10th Mar 2021 09:43
(Alliance News) - IP Group PLC on Wednesday reported "strong" growth and investments during 2020, with cash realisations at a "record level" for the second year in a row.
The London-based intellectual property commercialisation company's 2020 net asset value stood at GBP1.33 billion, up 17% from GBP1.14 billion in 2019, while NAV per share was 125.3 pence, up from 107.8p. These increases are reflected in a "sustained" investment of GBP67.5 million into its portfolio, compared to GBP64.7 million in 2019.
IP Group reported a swing to a 2020 profit of GBP185.4 million from a GBP78.9 million loss in 2019, partially driven by substantial increase in cash realisations to GBP191.0 million from GBP79.5 million previously.
Due to the encouraging results, IP Group said, it recommended a maiden 2020 final dividend of 1 pence per share.
"A transformative year for the group in which we delivered a return to profitability, generated over GBP190 million of realisations from our portfolio and our confidence in the portfolio's maturity profile enabled the board to recommend a maiden dividend," the company said.
Shares in IP Group were up 0.5% at 119.80p in London on Wednesday.
"IP Group made excellent progress in 2020, achieving both record returns and cash realisations totalling GBP191 million. This financial strength, combined with the prospects in our maturing portfolio, gives us the confidence to recommend a maiden dividend of 1p per share. We have great pride in the contribution of many of our companies to the response to Covid-19. The pandemic has focused attention on the importance of innovation of science, accelerating key thematic trends in health, digitisation, and the transition to net zero," said Chief Executive Alan Aubrey.
Looking ahead, IP Group said it remains confident it is "well-positioned" in 2021 to benefit from increased focus.
"The current year has started strongly, with much activity in the portfolio including significant fundraising, and we remain excited by the prospects for 2021," Aubrey said.
By Zoe Wickens; [email protected]
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