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IP Group interim loss narrows, confident of full year "strong returns"

2nd Aug 2023 10:12

(Alliance News) - IP Group PLC on Wednesday reported a decline in its net asset value per share, but pretax loss narrowed in its half year despite the "challenging" economic environment.

The Oxford, England-based intellectual property commercialisation said its net asset value per share on June 30 was 126.7 pence, down 7.3% from 136.7p year-on-year, and declined 4.7% from 132.9p on December 31.

Pretax loss in the half year ended June 30 narrowed 82% to GBP54.4 million, from GBP309.8 million the year before. IP Group said this was driven by the GBP27.8 million reduction in the value of Oxford Nanopore, and a negative portfolio foreign exchange movements of GBP11.2 million.

Loss after tax in the six months was GBP54.5 million, narrowed 82% from GBP309.8 million year-on-year.

Chief Executive Greg Smith said: "IP Group is a long-term investor in breakthrough science and innovation companies that are addressing many of the world's unmet needs, and while the current economic environment remains challenging, I am pleased with portfolio progress in the period."

"The opportunity for value creation in our portfolio remains compelling. Double-digit revenue growth in our largest deeptech and healthcare companies is evidence of continued strong demand for their products and services."

Cash proceeds increased to GBP32.2 million on June 30, surging from GBP2.1 million at the same point the year before, and up 15% from GBP28.1 million in financial 2022.

Portfolio investment increased 15% to GBP59.8 million into 23 companies in the half year, compared to GBP52.0 million invested by the same point the year before.

IP Group declares a 0.51p interim dividend, up 2.0% from 0.50p the year before.

The company said its current macro environment "remains challenging" but that it continues to be well financed, and that it was confident it would "deliver strong returns" over the next year to 18 months.

"We continue to believe that IP Group is well placed to deliver value for shareholders through capital appreciation supported by cash returns and is well-positioned for a return of investor appetite towards growth companies," the company said.

Shares in IP Group were down 3.1% at 58.15p in London on Wednesday morning.

By Will Neill, Alliance News reporter

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