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 2012.

Highlights

Financial and operational

• Net assets increased to £263.1m (2011: £221.6m)
• Net cash and deposits: £47.9m (2011: £60.5m)
• Adjusted profit before tax of £46.7m (2011: £0.5m), excluding £6.0m reduction in fair value of Oxford Equity Rights asset (2011: £6.0m)

Portfolio

• Fair value of investment portfolio: £181.8m (2011: £123.8m)
• Continued increase in capital provided to portfolio companies to £26.3m (2011: £14.3m)
• Portfolio realisations: £16.7m (2011: £3.7m)
• Acquisition of Proximagen Group by Upsher-Smith for total proceeds of up to £357m (IP Group initial cash proceeds £15.4m)
• Value of ten largest holdings: £138.2m (2011: £89.0m)
• Group’s portfolio companies raised in excess of £110m of new capital (2011: £90m)
  • Retroscreen Virology Group and Revolymer admitted to AIM, raising gross proceeds of £15m and £25m respectively at IPO
  • Oxford Nanopore Technologies Limited completed £31.4m private financing

Post year-end highlights

• New flagship intellectual property commercialisation agreement signed with The University of Manchester
• Net unrealised fair value increase in the Group’s holdings in quoted portfolio companies of £16.0m between 31 December 2012 and 1 March 2013.

Commenting on the Group’s annual results, Alan Aubrey, Chief Executive Officer of IP Group, said:

"2012 has been another strong year for IP Group, marked by a number of significant developments across our portfolio, including the admission of Retroscreen Virology and Revolymer to AIM and a significant further financing by Oxford Nanopore Technologies. In line with our commitment to significantly increase our overall rate of investment, the Group committed £26.3m of new funds to portfolio companies during the year. At the same time, we continue to explore alternative sources of innovative intellectual property based opportunities. To this end we have recently signed a commercialisation agreement with Manchester University. 2012 also saw a significant uplift in portfolio realisations and we were particularly pleased to note the acquisition of Proximagen by Upsher-Smith, which represented a 35 times return on the Group’s initial investment.

While we have a strong, established portfolio of listed and private companies, I remain confident in the depth of potential throughout our entire portfolio. During 2012 we continued to mature our post-seed businesses and pipeline. The Group’s pipeline of early-stage intellectual property opportunities remains strong, with eight new opportunities receiving initial incubation or seed funding during the year.

Despite the continued increase in investment over the year, our balance sheet remains strong, with cash resources of £47.9m, ensuring that we remain well positioned to participate in future financing opportunities. The progress made across our portfolio during 2012, reflected in the strong growth in the value of the Group’s portfolio and net assets, has reinforced our confidence in the quality and commercial potential of the UK’s university intellectual property, and we remain well positioned to play a central role in ensuring that the UK’s cutting-edge innovations continue to reach the market."

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 4 March 2013.

The financial information set out in this Annual Results Release does not constitute the company's statutory accounts for 2012 or 2011. Statutory accounts for the years ended 31 December 2012 and 31 December 2011 have been reported on by the Independent Auditor. The Independent Auditor’s Reports on the Annual Report and Financial Statements for 2012 and 2011 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 2011 have been filed with the Registrar of Companies. The statutory accounts for the year ended 31 December 2012 will be delivered to the Registrar following the Company's annual general meeting.

The 2012 Annual Report and Accounts will be published in April 2013 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 1.02MB, opens in a new window)