ANGLE - 87p

Readers may remember we recommended ANGLE as a speculative buy back in March. The company was formed in 1994 by former executives of KPMG's technology consulting group to capitalise on the commercialisation of intellectual property (IP').

Although the group has a consulting and management business which is growing steadily, its principal activity is its Ventures business which is used to establish, develop and create value in technology companies. It has developed a proprietary process, Progeny, to develop these companies, which are referred to as Progeny companies.

On July 27, the company announced its results and we spoke to Andrew Newland, its chief executive. The company's results were in line with expectations and it reported reduced losses before tax of £2.7m with a portfolio of 11 Progeny companies.

However, numbers aside, the most important feature of the company's announcement was the landmark' deal with the University of Reading which will create a conduit for intellectual property flow under a first-right to refusal structure.

ANGLE has the right to invest in IP which is commercialised by the university under an agreement where for £500k ANGLE gains a 60 per cent equity stake in each spinout.

A total investment of £3m is expected to be made through this collaboration over the next five years. The funding will come from existing resources and will require no capital fund raising at the moment.

ANGLE commercialises IP uniquely. Not only can it set up Progeny companies, but its agreement with the university ensures it receives 15 per cent of all commercial returns from the university IPO both licensing and spinout irrespective of whether ANGLE invests in the opportunity.

Another positive is that ANGLE can negotiate further deals with academic institutions of the calibre of Reading University.

ANGLE has a strong cash balance of £8.2m (£5.5m). A total of £8.1m was raised via a placing which strengthened its existing institutional shareholder base.

The Progeny portfolio is progressing well with all companies moving forward and creating value for the group. Acolyte and NeuroTargets are now nearing an exit point with a trade sale or IPO.

Geomerics, for example, offers new computer graphics technology which allows "real time radiosity" - ANGLE has received 50 commercial enquiries about this technology.

The house broker, Collins Stewart, has a heady price target of 156p. I would settle for around 120p but will go with momentum and newsflow.

A SPECULATIVE BUY.