IP Group news .

Group well financed and focused on delivering returns for stakeholders; resilient portfolio, well-funded & aligned to three world-changing themes

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 annual financial results for the year ended 31 December 2022.

2022 highlights

Significant progress in key themes & companies

• Regenerative future (Cleantech): Strong return in the period delivered by uplifts at First Light Fusion, which achieved world-first fusion result with 'projectile fusion', externally validated by the UK Atomic Energy Authority; and Oxbotica which completed a $140m Series C financing round at significant uplift
• Healthier future (Life Sciences): Istesso commenced Phase 2b trial for its lead drug MBS2320 in rheumatoid arthritis; MBS2320 granted Fast Track designation by the US FDA for the treatment of patients with idiopathic pulmonary fibrosis ("IPF") & also designated it an orphan drug for the treatment of IPF
• Tech-enriched future (Deeptech): Featurespace, Garrison, SaltPay, Ultraleap all posted double-digit revenue growth; sale of Re:Infer to global leader UiPath, delivering IRR of 29%

Delivering evolved strategy

• Deeper thematic focus which included the launch of dedicated cleantech platform Kiko Ventures
• Third-party capital funds under management increased to £697m vs £575m in 2021, in line with long-term strategy
• Increased impact, together with Parkwalk, IP Group is one of the largest investors in university and other research-based companies in the world; the most prolific investor in deeptech companies in the UK and the second most prolific in Europe

Well financed & resilient portfolio

• Strong balance sheet and liquidity to support new and follow-on investment in the portfolio with gross cash and deposits at 31 December 2022 of £241.5m (2021: £321.9m); total potential liquidity (including quoted shares and undrawn debt) of over £500m
• Loss in the period of £344.5m (2021: profit of £449.3m). Driven primarily by a reduction in the value of our public companies of £428.5m and in the value of ONT in particular, which reduced by £369.7m
• Portfolio companies well-funded; total funds raised by portfolio £1.0bn (2021: £2.4bn)
• Private portfolio company valuations remained robust with 90% of our portfolio funding rounds in 2022 taking place at or above previous funding round valuations
• Recommended final dividend of 0.76p per share to give a total 1.26p for FY22 (interim dividend of 0.50p per share; 2021 total dividend of 1.2p per share), completion of £35m share buyback; £20.3m total capital returned to shareholders in the year

Post period-end update

• Appointment of Anita Kidgell, Head of Corporate Strategy at GSK plc, as independent Non-executive Director
• The fair value of the Group's holdings in listed companies experienced a net fair value decrease of £26.2m in the period since 31 December, including ONT decreasing by £28.3m.

Summary financials

	FY 2022	FY 2021
Net Asset Value (NAV)	£1,376.1m; 132.9pps	£1,738.1m; 167.0pps
Loss/profit	Loss of (£344.5m)	Profit of £449.3m
Loss/profit excluding ONT (i)	Profit of £25.2m	Profit of £202.1m
Total portfolio (i)	£1,258.5m	£1,507.5m
Net portfolio loss/profit (i)	£309.1m loss	£499.2m gain
Gross cash and deposits (i)	£241.5m	£321.9m
Realisations (NAV)	£28.1m	£213.9m
Portfolio investment (i)	£93.5m	£106.8m
Total dividend(ii)	1.26pps	1.20pps

(i)  Note 29 details the Alternative Performance Measures ("APM")

(ii)  Total dividend for 2022 subject to approval of final dividend of 0.76pps at the Group's 2023 AGM

Greg Smith, Chief Executive of IP Group, said: "We have continued to see strong commercial progress and interest in our portfolio this year despite the economic headwinds and prevailing geopolitical environment. IP Group is well financed and our strong balance sheet allows us to continue to capitalise on opportunities in the UK and internationally. Our portfolio is also well funded which, together with our decades of experience in supporting fast growing companies, ensures our companies are well-placed to navigate this environment. While the share prices of our publicly listed companies and that of the Group have come under pressure, we remain focussed on generating returns for all stakeholders and are confident that our high-quality portfolio will generate significant value over time."

Webinar

IP Group will host a webinar for analysts and investors today, 8 March, at 10:00am. For more details or to register as a participant please visit https://www.investormeetcompany.com/ip-group-plc/register-investor.

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 07 March 2023.

The financial information set out in this Annual Results Release does not constitute the Company's statutory accounts for 2022 or 2021. Statutory accounts for the years ended 31 December 2022 and 31 December 2021 have been reported on by the Independent Auditor. The Independent Auditor's Reports on the Annual Report and Financial Statements for 2022 and 2021 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 2021 have been filed with the Registrar of Companies. The statutory accounts for the year ended 31 December 2022 will be delivered to the Registrar following the Company's Annual General Meeting.

The 2022 Annual Report and Accounts will be published in April 2023 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 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 companies within the Group's portfolio.

Annual Results can be viewed in the PDF file format.