Financial and operational highlights
• Net assets increased to £173.1m (2009: £171.0m)
• Profit after tax of £1.8m (2009: £6.1m loss)
• Net cash and deposits at 31 December 2010: £21.5m (2009: £28.1m) and zero borrowings
• Investment in portfolio companies increased to: £6.9m (2009: £5.7m)
• Realisations from portfolio companies increased to: £2.7m (2009: £0.5m)
• Revenue from services increased to £2.2m (2009: £1.5m)
• Successful launch of £25m North East Technology Fund managed by the Group in January 2010
Portfolio highlights
• Fair value of investment portfolio increased to £110.0m (2009: £101.3m)
• Value of ten largest holdings increased to £81.3m (2009: £72.9m), representing 74% of the portfolio (2009: 72%)
• 5 new seed-stage spin-out companies, including the Group’s first from the University of Cambridge (2009: 2 seed companies)
• Over £40m of capital raised by portfolio companies during the year, of which over £28m was raised in private financing rounds
• Tissue Regenix Group plc and Ilika plc successfully achieve listings on AIM, raising £4.5m and £5.2m respectively
• Oxford Nanopore Technologies completes £17.4m financing in 2010 and announces preliminary details of its prototype GridION DNA sequencing platform
• Revolymer Limited announces the US launch of its Rev7TM removable and degradable chewing gum
Commenting on the Group’s annual results, 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.
The UK continues to produce a wealth of world class intellectual property from its universities, much of which we are helping to commercialise. Never before has this innovation been so important to the UK economy. IP Group intends to play an increasingly central role in helping leading innovation reach the market for the benefit of shareholders and all other stakeholders in UK science.”
For more information, please contact:
IP Group plc Alan Aubrey, Chief Executive Officer Mike Townend, Director of Capital Markets Greg Smith, Group Financial Controller 020 7444 0050 020 7444 0050 020 7444 0050
Further information on IP Group is available on our website: www.ipgroupplc.com
Financial Dynamics Ben Atwell, John Dineen 020 7831 3113
Notes
(i) Nature of announcement This Annual Results Release was approved by the directors on 28 February 2011.
The financial information set out in these preliminary results does not constitute the company's statutory accounts for 2010 or 2009. Statutory accounts for the years ended 31 December 2010 and 31 December 2009 have been reported on by the Independent Auditor. The Independent Auditor’s Reports on the Annual Report and Financial Statements for 2010 and 2009 were unqualified, did not draw attention to any matters by way of emphasis, and did not contain a statement under 498(2) or 498(3) of the Companies Act 2006. Statutory accounts for the year ended 31 December 2009 have been filed with the Registrar of Companies. The statutory accounts for the year ended 31 December 2010 will be delivered to the Registrar following the Company's annual general meeting.
The 2010 Annual Report and Accounts will be published in March 2011 and a copy will be posted on the Group's website (www.ipggroupplc.com). A copy will also be lodged with the UK Listing Authority's Document Viewing Facility which is situated at: Financial Services Authority, 25 The North Colonnade, Canary Wharf, London E14 5HS.
(ii) Forward looking statements This Annual Results Release may contain forward looking statements. These statements reflect the Board’s current view, are subject to a number of material risks and uncertainties and could change in the future. Factors which could cause or contribute to such changes include, but are not limited to, the general economic climate and market conditions, as well as specific factors relating to the financial or commercial prospects or performance of individual portfolio companies within the Group’s portfolio of investments.
Juliet Edwards Assistant Financial Dynamics Holborn Gate, 26 Southampton Buildings London, WC2A 1PB D +44 (0)20 7269 7125
www.fd.com
