10th Sep 2019 09:43
(Alliance News) - Intellectual property development firm IP Group PLC said Tuesday it was making "good" strategic progress despite interim asset value and share price coming under pressure.
For the six months ended June 30, net asset value per share fell 8.7% to 110.6 pence from 121.1p the year prior. This was after total assets fell 21% to GBP1.17 billion from GBP1.49 billion the year prior.
"The group has made good operational and strategic progress, notwithstanding the significant decline in the group's share price during the period," IP Chief Executive Officer Alan Aubrey said.
Shares in IP were 2.2% lower at 68.00 pence in London on Tuesday, down 31% over the last six months.
"In particular, as the portfolio matures our business is approaching self-sustainability," Aubrey added. "In the year to date, the Group has achieved cash realisations totalling GBP45.9 million, which exceeds the GBP29.5 million for full year 2018. This, combined with a continued focus and rationalisation of our portfolio, tight cost control, and a strong cash position, enables the group to fund its current priorities from existing capital resources."
"It is particularly encouraging in the current environment to see that our portfolio companies, which have an aggregate total value of around GBP5 billion, have raised approximately GBP240 million in the first half of the year from a broad range of investors.
"We are pleased with our ongoing containment of cost through the integration process, which is now delivering an ongoing benefit to NAV," Aubrey continued. "At the same time, we continue to rationalise our portfolios and are particularly pleased with the progress made in three of our most valuable holdings during the period, Oxford Nanopore, Istesso and Ceres Power."
"Internationally, we see significant upside opportunities in the US as a source of both IP and potential returns from a maturing portfolio, and in Australasia and the wider Asian region where there are significant opportunities to work closely with local long-term capital providers," Aubrey said.
"IP Group remains confident in the prospects for its maturing portfolio, which is both geographically and sectorally diverse," Aubrey continued. "We look forward to updating on progress and developments in the second half."
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