5th Mar 2007 07:02
IP Group PLC05 March 2007 For immediate release 05 March 2007 ('IP Group' or 'the Group' or 'the Company') Preliminary results for the year ended 31 December 2006 IP Group plc (LSE: IPO), the intellectual property commercialisation company,today announces its audited preliminary results for the year ended 31 December2006. Financial Highlights • Profit after taxation: £40.1m (2005: £5.6m) • Fair value of equity investments: £87.4m (2005: £44.3m) • Cash proceeds from sales of equity investments: £3.1m (2005: £0.8m) • Cash balance at 31 December 2006: £51.3m (2005: £39.9m) • Investment in spin-out companies: £8.5m (2005: £4.2m) Operational Highlights • Successful flotation of three portfolio companies during 2006 (2005: two) • 53 spin-out companies at 31 December 2006 (2005: 37) • Five new university partnerships signed with the Universities of Bath, Glasgow, Queen Mary (University of London), Surrey, and York, taking the total number of university partnerships to ten • Eight successful follow-on funding rounds for spin-out companies • Modern Water launched to address the global issue of the economic availability of fresh water • IP Exec, IP Group's in-house executive search function, launched in the year • Modern Biosciences plc in-licenses first compound as a result of its Memorandum of Understanding with the University of Manchester • IP Venture Fund, a collaboration with the European Investment Fund launched and makes its first follow-on round investments in IP Group spin-out businesses • IP Group admitted to the Official List of the UK Listing Authority Post Year End Highlights • Eco Chemical Enterprises plc (formerly Perachem Limited), a spin-out from the University of Leeds, joins PLUS Markets. Commenting on the Group's preliminary results, David Norwood, Chairman of IPGroup, said: "The success of the first half of the year has continued in the second half,making 2006 the most profitable year in the Group's history. Three companiesfrom the IP Group portfolio listed on AIM during 2006 while a further eightcompanies in the private portfolio raised additional capital. The first half of 2007 has started well with the flotation, through a reversetakeover, of a spin-out company from the University of Leeds. I believe that thecritical mass IP Group has in the technology transfer sector, as well as thequality of our tried and tested model, positions the Group well to continue tobe the leading intellectual property commercialisation company in the UK." For more information, please contact: IP Group plcDavid Norwood, Chairman 020 7489 5200Alan Aubrey, Chief Executive OfficerWilliam Turner, Group Financial ControllerLiz Vaughan-Adams, Communications 020 7489 5206 / 07979 853 802 Further information on IP Group is available on our website: www.ipgroupplc.com Buchanan Communications 020 7466 5000Mark Court, Tim Anderson, Mary-Jane Johnson CHAIRMAN'S STATEMENT In 2006, IP Group plc consolidated its position as the UK's leading intellectualproperty commercialisation company with the addition of five further universitypartnerships, taking the Group's total number of university partners to ten. TheGroup has unparalleled access to some of the UK's finest academics and theirideas and has built a proven platform for creating value for the benefit of ourshareholders and our university partners. I am pleased to report that the success of the first half of 2006 has continuedin the second half, making 2006 the most profitable year in the Group's history.In 2006 the Group generated profits after taxation of £40.1m (2005: £5.6m)principally as a result of net fair value gains within the universitypartnership business of £38.2m (2005: £5.7m). Notable gains included thoseachieved on the listing of both Oxford Catalysts Group plc and Avacta Group plc,together generating gains of £22.6m. Whilst the timing of transactions can bedifficult to predict, I am confident that there is sufficient quality within IPGroup's growing portfolio of university spin-outs that the Group will continueto generate value for its shareholders and university partners over the comingmonths and years. Our cash position remains strong with £51.3m of cash at the year end (2005:£39.9m). The Group generated £3.1m of cash proceeds from its spin-out portfolio(2005: £0.8m) and continued to control costs carefully. The Group has expanded its follow-on funding capability during the year, withthe launch of IP Venture Fund in conjunction with the European Investment Fund(the 'EIF'), one of the leading investors in venture capital funds in Europe.The Group is already seeing the positive results of this collaboration with atotal of four separate investments being made to date in follow-on fundraisingsin IP Group spin-out companies. I wish to take this opportunity, on behalf ofthe Group, to thank the EIF for their ongoing support and commitment to thecommercialisation of university intellectual property in Europe. Outlook The current year has started well for IP Group with the Company already havingcompleted its first corporate transaction with the listing of Eco ChemicalEnterprises plc (formerly Perachem Limited), a spin-out from the University ofLeeds, on PLUS Markets Group via a reverse takeover. The Group has also continued to develop a number of models based on the economictheme of creating value from university intellectual property. As an example ofthis, in December 2006 the Group launched Modern Water Limited ('Modern Water')to access and develop leading research in order to address the global economicproblem of availability of fresh water. This model of forming a business aroundan issue of global importance and then identifying relevant intellectualproperty to address that issue represents a natural extension of the Group'straditional spin-out model and I am confident it is one that will benefit bothour shareholders and our university partners. The Group continues to attract talented individuals to fill strategic roleswithin the business. I am pleased to announce the appointment of Mike Townend tothe Board of Directors as Director of Capital Markets. Mike was formerlyManaging Director - Equities at Lehman Brothers and has extensive experience ofraising capital from the public markets. I would like to wish Mike well in hisnew role. Dr Alison Fielding will be assuming an increased role as Chief TechnologyOfficer responsible for all pre-spin-out formation activities. Dr Bruce Campbellis today stepping down from the Board of Directors. Bruce has served as ChiefScientific Officer since joining the Board in 2004 and has contributedenormously to the development of the Group to date. Bruce will remain involvedwith the Group, serving on the boards of a number of Group portfolio companies.I would like to thank Bruce for his contribution to the Board and look forwardto continuing to work with him in the future. The profile of the technology transfer industry in the UK has been raisedsignificantly during 2006 with a number of new partnership collaborationsbetween private companies and UK universities. We believe that the critical masswe have in this sector, as well as the quality of our tried and tested model,positions the Group well to continue to be the leading intellectual propertycommercialisation company in the UK and to generate significant value for ourshareholders and university partners. I would like to conclude by thanking our shareholders, our university partners,the managers of our portfolio companies and our staff for their continuedsupport in what has been a profitable and productive year in the growth anddevelopment of IP Group. DAVID NORWOODChairman5 March 2007 CHIEF EXECUTIVE'S STATEMENT In 2006 IP Group delivered record profits, largely as a result of uplifts on thecarrying value of the Group's university spin-out portfolio. At 31 December2006, the business had a portfolio of 53 spin-out businesses. At the date ofthis statement a total of nine companies from the Group's portfolio have nowjoined either the Alternative Investment Market ('AIM') or PLUS Markets. Strategic review University partnership business In the year ended 31 December 2006, the Group increased its partnerships withuniversities from five to ten. In addition to adding partnerships with theuniversities of Surrey, Queen Mary (University of London), Bath and York asreported at the half year, the Group entered into a 25 year collaboration withthe University of Glasgow in October 2006. The partnership between IP Group andthe University of Glasgow is the Group's first collaboration with a Scottishuniversity. The University of Glasgow has a promising portfolio of new spin-outbusinesses and in February 2007 we announced an investment in WirelessbioDevices Limited, the first spin-out as a result of this collaboration. Inaddition, in March 2006, Modern Biosciences plc, the Group's drugable IPin-licensing subsidiary, signed a Memorandum of Understanding with theUniversity of Manchester relating to the commercialisation of drug relatedintellectual property. Our ten university partnerships represent a very significant proportion of thetotal scientific research base in the UK and these partnership agreementsrepresent a major asset of the business. We believe that no other intellectualproperty commercialisation company in the UK currently has access to such anextensive portfolio of intellectual property as IP Group. IP Group's successdepends on its ability to work with its university partners to identifyopportunities from the concepts and ideas generated from this research base andto progress those opportunities through to value creation. Economic issues driven business In 2005 the Group initiated a strategy of establishing businesses, run byspecialist management teams, to address particular issues affecting the globaleconomy through the creation and management of a portfolio ofintellectual-property based investments. In December 2006, the Group announced the launch of a new subsidiary, ModernWater, to establish and exploit a portfolio of water technologies to address theglobal problem of economic availability of fresh water. Modern Water's Chairman, Neil McDougall, is an experienced water-industry expertwith a proven track record in this sector. Simon Humphrey, who has over 16 yearsexperience in the sector, is Modern Water's Chief Executive Officer. IP Groupand Modern Water's management team have invested £2.2 million in cash to ModernWater. Modern Water has invested £1.0 million of this total in threewater-related technologies, comprising an innovative and potentially cost-savingdesalination process, a technology that continuously measures acute watertoxicity and a patented process for flushing toilets with seawater rather thanfreshwater. Modern Water is actively seeking further opportunities. Modern Water is the second subsidiary that IP Group has created to addressissues of global importance, having launched Modern Biosciences in 2005 toaddress the problem of poor product pipeline within large pharmaceuticalcompanies. In July 2006, Modern Biosciences announced that it had in-licensedits first opportunity as part of its exclusive licence and research agreementwith the University of Manchester. This opportunity will centre on thedevelopment of a new class of cancer drug targeting platinum resistant tumours. Fund management business In July 2006, the Group launched IP Venture Fund (the 'Fund') in partnershipwith the European Investment Fund, one of the leading investors in venturecapital funds in Europe. The Fund can invest up to 25% in post seed financingsin IP Group's portfolio of spin-out companies. This capability willsignificantly enhance IP Group's ability to attract follow-on capital into itsportfolio. In November 2006, the Fund made its first two investments, bothspin-out companies from the University of Oxford. Since the year end the Fundhas made two further investments in Eco Chemical Enterprises plc (formerlyPerachem Limited) and Revolymer Limited. IP Group's fund management subsidiary, Top Technology Ventures Limited, managestwo further funds, HATT III LP and Top Technology Ventures IV LP. This activitycontributed £1.3m of fund management income in 2006 (2005: £1.2m). As theinvestments in HATT III LP and Top Technology Ventures IV LP are realised andthe Funds are terminated over the coming years it is anticipated that theassociated fund management income will also reduce. Corporate developments Awareness of the Group has been raised significantly both domestically andinternationally following the move to the Official List of the UK ListingAuthority in June 2006 from AIM. In April 2006 the Group changed its name to IP Group plc from IP2IPO Group plc.The change of name encapsulates the Group's strategy of developing multiplemodels for the commercialisation of university intellectual property and it hasreceived positive feedback from shareholders and university partners alike. In October 2006 Stuart Thompson joined the Group to head up IP Exec, the Group'sin-house executive search function. IP Exec has been instrumental in placing anumber of senior executives within IP Group spin-out businesses. Recruitment ofhigh quality management is a critical part of the IP Group spin-out formationprocess, a process that is only successful with the correct mixture of worldleading intellectual property from within our university partners, developmentcapital and experienced management. Financial and operational review Portfolio performance In 2006 the Group recorded net fair value gains of £38.2m (2005: £5.7m). Ananalysis of fair value gains is given below: 2006 2005 £'m £'m----------------------------------------- ------- ------Gains on the revaluation of investments 47.8 14.1Losses on the revaluation of investments (9.6) (8.4)----------------------------------------- ------- ------Net fair value gains 38.2 5.7----------------------------------------- ------- ------ In April 2006 Oxford Catalysts Group plc ('OCG') listed on AIM, capitalising OCGat £65m. OCG raised £15m of cash funding at flotation. At 31 December 2006 thefair value of the Group's 23.9% stake in OCG was £12.9m, generating a fair valuegain of £12.5m on a mark-to-market basis. Avacta Group plc ('Avacta'), a spin-out from the University of Leeds, reversedinto an AIM listed company in August 2006. The Group's 26.1% stake in Avacta hada fair value at 31 December 2006 of £10.5m. At 31 December 2006 the Grouprecorded an uplift in value of £10.1m on a mark-to-market basis. At 31 December 2006 the Group's 9.6% stake in Offshore Hydrocarbon Mapping plc('OHM') was valued at £4.9m. The carrying value of the Group's stake representsan uplift in value of £2.5m. In the year ended 31 December 2005 the Group hadpreviously recorded a mark-to-market loss of £4.7m on its holding in OHM. The Group invested £0.5m in COE Group plc in August 2006. At 31 December 2006the Group's 31.4% stake in COE Group plc was valued at £2.3m. A gain of £1.8mhas been recorded in the Group's income statement. Within the private portfolio, Oxford NanoLabs Limited and Ilika TechnologiesLimited raised capital generating fair value gains of £10.3m and £5.5mrespectively. The Group holds stakes of 41.6% and 23.0% in these companiesrespectively. In 2006 total mark-to-market losses on the Group's quoted portfolio amounted to£5.4m (2005: £5.6m). At 31 December 2006 eight companies in the Group'sportfolio had joined either AIM or PLUS Markets, and with the successful listingof Eco Chemical Enterprises plc (formerly Perachem) on PLUS Markets in January2007, this figure now stands at nine. The Group has built a diversifiedportfolio of equity stakes where individual gains and losses have a reducedproportional effect on the total portfolio performance. Fair value losses in theGroup's private portfolio at 31 December 2006 amount to £4.2m (2005: £2.8m). Proceeds on disposal of equity investments In 2006 the Group generated cash proceeds of £3.1m on disposals of equity stakes(2005: £0.8m). The Group realised cash proceeds on the disposal of investments of £2.0mfollowing the successful sale on listing of 1,149,425 ordinary shares in OxfordCatalysts Group plc. The Group also generated £0.5m of cash from the privatesale of the Group's equity stake in Stratophase Limited and £0.6m of cash fromthe sale of shares in GETECH Group plc. The Group will seek to continue to dispose of stakes in portfolio companies inaccordance with the Group's disposal policy and only when prudent to do so. Spin-out creation At 31 December 2006 the Group held equity stakes in 53 companies (2005: 37).Three companies from the portfolio, Oxford Catalysts Group plc, Syntopix Groupplc and Avacta Group plc, listed on AIM during the year. Eight companies in theportfolio achieved successful follow-on funding rounds during the year. Unquoted spin- Quoted spin- Total outs (number) outs (number) (number)------------------------- ---------- ---------- ----------At 1 January 2006 32 5 37New spin-out businesses 16 - 16Companies listed duringthe year (3) 3 -------------------------- ---------- ---------- ---------At 31 December 2006 45 8 53------------------------- ---------- ---------- --------- In 2006 the Group invested £8.0m in sixteen new portfolio companies. In 2006 IP Venture Fund made its first follow-on investments in IP Groupspin-out companies, investing a total of £0.7m in two portfolio companies. Sincethe year end IP Venture Fund has invested a further £0.8m in two portfoliocompanies. At 31 December 2006, IP Venture Fund had a further undrawn commitmentof £14.7m available for investment in IP Group spin-out company follow-onfunding rounds. Cash At 31 December 2006 the Group had cash of £51.3m (2005: £39.9m).The principalconstituents of the increase in cash during the year can be summarised asfollows: 2006 2005 £'m £'m --------------------------------------- ------- -------Net cash used in operating activities (1.4) (2.5)Net cash used in investing activities (6.2) (6.3)Issued share capital 19.0 13.9--------------------------------------- ------- -------Movement during the year ended 31 December 11.4 5.1--------------------------------------- ------- ------- In 2006 the Group covered its administrative expenses with receipts from fundmanagement income, consultancy income and interest. However, the Groupexperienced a cash deficit on its operating activities of £1.4m (2005: £2.5m) asa result of an increase in debtors of £0.7m and the settlement of £0.7m ofnational insurance obligations arising on the exercise of unapproved shareoptions. The increase in the Group's debtors relates to accrued interestreceivable on bank deposits and amounts fully recoverable from fund managementactivity. The Group continues to monitor overhead costs carefully, the biggestconstituent of which is employee related cost. In 2007, as Modern Biosciencesplc commissions further proof of concept work, it is anticipated that researchexpenditure will constitute a greater overall proportion of operating costs thanit did in 2006. The Group invested £8.5m (2005: £4.2m) in new spin-outs, one public company andfollow on funding and £0.2m in limited partnership funds. The Group generatedcash proceeds on the sale of equity stakes of £3.1m (2005: £0.8m). The Groupsettled £0.7m of deferred consideration owed on the acquisition of TechtranGroup Limited and received a £0.1m repayment against the financial asset duefrom the University of Leeds. During 2006 the Group issued new share capital for cash proceeds of £19.0m(2005: £13.9m). In May 2006 the Group carried out a share placing which raised£16.3m. In addition, employees exercised share options during the year whichgenerated £2.7m of cash for the Group. At 31 December 2006, the Group had £40.5m ring-fenced for seed round finance inspin-out companies from university partners. In addition, Modern Biosciences hascommitted up to £1.4m as a result of its research agreement with theUniversities of Manchester and Salford for the development of a new class ofcancer drug. The Group also had un-drawn commitments of £1.2m for investment inthe IP Venture Fund. Taxation The Group's directors continue to believe that the Group qualifies for theSubstantial Shareholdings Exemption ('SSE') on chargeable gains arising ondisposal of qualifying holdings. In 2006 the Group obtained a post-transactionclearance from H M Revenue & Customs under Code of Practice 10 (CoP10) that SSEapplied to the Group's disposal of shares in Stratophase Limited. The Group hastherefore not recognised a deferred tax provision on gains arising on itsportfolio of equity stakes. ALAN AUBREYChief Executive Officer 5 March 2007 CONSOLIDATED INCOME STATEMENTFor the year ended 31 December 2006 -------------------------------- ------ --------- -------- Note 2006 2005 £'m £'m-------------------------------- ------ --------- --------RevenueChange in fair value of equity investments 38.2 5.7Gains on disposal of equity investments 1.9 0.8Dividends 0.1 0.2Revenue from services 1.8 1.7-------------------------------- ------ --------- -------- 42.0 8.4-------------------------------- ------ --------- --------Administrative expensesEmployee bonus costs (0.3) (1.2)Official list costs (0.3) -Other administrative expenses (3.6) (3.4)-------------------------------- ------ --------- -------- (4.2) (4.6)-------------------------------- ------ --------- --------Operating profit 37.8 3.8Finance income - interest receivable 2.3 1.8-------------------------------- ------ --------- --------Profit before taxation 40.1 5.6Taxation - --------------------------------- ------ --------- --------Profit for the year 40.1 5.6-------------------------------- ------ --------- -------- Profit attributable to:Equity holders of the parent 40.1 5.6Minority interest - --------------------------------- ------ --------- -------- 40.1 5.6-------------------------------- ------ --------- --------Basic earnings per ordinary share (p) 2 16.84 2.52-------------------------------- ------ --------- --------Diluted earnings per ordinary share (p) 2 16.66 2.45-------------------------------- ------ --------- -------- CONSOLIDATED BALANCE SHEETAs at 31 December 2006-------------------------------- ------ --------- -------- Note 2006 2005 £'m £'m-------------------------------- ------ --------- --------ASSETSNon-current assetsIntangible assets:Goodwill 18.7 18.4Acquired intangible assets 0.5 0.6Property, plant and equipment 0.1 0.1Equity rights and related acquisition costs 20.3 20.2Equity investments 4 87.4 44.3Financial asset 1.1 1.3Investment in limited partnerships 0.3 0.1------------------------------ ----- --------- ---------Total non-current assets 128.4 85.0------------------------------ ----- --------- ---------Current assetsTrade and other receivables 2.2 2.0Cash and cash equivalents 51.3 39.9------------------------------ ----- --------- ---------Total current assets 53.5 41.9------------------------------ ----- --------- --------- Total assets 181.9 126.9------------------------------ ----- --------- ---------EQUITY AND LIABILITIESEquity attributable to equity holders of the parentShare capital 4.9 4.6 Share premium account 92.0 73.3 Merger reserve 12.8 12.8 Retained earnings 69.2 29.1------------------------------ ----- --------- --------- Total shareholders' equity 178.9 119.8------------------------------ ----- --------- ---------Minority interest in equity 0.3 ------------------------------- ----- --------- --------- Total equity 3 179.2 119.8------------------------------ ----- --------- ---------Non-current liabilitiesTrade and other payables - 3.6Provisions 0.1 0.5------------------------------ ----- --------- ---------Total equity and non-current liabilities 179.3 123.9------------------------------ ----- --------- ---------Current liabilities Trade and other payables 2.6 3.0------------------------------ ----- --------- ---------Total equity and liabilities 181.9 126.9------------------------------ ----- --------- --------- CONSOLIDATED CASHFLOW STATEMENTFor the year ended 31 December 2006 ------------------------------ ------------ --------- 2006 2005 £'m £'m------------------------------ ------------ ---------Operating activitiesProfit before taxation 40.1 5.6Finance income - interest receivable (2.3) (1.8)Fair value movements in equity investments (38.2) (5.7)Amortisation of intangible non-current assets 0.2 0.2Profit on disposal of equity investments (1.9) (0.8)Equity allocated to staff 2.1 -Share-based payment charge - 0.3(Increase) / decrease in trade and other receivables (0.7) 0.3Decrease in trade and other payables and provisions (2.6) (1.7)Dividends classified as investing activities cash flows (0.1) (0.2)Interest received 2.0 1.3------------------------------ ------------ ---------Net cash outflow from operating activities (1.4) (2.5)------------------------------ ------------ ---------Investing activitiesPurchase of equity investments (8.5) (4.2)Investment in Limited Partnership Funds (0.2) -Financial asset 0.1 (1.4)Purchase of subsidiary undertaking (1.0) (3.5)Net cash acquired with subsidiary 0.2 1.8Proceeds from sale of equity investments 3.1 0.8Dividend received 0.1 0.2------------------------------ ------------ ---------Net cash outflow from investing activities (6.2) (6.3)------------------------------ ------------ ---------Financing activitiesProceeds from issue of share capital 19.0 13.9------------------------------ ------------ ---------Net increase in cash and cash equivalents 11.4 5.1Cash and cash equivalents at the beginning of the year 39.9 34.8------------------------------ ------------ ---------Cash and cash equivalents at the end of the year 51.3 39.9------------------------------ ------------ --------- NOTES 1. BASIS OF PREPARATION The preliminary results for the year ended 31 December 2006 have been extractedfrom audited accounts which have not yet been delivered to the Registrar ofCompanies. The financial information set out in this announcement does notconstitute statutory accounts for the year ended 31 December 2006 or 31 December2005. The financial information for the year ended 31 December 2006 is derivedfrom the statutory accounts for that year. The report of the auditors on thestatutory accounts for the year ended 31 December 2006 was unqualified and didnot contain a statement under Section 237 of the Companies Act 1985. Thestatutory accounts for the year ended 31 December 2005 have been delivered tothe registrar, while the statutory accounts for the year ended 31 December 2006will be delivered to the registrar following the company's Annual GeneralMeeting. 2. EARNINGS PER SHARE The basic and diluted profit per ordinary share is based on profits attributableto ordinary shareholders for the year of £40.1m (2005: £5.6m). The basic profitper share is based on the weighted average number of ordinary shares of238,155,846 in issue during the year (2005: 222,813,505*). The diluted profitper ordinary share in 2006 is based on the weighted average number of ordinaryshares plus the potentially dilutive options over ordinary shares totalling241,190,446 (2005: 228,381,635*). *Comparative figures restated following 5:1 share split in April 2006. 3. CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDER'S EQUITY Attributable to equity holders of the Company ------------------ ------ ------- ------- ------- ------ ------- ------ Share Share Merger Retained Minority Total capital premium reserve earnings Total interest Equity £'m £'m £'m £'m £'m £'m £'m------------------ ------ ------- ------- ------- ------ ------- ------At 1 January2005 4.1 59.6 0.8 23.3 87.8 - 87.8Consolidatedprofit for theyear - - - 5.6 5.6 - 5.6Employee shareoption charge - - - 0.3 0.3 - 0.3Pre-acquisition reservesattributableto the Group - - - (0.1) (0.1) - (0.1)Issue of sharecapital in theyear 0.5 13.7 12.0 - 26.2 - 26.2------------------ ------ ------- ------- ------- ------ ------- ------At 1 January2006 4.6 73.3 12.8 29.1 119.8 - 119.8Consolidatedprofit for theyear - - - 40.1 40.1 - 40.1Issue of sharecapital in theyear 0.3 18.7 - - 19.0 - 19.0Non-controlling interest - - - - - 0.3 0.3------------------ ------ ------- ------- ------- ------ ------- ------At 31 December2006 4.9 92.0 12.8 69.2 178.9 0.3 179.2------------------ ------ ------- ------- ------- ------ ------- ------ NOTES (Continued) 4. EQUITY INVESTMENTS - DESIGNATED AS 'AT FAIR VALUE THROUGH PROFIT OR LOSS' --------------------- --------- --------- ---------- ---------Group Quoted spin out Unquoted spin Other Total companies out companies investments £'m £'m £'m £'m--------------------- --------- --------- ---------- ---------At 1 January2005 24.0 8.4 3.1 35.5Investmentsduring theyear - 4.8 0.4 5.2Reclassifications during theyear 0.8 (0.8) - -Disposalduring theyear - (0.1) - (0.1)Change in fairvalue in theyear (0.2) 6.0 (0.1) 5.7Adjustmentarising onconsolidationof TechtranGroup Ltd - - (2.0) (2.0)--------------------- --------- --------- ---------- ---------At 1 January2006 24.6 18.3 1.4 44.3Investmentsduring theyear 0.7 7.8 - 8.5Reclassifications during theyear 1.5 (1.5) - -Disposalduring theyear (0.6) (0.5) - (1.1)Change in fairvalue in theyear 22.5 15.4 0.3 38.2Equityallocated tostaff - (2.1) - (2.1)Adjustmentarising onconsolidationof PoseidonWater Limited (0.4) (0.4)--------------------- --------- --------- ---------- ---------At 31 December2006 48.7 37.0 1.7 87.4--------------------- --------- --------- ---------- --------- 5. POST BALANCE SHEET EVENTS Perachem Ltd, a spin-out from the University of Leeds was renamed as EcoChemical Enterprises plc and joined PLUS Markets through a reverse takeover. 6. AVAILABILITY OF STATUTORY ACCOUNTS Copies of the full statutory accounts will be available from the registeredoffice at Warwick Court, 5 Paternoster Square, London EC4M 7BP, from 29 March2007 and will also be available on the Group's website at www.ipgroupplc.com. 7. ANNUAL GENERAL MEETING The Annual General Meeting will be held at 3pm on 24 April 2007 at BuchananCommunications, 45 Moorfields, London, EC2Y 9AE. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Ip Group