4th Mar 2014 09:44
LONDON (Alliance News) - IP Group PLC Tuesday said pretax profits rose by 78% in 2013, boosted by strong returns from its portfolio.
IP Group provides capital to companies that it helps to spin-out from universities, with the aim of commercialising their intellectual property rights and boosting their value. Its portfolio made GBP83.0 million in net gains, compared with GBP50.2 million in 2012, while administrative expenses rose only marginally to GBP13.2 million from GBP12.7 million.
As a result, pretax profit rose to GBP72.6 million in 2013 from GBP40.7 million in 2012.
Chief Executive Alan Aubrey said 2013 was a big year for IP Group and said the new financial year started well, with Actual Experience PLC listing on AIM and Xeros Ltd announcing its intention to float.
"2013 was a record year with the strongest financial performance since the group was formed in 2001. There was also significant strategic progress with a commercialisation agreement with the University of Manchester, an investment in Cambridge Innovation Capital, as well as pilot agreements with two of the US's eight Ivy League universities," Aubrey said in a statement.
Investors have shown their demand for IP Group shares, with the company having to increase the size of its recent capital raising by GBP25.0 million to GBP100.0 million last month. It is using the proceeds to fund growth in the US and to develop therapeutics products for treating disease and injury through its spin-out companies.
"The recent capital raise will enable the group to accelerate growth by increasing our overall rate of capital deployment into both our existing portfolio and into new early stage opportunities, in the UK and internationally, as well as to broaden our access to world class IP. As such, we remain confident in the group's ability to deliver significant shareholder value," Aubrey said.
In January, IP Group unveiled a deal to acquire the remaining 79.9% of AIM-listed Fusion IP PLC for GBP87.8 million, as it seeks to create a stronger UK commercialisation company.
IP Group pays no dividend.
IP Group shares were Tuesday quoted at 220.70 pence, up 7.1%.
By Samuel Agini; [email protected]; @samuelagini
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