Find out soon enough. The fall from June onwards was precipitous and timing........ If it does get hit it will be interesting to see the volume. A £50M hit to NAV, if that's worse case, approx 5% of the £1Bn. Seeing through that needn't be a massive issue.
I'm more positive now than for ages simply because I think they are doing the right things.
£10M extra for the buy back is measured and could be increased. Where else could a 50% (approx) discount be bought?
No doubt some volatility and turbulence. |
Hard to quantify, the actual discount applied to Istesso within current share price.But everyone knows it's very high risk and given the delay, this level only increases.So i wouldn't be surprised to see mixed results. But who knows. |
I don't need the capitals thanks. If you think a £50m hit to the NAV has been factored into the share price, we can agree to disagree. Good news and I'm all in as plenty to like about quite a few of the others as well. Featurespace settles early and it might given the number of company house filings tidying up the capital structure and I may buy a bit more. But in the back of my mind they have only allocated £10m more for the buyback, that is £10m more to reach target discount to NAV. |
Might the fall from June 2024 until recently be the pricing in of the Istesso risk? |
Have you considered the Istesso risk might already (edit) be in the price and should it come out less than catastrophic the price might rise? |
Istesso is the value risk as I see it. Just when they were due to report the phase 2 they launched a phase 1 pharmacokinetics trial with Leramistat. That is due to complete at the end of September, when maybe they will report one in the context of the outcome of the other. If not for this I would have doubled up rather than sell half.https://clinicaltrials.gov/study/NCT06379958?intr=Leramistat&rank=1 |
Edit.
It's improving.
I've been no fan of this management but I now think the message has landed. Will be very happy to change my opinion of them. A little more time needed.
They appear to be doing the right things. |
ONT up 7%, a fair to good half year report, but after the presentation snooze fest, the stock is unchanged to down.
Any doubt it's the management who need to pick up their game? |
They want to continue buybacks until allocated buyback cash is used or discount to NAV is closed to 20%.
The way ONT is recovering they'll need to allocate more money. |
palisz/pink, of course. Thanks for info on NAV.
I got my terminology mixed up.
Accounts are not a strong area for me. |
bb2, they appear to be doing the right sort of things.
There is hope! |
Yes palisz nav includes cash.
If holding is conservatively valued on balance sheet then disposal can be above nav for that holding and ipo nav INCREASE on conversion to cash. |
My understanding is the portfolio NAV includes cash.
So a disposal of a particular investments would not affect the NAV
Securities go down and cash goes up. Net net no impact. |
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! |
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