The group further improved its access to intellectual property opportunities by acquiring a stake in Technikos, a specialist medical technology fund that has a long-term commercialisation agreement with Oxford University's Institute of Biomedical Engineering. Meanwhile, Oxford Nanopore, an Oxford University spin-out and now IP's most valuable investment, plans to launch products later this year that could transform human gene sequencing.
The net fair value of unquoted investment companies increased by £6.2m, but this gain was tempered by a £5.3m net decrease in value of companies quoted on the Alternative Investment Market or Plus Markets. These have recovered in value by £10m due to the sharp rebound in market optimism since the year-end.
|IP GROUP (IPO)|
|ORD PRICE:||114p||MARKET VALUE:||£416m|
|TOUCH:||113.5-114p||12-MONTH HIGH:||122p||LOW: 34p|
|DIVIDEND YIELD:||nil||PE RATIO:||na|
|NET ASSET VALUE:||61p||NET CASH:||£60.5m|
|Year to 31 Dec||Turnover (£m)||Pre-tax profit (£m)||Earnings per share (p)||Dividend per share (p)|
*Total portfolio return and revenue is negative
The shares have more than doubled since last summer and now trade at a significant premium to net asset value. However, the Oxford Nanopore investment has the potential to transform both the economics of DNA sequencing and IP's valuation, and analysts have set target prices of 129p to 160p. Speculative buy.
Last IC view: Good value, 45p, 31 Aug 2011