IP Group 2014 interim results

DividendMax Ltd.

IP Group 2014 interim results

Financial and operational highlights

Net assets at 30 June 2014: £528.6m (HY13: £261.6m; FY13: £336.6m)

Net cash and deposits at 30 June 2014: £122.6m (HY13: £38.1m; FY13: £24.1m)

Adjusted profit before tax of £15.0m (HY13: £0.5m; FY13: £77.6m) excluding £0.9m reduction in fair value of the Oxford Equity Rights asset (HY13: £2.5m; FY13: £5.0m) and £1.5m amortisation of intangible assets (HY13: £nil; FY13: £nil)

£100.0m (before expenses) raised through issue of new equity capital

All-paper acquisition of the remaining 79.9% shareholding in Fusion IP plc not already owned by the Group

Extension of intellectual property commercialisation agreement with The University of Manchester to 2019

IP commercialisation collaboration agreement signed with Princeton University

Portfolio highlights

Fair value of investment portfolio: £319.6m (HY13: £191.9m; FY13: £285.9m)

Value of ten largest holdings: £233.9m (HY13: £145.7m; FY13: £225.2m)

Investment in portfolio companies: £14.9m (HY13: £10.8m; FY13: £27.5m)

Portfolio realisations: £3.3m (HY13: £2.8m; FY13: £5.5m)

The Group's portfolio companies raised approximately £93m of new capital during the half year

Admission of Xeros Technology Group plc and Actual Experience plc to AIM

Post-period-end highlights

Oxford Nanopore Technologies Limited completes £35.0m financing, resulting in a £17.8m fair value uplift for the Group

IP Group leads £6.0m financing for Diurnal Limited to fund a Phase III clinical trial for its lead Chronocort programme

Retroscreen Virology Group plc and Ceres Power Holdings plc announce significant fundraisings of £33.6m and £20.0m respectively, with the Group contributing £4.0m to each

Admission of Medaphor Group plc to AIM

Commenting on the Group's half-yearly results, Alan Aubrey, Chief Executive of IP Group, said:

"I am pleased to be able to report another busy half that has seen the Group build on the considerable successes of 2013. In the first quarter, the Group completed a £100m equity capital raise and the acquisition of Fusion IP plc, a company with a highly complementary business and management team. The integration of our two businesses, including a more formal divisionalisation of our core team into sectoral units, is progressing successfully and in line with our anticipated timeframes. The Group extended its agreement with The University of Manchester, one of the UK's major research universities, to include graphene projects. The Group also agreed a pilot IP commercialisation collaboration with Princeton University, the Group's third such relationship in the US. A number of portfolio companies have recorded significant developments including positive Phase II clinical trial results for Diurnal and post-period-end fund raisings by Retroscreen, Ceres and Oxford Nanopore Technologies. These achievements, combined with the successful admission of three of our portfolio companies to AIM, an increased pipeline of opportunities, and a strong cash and financial position, provide us with a solid platform from which to continue to generate significant value for shareholders over the long-term."

Companies mentioned