5th Aug 2020 11:04
(Alliance News) - Intellectual property development firm IP Group PLC said Wednesday it delivered record cash realisations for the first half of 2020, along with swinging to gains from its portfolio despite lower net asset value.
As at June 30, net asset value per share was 108.8 pence per share, down 1.6% from 110.6p the same date the year before, but up 0.9% from 107.8p at the end of December.
Shares in IP Group were down 1.6% at 74.40 pence on Wednesday in London.
At the end of the interim period, IP Group's portfolio decreased to GBP1.03 billion from GBP1.13 billion a year before, as a result of significant net divestments during the period. The portfolio now consists of 126 companies, with 89 in the UK, 27 in the US and 10 in Australasia.
However, the group made net portfolio gains of GBP34.9 million, compared to a loss of GBP46.7 million a year before. In addition, following the exit of its interest in two companies during the period, including Ceres Power PLC, IP Group realised total cash proceeds of GBP113.7 million, up significantly from GBP7.9 million in the prior year.
"The group saw a positive return of approximately 3% on its portfolio in the first half, despite the significant headwinds and challenges faced globally. We will we continue this focus on NAV growth in the second half of the year and beyond," said Chief Executive Officer Alan Aubrey.
"The cash realisations from the portfolio, the positive portfolio return and continued prudent cost control have placed the group in an even stronger, more liquid financial position than at the beginning of 2020. We remain confident in the prospects for our portfolio that, as well as financial returns, is delivering meaningful impact and significant benefits to society at large," Aubrey added.
Shares in IP Group were down 2.0% at 74.10 pence on Wednesday in London.
By Dayo Laniyan; [email protected]
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