IP Group news 0

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 2024.

Highlights

Outperformed on exits, despite reduction in NAV per share:

• Total cash proceeds from exits of £183.4m (+ 375%) including:
• £134m: Sale of Featurespace Ltd to Visa (£119m cash received in the year) – largest ever exit
• £30m: Sale of Garrison Technology Ltd to Everfox
• £9.2m: Sale of Kynos Therapeutics Ltd to Dr Falk Pharma GmbH
• up to £15m: Secondary sale of minority holdings in six portfolio companies at small premium to NAV
• Strong balance sheet and liquidity with gross cash of £285.6m, up 26% from £226.9m in 2023
• NAV/share down 15% to 97.7p with closing NAV of £952.5m, driven by decrease in market value of Oxford Nanopore (ONT) and valuation reductions for First Light Fusion and Istesso in challenging market conditions
• Raised further £95m of third-party funds (Hostplus & Parkwalk) - third-party AUM now £678m, up from £650m in 2023
• Total net overheads run rate reduced by 23% by year end, a 12% reduction for the year

Accelerated buybacks:

• Since January 2024, announced buybacks of up to £80m representing 19% of current market capitalisation
• Completed £30m of share buyback programme during year, with £50m balance ongoing
• 10% of share capital retired to date, increased shareholder authority now sought in order to complete ongoing programme

Significant portfolio and pipeline opportunity:

• £784m of capital raised (up 17%) with £63m invested across 38 companies, reflecting maintained discipline
• Istesso: Phase 2b study of leramistat in rheumatoid arthritis demonstrated novel mechanism of action and effectiveness in bone repair in secondary endpoints despite not meeting primary endpoint
• Enterprise Therapeutics and Genomics: Significant investment rounds closed, to fund next development stage
• 4 companies (Storm, Mission, Kynos and Abliva): reported positive clinical trial data
• Hysata: Completed oversubscribed $111m Series B funding round, the largest Series B in Australian cleantech history
• First Light Fusion: Sets pressure record at Sandia National Laboratories and refocuses business model on revenues
• Strong interest in companies developing faster, more efficient computing hardware for AI including Instrisic and Lumai

Post period-end update:

• Intention to extend buyback programme by a further £10m, announced today
• Intention to allocate 50% of 2025 exits to buyback programme, announced today
• Cash and deposits of £277m as at 21 March following additional cash proceeds of £24.7m since 31 Dec
• Fair value of Group’s holdings in listed companies decreased by £14.7m in the period since 31 Dec, including £13.8m from ONT
• Hinge Health files for a New York initial public offering
• Istesso notifies shareholders of outcome of Phase 2b trial which completed in 2024

Summary financials

	FY 2024	FY 2023
Net Asset Value (NAV)	£952.5m	£1,190.3m
NAV per share(i)	97.7pps	114.8pps
% change in NAV per share	(15%)	(14%)
Loss for the year	(£207.0m)	(£174.4m)
Total portfolio(i)	£837.4m	£1,164.9m
Gross cash and deposits(i)	£285.6m	£226.9m
Cash proceeds(i)	£183.4m	£38.6m
Portfolio investment(i)	£63.0m	£73.2m

(i)Note 27 details the Alternative Performance Measures (“APM”)

Greg Smith, Chief Executive of IP Group, said: “The Group prioritised profitable exits during 2024, outperforming a relative lack of liquidity across the venture capital market, despite our negative NAV per share performance. These exits included our largest ever cash realisation with the sale of Featurespace to Visa, alongside a number of other holdings, at or above carrying values. The £183m of cash proceeds strengthened our liquidity position and enabled us to significantly increase our share buyback programme while continuing to invest for growth.

We have already completed a number of exits in the current year with a promising pipeline of further realisations, giving us confidence in delivering more than £250m of exits from private company holdings by the end of 2027. We also noted Hinge Health’s recent announcement that it intends to list on the New York Stock Exchange. Given our share price continues to reflect a significant discount to NAV per share, during 2025 we intend to increase the proportion of exits allocated to buybacks to 50%.

As the UK’s most active investor in university spin-outs, IP Group has an exciting and compelling portfolio of companies which is attracting strong interest from third parties. While the current macro environment remains challenging, the Board has ensured the Group is appropriately sized and well financed and continues to focus on delivering returns for shareholders.”

Webinar

IP Group will host a webinar for analysts and investors today, 25 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 and Operating Officer Liz Vaughan-Adams, Communications	+44 (0) 20 7444 0050 +44 (0) 20 7444 0062/+44 (0) 7967 312125
Portland
Tristan Peniston-Bird Alex Donaldson	+44 (0) 7772 031886 +44 (0) 7516 729702

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 24 March 2025.

The financial information set out in this Annual Results Release does not constitute the Company's statutory accounts for 2024 or 2023. Statutory accounts for the years ended 31 December 2024 and 31 December 2023 have been reported on by the Independent Auditor. The Independent Auditor’s Reports on the Annual Report and Financial Statements for 2024 and 2023 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 2023 have been filed with the Registrar of Companies. The statutory accounts for the year ended 31 December 2024 will be delivered to the Registrar following the Company's Annual General Meeting.

The 2024 Annual Report and Accounts will be published in April 2025 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.