IP Group benefiting from portfolio

INTELLECTUAL property company IP Group today said its portfolio companies had made positive commercial progress over its last half year. 

Alan Aubrey, chief executive of IP Group, which has an office in Leeds, said: “Overall, the technical and commercial progress made by the group’s portfolio companies towards key milestones has been strong in the period to date with commercial validation by industry having been particularly encouraging.

“The valuation of the portfolio has remained broadly stable despite a challenging financing and operating environment for small capitalisation technology based businesses.

“This valuation has benefited from the completion of a number of further external financings, including the first two portfolio companies joining AIM since 2007, although this has been offset by downward pressure on valuations of other holdings.

“Cash balances remain strong, our pipeline of activity is healthy and this, coupled with the portfolio’s progress to date, continues to give us confidence that the Group will generate long term returns for shareholders.”

For the six months to June 30, IP Group’s net assets were broadly flat with the same period last year at £167.4m.

Investment in portfolio companies increased to £3.1m, portfolio realisations increased to £700,000 from £100,000.

Revenue from services increased to £1.1m.

The fair value of its investment portfolio increased from £97.1m to £101.3m.