IP Group remains confident despite losses

INTELLECTUAL property company IP Group has reported a smaller full-year pretax loss and is now confident about its prospects going forward.

The Leeds-based organisation, which works with the country’s universities to develop intellectual property-based businesses, reported a pretax loss of £6.5m in the year to the end of December 2009. It made a loss of £40.5m in 2008.

UP Group’s net assets stable fell marginally from £173.8m to £171m between 2008 and 2009.

IP Group also reported a strong balance sheet with cash and deposits of £28.1m and an investment portfolio worth £101.3m – up from £98.4m in 2008.

The company, which also has an office in London, said it predicts that there will be a raft of good opportunities in the future.

This will be assisted by a strategic deal with smaller rival Fusion IP in which it bought a 19.8% stake last November.

The annual results also draw attention to the success of its portfolio companies in raising £75m of capital over the past year.

Alan Aubrey, chief executive of IP Group, said: “The underlying performance of our portfolio companies in 2009 was encouraging with notable milestones achieved including the successful completion of a number of fund raisings.

“The current year has begun on a similar note with the completion of a successful fundraising by Oxford Nanopore Technologies Limited, our largest holding, together with some modest realisations.

“IP Group is financially strong with no borrowings and a portfolio which is well diversified, generally well funded and maturing.

“We have a good pipeline of opportunities from our partners, augmented by our strategic deal with Fusion IP plc. While the financing environment remains difficult, particularly for smaller companies, we remain confident in our ability to deliver shareholder value over the medium to long term.”