1st Mar 2016 08:33
LONDON (Alliance News) - IP Group PLC, which works with university partners to commercialise scientific research, on Tuesday reiterated that 2015 marked its strongest financial performance since its formation, with the fair value of its portfolio of companies rising by 58% to GBP552.2 million that year.
Excluding net investment, the net increase in the fair value of the company's portfolio added up to GBP86.2 million, driving net profit to GBP73.9 million in 2015, up from GBP9.1 million the prior year.
IP Group provided more capital to its portfolio companies in 2015 than in the prior year, lifting the total to GBP75.9 million from GBP46.8 million, as portfolio companies raised a total of GBP300.0 million from investors in the recent year.
In addition, the group took a strategic stake in Oxford Sciences Innovation PLC, providing access to a "much wider range" of scientific research from the University of Oxford and broadening its exposure to future spin-out companies from what is the oldest university in the English-speaking world.
Having raised about GBP179 million through two issues of equity in the first half, IP Group followed through with securing a GBP30.0 million debt facility from the European Investment Bank, and Chief Executive Alan Aubrey said the money will be used to grow its UK and US operations.
"Major global economies continue to increase expenditure on research and development in the face of macroeconomic trends that continue to cast significant uncertainty over the pace of the global economic recovery. IP Group remains well-positioned to respond to this environment with a healthy pipeline of opportunities across all of our sectors underpinned by a strong cash position," Aubrey said.
"Against this backdrop, we remain cautiously optimistic about the prospects for the current year and beyond and believe we are well-positioned for future growth," Aubrey added.
Shares in IP Group were down 0.8% at 179.50 pence on Tuesday morning.
By Samuel Agini; [email protected]; @samuelagini
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