, net (7,138 ) (4,801 ) (12,032 ) (9,600 ) Interest expense — — — — Income tax (benefit) expense (15,269 ) 15 (15,257 ) 23 Depreciation and amortization 10,616 4,305 17,177 8,260 Stock-based compensation 99,168 20,979 132,421 43,040 (Gain) loss on change in fair value of warrant liabilities 39,577 (6,639 ) 1,083 (15,266 ) Acquisition transaction costs 14,060 — 15,841 —
Daily Mail
12-07-2025
- Business
- Daily Mail
MIDAS SHARE TIPS: University start-ups can offer first-class returns
Taking a slice of good old British intellectual flair isn't as easy as it used to be. Our university research departments are excellent at producing and patenting new technologies and ideas, but they are increasingly funded privately, or snapped up by companies overseas before UK investors can take a stake. Recently buyers have come calling for privately held Oxford Ionics, a quantum computing start-up from Oxford University, raising the possibility that other university spin-offs might be next. But while most of these businesses are private, Britain's boffins have spun out companies in the past that are listed on the stock market. Here are three to consider: Oxford Nanopore Spun out of Oxford University, Nanopore's sensing technology uses tiny holes (or pores) and electric current to read the sequence of DNA and RNA, quickly and effectively The company listed in 2021 with much fanfare, and shares surged from 425p to over 570p on the first morning of trading. Today, despite the company's annual Clash-inspired conference London Calling in late May, the shares sit on just £1.50. An uninspiring performance that is scarcely going to Rock the Casbah. However, fans of the stock reckon it is chronically underpriced. Douglas Brodie, who holds it in the Edinburgh Worldwide Investment Trust, has described it as 'among the most misunderstood businesses that we own' and lauds its 'exquisitely sensitive technology'. Nanopore technology already has broad uses, from academic research through to vaccine manufacture, but if it can be used to read proteins as well as DNA then the opportunity for the business could be huge. Dr Lakmal Jayasinghe, the group's chief scientific officer, has said this is the 'next frontier' for the business and indicated there may be an early access programme for the company's protein detection tools later in 2025. The company is not yet profitable and has previously said it hopes to break even in 2027, as it continues to move into providing its technology for more commercial applications. Nanopore's shares have suffered from the general decline in the price of life sciences businesses since Covid, but also from the vacillations of the Trump administration over National Institutes of Health grant funding. That uncertainty isn't going to go away any time soon, but there are a couple of things that might move the share price. The first is further announcements on the protein front, and the rather more obvious second is an approach from a US company eager to get its hands on the Nanopore technology. It's a common story right now, less London Calling and more London Leaving, so with either prospect in sight, now might be a good time to snap up some shares. Traded on: Main market Ticker: ONT Filtronic If you're looking for the granddaddy of university spinouts, look no further than Filtronic. The business was developed at Leeds University in 1977 and listed in 1994. That doesn't make it one for fusty academics though. The company's advanced radio frequency technology, originally developed for telecoms, is now used for satellite communications, defence and space. It has one big customer – Elon Musk's Space X, though insiders insist it is trying to reduce its reliance on this one business. Space is big business, as coverage of Katy Perry's orbital tourism aboard Blue Origin showed, but it's hard to find businesses in this sector that make a profit. Filtronic is both profitable and AIM-listed, which means that if you hold the shares for more than two years your beneficiaries will pay only half the inheritance tax due on them. The company also works in the world's biggest growth industry at present – defence. This gives investors a double reason to give Filtronic a chance. New CEO Nat Edington has made a stratospheric start since joining last May. The company has turnover of £50million, but he wants to push it to £100million. The company has been firing on all cylinders, with a huge Space X order in May and other smaller contracts announced with defence business Leonardo, Airbus and the European Space Agency. The share price has also taken off, though it is still far away from the £20 highs it reached 25 years ago. At £1.66 this week, shares are up an impressive 127 per cent in the past 12 months. Excitement around Space X is one reason for this meteoric rise, but the possibility that someone else might pick the stock up is another. It's worth a look. Traded on: AIM Ticker: FTC Ceres Power Spun out from Imperial College in 2001, fuel cell business Ceres Power listed on AIM on 2003 before moving to the main stock market two years ago. Shareholders have had a bumpy ride since. The company makes solid fuel cells that convert fuel into electricity in an efficient manner, but the technology now also converts electricity to split water into hydrogen and oxygen. The hydrogen producing process is more efficient than many competitor processes and is a serious contender for making low-cost greener fuel – a holy grail for many companies and countries. Meanwhile, the fuel cells are used in data centres to provide portable power supplies. The hydrogen process is likely to bring more excitement in the long term, with the fuel cells more useful now in powering a data centre boom. So, Ceres gives the possibility of jam today and tomorrow. Ceres licenses its technology to others, rather than manufacturing itself, which is a good strategy until you lose a major partner and your shares react accordingly. That's what happened earlier this year when Bosch said it was no longer working with Ceres and would also sell a 17 per cent stake in the business. Analysts cut their target prices savagely, with Investec pulling back from a 600p price target to 145p, and Panmure Liberum back from 700p to 150p. The share price now, at 101p, is below all these targets though, and outside of the Bosch disappointment, the Ceres order book looks as solid as its fuel cells. Clients include Delta in Taiwan, Denso in Japan and Thermax in India, while the company's collaboration with Shell, in India, produced its first hydrogen in May. The company is still loss making, though royalty revenue should come soon from several businesses which should tip the balance back, and there's no imminent danger of it running out of steam. Analyst Alex O'Hanlon, at Panmure Liberum, reckons that the company will still have £80million of cash at its financial year end. Potential new investors must decide whether the share price reaction around Bosch was overdone, and if they are willing to wait and see whether the company's other strategies will come good. The company has already had something of a turnaround in the past few weeks, and the shares are up 16 per cent this month. If more positive newsflow comes out in the coming weeks, those who buy in now may also have their portfolio refuelled. Buy.
Yahoo
19-06-2025
- Business
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‘I'm a millionaire fleeing Britain – a Reeves U-turn would stop me leaving'
I have a spreadsheet open in front of me on my computer, detailing the exact number of days I have left to stay in the UK this tax year. The reason? Labour's changes to non-doms inheritance tax rules. The changes are so costly that they have forced me to reconsider where I live. When my days in the UK run out, I will not spend time in some tax haven; I'll just go back home to South Africa and work out the next steps. If Rachel Reeves reverses the inheritance tax change for non-doms, I would unequivocally stay and grow my venture capital business in the UK. I know so many other millionaires in my situation. Many have left but still have properties here and have not yet completely settled in their new homes. Half of these people would rush back if the rules around paying inheritance tax on worldwide assets changed, because we are all upset to leave and feel forced. But the Chancellor must act quickly before it is too late. I want to keep investing in growth companies like I did with quantum computing start-up Oxford Ionics, which last week sold for $1.1bn (£820m) to a US firm. But after raising £500m to invest in Britain's most exciting start-ups since I arrived here in 2019, my future investment will now be elsewhere. This money will likely help grow companies in mainland Europe instead. It is a shame, as Oxford and Cambridge are where the most exciting cutting-edge projects are happening. But I am sadly certainly not going to bring any more money to the UK if I cannot stay. I know people will say: 'It's just inheritance tax. What does it matter if you are dead?' My businesses are my life's work. I want them to secure my sons' futures. I grew up with very little, fleeing communist Poland as a child refugee with my parents and two siblings when the country started running out of food in the early 1980s. The only way to get out was to flee with fake papers. We spent the whole of 1981 in a migrant camp in Austria, where my parents applied to countries accepting refugees. We ended up in South Africa without knowing anything about the country or the apartheid regime. We didn't speak English and had $500 to our name. In the next years, we were just about surviving. I studied actuarial science at university because that was the only way to get a bursary, and we had no money for schooling. After working for a couple of insurance companies, I realised I'm not diplomatic enough to be a corporate employee. So I ended up in the world of start-ups and decided to start my own company. I gambled everything on it, putting my house up as collateral. It is today one of South Africa's large financial services groups. I came to the UK for security reasons in 2019, after speaking out against corruption in Jacob Zuma's government and being left fearing for my life. London has become my home. I had hoped to live here for the rest of my life. Being forced to leave for reasons outside my control feels much like grief. The impact goes beyond just my own personal circumstances. I have had to let 12 casual household staff go – gardeners, cleaners, builders. While I still have a venture capital firm, Braavos, in Britain, I will not hire anyone new here. Over time, I may have to think about relocating it. I put my flat in Kensington on the market five months ago, but because so many like me are leaving there are hardly any buyers. I'm considering putting my house that I love up for sale too, but for now I am holding out for a miracle. If there is none, I will be forced to go once my 90 days in Britain this tax year are up. I'm leaving on the strong advice of my tax advisers, as the new rules around inheritance are unworkable for me. For one, South Africa has foreign exchange controls. That means if I were to die under current rules, South Africa may refuse to release the funds to settle a huge inheritance tax bill in Britain. Even ignoring the difficulty of getting the money out, my wealth is mainly held in the form of shares in the financial services company Sygnia, which I founded and built in South Africa. My sons would be forced to sell those shares quickly. If you want to sell anything fast, you'll have to do so with a big discount, which would devalue the company. How can this be good for the economy? If Reeves changes her mind, I would immediately cancel my plans to leave. I could rehire all of my household staff, take my property off the market and focus on raising funds for another investment fund to boost British growth companies. My message to the Chancellor is this: you came into power to fix the economy, so don't destroy growth by putting politics before economics. As told to Eir Nolsøe Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
