IP Group news .

Strong returns, significant cash realisations, capital recycled for growth alongside shareholder returns

IP Group plc (LSE: IPO), the developer of world-changing science and technology businesses, today announces its annual financial results for the year ended 31 December 2021.

2021 highlights

• Profit after tax increase of 142% to £449.3m (2020: £185.4m) with strong performance across all sectors
• NAV¹ of £1,738.1m, up 30%, or 167.0 pence per share (2020: £1,331.9m or 125.3pps)
• Cash realisations² of £213.4m (2020: £191.0m)
• Sustained investment into portfolio: £103.7m into 65 companies (2020: £67.5m)
• Recommended final dividend of 0.72p per share (interim dividend of 0.48p per share) and £27.2m of shares bought back of the £35m allocated to the buyback programme; £42.8m total capital returned to shareholders in the year.
• Board changes including Greg Smith appointed as CEO, and David Baynes as CFOO
• Evolved strategy focussed on next generation of portfolio companies within key thematic areas

Portfolio highlights

• Total portfolio value increase of 27% to £1,507.5m³ (2020: £1,184.9m)
• Net portfolio gains of £497.4m³ or 43%⁴ (2020: £231.4m or 22%)
• Flotation of Oxford Nanopore Technologies plc on the London Stock Exchange, priced at £3.4bn and cash realisation of £84.1m
• Sales of Inivata Ltd to NeoGenomics, Inc, WaveOptics Ltd to Snap, Inc and Kuur Therapeutics Inc. to Athenex, Inc.
• Total primary funds raised by portfolio companies: approximately £2.4bn (FY20: £1.1bn; HY21: £1.0bn) including Oxford Nanopore Technologies plc (£645m), Hinge Health ($400m/£290m), Centessa Pharmaceuticals Ltd ($630m/£457m), Artios Pharma ($153m/£110m), Pulmocide Ltd ($92m/£67m committed, $25m/£18m invested) and Ultraleap (£60m)

Other financial and operational highlights

• Strong Return on NAV of £452.2m, or 34.0% (2020: £189.5m or 16.6%)
• Strong liquidity with gross cash and deposits at 31 Dec 2021 of £321.9m (2020: £270.3m) and net cash⁵ of £270.1m (2020: £203.0m)
• North American platform secured additional funding, bringing total raised in the year to $59m (£43m)
• Joint venture formed with China Everbright Ltd to launch first third-party fund in China

Post period-end update

• Bramble Energy Ltd completed £35m investment round
• First Light Fusion Ltd completed $45m (£33m*) Series C fund raise
• Microbiotica Ltd completed £50m Series B financing round
• Completed £35 million share buyback programme; £7.8m purchased in January 2022
• Significant correction in global stock prices, compounded by the war in Ukraine. ONT has fallen from £6.98 at the year end to £4.13 on the 14 of March. A reduction in carrying value of £233m.

Greg Smith, Chief Executive Officer of IP Group, said: “2021 was a landmark year for IP Group as we celebrated our 20th anniversary by recording our best set of financial results to date, including record profits, cash realisations, portfolio investment, and a return on NAV of almost half-a-billion pounds. It was fitting that some of our most exciting portfolio companies also completed landmark corporate transactions, with the highlight being Oxford Nanopore's multi-billion-pound flotation. Science as a driver for innovation is now widely understood and there is widespread recognition that scientific solutions, and the new technologies they inspire, are needed to address the major challenges facing the world. IP Group’s strategy is to increasingly focus on companies tackling those challenges and contribute to a more sustainable, healthier future that is enriched by technological advances. On a personal level, I was proud to take over as CEO from Alan Aubrey towards the end of last year and I am excited about the prospects for what is a quality portfolio of companies with real potential to have significant global impact. We will continue to back them to succeed and, given the current geo-political climate, I am pleased to report that we do so from a very strong financial position." 

¹ Net Assets i.e. total assets less total liabilities
² Proceeds from sale of equity and debt investments per Group Cash Flow Statement
³ Alternative Performance Measure as described in Note 30.
⁴ 43% return on opening portfolio value of £1,162.7m
⁵ Net Cash is defined as gross cash and deposits less EIB debt

Webinar

IP Group will host a webinar for analysts and investors today, 16 March, at 10:00am GMT. For more details or to register as a participant please visit https://www.ipgroupplc.com/events.

For more information, please contact:

IP Group plc	www.ipgroupplc.com
Greg Smith, Chief Executive Officer David Baynes, Chief Financial Officer Liz Vaughan-Adams, Communications	+44 (0) 20 7444 0050 +44 (0) 20 7444 0062/+44 (0) 7967 312125
Charlotte Street Partners
David Gaffney Andrew Wilson	+44 (0) 7854 609998 +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 15 March 2021.

The financial information set out in this Annual Results Release does not constitute the company's statutory accounts for 2021 or 2020. Statutory accounts for the years ended 31 December 2021 and 31 December 2020 have been reported on by the Independent Auditor. The Independent Auditor’s Reports on the Annual Report and Financial Statements for 2021 and 2020 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 2020 have been filed with the Registrar of Companies. The statutory accounts for the year ended 31 December 2021 will be delivered to the Registrar following the Company's annual general meeting.

The 2021 Annual Report and Accounts will be published in April 2022 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.