I'm optimistic at the strong hints suggesting that disposals, so I guess chats, suggest offers for portfolio companies have been over the current valuations.Time will tell, let's hope so, be nice to see it above a £1 again. I bought some then haha. |
pink, I guess NAV will also have decreased due to disposals.
There's quite a bit of info to digest below the headlines. |
 FOR RELEASE ON
17 September 2024
("IP Group" or "the Group" or "the Company")
Half-yearly results
Good progress on exits with more in pipeline; encouraging developments in key portfolio companies, maintaining balance sheet strength remains a priority
IP Group plc (LSE: IPO), which invests in breakthrough science and innovation companies with the potential to create a better future for all, today announces its financial results for the six months ended 30 June 2024.
Good progress on exits with the pipeline of future cash realisations strong through to the end of 2025; the pipeline includes a number of transactions at an advanced stage of negotiation
- Agreed sale of Garrison Technology Ltd ("Garrison") to Everfox in the period; sale completed in August with £30m proceeds received.
- Cash proceeds(i) of £3.4m in the period with a further £41.2m already received (including Garrison) in the second half (HY23: £32.2m; FY23: £38.6m).
- Further exits expected including several at an advanced stage of negotiation and would be expected to take place at or above 2023 year end carrying values.
Encouraging developments within our maturing portfolio
- £380m of total capital raised by portfolio in the period (HY23: £299m; FY23: £667m).
- Healthier future (Life Sciences): Four companies reported positive clinical trial data; awaiting trial data readout from Istesso Phase 2b for Leramistat in rheumatoid arthritis; Mission and Enterprise closed significant investment rounds to fund the next stage of clinical development.
- Tech-enriched future (Deeptech): Agreed sale of Garrison to US-based cybersecurity firm Everfox for proceeds of £30m; continued strong revenue growth at Featurespace with FY23 revenues increasing 46.5% to £50.4m.
- Regenerative future (Cleantech): Hysata completed its oversubscribed $111m Series B funding round, the largest Series B in Australian cleantech history and which was reflected in our 2023 year end valuation. Refocussed plan at First Light Fusion with management team strengthened by addition of experienced Acting CEO. Record-breaking test of the company's amplifier technology at leading US fusion lab Sandia.
Focus on maintaining financial strength
- Maintained strong balance sheet and good liquidity with gross cash and deposits(i) of £161.3m (HY23: £250.0m; FY23: £226.9m).
- Net overheads(i) reduced by 16% (£1.6m) to £8.7m.
- Invested £49.1m into the portfolio across 23 companies within our three high-growth sectors.
- NAV per share(i) declined to 104.7p (-9%), driven primarily by a fair value decrease in the market value of listed holding Oxford Nanopore, some of which has reversed in the second half.
- Third party managed funds stood at £637m (HY23: £689m FY23: £650m), with more than £90m available for investment.
Delivering shareholder returns
- Completed £8.1m of the £20m share buyback launched in December 2023 in the period, with the remainder now complete as at the announcement date.
- Announced the intention to increase the Group's current share buyback programme by a further £10m. Future cash returns expected to be in the form of share buybacks when the share price discount to NAV exceeds 20%.
Post period-end update
- Additional cash proceeds of £41.2m since 30 June; gross cash and deposits of £183.7m as at end August 2024
- Fair value of the Group's holdings in listed companies experienced a net fair value increase of £52m in the period since 30 June, including ONT increasing by £43m
- More than £10m cash realised from the sale of other stakes in a small number of portfolio companies in July.
- Additional proceeds expected from the announced Intelligent Ultrasound Group plc's material disposal transaction
- Over £95m of total cash returned to shareholders through dividends and share buybacks since 2021
- We are now seeing strong signs of improvement in the private tech sector, reflected in a strong pipeline of exits and interest in our portfolio.
- Focus on costs has accelerated since the half-year, with a planned reduction in net overheads(i) of over 25% on an annualised basis by the year end.
- Hostplus committed an additional A$125m to the IP Group Hostplus Innovation fund, taking total funds committed to A$435m. |
Reads well, good to see overheads being addressed.
Sentiment needs to turn but that's a law unto itself.
Not bad at all, management appear to have a handle on it all.
Istesso is still a large unknown currently. |
HY statement. NAV most likely recouped the 9% so back towards 114p??
ONT certainly perked up since end of June.
"NAV per share(i) declined to 104.7p (-9%), driven primarily by a fair value decrease in the market value of listed holding Oxford Nanopore, some of which has reversed in the second half." |
Took profit on part of recent trading buy.
Gla |
Reminder
The Group intends to publish its results for the six months ended 30 June 2024 on Tuesday 17 September 2024 |
Stranger things have happened than potential for news on Featurespace + Istesso + early move on Ox Nano before Christmas. Unlikely but not impossible. A fair amount of potential. |
No news on Featurespace/VISA yet.
Let's hope no news is good news.
In the case of Istesso, the connection with Hambro was squashed within a few days of the "advanced talks" story emerging. |
Last Friday, 6 September 2024 the total number of ordinary shares with voting rights dropped below 1,000,000,000 [to 999,655,631] for the first time since the buyback started. If nothing else, this milestone makes the Mcap nice and easy to calculate. |
Wasn't that close in the end. |
Just need the Itesso results to be OK! |
survived by the skin of our teeth |
Also looks like IPO will survive the FTSE 250 reshuffle today. Fingers crossed... |
ONT results have been well received ,revenue to grow by more than 30% CAGR thats a decent growth rate out to 2027 . |
Following the ONT results to 30/6/2024, there is the US version of London Calling in Boston, Monday 16th - Tuesday 17 September 2024
It's thought that there will be more info presented on the clinical uses for ONT that are coming to the market over the next year, both directly and via various partners.
A month later on the 5th October 2024, the management anti-takeoevr shares will expire, leaving the co open to possible takeover activity and inclusion in various indices/tracker funds etc. |
Tuesday 3rd Sept ONT report. |
lets hope featurespace lawyers are burning the midnight oil this weekend. |
Share buybacks are handled by a broker based on defined rules, which are usually designed to ensure that the company doesn't bid up its own share price. (which, among other reasons, could be taken advantage of by hedge funds)
If the share buyback amounts have spiked lately, I would guess that this is due to increased selling due to funds getting ahead of the upcoming FTSE250 relegation. |
Another notable spike.
In the last two months the daily levels of buy backs as a percentage of volume has increased. Recently hit 25% of the days volume. Early in this buy back it was as low as 5% IPO clearly feel more strongly about the value down here! Or are they seeing nice realisations in the near future? |
Chrysalis certainly seems to have spiked on the Featurespace rumours. Probably CHRY is better covered than IPO - with a much clearer distribution policy for funds from realisations.
Topped up IPO today, hoping to see at least a 10-20% jump in IPO if the sale to Visa happens and management says sensible things about the proceeds... |
well i guess the market needs to see the marriage confirmed first. |
Yes a pretty unique situation here. Large discount to NAV, large buyback in operation and expected sale of one of the larger assets at double NAV. Doesn't get much better. |
edward, thanks for info. I didn't realise it had been confirmed. |
We have been kicked out of ftse 250 which means trackers thereof have to sell |
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