Developer of intellectual property-based businesses IP Group (IPO) said it achieved a 9% return on first-half net asset value to £1.44 billion and cash realisations of £111.4 million.
The shares dipped 0.2% to 123.8p, which represents an 8.6% discount to the 30 June net asset value per share of 135.4p.
The firm’s portfolio continued to mature, resulting in strong cash generation from realisations including £64.6 million from the acquisition of Inivata by NeoGenomics and £29.4 million from the first tranche of the consideration for WaveOptics which was purchased by Nasdaq listed Snap.
SUPPORTING THE PORTFOLIO
This has allowed the group to accelerate investment into the group’s top 20 focus holdings with £69.5 million invested in the half which already exceeds the £67.5 million made in 2020.
The group ended the period with net cash of £249.4 million, giving it flexibility to pay an interim dividend following 2020’s maiden pay-out and allocate £20 million to beginning a share buyback programme.
The company’s most valuable holding, Oxford Nanopore Technologies, announced it was preparing for a potential market listing in the second half.
Oxford Nanopore has developed a disruptive electronics-based technology which can rapidly sequence DNA/RNA providing real-time insights in a range of biological research applications.
The technology has been used for rapid sequencing of the Covid-19 in both local and national healthcare systems in more than 85 countries.
IP Group has a 14.5% holding which was valued at £359 million which represents around a quarter of net asset value.
CHINA VENTURE
The company said it has formed a joint venture with China Everbright in Hong Kong to launch a new fund in China aimed at providing capital to high growth companies wanting to establish a presence in China.
The board said it was ‘excited’ by the prospects for the second half and beyond. The maturity of the firm’s portfolio is expected to drive further financial success in coming years.
