IP Group confident as it increases portfolio

IP Group today said it has increasing confidence in its ability to deliver “significant” shareholder value as it boosts its portfolio.

In its half-yearly results for the six months ended June 30 2013, the research commercialisation group, whose portfolio includes a stake in University of Sheffield spin-out business Magnomatics and interests in Avacta and Xeros, said the value of its portfolio increased to £191.9m (HY12: £171.5m; FY12: £181.8m).

The group said it invested £10.8m during the period, compared to £15.8m in the same period last year, and said these portfolio companies raised approximately £55m of new capital.

Adjusted profit before tax dipped to £0.5m (HY12: £31.2m; FY12: £46.7m) and IP Group reported a statutory loss before tax of £2m (HY12: £28.7m profit; FY12: £40.7m profit).

Despite sinking into the red, chief executive, Alan Aubrey, said it has been a productive first half for both the group and its portfolio companies.

He said: “At group level, we were pleased to have reached agreement with the EIF on a second fund and to have signed a commercialisation agreement with The University of Manchester. In the portfolio, not only have some notable commercial and technical milestones been achieved, but it was also pleasing that our companies raised approximately £55m of financing during the period.

“Progress across our portfolio has continued into the second half of the year, with Retroscreen having raised £25.5m, while Ceres Power announced its first OEM partner. The group continues to see an excellent pipeline of opportunities which, coupled with the overall maturing of our portfolio across investment stages, gives us increasing confidence in our ongoing ability to deliver significant shareholder value.”

IP Group said it continues to seek to identify “compelling” IP-based opportunities arising from its current university partnerships and may source further opportunities from other research-intensive institutions and selectively explore the possibility of further partnerships or other collaborative arrangements with such institutions.

IP Group’s core business is to build high-quality companies based on intellectual property, primarily developed at leading research institutions. It aims to take a significant minority equity stake in these companies and then grow the value of our equity by taking an active role in business building.