Profit for IP Group as investments perform

IP Group, which invests in a series of Yorkshire medical technology firms, has moved into the black after encouraging performances from a number of its portfolio companies.

For the year ended December 31, IP Group saw profit before tax move to £1.8m, compared to a £6.1m loss the previous year.

The value of its portfolio increased from £101.3m to £110m, while net assets increased by £2m to £173.

The group’s investment in portfolio companies increased by £1.2m to £6.9m and realisations from portfolio companies increased to £2.7m from £500,000.

Over the period, Yorkshire-based Tissue Regenix, one of IP Group’s portfolio companies, raised £4.5m after successfully floating on AIM.

Alan Aubrey, chief executive of IP Group, said: “2010 has been an encouraging year for IP Group, with many of the group’s portfolio companies making excellent progress towards key milestones and with commercial validation by industrial partners having been particularly encouraging.

“The valuation of the portfolio has increased despite a challenging financing and operating environment for small 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.

Cash balances remain strong, our pipeline of activity is healthy and this, coupled with the portfolio’s strong 2010 progress, gives us continued confidence that the Group will generate significant long term returns for shareholders.”