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("IP Group" or "the Group" or "the Company")
IP Group plc Annual Results Release

IP Group plc (LSE: IPO), the developer of intellectual property-based businesses, today announces its annual financial results for the year ended 31 December 2017.

Portfolio highlights

• Net portfolio gains of £94.2m (2016: £6.5m)
• Fair value of portfolio: £1,130.6m (2016: £614.0m) including £352.2m fair value of acquired Touchstone portfolio
• Capital provided by IP Group to portfolio companies and projects: £71.2m (2016: £69.7m), and £13.4m (2016: £nil) by Parkwalk Advisors.
• Portfolio cash realisations: £6.6m (2016: £14.7m)
• Total funds raised by portfolio companies of £315m (2016: £230m)
• Istesso commences Phase 2a clinical trials for its lead programme in Rheumatoid Arthritis and expands its R&D collaboration with Janssen
• Autifony Therapeutics signs €627.5m collaboration agreement with Boehringer Ingelheim
  Diurnal receives positive CHMP opinion for Alkindi®, a precursor to market launch for its first product in Q2 2018

Financial and operational highlights

• Net assets £1,508.5m (2016: £768.7m)
• Hard NAV £1,326.2m (2016: £706.5m)
• Return on Hard NAV of £64.1m (2016: negative £7.6m); Return on Hard NAV excluding acquisition and restructuring costs £73.2m (2016: £(£7.6m))
• Profit for the year £53.4m (2016: loss £14.8m)
• Gross cash and deposits £326.3m (2016: £112.3m)
• Increased scale and critical mass through all-share combination with Touchstone, integration progressing well
• Acquisition of Parkwalk Advisors Ltd, UK’s leading growth EIS fund manager focused on university spin-outs
• Launch of IP Group Australasia; nine new partnerships signed with leading universities in Australia and New Zealand
• £181.0m (net) capital raise completed, including significant new shareholders from Australia, China, Singapore and the UK

Post period end highlights

• Oxford Nanopore completes £100m financing round in March, confirms orders of $23.5m in 2017 and signals 2018 order book to more than treble to $75m

Alan Aubrey, Chief Executive of IP Group, said: “2017 was a significant year for the Company, with the combination of IP Group and Touchstone Innovations and the acquisition of Parkwalk Advisors helping to create a business with greater resources that is better equipped to find, invest and develop businesses based on science and technology. The signing of new partnerships in Australia and New Zealand extended our reach into new geographies while our capital raise not only strengthened our balance sheet but also saw the introduction of major new institutional investors. Overall, the underlying performance of the Group’s enlarged portfolio was strong with a number of key milestones attained. The integration of Touchstone Innovations with IP Group is proceeding to plan and we are confident for the year ahead and beyond.”

For more information, please contact:

IP Group plc Alan Aubrey, Chief Executive Officer Greg Smith, Chief Financial Officer Liz Vaughan-Adams, Communications	www.ipgroupplc.com +44 (0) 20 7444 0050   +44 (0) 20 7444 0062/+44 (0) 7979 853802
Charlotte Street Partners Martha Walsh Andrew Wilson	+44 (0) 7876 245962 +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 29 March 2018.

The financial information set out in this Annual Results Release does not constitute the company's statutory accounts for 2017 or 2016. Statutory accounts for the years ended 31 December 2017 and 31 December 2016 have been reported on by the Independent Auditor. The Independent Auditor’s Reports on the Annual Report and Financial Statements for 2017 and 2016 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 2016 have been filed with the Registrar of Companies. The statutory accounts for the year ended 31 December 2017 will be delivered to the Registrar following the Company's annual general meeting.

The 2017 Annual Report and Accounts will be published in April 2018 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