IP Group news 0

IP Group plc (LSE: IPO), the developer of intellectual property based businesses, today announces its annual results for the year ended 31 December 2011.

Financial and operational highlights

• Net assets increased to £221.6m (2010: £173.1m)
• Successful completion of placing and open offer, realising gross proceeds of £55.0m
• Net cash and deposits at 31 December 2011: £60.5m (2010: £21.5m)
• Adjusted profit before tax of £0.5m (2010: £1.8m), excluding £6.0m reduction in fair value of Oxford Equity Rights asset (2010: £nil)
• Widening of partnership with University of Oxford through strategic stake in Technikos LLP
• Appointment of four new directors to the Board

Portfolio highlights

• Fair value of investment portfolio: £123.8m (2010: £110.0m)
• More than doubled investment in portfolio companies to £14.3m (2010: £6.9m)
• Portfolio realisations: £3.7m (2010: £2.7m)
• Value of ten largest holdings: £89.0m (2010: £81.3m)
• Group’s portfolio companies raised in excess of £90.0m of new capital (2010: £40.0m)
  • Oxford Nanopore Technologies Limited completed £25.0m private financing
  • Tissue Regenix Group plc completed £25.0m placing

Post year-end highlights

• Oxford Nanopore to launch two revolutionary DNA sequencing machines, GridION™ and MinION™ during 2012
• Net increase in the fair value of the Group’s holdings in quoted portfolio companies, excluding net investment, of £10.0m since 31 December 2011.

Commenting on the Group’s annual results, Alan Aubrey, Chief Executive Officer of IP Group, said: “2011 was a year of significant progress for the Group with the material strengthening of the Company’s balance sheet, enabling us to step up the level of capital deployed in our portfolio companies. Despite continued economic uncertainty, this year the value of the Group’s portfolio has increased, the Group’s portfolio companies have raised significantly more new capital and the Group has recorded more realisations than in 2010.

We continue to believe that innovation remains strategically important to the UK economy and that the Group is strongly placed to play a central role in helping commercialise UK innovation. Our most valuable portfolio company, Oxford Nanopore, recently announced that it intends to start selling a DNA sequencer the size of a USB memory stick for less than $900 this year. This marked a pivotal moment for both companies that further supports the Group’s long-term strategy and exemplifies the quality of technology seen in our portfolio.

Since the year end, the Group’s quoted portfolio companies have seen a net increase in fair value of £10m. Our strong cash position coupled with the excellent progress being made across the portfolio gives us renewed confidence that the Group will generate significant long-term returns for shareholders.”

For more information, please contact:

IP Group plc
Alan Aubrey, Chief Executive Officer	020 7444 0050
Greg Smith, Chief Financial Officer	020 7444 0050
Liz Vaughan-Adams, Communications	020 7444 0062 / 07979 853 802
FTI Consulting	020 7831 3113
Ben Atwell, John Dineen

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 5 March 2012.

The financial information set out in this Annual Results Release does not constitute the company's statutory accounts for 2011 or 2010. Statutory accounts for the years ended 31 December 2011 and 31 December 2010 have been reported on by the Independent Auditor. The Independent Auditor’s Reports on the Annual Report and Financial Statements for 2011 and 2010 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 2010 have been filed with the Registrar of Companies. The statutory accounts for the year ended 31 December 2011 will be delivered to the Registrar following the Company's annual general meeting.

The 2011 Annual Report and Accounts will be published in April 2012 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 (PDF 869KB opens in a new window)