Half-yearly results 2025

("IP Group" or "the Group" or "the Company") Half-yearly results 2025

IP Group plc (LSE: IPO), which invests in breakthrough science and innovation companies with the potential to create a better future for all, today announces its financial results for the six months ended 30 June 2025 ("HY25").

Highlights

 Encouraging portfolio developments

- Hinge Health floated on NYSE at $32 per share with shares trading up by 63% post IPO to $52 per share at 30 June, valuing balance of holding at £39.1m

- Oxford Nanopore beat guidance with £105.6m revenues in H1 and lower EBITDA losses

- £372m of total capital raised by portfolio (HY24: £380m; FY24: £784m)

- Invested £36m across 21 companies, reflecting maintained capital discipline

- Accelercomm completed $15m funding round; Lumai $10m funding round

- Tado secured €30m funding from Panasonic; Vytal secured €14.2m funding; Mixergy secured £12m funding

- Pipeline of significant milestones through to the end of 2027

Remain confident of our target to deliver over £250m of exits between 2025 and 2027; NAV per share stabilised and improved in H2

- Total cash proceeds from exits of £30.3m, exceeding HY24 proceeds by 9x

- NAV/share of 96.2p with closing NAV of £883.1m; public company gains at Oxford Nanopore (+£6.9m) and Hinge Health (+£7.6m) and the positive impact of share buyback programme offset by the impact of funding delays and pricing pressure for Oxa (-£28.7m) and Artios (-£10.6m), with FX translation losses (-£14.2m)

- NAV per share of approximately 100p at 12 September 2025(i)

Continued focus on funds under management

- Raised further £24m of third-party funds (Parkwalk) - third-party AUM £663m (HY24: £637m, FY24: £678m)

- Parkwalk and Northern Gritstone launched Northern Universities Venture Fund

- Group well placed to benefit from the reforms underway as major pension providers respond to the Mansion House Accord

Maintained financial strength and discipline; accelerated buyback programme while still investing for growth

- Strong balance sheet and liquidity with gross cash of £237.3m, up 47% from HY24

- Completed £25m of share buyback programme in H1 with further £20m extension launched; 6% of share capital retired in the period and 14% retired to date

- Net overheads run rate in line with year-end guidance, a 12% reduction for the period

Post period-end update

- Fair value increase in the Group's holdings in listed companies of £32m since 30 June, including ONT increasing by £23m

- Istesso reports ground-breaking data demonstrating tissue repair following P2b data readout in H1

Summary financials

(i) NAV per share estimate based on movements in the quoted portfolio from 1 July 2025 - 12 September 2025, the impact of the share buyback during this period and estimated net overheads

(ii) Note 11 details the Alternative Performance Measures ("APM")

Greg Smith, Chief Executive of IP Group, said: "The Group made strong progress in the first half of the year, delivering over £30m in cash proceeds, a near ninefold increase year-on-year. The successful IPO of Hinge Health on the NYSE was a standout milestone, and together with gains in Oxford Nanopore, underscores the resilience and quality of our portfolio. With NAV per share now at 100p as of 12 September, a strong pipeline of new and maturing companies and improving market sentiment, the Group remains confident of delivering more than £250m of exits from private company holdings by the end of 2027. As one of the world's most experienced university IP investors, IP Group is uniquely positioned to capitalise on fiscal reform and rising demand for high-growth innovation while remaining firmly focused on delivering long-term value for our shareholders."

Webinar

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Further information on IP Group is available on our website: www.ipgroupplc.com 

This half-yearly report may contain forward-looking statements. These statements reflect the Board's current view, are subject to a number of material risks and uncertainties and could change in the future. Factors that could cause or contribute to such changes include, but are not limited to, the general economic climate and market conditions, as well as specific factors relating to the financial or commercial prospects or performance of individual portfolio companies within the Group's portfolio of investments. Throughout this Half-Yearly Report, the Group's holdings in portfolio companies reflect the undiluted beneficial equity interest excluding debt, unless otherwise explicitly stated.

CEO's Interim Management Report

Summary

In the six months to 30 June 2025, the Group continued to focus on generating profitable cash realisations delivering total cash proceeds of £30.3m, an increase of 791% from the same period a year before. We remain confident of our target to deliver over £250m of exits between 2025 and 2027.

As a result of both this performance and continued discipline on overheads, IP Group maintained a strong liquidity position. Gross cash and deposits totalled £237.3m at 30 June 2025, up 47% from £161.3m a year before. This enabled the Group to announce two extensions to its buyback programme in the first half of the year and also reinvest for growth in the portfolio. Following the measures taken to reduce operating costs in 2025, our net overheads in the period were down 12% year on year, in line with net overheads guidance issued within our 2024 results. Further information is set out in the Financial Review.

During the first half of the year, we saw evidence of improved market sentiment, with our quoted portfolio up, recording a gain of £12m, following a protracted period of weakness in public markets from 2022. We have seen this positive momentum carried through into the second half of the year, with our quoted portfolio up a further £32m as at 12 September 2025. The availability of capital remains a challenge, particularly for those companies in the scale-up phase of their journey, which resulted in write-downs for Oxa (£28.7m) and Artios (£10.6m) in the period. This, combined with the negative impact of FX translation on our portfolio of £14.2m, resulted in a £43.0m loss in the period.

IP Group, together with Parkwalk, is the UK's leading science and technology investor, having formed more than 500 science-based businesses. Combining university relationships with deep sector experience and networks provides highly differentiated deal flow while our unparalleled insight into commercialising early-stage technology makes us a trusted partner for pre-seed, seed and scale up investing. By starting and growing businesses driving improved health outcomes, the energy transition and the digital transformation, the Group aims to have a significant impact on some of society's biggest needs and deliver compelling financial returns for our shareholders.

With further evidence of improving sentiment in public markets combined with a number of encouraging portfolio developments in the period, the Directors remain confident that IP Group's portfolio can deliver strong returns for all stakeholders.

Delivery against strategic priorities

The Group continues to prioritise delivering cash exits, accessing further capital for the portfolio and its managed funds and accelerating its share buyback programme. In the six months to 30 June, I am pleased to report that our NAV per share stabilised at 96.2 pence per share compared with 97.7 pence per share at the year end. Valuation reductions for portfolio companies Oxa and Artios and the impact of FX translation movements were offset by public company share price gains at Oxford Nanopore Technologies plc and Hinge Health, Inc and the positive impact of the Group's share buyback programme. The Group's Net Asset Value was £883.1m at 30 June 2025. The performance of the Group's business units is summarised below with further detail in the Managing Partner's Portfolio Review.

Over 55% of our portfolio value is concentrated in 10 companies, and 83% in 40 companies, across the Group's three main thematic areas. In the first half of the year, IP Group invested in 21 opportunities comprising £10m in life sciences, £17m in deeptech and £8m in cleantech with 88% of that capital invested into the existing portfolio and 12% invested into new opportunities.

Our portfolio continues to be well-funded with approximately 2/3 by value of the portfolio currently funded into 2027 or beyond. In the first half of 2025, our portfolio companies successfully raised a total of £372m of which IP Group contributed £35.7m. Notable transactions included the IPO of Hinge Health on the New York Stock Exchange in May, which was priced at the top end of the pricing range and which continues to trade at a significant premium to its IPO price. In addition, there were a number of fund raisings across the portfolio including for Accelercomm, Lumai, Tado, Vytal and Mixergy.

Since 30 June, our two largest holdings, Oxford Nanopore Technologies plc and Istesso Ltd, both issued positive updates. Shares in Oxford Nanopore rose after it issued a trading update indicating H1 revenue would be 25% ahead of H1 2024. Its first half results, reported on 02 September, noted a 25.6% increase in revenues to £105.6m and lower than expected adjusted EBITDA losses with improving cashflow. Istesso, meanwhile, published ground-breaking data in the peer reviewed monthly, The Journal of Pharmacology and Experimental Therapeutics (JPET), demonstrating its new class of investigational medicines elicit tissue repair in fibrotic, autoinflammatory and autoimmune conditions - the first oral agents to demonstrate such activity. These developments are covered in more detail in the Managing Partner's Portfolio Review.

Cash exits

Following a strong period in 2024 for cash realisations, which included our largest ever exit in the sale of Featurespace Ltd to Visa, the Group continued this momentum in the first half of 2025, generating £30.3m of cash proceeds. More than two thirds of that amount came from the sale of stakes in four portfolio companies in our life sciences portfolio - Intelligent Ultrasound, Centessa, Abliva and Hinge Health. It is particularly encouraging to note that Hinge Health, which floated on the New York Stock Exchange at a price of $32 a share, traded up to a 63% premium to close the period at $52 per share. This values the balance of our holding in Hinge Health at £39.1m.

Continued focus on funds under management

The Group continued to focus on increasing its funds under management and raised an additional £24m of third-party funds in the period. The Group now manages or advises £644m (HY24: £637m, FY24: £678m), of which £461m is managed by Parkwalk, the Group's specialist Enterprise Investment Scheme (EIS) fund management subsidiary, including funds managed in conjunction with the universities of Oxford, Cambridge, Bristol, and Imperial College London.

In June, Parkwalk announced the launch of the Northern Universities Venture Fund, a new EIS fund in collaboration with Northern Gritstone, offering access to world-class university spin-outs and deep science startups from the Northern Arc Universities of Leeds, Liverpool, Manchester and Sheffield. Parkwalk invested £12.3m in the first half of the year (HY24: £17.5m, FY24: £47.2m) in the university spin-out sector across 19 companies of which thirteen were new companies to the Parkwalk portfolio.

The majority of our remaining funds are managed by our Australian team, primarily through the IP Group Hostplus Innovation Fund which manages A$435m and has invested in several of the Group's portfolio companies including Oxford Nanopore, Genomics, First Light Fusion, Oxa and Hysata, providing additive growth capital for companies as they scale up. TelstraSuper is also investing alongside IP Group through a co-investment mandate.

IP Group continues to focus on increasing funds under management, remains well placed to benefit from the Mansion House reforms which are aimed at unlocking a wave of long-term institutional capital into the sectors where IP Group operates and invests, and believes there is scope to further increase private capital under management in the near future.

Accelerated buyback programme

Delivering returns for shareholders, including focusing on narrowing the discount to our NAV per share, remains a key focus. While it is pleasing to note the discount has narrowed in the period, the Directors believe the current price continues to significantly undervalue the potential within the Group's portfolio.

As previously announced with our 2024 results in March, the Group is allocating 50% of its 2025 exits to the ongoing share buyback programme. In the first half, the Group bought back 56,867,936 shares for £25.6m and has purchased a further 19m shares for £11m since 30 June, leaving £9m of the £20m buyback extension announced in June for the ongoing purchase of shares.

Under the Group's capital allocation policy, a proportion of cash proceeds is reinvested and a proportion is used to deliver a cash return to shareholders. The Directors regularly consider the mechanism to be used for such cash returns and have determined that this will typically be in the form of share buybacks while the share price discount to NAV exceeds 20%. The discount at 30 June 2025 was 46%.

Since the introduction of this approach in 2021, the Group has delivered more than £140m of cash returns to our shareholders via dividends and share buybacks, retiring 6% of the share capital in the period and 14% to date.

Outlook

IP Group's portfolio made good progress in the first half of the year, buoyed by continued M&A activity and the IPO of Hinge Health, both providing further evidence of an improvement in sentiment for the private technology sector. Having delivered more than £30m of cash proceeds in the year to date, we remain confident of our target to deliver over £250m of exits between 2025 and 2027.

As one of the largest and most experienced investors in university IP in the world, IP Group's unparalleled insight into commercialising early-stage technology makes us a trusted partner for pre-seed, seed and scale up investing. The Group therefore remains well positioned to benefit from government support for a number of fiscal and regulatory reforms which support this environment.

IP Group is well financed, with a strong liquidity position, and the Directors continue to believe the Group will benefit from improved appetite for high growth investments while remaining focused on delivering returns for shareholders.

MANAGING PARTNER'S PORTFOLIO REVIEW

IP Group invests in innovative breakthrough technologies that address the profound societal and economic shifts shaping our future. As previously reported, the Group's balance sheet investment activities were consolidated under a single investment team towards the end of 2024, with four investment partners and myself overseeing our continued focus on backing innovations that address the world's most compelling opportunities and pressing challenges in the areas of a healthier future (life sciences), a tech-enriched future (deeptech), and a regenerative future (cleantech). In addition, a small number of investments are categorised as platform investments, which are funds or portfolio companies that invest in other opportunities.

1 Oxa Autonomy Limited has been moved from Cleantech to Deeptech, comparative figures have been updated on a consistent basis

Performance of key holdings

The following table outlines the performance of the Top 10 constituents of our portfolio:

1 Represents the Group's undiluted beneficial economic equity interest (excluding debt), including only the Group's portion of IPVF II. Voting interest is below 50%.

2 FX translation losses arising from the retranslation of the group's non-GBP denominated investments, which are predominantly USD and EUR-denominated investments.

Our portfolio company Oxford Nanopore released annual results for the year ended 31 December 2024, which were in line with the company's guidance. The company highlighted revenue growth of 23% and reported full-year revenues of £183 million. Their medium-term guidance was reaffirmed and adjusted EBITDA breakeven is projected to occur in 2027. The Oxford Nanopore share price increased by 7% in the period and the share price was £1.641p at 12 September, an increase of 20% from 30 June. Oxford Nanopore recently reported revenue for the six months to 30 June 2025 of £105.6m, up 28% on a constant currency basis or 25.6% on a reported basis with losses narrowing to £71.8m from a loss of £74.7m.

We were delighted to see the successful listing of digital health company Hinge Health on the NASDAQ in May. IP Group, which was one of the founding investors in Hinge Health, realised an initial £1.8m of proceeds through the partial sale of its holding in the company. Following the initial sale, IP Group's remaining shareholding was valued at £39.1m at 30 June 2025. Having invested under £1.0m in total and having realised $15.0m in the 2021 funding round, this represents a multiple of over 50 times the original investment.

Istesso, the adaptive tissue-repair company, reported the results from its Phase 2b study of leramistat in rheumatoid arthritis (RA) in early 2025. The results reinforced leramistat's novel mechanism of action and its effectiveness in bone protection in people living with RA. Significant improvements were seen in the key secondary endpoint of bone erosions as well as improvements in disability and fatigue in patients treated with leramistat, despite it not meeting the primary endpoint of improvement in ACR20 versus placebo. These trial results were received prior to publication of the Group's 2024 annual report and accounts, and the resulting £31.9m fair value reduction was included within the Group's 2024 results.

Post period end, the company published ground-breaking data showing that leramistat can elicit tissue repair in models of autoimmune and fibrotic disease, and reports that this offers the potential to directly prevent or even potentially reverse progressive tissue decline in multiple chronic diseases such as RA or Idiopathic Pulmonary Fibrosis, or in degenerative conditions such as muscle or bone loss (sarcopenia and osteoporosis). Istesso is planning additional Phase 2 studies to evaluate leramistat's potential to elicit musculoskeletal repair.

Hysata continues to make good progress in scaling up its leading hydrogen electrolyser technology. The company signed a deal in February with leading energy company ACWA Power to unlock green hydrogen in the Kingdom of Saudi Arabia and the Gulf. The agreement will see Hysata deliver commercial scale demonstrations of its high-efficiency capillary-fed electrolysis technology (using only 41.5 kWh of electricity to produce one kilogram of hydrogen) in Saudi Arabia.

We remain excited for the potential of Pulmocide, which remains on course to complete its Phase 3 trial of opelconazole for invasive pulmonary aspergillosis during 2026. The company also published a clinical case study in May showing that good clinical outcomes were observed in a patient with uncontrolled allergic bronchopulmonary aspergillosis when treated with opelconazole. This suggests a potential role for opelconazole in the management of different types of Aspergillus lung infection and could broaden its clinical application beyond the invasive form of pulmonary aspergillosis that is the focus of the ongoing Phase 3. Following an external valuation exercise, we have reflected a £4.1m fair value increase in our investment in the period, reflecting the company's positive progress.

In March, First Light Fusion set a new record for the highest pressure ever observed on Sandia National Laboratories' Z Machine, achieving 3.67 TPa, a breakthrough that validates the company's technology and opens up new research opportunities in fusion, defence, and space. Following its pivot to become an IP-rich technology provider, we extended a convertible loan to First Light during the period to extend the cash runway whilst the company sought third-party capital. The company has seen promising interest from a number of potential investors and is making progress in securing additional funding in the second half of 2025/early 2026.

Other Notable Portfolio Developments

In the Life Science domain, we continue to support our portfolio of high-potential therapeutics assets as they mature through clinical trial phases. Artios reported encouraging data from its ongoing Phase 1/2a trial of its lead drug candidate, ART0380, in an oral presentation at the American Association for Cancer Research (AACR) Annual Meeting 2025. ART0380 was found to reduce tumour size in several different cancers, including a notable effect in a genetic subset of cancer ("ATM-negative") where 50% of patients were shown to respond. Despite the positive progress, the Group reduced the valuation of Artios by £10.6m, reflecting the current challenging oncology biotech market.

STORM Therapeutics, a pioneer in the field of RNA epigenetics, dosed the first patient in a new clinical collaboration evaluating STC-15 in combination with LOQTORZI®, which marks a significant step forward in the development of RNA-modifying enzyme inhibitors for oncology. The first part of this collaboration (Phase 1b) is estimated to complete in early 2026.

Enterprise Therapeutics and Iksuda are both expected to report key clinical data in the next 6-12 months, which are likely to result in valuation updates. University of Oxford spin-outs Oxehealth and Genomics continue to see strong commercial traction and growing revenues. We are pleased to report the successful IPO and rapid clinical progress at Metsera Inc., which is developing anti-obesity programmes sourced from our portfolio company Zihipp, which it acquired in 2023. We retain exposure to future investment returns through a combination of technical and commercial milestone payments, as well as downstream royalties linked to product sales.

In our Digital Transformation stream, we have a cohort of companies well-placed to serve the software, processing hardware and communications infrastructure demands and opportunities that are arising from the Artificial Intelligence (AI) revolution. Monolith, our AI-driven engineering software company, secured high-profile partnerships with PREMA Racing and Cadillac Hertz Team JOTA in the motorsport sector, both of which demonstrate the versatility and impact of Monolith's platform in high-performance engineering. We expect Monolith to raise new equity funding in the second half of 2025. Likewise, our breakthrough next generation memory technology company, Intrinsic, which has the potential to serve a huge global market opportunity, is expected to raise new equity funding in H2 based on encouraging technical progress with their chips that can read data 10x to 100x faster and write it 1000x faster than existing solutions.

Oxa continues to demonstrate strategic relevance and technological leadership within the UK's National Industrial Strategy, reinforcing its position as a key player in the autonomous mobility sector. During H1 2025, the company announced collaborations with Bradshaw EV, Applied EV, and NVIDIA, strengthening its commercial and technical ecosystem. However, due to delays in anticipated fundraising, IP Group has taken the decision to reduce Oxa's valuation by £28.7m (approximately 2/3), reflecting funding round delays while maintaining confidence in the company's long-term opportunity.

Finally in the domain of reducing humanity's future reliance on fossil fuels, our cleantech investment platform Kiko Ventures is backing breakthrough technologies driving the transition to a sustainable, low-carbon economy, focused on green hydrogen, energy storage, carbon capture and utilisation, resource efficiency, and decarbonisation technologies across energy, transportation, and industry. University of Oxford spin-out OXCCU continues to make strong technical progress towards producing sustainable fuels and chemicals by converting carbon dioxide and hydrogen into high-value products and we expect to bring positive news of a new equity investment for that company shortly. Mixergy, which develops smart hot water tanks, announced a successful £12m funding round in March, led by Barclays Climate Ventures. The company was also recently awarded the King's Award for Enterprise. Bramble Energy achieved a power density of 8.76 kW/L in its fuel cell systems, a significant technical achievement that enhances the commercial potential of its printed circuit board fuel cell technology, however delays in funding the company resulted in a valuation reduction of £5.2m in the period.

Platform Investments

IP Group's Platform Investments portfolio comprises holdings in funds and companies that operate in a similar way to IP Group, including our interest in our US platform, North America University Innovation L.P., Oxford Science Enterprises Limited, the UCL Technology Fund and Cambridge Innovation Capital Limited, and in all of which IP Group was a founding investor. This portfolio was valued at £69.7m at 30 June 2025 (FY24: 77.0m, HY24 £89.7m).

In 2025, the US platform's LPs agreed a restructuring of the platform which greatly reduced the costs of operation. As part of this restructuring, the LPs committed to provide funding to cover the fund's operating costs for a fixed five-year period while the GP seeks to generate the maximum returns from the portfolio, the fund was redomiciled to the US and its administration was transitioned to Anzu Partners, a highly regarded investor and fund manager. At the same time $11.7m in SAFE notes which the Group had provided to fund the platform in 2022-24 were converted into regular units within the fund. The restructuring, including the termination of all legacy governance rights, was formalised in May 2025 and the fund was renamed North America University Innovation L.P. (formerly IPG Cayman L.P.).

Number of investments by sector

1 Excludes de minimis holdings, which have a small value to the Group and are not actively managed to the same extent as core holdings, and are accordingly not included in the stated number of companies.

Portfolio funding position

The following table lists information on the expected cash-out dates (the date by which portfolio companies are projected to need to have raised further funding) of portfolio companies in which IP Group's investment holding value is greater than £4m. The values in the below table show the IP Group portfolio value which falls within each of the cash-out periods.

1 Cash out dates based on portfolio company forecast as at publication date of half-yearly report.

FINANCIAL REVIEW

· Loss for the period of £(43.0m) (HY24: Loss of £(109.9m), FY24: Loss of £(207.0m))

· Net assets were £883.1m (HY24: £1,072.2m, FY24: £952.5m)

· Net assets per share were 96.2p (HY24: 104.7p, FY24: 97.7p)

· Net overheads were £(7.4)m, a reduction of £1.3m from the previous half-year period (HY24: £(8.7)m, FY24: £(19.8)m)

Consolidated statement of comprehensive income

A summary analysis of the Group's performance is provided below:

1 Defined in note 11 Alternative Performance Measures.

2 See net overheads table below and definition in note 11 Alternative Performance Measures.

Net portfolio losses consist primarily of realised and unrealised fair value gains and losses from the Group's equity and debt holdings in spin-out businesses, which are analysed in detail in the portfolio analysis above.

Fair value movements

A summary of the unrealised and realised fair value gains and losses is as follows:

A summary of the largest positive and negative net portfolio fair value movements is as follows:

1 Formerly IPG Cayman L.P.

Net overheads

Net overheads

Other income comprises fund management fees on our third party managed funds and licensing and patent income. In the current period other income totalled £3.6m (HY24: £3.8m, FY24: £5.5m) and was essentially unchanged from first half of the previous year. We are seeing encouraging developments within our IP licensing portfolio, which includes several therapeutic programmes that are in active development most notably at Metsera Inc, a US-listed biotech which is developing anti-obesity treatments. We anticipate in future years that a combination of technical and commercial milestones and royalty payments may result in a significant growth in license income to the Group as this portfolio matures.

Other central administrative expenses, excluding performance-based staff incentives, share-based payments charges and the impact of FX translation movements, have reduced by 14% from the prior period at £10.1m (HY24: £11.7m, FY24: £22.5m) reflecting the impact of the restructuring carried out in the second half of 2024 which we anticipate will reduce the Group's net overheads by £5m from the 2023 run rate.

The charge of £0.9m in respect of the Group's Annual Incentive Scheme reflects a provisional assessment of performance against 2025 AIS targets which include Group, Team, and Individual performance elements (HY24: charge £0.8m, FY24: charge £2.2m).

Other income statement items

The share-based payments charge of £1.2m (HY24: £0.8m, FY24: £1.9m) reflects the accounting charge for the Group's Restricted Share Plan, Long-Term Incentive Plan and Deferred Bonus Share Plan. This non-cash charge reflects the fair value of services received from employees, measured by reference to the fair value of the share-based payments at the date of award, but has no net impact on the Group's total equity or net assets.

Carried interest plan charge

The carried interest plan credit of £5.8m (HY24: £0.1m charge, FY24: £7.9m credit) relates to the recalculation of liabilities under the Group's carry schemes, reflecting the unrealised portfolio losses in the period. The liabilities are calculated based upon any excess of current fair value above cost and hurdle rate of return within each scheme or vintage. Any payments will only be made following the full achievement of cost and hurdle via cash proceeds and are only paid on the event of a cash realisation.

Consolidated statement of financial position

A summary analysis of the Group's assets and liabilities is provided below:

The composition of, and movements in, the Group's portfolio are described in the portfolio review above.

Portfolio valuations

In terms of the funding round dynamics in the period, the proportion of down rounds (i.e. rounds raised at a lower valuation than the previous financing round) within the period was unchanged from the previous year at 38%. For all five down rounds, impairments had been recognised already in the Group's 2024 full year results in anticipation of the funding round outcomes. There was, however, evidence that the funding market for private companies remains challenging, resulting in the Group recognising funding-related valuation reductions in Oxa (£28.7m), Artios (£10.6m) and Bramble (£5.2m).

The first half of 2025 saw a consistent level of capital raised by the portfolio compared to the same period in 2024, with £372m raised (HY24: £380m, FY24: £784m), of which the majority (91%) was raised as equity with only 9% raised as debt. Of this amount £199m related to the Hinge Health IPO. In line with long term trends, IP Group contributed around 10% of the total capital raised by our portfolio in the period.

In the period we commissioned third party valuation reports for two companies, namely Pulmocide and Microbiotica within our therapeutics portfolio (HY24: 3 companies, FY24: 6 companies).

The table below summarises the valuation basis for the Group's portfolio. Further details on the Group's valuation policy and approach can be found in notes 3 and 4.

1 Assets held for sale are valued at the agreed sale price unless quoted, and hence are excluded from the valuation basis analysis

Other assets and liabilities

The majority of other long-term assets relate to amounts receivable on sale of equity and debt investments, representing deferred and contingent consideration amounts to be received in more than one year.

Other long-term liabilities relate to carried interest and revenue share payables, and loans from LPs of consolidated funds. The Group consolidates the assets and liabilities of a fund in which it has a significant economic interest, IP Venture Fund II LP. Loans from third parties of consolidated funds represent third-party loans into this partnership. These loans are repayable only upon these funds generating sufficient realisations to repay the Limited Partners.

Borrowings

The majority of the Group's outstanding debt relates to a £120m private placement issued in 2022 and 2023. This loan has a fixed interest rate of 5.25% and is due to be repaid with three equal maturities in December in 2027, 2028 and 2029. The Group also has a £6.3m fixed-interest loan with the European Investment Bank (HY24: £12.4m, FY24: £9.4m), which has two remaining two equal repayments in July 2025 and January 2026.

Under the covenant terms of the £120m private placement, the Group is required to maintain a minimum cash balance of £25m at any time, equity must be at least £500m and gross debt less restricted cash must not exceed 25% of total equity as at the Group's 30 June and 31 December reporting dates.

The private placement also includes 'Cash Trap' provisions which stipulate that the Group is required to maintain cash and cash equivalents of no less than £50m at any time, equity must be at least £750m, and gross debt less restricted cash must not exceed 20% of total equity as at the Group's 30 June and 31 December reporting dates. In the event of the Cash Trap being triggered, the Group is not permitted to pay or declare a dividend or purchase any of its shares. In addition, investments are restricted to £2.5m per calendar quarter other than those legally committed to. The Group is also required to place the net proceeds of all cash proceeds (over a threshold of £1m) into a blocked bank account. Entering a Cash Trap does not constitute a default.

All covenants have been met throughout the period. For further details of the Group's loans including covenant details see note 7 of this document and Note 19 of the Group's 2024 Annual Report and Accounts.

Cash and deposits

At 30 June 2025, the Group's cash and deposits totalled £237.3m, a decrease of £48.3m from a total of £285.6m at 31 December 2024, predominantly due to outflows of investing activities of £35.7m, a £14.1m net cash outflow from operations, £25.6m spent on the share buy-back scheme and a £3.1m cash outflow from the repayment of debt, net of an inflow of cash proceeds from sale of equity and debt investments of £19.8m a £10m inflow from sale of assets held for sale and distributions from limited partnerships of £0.5m.

Investments and realisations

The Group invested a total of £35.7m across 22 portfolio companies during the period (HY24: £49.1m, 23, FY24: £63.0m; 38) and realised cash proceeds of £30.3m (HY24: £3.4m, FY24: £183.4m).

Largest investments and realisations by portfolio company for the period:

Deferred consideration estimated at £18.8m was outstanding at 30 June 2025 (HY24: £5.8m, FY24: £20.1m), relating to the Group's realisation of Featurespace (£11.1m, exited in 2024), Enterprise Therapeutics (£3.9m, exited in 2020), Oxular Limited (£1.7m, exited in 2024), Zihipp Limited (£1.8m, exited in 2023) and Kynos Therapeutics Limited (£0.5m exited in 2024).

Dividend and share buyback

The Board remains committed to making regular cash returns to shareholders from realisations and these regular cash returns will normally be made in the form of share buybacks when the share price discount to NAV exceeds 20%. Throughout 2025, we intend to allocate 50% of proceeds from realisations towards the share buyback programme.

Accordingly, the share buyback programme which we commenced in 2024 has continued to operate throughout the period, with 57m shares representing 6% of the Group's opening share capital being purchased in the period, at a cost of £25.6m (including stamp duty). This reflected the completion of a £25m buyback extension announced in early January 2025, which was extended by a further £20m on 26 June 2025 and which is still ongoing at the publication date of these results.

Taxation

The Group typically holds at least a 10% equity holding in its portfolio companies, and as a result the majority of the portfolio will qualify for the Substantial Shareholdings Exemption ("SSE") on disposal. On these companies, capital gains are exempt from UK Corporation Tax and as a result no deferred tax is recognised on capital gains at the balance sheet date for SSE-qualifying companies.

Capital gains from companies not qualifying for SSE will be at least partially offset by a deduction for the Group's current year net overheads and further reduced by using brought forward tax losses relating largely to the Group's historic net overheads (albeit the use of these losses is restricted to 50% above a £5m threshold). As a result, the tax rate payable on any non-SSE disposals will be significantly less than the headline UK corporation tax rate of 25%. Deferred tax is calculated on non-SSE disposals and recognised through the income statement, in the current period the income statement charge was £0.1m and the cumulative balance sheet liability was £4.6m.

The Group complies with relevant global initiatives including the US Foreign Account Tax Compliance Act ("FATCA") and the OECD Common Reporting Standard.

Alternative Performance Measures ("APMs")

The Group discloses alternative performance measures, such as NAV per share and Return on NAV, in this Half-Yearly Report. The Directors believe that these APMs assist in providing additional useful information on the underlying trends, performance, and position of the Group. Further information on APMs utilised by the Group is set out in note 11.

Principal risks and uncertainties

A detailed explanation of the principal risks and uncertainties faced by the Group, and the steps taken to manage them, is set out in the Strategic Report section of the Group's 2024 Annual Report and Accounts. The principal risks and uncertainties are summarised as follows:

· it may be difficult for the Group to maintain the required level of capital to continue to operate at optimum levels of investment, activity and overheads,

· it may be difficult for the Group's portfolio companies to attract sufficient capital,

· the returns and cash proceeds from the Group's early-stage companies may be insufficient,

· the Group may lose key personnel or fail to attract and integrate new personnel,

· macroeconomic conditions may negatively impact the Group's ability to achieve its strategic objectives,

· there may be changes to, impacts from, or failure to comply with, legislation, government policy and regulation,

· the Group and its portfolio companies may be subjected to phishing and ransomware attacks, data leakage and hacking,

· the Group may be negatively impacted by operational issues both from a UK central and international operations perspective.

The Group reviewed its operational, strategic and principal risk registers in the period and has concluded that it is not aware of any significant changes in the nature of the principal risks that would result in a change to the Group's principal risks as set out above in the forthcoming six months.

Consolidated statement of comprehensive income

For the six months ended 30 June 2025

The accompanying notes form an integral part of the financial statements.

Consolidated statement of financial position

As at 30 June 2025

Registered number: 4204490

The accompanying notes form an integral part of the financial statements. The financial statements were approved by the Board of Directors and authorised for issue on 16 September 2025 and were signed on its behalf by:

Greg Smith Chief Executive Officer

David Baynes Chief Financial & Operating Officer

Consolidated statement of cash flows

For the six months ended 30 June 2025

The accompanying notes form an integral part of the financial statements.

Consolidated statement of changes in equity

For the six months ended 30 June 2025

The accompanying notes form an integral part of the financial statements

1. Operating segments

For the year ended 31 December 2024 and the periods ended 30 June 2025 and 30 June 2024, the Group's revenue and loss before taxation were derived largely from its principal activities within the UK. For management reporting purposes, the Group is currently organised into five operating segments:

i) Venture Capital investing within our 'Healthier future' thematic area

ii) Venture Capital investing within our 'Tech-enriched future' thematic area

iii) Venture Capital investing within our 'Regenerative future' thematic area

iv) Venture Capital investing: Other, representing investments not included within our three thematic areas above, including platform investments

v) the management of third-party funds and the provision of corporate finance advice

Reporting line items within Venture Capital investing which are not allocated by thematic sector are presented in the 'Venture Capital investing: other segment. The element of our 'Healthier future' thematic area relating to Oxford Nanopore Technologies plc is disclosed separately given its size.