Annual Report and Accounts 2010

13Available-for-sale financial assets

Current:

Short-term
marketable
securities
£000

At 1 January 2010

 

1,795

Net cash redeemed in the year

 

(1,950)

Revaluation through equity

 

155

At 31 December 2010

 

 

Short-term
marketable
securities
£000

At 1 January 2009

1,816

Revaluation through equity

130

Exchange differences

(151)

At 31 December 2009

1,795

Non-current:

Other

long-term investments

£000

Net book value

At 1 January 2010

 

9,432

Additions

 

11,019

Disposals

(122)

At 31 December 2010

20,329

 

 

Other
long-term
investments
£000

Net book value

At 1 January 2009

1,167

Additions

9,116

Disposals

(439)

Impairments

(412)

At 31 December 2009

9,432

Short-term marketable securities There is a readily available market for these investments. Unrealised gains and losses on these investments are recognised directly in equity via the revaluation reserve. The Group recognises an impairment charge when the decline in fair value below cost is judged to be other than temporary. At 31 December 2009, the fair value was equal to cost. At 31 December 2010, the Group had no such securities.

Other long-term investments

Those unlisted companies in which the Group has invested are generally early-stage development enterprises, which are generating value for shareholders through research and development activities, and most do not currently report profits (carrying value at 31 December 2010: £20,329,000; 2009: £9,432,000). The directors are of the opinion that the fair value of these investments approximates to carrying value. Provisions have been made against other investments to reflect any impairment in value.

Additions in the year included:

further convertible loan notes to Cognovo Limited (a UK company specialising in software-defined modem techniques and solutions);

a 13% investment and a further convertible loan note to Ideaworks 3D Limited (a UK software company specialising in enabling games and applications to be deployed across multiple platforms and operating systems on mobile devices);

a convertible loan note to Nethra Imaging Inc. (a US chip company specialising in imaging solutions);

a 27% investment (comprising 13% voting and 14% non-voting shares) in Calxeda Inc. (a US company, formerly called Smooth-stone Inc., specialising in low-power server technology); and

a 12% investment in Ambiq Micro Inc. (a US company specialising ultra low-power microcontrollers).

During the year, the Group disposed of its investment in CoWare Inc. (a company which develops system-on-chip software for a wide range of applications).

Other investments include a 5% holding in Arteris Holdings Inc. (a US network-on-chip company), a 5% holding in Carbon Design Systems Inc. (a US system-on-chip design solutions company), a 10% holding in Cyclos Semiconductor Inc. (a US company specialising in on-chip energy harvesting), a 5% holding in eSol Co. Ltd (an embedded software company in Japan) and a 5% holding in Triad Semiconductor Inc. (a US chip company specialising in mixed signal ASICs).

Available-for-sale financial assets include the following:

 

2010
£000

2009
£000

Unlisted short-term marketable securities – US

1,795

Total current financial assets

1,795

Unlisted equity securities – UK

579

25

Unlisted equity securities – China

174

123

Unlisted equity securities – Japan

890

890

Unlisted equity securities – US

5,613

1,416

Convertible loan notes – UK

10,624

6,615

Convertible loan notes – US

2,449

363

Total non-current financial assets

20,329

9,432

Total financial assets

20,329

11,227

Available-for-sale financial assets are denominated in the following currencies:

 

2010
£000

2009
£000

Sterling

17,880

9,069

US dollars

2,449

2,158

Total financial assets

20,329

11,227