Globe

IP Group plc – Annual Results

07 Mar 2017

IP Group plc (LSE: IPO), the developer of intellectual property-based businesses, today announces its annual financial results for the year ended 31 December 2016.

Portfolio highlights

  • Overall net increase in fair value of portfolio, excluding net investment, of £6.5m (2015: £86.2m)
  • Strong second half portfolio fair value increase of £31.4m follows £24.9m reduction in first half
  • Fair value of portfolio: £614.0m (2015: £552.2m)
  • Capital provided to portfolio companies1 and projects: £69.7m (2015: £115.9m)
  • Portfolio cash realisations: £14.7m (2015: £0.6m)
  • Group’s portfolio companies raised approximately £230m of new capital during the year
  • Oxford Nanopore completed £100m private financing
  • Diurnal reports positive headline data from European Infacort® Phase III pivotal study

Financial and operational highlights

  • Net assets £768.7m (2015: £781.9m)
  • Hard NAV £706.5m (2015: £714.3m)
  • Return on Hard NAV of negative £7.6m (2015: positive £84.0m)
  • Loss for the year £14.8m (2015: profit £75.1m)
  • Gross cash and deposits £112.3m (2015: £178.8m)
  • Acquisition of Parkwalk Advisors Ltd, the UK’s largest EIS growth fund manager focused on university spin-outs

Alan Aubrey, Chief Executive of IP Group, said: “2016 was another productive year for the Group that saw our portfolio companies record impressive commercial progress and raise a total of approximately £230m. The first half of the year saw major commercial developments in our key assets across all four of the sectors in which we operate; Healthcare, Technology, Cleantech, Biotech and we recorded successful exits from three companies. That strong operational performance continued in the second half of the year which also saw significant fundraisings from three of our largest portfolio companies as well as the acquisition of Parkwalk Advisors.

“We believe the fundamentals of the business remain strong; the Group is well-capitalised with a robust balance sheet and our portfolio is well diversified with a broad range of early to mature businesses across four sectors. Geographically, we also have a developing operation in the US, a healthy pipeline of new opportunities and our most valuable portfolio company holdings are making excellent commercial progress. All of these factors combine to ensure that the Group remains well positioned for the future and give us continued confidence for this year and beyond.”

1 Including £10.9m total investment into Oxford Sciences Innovation plc and Cambridge Innovation Capital plc (2015: £40.0m investment into Oxford Sciences Innovation plc)

For more information, please contact:

IP Group plcwww.ipgroupplc.com
Alan Aubrey, Chief Executive Officer
Greg Smith, Chief Financial Officer
Liz Vaughan-Adams, Communications
+44 (0) 20 7444 0050
+44 (0) 20 7444 0062/
+44 (0) 7979 853802
Charlotte Street Partners
Andrew Wilson
+44 (0) 7810 636995

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

Notes
(i) Nature of announcement

This Annual Results Release was approved by the directors on 6 March 2017.

The financial information set out in this Annual Results Release does not constitute the company's statutory accounts for 2016 or 2015. Statutory accounts for the years ended 31 December 2016 and 31 December 2015 have been reported on by the Independent Auditor. The Independent Auditor’s Reports on the Annual Report and Financial Statements for 2016 and 2015 were unqualified, did not draw attention to any matters by way of emphasis, and did not contain a statement under 498(2) or 498(3) of the Companies Act 2006. Statutory accounts for the year ended 31 December 2015 have been filed with the Registrar of Companies. The statutory accounts for the year ended 31 December 2016 will be delivered to the Registrar following the Company's annual general meeting.

The 2016 Annual Report and Accounts will be published in April 2017 and a copy will be posted on the Group's website (www.ipgroupplc.com). In accordance with Listing Rule 9.6.1 a copy of the Annual Report and Accounts will also be submitted to the National Storage Mechanism on or around this date and will be available for inspection at: www.Hemscott.com/nsm.do from that time.

Throughout this Annual Results Release the Group’s holdings in portfolio companies reflect the undiluted beneficial equity interest excluding debt, unless otherwise explicitly stated.

(ii) Forward looking statements

This Annual Report and Accounts 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 which 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 companies within the Group’s portfolio.

Annual Results can be viewed in the PDF file format