IP Group enjoys portfolio growth
RESEARCH commercialisation firm IP Group, whose interests include a slew of Yorkshire companies, has seen a £13.8m increase in the value of its portfolio over the year.
The fair value of the group’s portfolio was £123.8m for the year to December 31, 2011 – a 12.5% increase on the previous year.
IP Group’s 64 company portfolio includes a string of Yorkshire companies, such as regenerative tissue implants company Tissue Regenix, which completed a £25m placing during the year.
Other Yorkshire-based companies include Tracsis, Avacta Group plc, GETECH Group plc and Xeros, which develops virtually waterless washing machines.
During the year the group made total investments of £14.3m, increased from £6.9m in 2010, and realised a total of £3.7m cash proceeds. It made an adjusted profit before tax of £500,000, excluding £6m reduction in fair value of Oxford Equity Rights asset.
Alan Aubrey, chief executive 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.
Aubrey added: “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.”
