There has been a revival of activity on the Alternative Investment Market (Aim), too. So there was a £17.4m fund-raising for Oxford Nanopore, which puts the value of IP's 24.6 per cent stake at £25.6m and delivered a £2.2m fair value gain. In addition, two of the companies in IP's stable gained listings - Tissue Regenix and Ilika. These are the first since 2007, although the price that the latter achieved resulted in a £2m loss. Even so, unrealised losses on investment valuations dropped from £12.4m to £10.6m. What's more, IP has stepped up its investments in new projects in the period - to 17 against 20 for the whole of last year; an outlay of £3.1m against £1.6m in last year's first half.
Broker KBC Peel Hunt expects a full-year adjusted pre-tax profit of £2.5m, giving adjusted EPS of 2p (from a £6.5m loss and a loss per share of 24p in 2009).
|IP GROUP (IPO)|
|ORD PRICE:||33p||MARKET VALUE:||£84.4m|
|TOUCH:||32-33p||12-MONTH HIGH:||62p||LOW: 27p|
|DIVIDEND YIELD:||nil||PE RATIO:||na|
|NET ASSET VALUE:||65p||NET CASH:||£23.9m|
|Half-year to 30 Jun||Turnover (£m)*||Pre-tax profit (£m)||Earnings per share (p)||Dividend per share (p)|
*The change in fair value of equity and debt investments is negative, hence no turnover line
Strip out the cash, worth 9p a share, and the shares trade at a hefty 55 per cent discount to IP's tangible net asset value of 53p a share. But given the long lead times in bringing IP's investments to market, and until there's a marked revival in IPO activity - especially on Aim - a catalyst for a near-term re-rating is hard to spot. Fairly priced.
Last IC view: Fairly priced, 41p, 21 Aug 2010